Each year, the Labour Inspectorate uncovers tens of thousands of breaches among self-employed professionals and small businesses. In most cases, these are avoidable mistakes that lead to significant financial consequences: according to the latest available report, the average fine exceeds €4,100 per business. That’s why it’s essential to take a closer look at the most common law breaches in 2025.
In that regard, and judging by the figures from previous years, the trend continues to rise—both in the number of inspections carried out and in the average amount of the penalties imposed. A lack of internal control remains one of the main risk factors for those managing teams without the support of specialised technical guidance.
That’s why we’re analysing the most common breaches—so you can avoid them in time and protect your business.
Lack of an occupational risk prevention plan
Do you have employees? Then you need a risk prevention plan—it’s as simple as that. The law requires businesses to assess the occupational risks of each role, provide adequate training, and supply workers with the necessary protective equipment. Nevertheless, many small businesses still fail to meet this basic obligation.
The most frequent breaches in this area involve the absence of a risk assessment plan, failure to supply the proper protective equipment, or not providing the legally required training on risk prevention.
What are the consequences?
The Labour Inspectorate can intervene even if no accident has occurred. If an accident does take place, in addition to a fine, the business may be required to pay an extra 30% to 50% of the employee’s temporary incapacity benefit.
Non-compliance with working time records and overtime pay
Since 2019, keeping daily records of employees’ working hours has been mandatory for all staff, whether full-time or part-time. This obligation has become even more stringent with the new legislation on digital time tracking. Yet, some of the most common errors persist:
- Failing to record working hours on a daily basis.
- Completing records retrospectively.
- Not monitoring hours for part-time employees (which may lead to their contracts being presumed full-time).
In addition, the Inspectorate penalises other wage-related breaches—such as failing to pay overtime, paying below the applicable collective agreement, or making cash payments exceeding €1,000. It’s important to note that any amount above this threshold must be paid via bank transfer.
Irregularities in Social Security contributions and registration
Issues relating to Social Security account for nearly half of all fines imposed by the Inspectorate. The most common irregularities include:
- False part-time work claims: employees working 8 hours but only contributing for 4.
- Failure to register employees or late registration.
- Underpayment of contributions or using lower contribution bases than required.
- Receiving incompatible benefits while earning a salary (such as unemployment or temporary incapacity benefits).
A frequent form of fraud is “creating entitlement to benefits,” which involves hiring someone briefly just so they can access unemployment payments—without any genuine work activity taking place. This type of conduct can result in serious penalties, and even criminal liability.
What are the legal consequences of these breaches?
Fines are not the only risk. An unfavourable inspection outcome may lead to:
- Payment of back wages or unpaid contributions.
- Surcharges on benefits paid out by Social Security.
- Forced conversion of part-time contracts to full-time contracts.
- Reputational damage and loss of trust among staff or clients.
In the most serious cases, criminal proceedings may be brought for Social Security fraud.
How can you avoid penalties?
Prevention and compliance are key. At LEIALTA, we recommend that all our clients:
- Draft and regularly update a workplace risk prevention plan.
- Implement a reliable, accessible system for daily time tracking.
- Review payroll, contributions, and contract terms on a regular basis.
- Work with a specialist labour advisor to ensure full legal compliance.
At LEIALTA, our labour advisory team supports freelancers and small businesses in all key areas to help them avoid penalties and build a safe, legally compliant workplace. We make sure every business understands its obligations, regardless of its size or structure. Don’t hesitate to get in touch with us to learn more about the most common labour law breaches in 2025 — and how to avoid them.
Avoid unnecessary surprises and ensure your business enjoys legal peace of mind. Contact our team—we’re here to answer any questions you may have.
