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The first exemption related to the workshop exemption law

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Exemption of workshops

What do you know about the exemption law for workshops with less than 5 people? What is the workshop exemption law? This law was approved for the first time in 1361 AH in connection with workshops that have technical and industrial production activities.

What is the exemption law for workshops with less than 5 people?

“According to the workshop exemption law, production workshops that have up to 5 workers or personnel are subject to the workshop exemption law or insurance exemption. As a result, the workshops in question are exempted from paying insurance premiums.

According to Article 2 of the amendment of the Social Security Law, which was approved in 2017, all workshops, including industrial and technical workshops that have up to five workers, are covered by this law.

Here, there is no need to verify the examples completely whether the workshop in question is among the verified examples or not.

According to the workshop exemption law that was approved in 2017, all technical, production and industrial workshops with less than five employees are exempt from paying insurance premiums. This second exemption right is based on Article 42 of the Third Development Plan.

This law was implemented in Article 103 of the Law of the Fourth Development Plan and has been valid until 2018. But after that, with the approval of the law of the 5th development plan, this law was changed to some extent.

Employment procedures in social security

According to the work process of the Social Security Organization, the implementation of the workshop exemption law is applicable even to newly hired people, and these people are also subject to exemption. According to Article 103 of the Fourth Plan, this law was required to be implemented until 2013. Unanimity vote No. 823 to 829 of the General Board in 2005 is also a proof of this.

The only vague point of the workshop exemption law is credit provision. The implementation of this clause is mandatory; But here it is not clear from whom the financing should be done. Is it the responsibility of the government to provide the desired credit or should the social security take over this matter?

In the case of the employer’s exemption, there is the question of what it means for an employer who works in the private sector to provide credit when he hires a person.

Is the government obliged to provide credit and pay the worker’s insurance premium?

Here the law has behaved ambiguously. In fact, not paying attention to this issue causes the question whether the existing condition negates or is negative. As a result, when an employer hires a worker, he is subject to tax exemption.

Irrespective of the fact that the financing has been done or not, due to the mentioned ambiguity, the legislator has foreseen and approved this paragraph in Article 80 of the Fifth Schedule in a different way.

Exemption of workshops

Based on Article 80, it has been announced that applying a stepped discount or providing a part of the employer’s insurance premium to new workers who work in the workshop with the introduction of the Ministry of Labor is done in two ways.

1- In the first case, he has changed the form of the tax exemption in terms of the amount and has acknowledged that the application of the stepped discount means that the employer is not fully subject to the insurance premium exemption law; This means that the employer must pay a part of his contribution to the government.
2- In the second case, after the approval of the insurance exemption law of the fifth plan, employers no longer have an absolute insurance exemption. In this way, the employer is obliged to pay a part of the employer’s insurance premium to the government, and the government is also obliged to pay it to the social security.

Another point that is raised here is related to the hiring of new workers. Newly hired workers must be nominated by the Ministry of Labor. Workshops are not allowed to hire workers without informing the Ministry of Labor.

When hiring a new worker, the employer must inform the Ministry of Labor and get their approval. Of course, you should note that this part of the law is also ambiguous.

What is a tiered discount?

There is no mention in any regulation about the issue of stair discount that we can refer to. For example, we cannot claim that the staggered discount has been reduced to twenty percent of the employer’s share in the first year. Or we cannot say that in the second year this amount is ten percent.

With these interpretations, it is not clear what was meant by the step discount.

The share of the employer’s insurance premium has not been properly specified, which amount should be paid to the government. Another point is that the supply authority has not been specified, whether the supply should be done by the government or not.

In some cases, it can be seen that the verdict has been issued and its issuance is cited under Article 80, but in fact, the duty is not clear in this case. The issued decision is very ambiguous and it is not possible to implement it. In this situation, the plaintiff needs an expert lawyer to pursue the matter.

Is it the responsibility of the government to provide 100% universal and supplementary insurance for veterans as well as their special treatments?

One of the very important issues related to the law on the exemption of workshops is that this issue is foreseen in Article 38 of the third plan of the law.

In this law, it is acknowledged that the veterans, employees and workers who are subject to the social security law, whether they are in the private sector or in the public sector, the government is responsible for providing 100% of their expenses.

The Law on Exemption of Workshops in Article 99 of the Law of the Fourth Plan has implemented a ruling that we can see its continuation in the year of the Fifth Development Plan in 89, which was approved.

According to the law of the fifth program, paragraph “b” of article 44, it accepts the same issue, but makes a distinction in it. Based on this, it is the responsibility of the employer and the government to provide credit for employees in the executive bodies; However, the employees who work in non-executive organizations are responsible for paying their insurance premiums 100% on Shahid Foundation.

What is the lack of financing in the workshop exemption law?

This concept means that the legislator has provided the necessary credit, but the government does not provide credit. It is possible that the legislator did not foresee this, in this situation, it is enough to include the right in the law, which allows us to use this issue for our own benefit.

Exemption of workshops

According to Article 13 of the Comprehensive Veterans Law, the Sixth Program of the Workshops Exemption Law has made the financing of veterans dependent on the provision of annual credits in Article 87, Paragraph 3.

In this regard, the Social Security Organization has announced that it cannot fulfill its obligations until it receives the insurance premium.

What are fixed and non-fixed workshops in the workshop exemption law?

Due to the fact that this issue is not mentioned in the law on the exemption of workshops, we must have a common understanding. As a rule, workshops that are always active throughout the year and are always standing are known as fixed workshops; But workshops that are created only for one type of work are known as non-fixed workshops.

final word

The law of exemption for workshops with less than five people is ambiguous in some cases and the workshops face problems with the legislator. These problems may be in the field of financing, insurance premiums for veterans, sacrificers, etc. In some cases, workshops face problems in hiring new workers due to the ambiguities in this law.

In this situation, it is necessary to refer to the judicial authorities. Considering that this is a completely specialized issue and ordinary people do not have the ability to understand some cases, a lawyer should be consulted.

Dadista Law and Arbitration Institute is one of the professional and specialized groups in this field that can help you access your rights.

By using the expertise of expert lawyers, you can easily seek help in the field of credit provision, insurance premium exemption, etc. Due to the ambiguities in this law, you will need to consult a lawyer in case of any problem.

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FAQ
What is the exemption law for workshops?
What is the workshop exemption law?" According to the workshop exemption law, production workshops that have up to 5 workers or personnel are subject to the workshop exemption law or insurance exemption. As a result, the workshops in question are exempted from paying insurance premiums.
Which workshops are subject to the workshop exemption law?
According to Article 2 of the amendment of the Social Security Law, which was approved in 2017, all workshops, including industrial and technical workshops that have up to five workers, are covered by this law.
What is fixed and non-fixed workshop?
Workshops that are always active throughout the year and are always standing are known as fixed workshops; But workshops that are created only for one type of work are known as non-fixed workshops.

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