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BizProtect’s Alert - A Basis for Penalty for Unregistered Employees of “Alex Textile” LLC

A report against "Alex Textile" LLC was received through the BizProtect website which read:

"In connection with the opening of the new “MegaMall”, the employees of the Alex Textile LLC store (sellers, managers) have to carry out construction work until late at night. No one dares to challenge and come out against.”         

The expert team of BizProtect sent a letter to the chairman of the State Revenue Committee David Ananyan, asking him to present clarifications on the issue raised.  

The reply from the State Revenue Committee said that according to the agreement of the Head of the Tax Inspectorate Department of Small Taxpayers of the RA State Revenue Committee, a verification of the recruitment of an employee in accordance with the legislation and the accuracy of submitting a registration application for the employee was conducted at the "Alex Retail Company" LLC. As a result, 5 unregistered employees were recorded and a fine of 1,250,000 drams was imposed.

However, the State Revenue Committee also informed that during the inspection, the company's employees stated in writing that in case of overtime work, they receive the appropriate remuneration. 

It is worth to note that a systemic solution to the problem is being provided as well: the State Revenue Committee is working on a draft amendment to the RA Government's Resolution 1214, on conducting comprehencive inspections, which will enable the SRC to have an opportunity to reveal the facts of making employees work at night hours.

The BizProtect.am website operated by the Armenian Lawyers’ Association (ALA) is a whistleblowing platform targeted at corruption and any other issues, risks and issues that impede business activity. This site also provides opportunity for anonymous alerts. Appropriate steps are being taken to verify the authenticity of these reports and provide solutions.

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