One of the most common problems between employers and employees in the private sector is working without social insurance or having insurance registered but the premiums not paid correctly. In such cases, uninsured workers or those whose premiums were not paid have certain rights they can pursue.
What Uninsured Workers Can Do
Under the applicable Labor Law, employing uninsured workers is prohibited and subject to administrative sanctions. Despite this, especially since the 2020 pandemic and related economic difficulties, an estimated several million people have been employed without proper insurance. The number of uninsured workers tends to rise as workplaces shrink. Nevertheless, the law views this as a violation and foresees significant penalties for employers.
Employers are required to register employees for social insurance from their first day of work. If the employer delays registration for a few days and later registers the employee, they may still face sanctions. Therefore, employees should verify their insurance status before starting work. Uninsured employment can generally be divided into two main types. The first is when insurance is not provided during the period of actual work. In this case, the worker should apply to the provincial Social Security Institution (SGK) office where they work. The application must be made in writing and include evidence that the employee worked without insurance.
SGK Opens an Investigation
When an uninsured worker files a complaint with SGK, the institution launches an investigation into the workplace. Inspections had been paused during the coronavirus pandemic, but SGK has announced that inspections resumed recently. After an application is submitted, SGK inspectors assigned to the case will visit the workplace to conduct an inquiry. If the claimant is currently working at the site, establishing the claim becomes easier. If the person has been working uninsured for an extended period, inspectors will consider coworkers’ statements and other evidence to determine that social insurance should have been registered from the start date of employment. During such inspections, findings are not limited to the applicant alone; if other uninsured workers are identified, actions will be taken regarding them as well.
Rights of the Uninsured Worker
Another scenario involves workers who were uninsured during employment but left the job and later seek to claim their insurance rights. In these cases, a former employee may request recognition of their rights within five years of leaving the workplace, but this requires filing a service determination lawsuit. That process can be complex. SGK inspectors first review workplace records—such as payroll documents and entry and exit records—to determine the periods the person worked according to documentation.
If no payments to the worker were made through bank transfers and wages were paid in cash, proving employment becomes more difficult. In such circumstances, inspectors cannot rely solely on coworkers’ testimonies to reach a decision: a simple complaint alone does not automatically trigger retroactive insurance. A service determination lawsuit is necessary to secure a decision. To initiate that lawsuit, the former worker must first submit a written notification to SGK detailing the dates they worked without insurance. SGK then has 60 days to start its examination and decide. If the investigation concludes that the person did indeed work at the workplace, retroactive insurance registration may be implemented. If SGK investigators cannot find supporting evidence during their review, the claimant must turn to the Labor Court and file a lawsuit, presenting relevant documents and witness testimony demonstrating that they worked at the employer, that insurance premiums were not paid, and that no social insurance registration was made.