Undeclared work (UDW)

Any paid activities that are lawful as regards their nature but not declared to public authorities, taking account of differences in the regulatory systems of the Member States. Member States have adopted a variety of different definitions focusing upon non-compliance with either labour, tax and/or social security legislation or regulations.

If there are additional forms of non-compliance, it is not undeclared work. If the goods and services provided are unlawful (e.g., the production or trafficking of drugs, firearms, persons or money laundering forbidden by law), it is part of the wider criminal economy i.e., the shadow economy (often defined as including both the undeclared economy and the criminal economy), and if there is no monetary payment, it is part of the unpaid sphere.

[European Commission (2007) Stepping up the Fight against Undeclared Work. Brussels: European Commission, p. 2.]

[For the definitions used in Member States, see http://ec.europa.eu/social/main.jsp?catId=1322&langId=en ]