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

National strategy to reduce illegal work, Romania

02 June 2013
  • Romania
  In view of the high level of informal work in the country, in June 2009 the Romanian Government (Guvernul României) signed a Memorandum of Understanding with the European Commission for the purpose of creating a ‘Mechanism to monitor, control, and reduce the rate of illegal work in Romania’. The national strategy and action plan form an integral part of an inter-institutional approach to tackle the problem of undeclared work, which includes stiffer penalties for employers found to be in breach of the regulations.  
  • Type of measure:

    Deterrence: improve detection, Deterrence: increase penalties

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

Crèches Act to legalise childcare workers, Poland

02 June 2013
  • Poland
  In 2011 the Polish parliament adopted the so-called Crèches Act. The law opens the way for parents of young children to choose an alternative path to the organised care provided in childcare establishments, such as officially hiring a nanny. The response has not been significant, yet the government is not discouraged and plans to continue on the legislative path to reach other groups of workers trapped in the shadow economy and create possible exits for them.  
  • Type of measure:

    Legitimising undeclared work, Prevention

Promoting external work contracts, Slovakia

02 June 2013
  • Slovakia
 
  • 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

Tourism industry campaign, Iceland

02 June 2013
  • Iceland
  The Icelandic Travel Industry Association and the Icelandic Tourist Board undertook a research project in 2011 to assess the scale of unlicensed businesses within the hotel and tourist industry. The aim of the project was to raise awareness and trigger changes in attitudes towards working on an undeclared basis.  
  • Type of measure:

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

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

Registration requirement for temporary agencies, the Netherlands

02 June 2013
  • Netherlands
  On 1 January 2012, several labour laws came into effect aimed at combating illegal employment and labour exploitation. The legislation marks a new area in which government (and the national Labour Inspectorate) intends to play a more active supervisory role. In particular, the law re-introduced the requirement for temporary employment agencies to be registered. Agencies that are not registered with the trade register held by the Chamber of Commerce will be fined, as will companies that hire staff from such agencies.  
  • Type of measure:

    Deterrence: improve detection, Deterrence: increase penalties

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