Changes in sanctions for enabling performance of illegal work

On 9 September 2014, the Constitutional court issued an interesting decision (Pl. ÚS 52/13) concerning Sec 140 Subsec. 4 letter f) of the Act on Employment (Act No. 435/2004 Coll.). According to this provision a fine from at least CZK 250,000 up to CZK 10,000,000 can be imposed for an administrative offence enabling performance of illegal work.

The Constitutional court decided that the part of this statutory provision stating that a fine of “at least CZK 250,000” shall be imposed, is contrary to the Charter of Fundamental Rights and Basic Freedoms and the Additional Protocol to The Convention for the Protection of Human Rights and Fundamental Freedoms and thus shall be cancelled with effect as of 20 October 2014.

The reason for this decision is that the determination of the minimum fine prevents a proper individualization of each case, because the amount of CZK 250,000 prevents the administrative authorities from taking into account the specific circumstances of each case, the specific life situation of each offender as well as his/her financial situation. Such amount of fine can significantly influence the financial situation of the relevant offender, in some cases may even have a liquidating effect.

During the proceedings before the Constitutional court an amendment to the Act on Employment was adopted. According to this amendment the amount of CZK 250,000 was replaced with an amount of CZK 50,000. The Constitutional court stated to this that from the day of legal effectiveness of its decision until the effective date of the amendment (1 January 2015), or until another change of the relevant statutory provision, there will be no minimum amount of the fine.