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Published byRandolf Whitehead Modified over 9 years ago
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MEASURES TO CONFRONT UNDECLARED WORK THROUGHOUT EUROPE PIET RENOOY Presentation to the EMPL Committee European Parliament, Brussels September 23, 2014
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Definition Any paid activities that are lawful as regards their nature but not declared to the public authorities
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31,9 29,1 28,5 28,2 26,1 25,6 25,3 24,4 24 23,6 22,5 21,6 19,4 19,2 18,4 16,8 16 15,5 14,3 13,4 13,3 12,7 10,8 10,1 9,5 8,2 7,6 05101520253035 Bulgaria Romania Lithuania Estonia Latvia Cyprus Malta Poland Greece Slovenia Hungary Italy Portugal Spain 27 EU-Countries / Average Belgium Czech Republic Slovakia Sweden Denmark Germany Finland Ireland France United Kingdom Netherlands Luxemburg Austria SIZE Size according to Schneider’s mimic-modelling 2012: % GDP per country: EU Average: 18,4% Austria 7,6 Bulgaria 32% Netherlands 9,5%
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Nature Self employedWaged Own account/friends Bogus contracting (Odd jobbers)Envelope wages
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Bogus contracting different ways to “cheat”: Bogus self employment Dodging minimum wages Bogus posting (A1) Dodging collective labour agreements Fake employment contracts Migration constructions
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Higher proportion UDW in Continental Europe & Nordic nations is self-employment. Bogus contracting is developing. Undeclared waged employment: greater proportion waged work in southern Europe and Central and East Europe (envelope wages/fakelaki).
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* ECONOMIC: Unemployment - Shortage of labour - Poverty - Tax burden (perceived) - income level – income distribution. * SOCIAL : Aging population – Educational levels - Trust in government – Tax moral * INSTITUTIONAL: Labour law – Business regulations - EU regulation – Maturity of government institutions * CULTURAL: Tradition – Division of labour – Perception of citizenship * ECONOMIC: Unemployment - Shortage of labour - Poverty - Tax burden (perceived) - income level – income distribution. * SOCIAL : Aging population – Educational levels - Trust in government – Tax moral * INSTITUTIONAL: Labour law – Business regulations - EU regulation – Maturity of government institutions * CULTURAL: Tradition – Division of labour – Perception of citizenship Drivers
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Policy Approaches
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Deterrence approach most important : 57% of stakeholders Deterrence approach most important : 57% of stakeholders
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OBSTACLES National level Lack cooperation authorities Lack of resources Lack of knowledge Lack of context sensitivity No sense of urgency International High variation in national regulatory systems UDW Lack of legal instruments on cross border level Language, culture, rules Lack of sense of urgency
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EUROPEAN PLATFORM
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Eurofound Data base http://www.eurofound.europa.eu/areas/labourmarket/tackling/search.php
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