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Glossary

The glossary provides a list of terms used in the ELA website, documents and publications. These are not official definitions and will be continuously up-dated.

Glossary of terms (2018)

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Starting with "I" (6)

Incentives

These measures make it easier to undertake, and reward, participation in declared work. Measures used include: purchaser incentives (such as service vouchers, targeted direct taxes, targeted indirect taxes), and supplier incentives (such as society-wide amnesties, voluntary disclosure and business advisory and support services).

[Eurofound (2013), op cit.]

Indirect policy measures

These aim to align citizens and businesses attitudes and behaviour with the laws and regulations. This can be achieved either by changing their attitudes and behaviour, or by establishing trust in the formal institutions.

Informal economy

A term used by the ILO mostly in relation to the developing world, which covers all economic activities by workers and economic units that are – in law or in practice – not covered or insufficiently covered by formal arrangements.This definition is very similar in its scope to the definition of undeclared work as understood in the context of the Platform, but reflecting the developing world contexts where it is used, tends to also include workers who sometimes fall outside the coverage of labour legislation (e.g. unpaid, domestic or agricultural workers).

Informal employment

Employees are considered to have informal jobs if their employment relationship is, in law or in practice, not subject to national labour legislation, income taxation, social protection or entitlement to certain employment benefits (advanced notice of dismissal, severance pay, paid annual or sick leave, etc.).

Informal enterprise

Employers and own-account workers are considered informal when their economic units belong to the informal sector. The informal sector is a subset of household unincorporated enterprises (not constituted as separate legal entities independently of their owners)  that produce for sale in the market, even if partly, and that do not have a complete set of accounts and/or are not registered under national legislation.

[ILO, Resolution concerning the measurement of employment in the informal sector, Fifteenth International Conference of Labour Statisticians (ICLS), Geneva, 1993.]

Internal Market Information system (IMI)

An IT-based information electronic platform that links up national, regional and local authorities across borders to facilitate administrative cooperation. It can be used to ask questions about regulations and posting of workers and companies, help to collect fines cross border, and facilitates the sending of information and alerts about irregularities to another country.