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

Awareness campaign for students, former Yugoslav Republic of Macedonia

02 June 2013
  • Macedonia
  The government of the former Yugoslav Republic of Macedonia has initiated a campaign to raise awareness among students of the negative aspects of working informally. The focus targeted vocational school students in the first instance, as they were seen as the most likely group to engage in undeclared work.  
  • Type of measure:

    Changing attitudes: awareness raising, Prevention

Tax and other measures to reduce the public deficit, Spain

02 June 2013
  • Spain
  On 30 March 2012, Royal Decree Law 12/2012 introduced various tax and administrative measures aimed at reducing the public deficit. The new law establishes highly relevant modifications in taxation. Of the new tax measures introduced, the most noteworthy are those made in the Corporate Income Tax Law, particularly in relation to the deductibility of financial expenses. There is also a very relevant measure allowing taxpayers, both individuals and entities, to regularise past defaults. The group of measures approved includes many significant initiatives.  
  • Type of measure:

    Deterrence: increase penalties, Prevention

Mandatory cash registers for entrepreneurs, Poland

02 June 2013
  • Poland
  In 2010, the Polish Ministry of Finance introduced new regulations, to decrease the number of entrepreneurs exempt from registering sales electronically and hence widen the general use of electronic cash registers. While the instant response by taxpayers has not been overwhelming, the initiative is still considered a step in the right direction, as it increases the level of equality before law.  
  • Type of measure:

    Deterrence: improve detection

Measures to prevent undeclared work by subcontractors, France

02 June 2013
  • France
  Prior to 2011, main contractors had to demand documentation from subcontractors demonstrating that they did not employ illegal workers and fulfilled their obligations to pay social security contributions. Under the new law, the subcontractors now have to provide a certificate, provided by social security bodies, to show they fulfil their legal obligations to their employees and pay social security contributions.  
  • Type of measure:

    Prevention

Simplified Employment Act, Hungary

02 June 2013
  • Hungary
  In 2010, the Hungarian government introduced the Simplified Employment Act (2010/LXXV) to facilitate seasonal and casual employment notifications, reports and payments. The regulations of the Act can be viewed, and are viewed at political level, to be an anticipatory measure to tackle undeclared work. Official data shows that those employers who normally notify the authorities anyway are the most likely to use the new system. However, it is still unclear whether it will regularise the Hungarian labour market.  
  • Type of measure:

    Legitimising undeclared work, Prevention

Compulsory approval for cleaning companies, Norway

02 June 2013
  • Norway
 
  • Type of measure:

    Deterrence: improve detection, Prevention

Inspection strategy in agriculture and construction, Italy

02 June 2013
  • Italy
  In 2010, the Italian Ministry of Labour launched a special inspection strategy to fight undeclared work in agriculture and construction in four southern Italian regions. The project aimed to introduce an integrated and targeted inspection system to improve the effectiveness of controls and increase detection rates.   Background On 28 January 2010, the Italian government launched a special inspection strategy in the agriculture and construction sectors in the regions of Calabria, Campania, Puglia and Sicily to fight undeclared work.
  • Type of measure:

    Deterrence: improve detection

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

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