EMCC European Monitoring Centre on Change

Tackling undeclared work

Undeclared work can be defined as work which is in itself legal but is not declared to the authorities for tax, social security and/or labour law purposes. Across the 28 Member States of the European Union, a great deal of effort is being invested into developing and testing policy measures that aim to tackle undeclared work.

186 items found (page 1 of 19)

District employment services for domestic work, Spain

14 August 2013
  • Spain
  In the district of Nazaret in València, an employment office along with a range of other services were created several years ago for women working in domestic services. The initiative was supported by a number of institutions, mainly public and religious, and was managed by an association. The office and services have since evolved and are now offered in a more organised way, and to other groups and occupations. The initiative promotes the creation of employment and of formal work contracts.
  • Type of measure:

    Legitimising undeclared work

Social partner agreements to fight undeclared work, Germany

03 June 2013
  • Germany
  In 2004, the Federal Ministry of Finance and the social partners in the construction sector joined forces to fight undeclared work on construction sites. This first agreement was followed by similar agreements in other sectors. The two latest social partner agreements cover painters (2010) and the industrial textile services sector (2012), aimed at curbing the incidence of undeclared work through the exchange of information, regular visits to establishments checking for cases undeclared work and monitoring the adherence to minimum wages.  
  • Type of measure:

    Changing attitudes: awareness raising

Illegal Work Leaves Traces campaign, Montenegro

02 June 2013
  • Montenegro
  In order to counter undeclared work in the Montenegrin tourism sector, the hotel industry and the Montenegrin government launched a joint campaign. The campaign sought to highlight that unfair trade damages markets and legal business, destroys social and socio-political relations and is detrimental to all citizens and to the Montenegrin community. The campaign encouraged citizens to actively stand up and join the fight against undeclared work.   Background
  • Type of measure:

    Changing attitudes: awareness raising, Changing attitudes: commitment to tax morality

New law on foreign workers, Turkey

02 June 2013
  • Turkey
  On 1 February 2012, a new law on the residence and travel of foreigners in Turkey came into force. This law brings to an end the so-called ‘visa runs’ by foreigners living in Turkey without a residency. For foreigners working in the undeclared economy in Turkey, this new law represents a significant obstacle to continuing their activities.   Background
  • Type of measure:

    Deterrence: improve detection, Deterrence: increase penalties

Law against wage and social dumping, Austria

02 June 2013
  • Austria
  On 1 May 2011, the seven-year transitional period banning workers from eight new central and eastern European Member States from entering the Austrian labour market ended. In order to prevent social and wage dumping, a law bringing in stricter controls and penalties for these offences was introduced. However, the law leaves a loophole for companies refusing to disclose wage documentation. Administrative fines for this offence are much smaller than are the penalties for wage and social dumping.  
  • Type of measure:

    Deterrence: increase penalties

Amnesty for illegal migrants, Poland

02 June 2013
  • Poland
  Following long-standing pressure from civil society organisations supported by economic experts, the Polish parliament adopted a law legalising the situation of foreign citizens illegally residing in Poland and give them social rights. The amnesty was launched for the third time this century. The take-up by the target group (almost 10,000 applications) was higher than expected.  
  • Type of measure:

    Legitimising undeclared work, Prevention

Reverse VAT in construction, Finland

02 June 2013
  • Finland
  Reverse VAT is a system used in the construction sector in which VAT is paid by the buyer (main contractor) as opposed to the seller (subcontractors), as is usually the case. The purpose is to ensure the due collection of VAT and discourage the use of undeclared work.  
  • Type of measure:

    Legitimising undeclared work, Prevention

Services vouchers, Belgium

02 June 2013
  • Belgium
  On 1 January 2004, the Belgian federal government launched a system of services vouchers in a new attempt to boost job creation by promoting the demand for domestic services and proximity services and to offer an alternative to the local employment agencies’ scheme.  
  • Type of measure:

    Legitimising undeclared work

National strategy to reduce illegal work, Romania

02 June 2013
  • Romania
  In view of the high level of informal work in the country, in June 2009 the Romanian Government (Guvernul României) signed a Memorandum of Understanding with the European Commission for the purpose of creating a ‘Mechanism to monitor, control, and reduce the rate of illegal work in Romania’. The national strategy and action plan form an integral part of an inter-institutional approach to tackle the problem of undeclared work, which includes stiffer penalties for employers found to be in breach of the regulations.  
  • Type of measure:

    Deterrence: improve detection, Deterrence: increase penalties

New tax rules against undeclared work, Denmark

02 June 2013
  • Denmark
 
  • Type of measure:

    Legitimising undeclared work, Prevention

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