LAMAS Working Group 24-25 June 2014 Agenda Item 3.4 LFS ad-hoc module 2017: progress report Diana-Monica.Ivan@ec.europa.eu

Structure of the presentation List and description of the ad-hoc sub-modules [part of the amendment of Regulation 318/2013 on the programme of AHMs 2016-2018] Dependent self-employment Testing

Progress since the last LAMAS meeting New concept: dependent self-employment New measuring approach Structure of sub-modules Dependent self-employment Working conditions of the self-employed Self-employed and employees Draft questionnaire available for testing

S1: Dependent self-employment Target population: all self-employed Objective: to identify the group of dependent self-employed Shared features of the employees and of self-employed Ambivalent professional situation

S2: Working conditions of the self-employed Target population: all self-employed New perspectives: Reason for becoming self-employed and, possibly: Main difficulty when working as a self-employed Support received when launching the business Number of months without income in a year Reason to work without employees (STAPRO=2)

S3: Self-employed and employees Comparing self-employed to employees Rich information available in the LFS New perspectives: Job satisfaction and, possibly: Workload / time pressure Sufficiency of the pension contribution Reasons for not working as self-employed for employees preferring to be self-employed

Dependent self-employment Sub-group of self-employed with or without employees Sub-group of self-employed sharing features with the employees: Economic dependency Organisational dependency Limitations in decision-making Self-perceived dependency Other types of dependency

Who are the self-employed sharing features with employees? Persons having: The level of economic risks of the self-employed The lack of autonomy of an employee Can we use the same grid to identify employees sharing features with self-employed? No, several populations resulting: Low level of job security High level of autonomy

Identifying dependency – 3 variables Several theoretical approaches possible Unlikely that a single AHM-type variable will capture dependent self-employment It is proposed to test several variables. Analyse: How easy is it to collect the information? How close is the theoretical group to the empirical group?

1. High share of revenue coming from one single client Indication of economic dependency The entity providing the main part (>75%) of revenue plays a similar role to that of an employer One step beyond the number of clients The variable needs to be read in a context: a self-employed working on an exclusive, long-term contract is not necessarily in a vulnerable position

2. Lack of freedom to organise work Indication of organisational dependency Who decides/determines work organisation? Work done for AHM 2015 as well Concepts are rather broad, sensitive to translation If measurable, the variable complements the previous one

3. Legal impediments to hire It should be possible for a self-employed person to hire employees, provided that it was affordable The self-employed that have legal impediments to hire work under a contract/arrangement are indicating a form of legal dependency It needs to be checked if the information can be collected in one (this) question

Dependent self-employment measured in three variables Combination of three variables: Dependent self-employment = Economic AND (Organisational OR Legal) Dependency (May 2014 TF proposal, to be checked by testing)

Testing the draft questionnaire DE, HU, NL, RO, SK will receive the draft questionnaire at end of August, by email (EU co-financing) Small-scale testing of the sub-module on dependent self-employment is encouraged All other countries are invited to analyse whether the national cases of 'ambiguous professional situations' would be well captured by the approach proposed Please share information with the task force!

LAMAS is asked to: Comment on the progress made, and on the dependent self-employment sub-module in particular