344 / 521
If an objection is not made to the report within 6 working days or
the court approves the proof of collusion, the registration of the estab-
lishment shall be cancelled by the district office and the subcontrac-
tor’s employees shall be deemed to be the principle employer’s
employees.
Where the labor inspector determines the presence of a collusive
transaction, if the objection period ends or the court approves the proof
of collusion, administrative fines shall be applied to the principle
employer and the subcontractor or their representatives.
Conclusion
Collusion in Subcontracting Agreements is defined by Article 3 of
the Subcontracting Regulation (“Regulation No. 27010”). If proven
that the documents submitted to the district office are deemed to be
illegal or that there is collusion, then, these documents shall be sub-
mitted to the competent authorities.
The justified inspection report regarding the proof of collusion as
a result of the examination shall be notified to the employers by the
district office. An objection can be made by the employers to the autho-
rized labor courts within 6 working days beginning from the date of
notification.
Where the labor inspector determines the presence of a collusive
transaction, if the objection period ends or the court approves the col-
lusion, administrative fines shall be applied to the principle employer
and the subcontractor, or their representatives.
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NEWSLETTER 2014