In the 6th and 7th issue of 2022 of economic magazine Raamatupidamisuudised an article “Fixing the employment chain and time – why and how?” written by Jaak Siim, a partner at Cuesta Law Office, will be published in two parts.
The amendments to the Taxation Act, which will enter into force on October 1, 2023, will create a legal basis for determining the employment chain on construction sites and the time spent by employees at the workplace, in order to reduce tax risks in the construction sector, to enhance the state supervision over the common use of foreign labour in the mentioned sector, and at the same time to control the provision of work environment requirements in order to reduce work accidents. With the provisions added to the law and the amendment of the norms already included in the law, mandatory reporting is established for companies operating in the construction sector, but the data exchange channel developed by the Tax and Customs Board can be used in the future by any company, if desired and in cooperation with the tax authority, as a means of recording the working hours of employees in their business, in order to ensure the fulfillment of the obligation to keep working time records resulting from the Employment Contracts Act.
Which obligations are imposed on construction companies, including the main contractor, and how the fixing of the contract chain and working hours will technically look like with the amendment of the law, is possible to read in the article.