What is the penalty for undeclared work?
From January 2026, considerably more than before. The labour inspectorate imposes a fine of €4,000 to €200,000 on an employer for breaching the ban on illegal employment. Where two or more people are illegally employed at once, the floor is at least €8,000. The tightening is real: until the end of 2025 fines started at €2,000 — from 1 January 2026 that has doubled. A discount for prompt payment has also been introduced: pay two-thirds of the sum imposed within 15 days of the decision becoming final and the fine is treated as paid in full. The definition of dependent work also changes from January 2026.
📋 The rules
- A fine of €4,000 to €200,000
- For two or more people: at least €8,000
- It used to start at €2,000 — now double
- Pay two-thirds within 15 days = paid in full
- From 1 Jan 2026, a new definition of dependent work
🔓 Exceptions
- Inspections are carried out by the labour inspectorate, which may enter the workplace
- The person who took the work illegally can also be penalised
- Undeclared work also has consequences in social and health insurance
⚠️ Penalties & fines
The fine is not the only cost. An employee who worked off the books accrues no period of pension insurance, has no entitlement to sick pay, unemployment benefit or severance — and after a workplace accident stands essentially unprotected. The employer, besides the fine, faces back payment of contributions and tax, with penalties on top. The new definition of dependent work from January 2026 targets exactly the disguised relationship — where someone in reality works as an employee but invoices as a sole trader. If someone is employing you without a contract, go to the labour inspectorate; a complaint can be filed anonymously.
📎 Official sources
- National Labour Inspectorate · Sanctions from 1 Jan 2026 →
- Slov-Lex · Illegal Work Act (82/2005) →
- Ministry of Labour · Inspections and fines →
❓ Frequently asked
What is the fine from 2026?
The labour inspectorate imposes €4,000 to €200,000. Where an employer illegally employs two or more people at once, the floor rises to at least €8,000. Until the end of 2025 fines started at €2,000.
Can the fine be reduced?
Yes, under a new rule. If two-thirds of the sum imposed reaches the stated account within 15 days of the decision becoming final, the fine counts as paid in full. The remaining third is not pursued.
What does the employee lose?
They accrue no pension insurance period and have no claim to sick pay, unemployment benefit or severance. After a workplace accident they are essentially unprotected — which usually costs them more than any fine.
What is disguised dependent work?
Where a person in reality works as an employee — with a manager, set hours and a workplace — but formally invoices as a sole trader. The new definition of dependent work from January 2026 is aimed squarely at these cases.
Where do I complain?
To the competent labour inspectorate, which has a right of entry to the workplace and inspects both on its own initiative and on complaint. A complaint can be made anonymously, which protects the person who raised it.
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