The responsibility for compelling individuals to perform any work without the legal force of an employment contract in accordance with the Labor Code is addressed in several legislative acts.
According to Article 58.10 of the Tax Code, for creating conditions that lead to the concealment (reduction) of income by compelling individuals to perform work without the legal force of an employment contract, the employer is subject to financial penalties. If this happens for the first time within a calendar year, a penalty of 2,000 manats is applied; for the second occurrence, a penalty of 4,000 manats; and for the third and subsequent occurrences, a financial penalty of 6,000 manats is imposed.
In accordance with Article 192 of the Administrative Offenses Code, for compelling individuals to perform any work (services) without the legal force of an employment contract as stipulated in the Labor Code, individuals may be fined from 1,000 to 2,000 manats, officials from 3,000 to 5,000 manats, and legal entities from 20,000 to 25,000 manats.
According to Article 162 of the Criminal Code, for compelling workers to perform any work (services) without the legal force of an employment contract as stipulated in the Labor Code, and if this leads to the engagement of a significant number of workers (10 or more), a penalty ranging from 7,000 to 10,000 manats or corrective labor for up to two years or restriction of freedom for up to two years or imprisonment for up to two years may be imposed. In case of repeated offenses, restriction of freedom for up to three years or deprivation of liberty for a period ranging from three to seven years may be applied.
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