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

Targeted reduction of social security payments, Turkey

02 June 2013
  • Turkey
  The Turkish government introduced a general as well as targeted reduction of social security contributions and significant social security and corporate and VAT reductions for enterprises investing in less developed regions. The incentives were coupled with a deterrence approach targeted at employers using undeclared labour. The measure has led to an increase in formal (new) jobs.  
  • Type of measure:

    Deterrence: improve detection, Legitimising undeclared work, Prevention

Promoting external work contracts, Slovakia

02 June 2013
  • Slovakia
 
  • Type of measure:

    Legitimising undeclared work, Prevention

Regulating the labour relationship of domestic workers, Spain

02 June 2013
  • Spain
  A new regulation covering the working conditions of domestic staff in Spain came into force on 1 January 2012. It affects approximately 700,000 workers, most of whom are women. The new regulation puts household workers on the same level as normal employees in many respects, such as wages and working time. It also offers workers greater social protection by including them in the social security system. The unions have been positive about these measures.  
  • Type of measure:

    Legitimising undeclared work, Prevention

Amendment to Social Insurance Law, Cyprus

02 June 2013
  • Cyprus
  The Ministry of Labour and Social Insurance has introduced several measures to combat undeclared and illegal employment in Cyprus. Among these measures is an amendment to the Social Insurance Law of 2010 specifically to oblige employers to present, whenever requested, a copy of a specific employment attestation for its employees.  
  • Type of measure:

    Legitimising undeclared work, Prevention

Tighter control over undeclared work, Slovakia

02 June 2013
  • Slovakia
 
  • Type of measure:

    Deterrence: improve detection, Deterrence: increase penalties

Seasonal work vouchers, Croatia

02 June 2013
  • Croatia
  This project, introduced during the summer of 2012, aims at making it easier to employ seasonal workers in agriculture in a formal way by issuing vouchers. The employers use the vouchers to pay the seasonal workers. The purchased vouchers include social contributions and taxes.  
  • Type of measure:

    Legitimising undeclared work, Prevention

National minimum wage agreements, Estonia

02 June 2013
  • Estonia
  In Estonia, national minimum wage rates are negotiated through bipartite agreements between the Estonian Trade Union Confederation and the Estonian Employers’ Confederation, which are then translated into regulations by the government. The minimum wages are applied across the whole economy. One of the arguments behind raising minimum wage levels has been to reduce the share of undeclared wages.  
  • Type of measure:

    Legitimising undeclared work, Prevention

Employers’ campaign against the shadow economy, Latvia

02 June 2013
  • Latvia
  In 2011 the Latvian Employers’ Confederation conducted a publicity campaign in the framework of the European Social Fund project, ‘Practical application of normative acts of labour relations and safety at work in sectors and undertakings’. The campaign comprised six parts, including an online test and discussions with business representatives, and targeted Latvian citizens, business people, politicians and the government.  
  • Type of measure:

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

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