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

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

Tax and other measures to reduce the public deficit, Spain

02 June 2013
  • Spain
  On 30 March 2012, Royal Decree Law 12/2012 introduced various tax and administrative measures aimed at reducing the public deficit. The new law establishes highly relevant modifications in taxation. Of the new tax measures introduced, the most noteworthy are those made in the Corporate Income Tax Law, particularly in relation to the deductibility of financial expenses. There is also a very relevant measure allowing taxpayers, both individuals and entities, to regularise past defaults. The group of measures approved includes many significant initiatives.  
  • Type of measure:

    Deterrence: increase penalties, Prevention

Measures to prevent undeclared work by subcontractors, France

02 June 2013
  • France
  Prior to 2011, main contractors had to demand documentation from subcontractors demonstrating that they did not employ illegal workers and fulfilled their obligations to pay social security contributions. Under the new law, the subcontractors now have to provide a certificate, provided by social security bodies, to show they fulfil their legal obligations to their employees and pay social security contributions.  
  • Type of measure:

    Prevention

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

New law on foreign workers, Turkey

02 June 2013
  • Turkey
  On 1 February 2012, a new law on the residence and travel of foreigners in Turkey came into force. This law brings to an end the so-called ‘visa runs’ by foreigners living in Turkey without a residency. For foreigners working in the undeclared economy in Turkey, this new law represents a significant obstacle to continuing their activities.   Background
  • Type of measure:

    Deterrence: improve detection, Deterrence: increase penalties

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