A national union representing food and tourism workers (POEET) has called for about 2,500 employees of the retail chain Pizza Fan to be placed on temporary employment contract suspension, allowing them to receive special compensation and retain their social security coverage while the company’s operations remain disrupted by a major tax evasion investigation.
In a letter to Labor and Social Security Minister Niki Kerameus, the federation requested emergency measures for employees at 110 outlets across Greece, warning that workers and their families face uncertainty as the investigation proceeds.
Under the proposed arrangement, employees would be eligible for the special-purpose compensation provided for by law and would retain their insurance coverage for the corresponding period, according to POEET.
The request follows the suspension of order-taking at Pizza Fan outlets as authorities investigate suspected large-scale tax evasion involving the chain. According to reports, the stores have stopped accepting orders both online and by telephone pending further developments, leaving thousands of employees uncertain about their immediate employment prospects.
The investigation focuses on alleged non-payment of value-added tax (VAT) and cash sales, which is estimated to have cost the Greek state approximately 25 million euros between 2022 and the present.
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The company, Fanatics Pizza Ltd., operates more than 100 outlets nationwide and has more than two million active customers, according to reports. Its operations have come under scrutiny by officers of the Greek police’s financial crime division.
Workers seek protection as investigation proceeds
The union’s intervention places the immediate circumstances of the chain’s employees at the center of the unfolding case. While the investigation concerns suspected financial wrongdoing by individuals linked to the company, the interruption of orders has left workers facing uncertainty over their income and insurance coverage.
POEET is seeking the temporary suspension of employment contracts as a means of providing financial and social security protection during the disruption. The request is directed to the Labor Ministry, which has been asked to take the necessary measures for employees across the chain’s nationwide network.
The outcome of the request will determine whether the affected workers can access the proposed support while authorities continue investigating the suspected tax evasion scheme.
Alleged software scheme
Investigators suspect that specialized software was used to record one in every four pizzas sold as a complimentary item, even though customers had paid for their orders.
According to the reported findings, customers placing orders by telephone were asked whether they intended to pay by card or in cash. In the latter case, the transaction could allegedly be entered into the system as a “treat” or complimentary order, making a regular sale appear to have been provided free of charge.
The transactions recorded in this way are estimated to have accounted for about 25% of the company’s turnover, according to the reports.
The investigation by the financial police division began in April following an anonymous but detailed complaint alleging undeclared employment and tampering with cash registers. Authorities subsequently conducted further inquiries and lifted telephone confidentiality restrictions, uncovering evidence that led them to examine the company’s corporate structure and accounting practices.
Investigators reportedly found that the company’s registered headquarters were in Cyprus rather than Greece, while its owner appeared in company records as a salaried employee.
The case file reportedly includes the 91 managers of the chain’s outlets, who are suspected of participating in the alleged scheme. They face prosecution on suspicion of involvement in a criminal organization and tax evasion, according to the reports.
Twenty-three arrested suspects referred to prosecutor
Meanwhile, the 23 people arrested in connection with the investigation were brought before a prosecutor.
The charges under examination include forming, joining or directing a criminal organization; tax evasion exceeding 150,000 euros through non-payment of VAT and the submission of inaccurate income tax returns; complicity in the alleged offenses; and aggravated money laundering.
Othon Papadopoulos, a lawyer representing many of the accused, said his clients denied the charges against them. They were expected to appear before an investigating magistrate as the judicial process continued.