Švarc System: Fines from the Labor Inspectorate Are Not the Main Problem

When people hear the term “Švarc system,” most business owners immediately think of the labor inspectorate. However, fines imposed by the labor inspectorate are capped at 200,000 euros, and in practice, such amounts are rarely imposed.

In my blog, I discussed the topic of penalties for the “Švarc” system, as well as when a seller at Eurovea can be considered a contractor.

I understand that we won’t see any systemic reforms in this area anytime soon, but entrepreneurs today need predictability. And that’s why we’re trying to make do with what we have.

Highgate Group