UNDECLARED EMPLOYMENT

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AUSTRIA
UNDECLARED EMPLOYMENT
SCHWARZARBEIT

Expression used to describe: 1) the employment of workers who, illegally, are not declared to the statutory social insurance scheme as being in that employment (Schwarzarbeiter, i.e. moonlighters); 2) business activities which firms do not enter in their accounts, thereby defrauding the tax authorities; and 3) paid work carried out without a formal operating licence (see Economic Chambers) between private individuals (referred to colloquially as Pfusch, i.e. “bodging”), where it extends beyond what could roughly be described as mutual assistance provided in a spirit of neighbourliness. Inasmuch as such activities give rise to money transactions which are not included in the output calculation (generation) of the National Accounts, they make up what is called the Schattenwirtschaft (hidden economy), which is estimated to represent 3.7-4% of GDP in Austria.


Please note: the European industrial relations glossaries were compiled between 1991 and 2003 and are not updated. For current material see the European industrial relations dictionary.