Many workers in our country are employed under employers. Employers have responsibilities such as assuming liability for these workers and paying their social security premiums. One important obligation is reporting employees to the relevant authorities. Employee notification is important, and the question of how much the penalty for failing to notify an employee is often arises.
Before starting work, employees meet their employer and, after necessary acceptances and agreements, sign an employment contract. At that time, the employer must notify the state of the employee’s social security registration.
Employers are required to submit the employment entry notifications of the insured workers they hire to the designated institutions, primarily the Social Security Institution, within the legally specified period. These notifications and the necessary documents can be submitted online, electronically, or through similar channels. If employers fail to notify their employees to the institution within the prescribed legal period, they must pay an administrative fine equal to the minimum wage for each insured worker.
Employers who wish to avoid paying administrative fines must submit employee notifications within the legal deadlines. In some cases, the administrative fine imposed on employers increases to twice the minimum wage. These situations include:
- If it is determined by court decisions, institutional inspection, or subsequent controls that the insured person’s employment entry form was not submitted.
- If it is established through information obtained from banks, revolving fund institutions, public administrations, or other statutory institutions that the insured person’s employment entry form was not submitted, the employer must pay an administrative fine equal to twice the minimum wage for each insured worker.
In the situations described above, the employer is fined twice the minimum wage. If an employer has previously failed to notify employees and repeats the failure within one year, those responsible for submitting the notification are fined five times the minimum wage for each insured worker. Employers who want to avoid such consequences should closely follow the applicable laws and regulations.
In some cases, a reduced administrative fine equal to one quarter of the minimum wage may be applied. This reduction applies in cases other than those that arise from court decisions or investigations carried out by officials authorized to inspect and control in accordance with legislation, or documents obtained from public administrations. If the employment entry notification and the general health insurance registration are not submitted within the statutory period but are later provided within 30 days, and if the fines are paid within 15 days from the date of notification, the fine amount is set at one quarter of the minimum wage.
As noted, employers must take employee notification obligations seriously. Otherwise, administrative fines that exceed the minimum wage may be imposed. Employers who want to avoid penalties for failing to notify employees should monitor the legal deadlines for submitting those notifications.
There are also certain circumstances in which no penalty is applied for late submission of the employment entry form. These situations include:
- The workplace where the employees work is relocated or transferred to another unit within the same province.
- An insured worker for whom the employer has already submitted the employment entry form is assigned by the same employer to work at another workplace while the employment contract continues.
- A person receiving an old-age pension who changes the nature of their insured status without changing workplaces—in other words, changes the method of premium payment—will not be subject to an administrative fine for late notification.
Employers should remain vigilant about employee notification requirements to avoid fines and ensure compliance with the law.