Sodra warns these employees: if you do this, both you and your employer will suffer
The Lithuanian social security institution Sodra has highlighted the importance of timely reporting employee registrations to avoid penalties for both employees and employers.
Sodra, Lithuania's social security institution, has issued a warning to employees and employers regarding the critical need for timely reporting of employee registrations. It is mandatory for employers to submit the 1-SD notification, which indicates the start of social insurance for new employees, at least one working day before the employee's official start date. Failure to comply can lead to severe consequences for both parties involved, thus emphasizing the importance of adherence to this regulation.
An analysis conducted by TBC specialists revealed that 450 companies were consistently late in reporting such notifications, and this trend raised concerns regarding potential violations of the labor laws. The delays often stem from careless accounting practices and inadequate record-keeping of personnel documents. There are instances of willful misconduct where employees begin work without official registration, and employers subsequently backdate the employment registration to avoid penalties.
Sodra also stresses that simply providing the notification on time is not enough; employers must ensure that the submitted information is accurate. Mistakes such as incorrect names or other details may lead to the rejection of the notification, causing further complications. This alert serves as a significant reminder to both employees and employers about their responsibilities in the employment process and the risks associated with non-compliance.