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

Start-up premium, Germany

02 June 2013
  • Germany
  The introduction of the Ich-AG scheme in 2003, a new public subsidy for business start-ups, was intended to reduce Germany’s unemployment rate, to combat illegal employment and to offer unemployed people a way out of undeclared work. In 2006, the federal government fused the two labour market instruments and the ‘start-up premium’ (Gründungszuschuss) came into effect, aimed at improving administrative effectiveness and avoiding duplicated structures for the scheme.  
  • Type of measure:

    Legitimising undeclared work

Training labour inspectors, Portugal

02 June 2013
  • Portugal
  This measure involves a training course on the topic of undeclared and irregular work specifically for labour inspectors recruited since 2009, organised by ACT with the objective of understanding the varied forms of undeclared and irregular work in the context of the current legal framework, Domestic work, home working, rural labour, and micro and small enterprises have been identified as areas deserving particular focus as regards undeclared work.  
  • Type of measure:

    Deterrence: improve detection

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

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

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

Let’s stop undeclared work campaign, Slovenia

02 June 2013
  • Slovenia
 
  • Type of measure:

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

Tax deductions for domestic service work, Sweden

02 June 2013
  • Sweden
  Undeclared work accounts for about half of the total tax gap in Sweden and the country has taken important measures to tackle undeclared work, especially in sectors such as commerce, construction and other sectors with high cash turnover. From 8 December 2008, Swedish citizens can apply for a tax deduction amounting to 50% of the labour cost for renovations, repair, cleaning, maintenance work on homes, etc. This measure aims to boost employment and transforming undeclared work to legal work.  
  • Type of measure:

    Legitimising undeclared work, Prevention

Workplace ID cards, Iceland

02 June 2013
  • Iceland
  The Icelandic Confederation of Labour and the Confederation of Icelandic Employers have agreed on the obligation, in selected industries, for all employers to ensure that their employees get workplace ID cards when they begin working. They have also formed inspectorate units: under this system, inspectors go to worksites to check on workplace IDs, thus taking action against undeclared work.  
  • Type of measure:

    Changing attitudes: awareness raising

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