Undeclared Work
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1 13/06/22 Undeclared Work Undeclared Work Governments and Social partners’ Governments and Social partners’ involvement involvement UNICE – ETUC, Brussels 19 09 05 UNICE – ETUC, Brussels 19 09 05
description
Undeclared Work. Governments and Social partners’ involvement UNICE – ETUC, Brussels 19 09 05 . WHY ?. European interest since early 90’s White Paper on Growth, Competitiveness and Employment - 1993 Communication on UW, EC - 1998 Resolution on UW, Council - 2003 - PowerPoint PPT Presentation
Transcript of Undeclared Work
122/04/23
Undeclared WorkUndeclared Work
Governments and Social partners’ Governments and Social partners’ involvementinvolvement
UNICE – ETUC, Brussels 19 09 05 UNICE – ETUC, Brussels 19 09 05
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WHY ?WHY ? European interest since early 90’s
White Paper on Growth, Competitiveness and Employment - 1993
Communication on UW, EC - 1998 Resolution on UW, Council - 2003
Social Partners specifically concerned European level: Joint programme National level
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HOW?HOW?
Through the EIRO network National correspondants in European countries (28) National short report via an harmonised questionnaire
The Overview Objective: picture of UW in Europe Issues adressed: Regulatory framework, Role and
actions of public authorities and Social partners
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DDefinitionefinitionSS
What are we looking at?
International level
National level
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International DefinitionsInternational Definitions
ILOIllegal employment
OECDHidden employment
EUUndeclared work
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ILOILO
Illegal employment
“Employment which does not comply with the requirements of national laws, regulations and practice”
Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169)
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OECDOECD
Hidden employment
Employment “that which although not illegal in itself, has not been declared to one or more administrative authorities”
OECD Employment Outlook, 2004
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EUEU
Undeclared work
“Any paid activities that are lawful as regards their nature but not declared to public authorities”
1998 EC Communication
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National Definitions….National Definitions….
No common definition
No national legislation dealing directly with UW 1 Exception : Germany
Negative definitions Tax evasion essentially
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National Definitions….National Definitions….
Mainly « Non declared work » to Tax and / or SS Authorities
Specifically Any work without an Employment contract [Pld, Latv]
Unlawful foreign Employment [A, Gy, Ntl] Not registered Business [Slov] Not declared Business income [Sw]
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National Definitions…National Definitions…
Austria
Non declared working time (tax fraud) Unlawful foreign employment Paid work carried out beyond a treshold of simple
‘neighbourly’ help
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National Definitions…National Definitions…
UK Activity not declared to the tax authorities Activity that evades the minimum wage rules Activity undeclared while in receipt of state
unemployment benefits Childwork Work by those not entitled to be in the country
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National Definitions…National Definitions…
Labour/Employment relations Employment contract, Minimum wage
Category of workersMigrants
Business RegulationsRegistration
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Variety of forms + PracticesVariety of forms + Practices undeclared hours of work, trafficking in foreign labour, unlawful loan of staff, bogus self-employment, multiple employment exceeding the statutory
thresholds set for specific occupations and jobs, benefit fraud (pension, sickness, unemployment), fraudulent use of foreign companies, ‘envelope wages’ ……
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Sectors Sectors (1(1
Agriculture
Construction
HORECA
Other services
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Sectors Sectors (2(2
Common features Labour intensive Costs Competition re
low paid jobs
seasonal nature
unskilled labour
SMEs
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Sectors Sectors (3(3
Traditional specificities
Textile: Fr, Sp, Rom Entertainmnt: Fr Fish processing: Ntlds Shipbuilding: Fin
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Categories of Workers Categories of Workers (1(1
Unemployed Self employed Seasonal workers Students
…………
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Categories of Workers Categories of Workers (2(2
Migrant Workers
Sectors: Agriculture + Construction
Origine: from CEEC to Western Europe From CEI to CEEC
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Categories of Workers Categories of Workers (3(3
Children
UK: ½ Million schoolchildren(TUC 2001 Survey, England and Wales)
It: Estimation depends on sources(144,000 – ISTAT; 400,000- IRES)
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Categories of Workers Categories of Workers (4(4
Gender Men
Construction and Transport Women
Services , including medical services Cleaning Domestic service Manufacturing: textile, leather production....
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EstimationEstimation
Not a quantitative study Uncertainty
Sources Methods
Discrepancy Between countries Within countries
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EstimationEstimation
Undeclared Work rate in GDP %
Bulg, Gr, Hung, Slov 25-40% GDP Belg, Fr, Gy, It, Slovk, Rom…….
EU average : 11- 16 % GDP Austria, Ireland Sw, Fin, UK 5 % GDP
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Reasons for Discrepancies Reasons for Discrepancies (1(1
Economic background CEEC / Western Europe
Highest rate in CEEC Opposite trends: raising in Western Countries/ falling in
CEEC Potential costs saving New patterns of work
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Reasons for Discrepancies Reasons for Discrepancies (2(2
Societal factors UW = Structural features
Countries: CEEC, Gr Regions: Southern Italy Sectors: Construction, Agriculture
Tolerance re UW Trust and reliability on the State
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MeasuresMeasures
Variety of policies Transforming UW into formal work Controlling UW
Common trends despite various National contexts Combining measures Multiplicity of actors
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EU GuidelinesEU Guidelines
Combination of measures
Simplification of business environment Removing desincentives to declare Providing appropriate incentives in tax and
benefits systems
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Removing incentives to go UndeclaredRemoving incentives to go Undeclared
Reducing administrative burden Dk, Gy, Slov
Tax reduction DK, It, Slov, Sp, Sw
New business schemes Gy
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Enhancing access to formal economy Enhancing access to formal economy (1(1
Tax credits for Employed UK
Subsidised « service vouchers » Fr, Belg
Support to Small business It
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Enhancing access to formal economy Enhancing access to formal economy (2(2
Impact relatively low
Objectives not reached
Shifts in the policies
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Public awareness raising campaignPublic awareness raising campaign Criminalising UW DK, Hun
Towards new immigrants Norway
Comprehensive campaign Rom Consulting for SMEs E-Learning projects for TU and Employers
Organisations Initiatives with the Media
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Controling, Monitoring UW Controling, Monitoring UW (1(1
Mainly Labour Inspectorate
Social security Authorities Cyp Federal Custom Authorities Gy* Economic Crime Bureau Sw Tax Authorities Sp Immigration Authorities UK
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Controling, Monitoring UW Controling, Monitoring UW (2(2
Fostering cooperation among controlling Authorities
France: National Committee combating UWLabour Inspectorate, Police, Tax, SS, Custom authorities, Social partners
Netherlands + Poland: Joint Controlling Body
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Controling, Monitoring UW Controling, Monitoring UW (3(3
Sanctions-Nature
Mainly Financial sanctions A, Dk, Fr, Gy, Gr, Hu, It, Latv, Nw, Pl, Slovk, Sw, Uk
And / Or Penal Dk, Gr, Nw, Sw, Uk
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Controling, Monitoring UW Controling, Monitoring UW (4(4
Sanctions-Target Shared by Employers and Workers
Poland: Workers are responsable for UW
Denmark: The Social Partners raised the possiblity to excluding members carrying out UW
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Controling, Monitoring UW Controling, Monitoring UW (5(5
Sanctions-Responsability
Gy + Nw: Responsability of the Main Contractor
Dk: Insurance Company to insure work carry out re insurance is declared
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Related MeasuresRelated Measures Immigration Policies
Legalising Immigrants (Gr) Tightening rules for asylum seekers Bilateral Agreements with NMS (Gy, Sp) Liaison offices in the NMS (Fr, as requested by EU 1996
Directive) Employment relation (CEEC)
Written and Registered contract Computerisation of data
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Social Partners’ Involvement Social Partners’ Involvement (1(1
Integrated approach Belg, Ntlds, Nw, Gy Employers Organisations
UW= harms economy and distorts competitiveness TU
UW= Threatens Working Conditions and Industrial Relations
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Social Partners’ Involvement Social Partners’ Involvement (2(2
Collective Agreements Mainly in the Constructiona and Agriculture Sectors Bel,Fin, Gy, It, Ntlds, Nw
Social Dialogue Mainly Tripartite Bel,Fin, Hun, Gy, Ntlds, Nw, Pld
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Social Partners’ Involvement Social Partners’ Involvement (3(3
Joint Initiatives Information Campaigns : Belg, Fin, Latv, Nw, Sw Training
Belg Monitoring the actions: Dk Protests Nw
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Social Partners’ Involvement Social Partners’ Involvement (4(4
No Social Dialogue specify France : Reliability on the State Greece: Lack of public debate on UW
Initiatives on corollary topics Bul, Cyp, Ee, Slovk, Sp
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Social Partners’ Involvement Social Partners’ Involvement (5(5
Western Countries All sort of Tripartite Initiatives Difficult to find permanent reliable arrangements
CEEC Social Partners shared view on UW : Temporary pb Liberalisation of the economy
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Social Partners’ Involvement Social Partners’ Involvement (5(5
Social Partner Against In practice
Employers Condamn Competition distortion
WelcomeFlexibility and Labour costs savings
Trade Unions Blamed for Undermining Working Conditions
Potential lost of members
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Governments InvolvementGovernments Involvement
State Budgetary matters Fear of electoral blackmail from both Employers
and Workers
Corruption
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Innovative InitiativesInnovative Initiatives
Unilateral + non binding
Organising people likely to work UndeclaredBelg, Dk, Fin, Ntlds, UK
Finland : right to do legal procedure o/b of foreign workers
Norway, Sweden: Employers introduce Certification systems for bona fide companies
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Undeclared workUndeclared work
Good will / Low degree of action
Lack of determined coalition
Problems links with combating UW Flexibilisation not an efficient means Quality of new jobs created
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Thank YouThank You
Isabella BilettaIsabella Biletta
Research Manager – Industrial RelationsResearch Manager – Industrial Relations
