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Business Duty Officer

Whitewashing the economy and "deviators"

Whitewashing the economy and "deviators"

The Government of the Russian Federation is currently discussing the burning issue of shadow employment and wages in envelopes in recent years. Last week, at a strategic session in the federal administration, the issue of reducing the level of shadow employment was raised., RBC writes. In particular, officials of various government structures are discussing the issue of introducing the necessary additional measures to resolve this issue. This topic commented ambassador “business officer”, Head of the Expert Center for Criminal Law Policy and Enforcement of Judicial Acts, RANEPA Associate Professor Ekaterina Avdeeva.

– Comprehensively supporting the policy of whitewashing the economy and, in particular, citizens' income, should be determined, primarily, what pushes entrepreneurs to pay wages in envelopes. Dealing with root causes and incentivizing conscientious employers should complement a tough regulatory policy to eliminate “deviators”.

It is important to understand, that "gray" wages create prerequisites for unfair tax and labor competition, affecting the interests of economic and fiscal policy. Besides, shadow incomes directly affect the level of insurance and the employee, and the employer in the prism of labor relations.

Motivates to unfair actions legislative preferences in relation to the employee. However, small company employers often lack legal support and are even more vulnerable to labor laws.. It's about, for example, about the specific nature of the relationship with the employee, the procedure for dismissal in connection with the malicious sabotage of discipline and labor duties by the employee, which requires appropriate procedural action, protection of their rights in case of initiation of legal proceedings by an unscrupulous employee, moreover, in the case of going to court, the employee can most often count on the adoption of his position by the court.

Financial and legal immaturity of companies may become another obstacle to speeding up the exit from the shadow, especially in the micro business and SME segment, in terms of obtaining a stable income, necessary for the timely payment of wages. In the context of geopolitical and economic instability, a start-up business shows great caution and prudence, however, it needs additional incentives and guarantees to carry out entrepreneurial activities strictly within the legal framework.

Thus, reducing the level of shadow employment will contribute to, one side, development of legal awareness as an employer, which is especially important for start-up businesses, as well as the employee. On the other hand, a set of measures to stimulate the integrity of both sides of labor relations is important, as well as in-depth analysis and study of the root causes of illegal behavior.

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