Tackling undeclared work database

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.

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Mandatory employment contract for undeclared workers, Slovenia

02 June 2013
  • Slovenia
  In December 2006 the Prevention of Illegal Work and Employment Act was amended with a new provision to protect workers. It imposes a duty to conclude an employment contract for an indefinite period to any employer who is caught employing unemployed or inactive persons on an undeclared basis. The authority that ensures the implementation of this measure is the Labour Inspectorate (Inšpektorat Republike Slovenije za delo, IRSD). Although the measure was first adopted in 2006, its effects were not seen until 2007 and beyond.  
  • Type of measure:

    Legitimising undeclared work, Prevention

National campaign on undeclared work, Portugal

02 June 2013
  • Portugal
  An awareness and information campaign is under preparation in Portugal based on the need to increase the public's awareness about the risks of undeclared work, particularly as far as sanctions are concerned. The campaign targets the following groups having different types of responsibilities and interventions: citizens in general, children and young people, employers and those at decision-making level; and workers.  
  • Type of measure:

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

Changes to standard contract in public procurement, 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 is the tightening of obligations and penalties in public work contracts in order to support the enforcement of labour legislation.  
  • Type of measure:

    Deterrence: increase penalties, Prevention

Cash register legislation, Sweden

02 June 2013
  • Sweden
 
  • Type of measure:

    Deterrence: improve detection, Deterrence: increase penalties

Improved protection for migrant workers, France

02 June 2013
  • France
  This measure aims to strengthen the financial sanctions used against employers who hire undocumented migrant workers by making the employer either pay the worker or, if they have left the country, pay a public body damages. It is also a way of increasing the social rights and improving the finances of migrant workers.  
  • Type of measure:

    Deterrence: increase penalties, Prevention

Simplifying start-up business procedures, former Yugoslav Republic of Macedonia

02 June 2013
  • Macedonia
  By reducing the time, procedural steps and financial costs required to start a business, the government of the former Yugoslav Republic of Macedonia aims to make entry to the formal sector easier. A ‘one-stop shop’ system was initiated and implemented, including an online application system for registering companies, an electronic system for the classification of companies under court procedures for insolvency, and an electronic system for the registration of collateral and leasing.  
  • Type of measure:

    Legitimising undeclared work, Prevention

Identity card for construction sector, Luxembourg

02 June 2013
  • Luxembourg
  The social partners of construction in a tripartite meeting in 2012 decided to introduce an ID card for every worker on a construction site. This will make control by the Labour inspection easier in a sector that is experiencing competition on the basis of low prices that could contribute to the non-respect of Luxembourg legislation.  
  • Type of measure:

    Deterrence: improve detection

Home-Job Plan, Denmark

02 June 2013
  • Denmark
  Since 1 June 2011 it has been possible to deduct expenses to craftsmen and domestic helpers with €2,000 (DKK 15,000) per member of the household over 18 years of age through a pilot project called Home-Job Plan. The project runs until the end of 2013. The expenses that it is possible to deduct include payment for cleaning, indoor/outdoor maintenance of the house, gardening and babysitting. The goal is threefold: to prevent undeclared work in homes, to create jobs in construction and to encourage house owners to install CO2-friendly energy solutions.  
  • Type of measure:

    Legitimising undeclared work, Prevention

Standing groups to control illegal work, Lithuania

02 June 2013
  • Lithuania
  In order to tackle undeclared work more effectively, in 2011 the State Labour Inspectorate set up standing groups to control illegal work in Lithuania’s five largest cities to undertake control and prevention of undeclared work. The groups consist of VDI inspectors (lawyers) who were provided with appropriate resources. Where necessary, assistance can be sought from representatives of other institutions. The results show that this initiative has contributed to better detection of undeclared work compared to previous years.  
  • Type of measure:

    Deterrence: improve detection, Deterrence: increase penalties

Targeted control of enterprises for undeclared work, Estonia

02 June 2013
  • Estonia
  In 2012, the Estonian Tax and Customs Board undertook extensive activities to tackle tax fraud and undeclared wages, including hiring an additional 90 tax officials. The activities include notification letters as well as visits to company sites. In 2012, the tax officials concentrated on the construction and hotel and catering (restaurants) sectors.  
  • Type of measure:

    Deterrence: improve detection, Prevention

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