Defining Undeclared
Work in Europe
René Robert
Labour Administration and Inspection Programme
LAB/ADMIN
Geneva
Undeclared work. Also referred to as…
Informal
Economy
Illegal
Work
Shadow
Economy
Hidden
Labour
Moonlighting
Concealed
Employment
ILO perspective
• The ILO views undeclared work through the
lens of the informal economy
All economic activities by workers and
economic units that are – in law or in
practice – not covered or insufficiently
covered by formal arrangements
2002 ILC Declaration on the informal economy
ILO perspective cont’d
“[Employment] which does not comply with
the requirements of national laws, regulations
and practice”
Employment Policy (Supplementary Provisions) Recommendation,
1984 (No. 169)
OECD Definition
“[Employment]…which, while not illegal in
itself, has not been declared to one or more
administrative authorities…”.
OECD Employment Outlook1986
EC Definition
“The concept of ‘undeclared work’ is taken to
mean any paid activities that are lawful as
regards their nature but not declared to the
public authorities, bearing in mind that
differences in the regulatory system of
Member States must be taken into account.”
Communication of the Commission on Undeclared Work, COM (98) – 219.
Legal definitions of undeclared work in
the EU
• LEGAL definitions of undeclared work at the national
level in Europe are UNCOMMON
1. Many European countries have NO FORMAL
DEFINITION of undeclared work in law (e.g. Bulgaria,
Hungary, Latvia, Portugal, Spain)
2. Some countries have a DEFINITION IN THEIR
LABOUR LAW (e.g. France, Lithuania)
3. In other countries such as the UK, UNDECLARED
WORK MEANS DIFFERENT THINGS to different
government agencies (e.g. tax, immigration, OSH,
business compliance)
Forms of undeclared work in the EU
% of all undeclared work:
Undeclared wage employment
Self-employment for family,
friends, neighbours &
acquaintances
Self-employment for other
private persons/households
Other/don’t know/refusal
EU-27
20
55
20
Source: European Foundation – Tackling Undeclared Work in the
European Union (2009)
5
Incidence of undeclared work in Europe
Why is defining undeclared
work important?
• A clear definition is important for:
• Properly understanding the scope of
undeclared work;
• Building an effective legal and
administrative response to undeclared
work;
• Ensuring that undeclared work is dealt with
consistently within a country or across the
European Community.
Issues for Labour Inspection
• To help IDENTIFY undeclared work in the workplace
• To help PLAN strategies to address undeclared work
• To help TRAIN inspectors on undeclared work
• To help with AWARENESS RAISING and PREVENTION
• To better COLLABORATE with other authorities (countries)
and develop an INTEGRATED APPROACH
Points for discussion
• What are the key elements or references for defining
undeclared work?
• Does a national definition change the effectiveness of
a labour inspectorate’s response to undeclared work?
• How can a common definition and understanding of
undeclared work be coordinated within a country (i.e.
between inspectorates and other government
agencies)?