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A fine of one thousand to five thousand euros for the owner who renovates the house with a violating company

A fine of one thousand to five thousand euros for the owner who renovates the house with a violating company

A crackdown on illegal work in building renovations is coming. In private contracts, before paying the final balance, the total limit of the amount is reduced – from 500 thousand to 70 thousand euros – to check adequacy, in the absence of which a fine of 1 thousand to 5 thousand euros will be paid by the employer. The client, and thus the homeowner turned to the construction company.

Fine for the customer who does not check

As a result of the innovation contained in the cohesion decree approved by the government last April 30, in order not to be subjected to an administrative penalty, the customer must obtain from the construction company a certificate indicating the adequacy of the labor cost. Also, the cost of construction interventions amounts to 70 thousand euros, which is the minimum that expires. Eventually renovated many homes. It follows from all of this that since the Cohesion Law Decree entered into force, the client must verify the regularity of the company or settle its illegal situations before paying the final balance of the works, under penalty of applying a fine.

However, we have to take a step back and remember that Ministry of Labor Resolution No. Law No. 143 of 2021 had set the obligation to verify adequacy for private construction works starting at 70,000 euros. Then, when Decree Pnrr (Law No. 56 of 2024) was converted into law, an administrative fine of 1,000 to 5,000 euros was introduced to be paid by the client if the Payment of the final balance in the absence of a positive result of verification or prior settlement of the situation by the company in charge of the works. Therefore, under Article 28 of the Cohesion Decree, the minimum for a declaration of conformity verification leading to a fine is in line with 70 thousand euros.

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Impact on small public procurement

Moreover, the same decree, in effect, provides for a double campaign against irregular work in construction. The client in private works as well as the person responsible for the procedure (Rup) in public contracts have to check the adequacy of the workforce’s influence on the public work. Sanctions extend to small construction sites also in the field of public procurement. The absence of a “adequacy” certificate in public procurement so far as a result of the Legislative Decree Pnrr has led to the penalty being activated only for amounts starting from 150 thousand euros, but with the Legislative Decree of Cohesion this threshold has been abolished. The result of all this is that in the field of public procurement, without prejudice to the files of management accounting responsibility, the final balance is paid by the project manager in the absence of a positive result of verification or prior settlement of the situation before the company to which the work is entrusted is taken into account by the entity. contracting for the purposes of evaluating its performance. Verification of the violation is sent to Anac, the national anti-corruption body, with consequences for the qualification of the contracting authorities.

Criminal penalties in case of irregular employment

With the Pnrr Decree, which turned into Law 56 of 2024, penalties were reviewed and criminal cases were returned. The decree increases by 10% (to 30%) the amount of the financial penalty expected in the event of actual employment of subordinate workers without prior notification of the establishment of the employment relationship by the private employer. It ranges from 1,950 to 11,700 euros per casual worker, in case the worker is employed for up to thirty days of actual work; From 3,900 to 23,400 euros for periods from 31 to 60 days; It rises from €7,800 to €46,800 upon exceeding 60 days of actual work. Not only. For the abusive exercise of labor supply activity, the penalty is imprisonment for up to one month (previously not foreseen) or a fine of 60 euros per worker employed and per working day (previously 50 euros). In case of arbitrary exercise of mediation, research and personnel selection activity, arrest for up to three months or a fine ranging from 900 to 4,500 euros is imposed.

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