The National Tax and Customs Administration (NAV) inspectors uncovered serious employment-related violations at a company providing event security services. None of the security guards working at a university event had been officially registered, meaning the company could face a substantial fine over the violations.
NAV inspectors carried out an inspection at a university event, where 16 security guards were working, but none of them had been officially registered as employees. All of them were working in violation of employment regulations at the event. As a result of the violations, the company is expected to face a fine of more than HUF 10 million.
It is important that employees be registered with NAV before they start work. Registration cannot be completed retroactively: for example, registering workers after a NAV inspection has already begun does not make up for the missed administrative requirement and does not exempt the employer from sanctions.
At the same time, lawful employment is not merely an administrative matter. It is also fundamental to ensuring the payment of public contributions, protecting employees’ rights and social security, and maintaining fair conditions of competition.
