Glossary

European Labour Authority initiatives focusing on good practice examples to identify common challenges and policy solutions with participating Member States

An IT system that helps social security institutions across the EU exchange information more rapidly and securely, as required by the EU rules on social security coordination.

[ https://ec.europa.eu/social/main.jsp?catId=869 ]

A term that covers all policy measures beyond the deterrence approach. It includes incentives, and indirect policy measures. It aims to encourage compliance by using either incentives or improving the commitment to compliance with labour, tax and social security law and regulations among the public.

[Eurofound (2013), op cit.]

A body designated by a national government to ensure that there is compliance with specific bodies of law (e.g., labour, tax and/or social security law).

Adopted in 2014 with the aim of strengthening the practical application of, and complementing, the 1996 Posting of Workers Directive by addressing issues related to fraud, circumvention of rules, and exchange of information between the Member States. This Directive also facilitates enforcement of administrative sanctions across borders.

[ http://ec.europa.eu/social/main.jsp?catId=471 ]

Often used in the context of under-declared employment, an envelope wage is a cash-in-hand wage paid by a formal employer to a formal employee in addition to their official declared salary, to reduce their tax and social security payments and therefore labour costs. It arises from an agreement between the employer and employee, and additional conditions may be attached to its payment, which are not in the formal written contract or terms of employment.

multi-annual strategy built on a stakeholder mapping and analysis exercise and delivering recommendations on appropriate technical and organisational measures aimed at improving knowledge and exchange of institutional actors on labour mobility legislation and practices in the European Union

When designing and implementing a full policy operationalisation model, the results of relevant ex-ante (impact assessments) and ex-post evaluation should be used as sources of information when preparing decisions and determining the effectiveness and efficiency of policy measures for tackling undeclared work. Pilot studies are also an accepted tool for evaluating the effectiveness of a policy approach and measures.

All work or service which is exacted from any person whether or not under the menace of any penalty and for which the said person has not offered themselves voluntarily, according to the ILO’s Forced Labour Convention 29 1930: Ar.2 (1). This definition consists of three elements: work or service refers to all types of work occurring in any activity, industry or sector including in the informal economy; menace of any penalty refers to a wide range of penalties used to compel someone to work; and the term “offered voluntarily” refers to the free and informed consent of

Is a fundamental right of workers in the EU allowing to look for a job in another EU country, to work there without needing a work permit, reside there for that purpose, stay there even after employment has finished and enjoy equal treatment with nationals in access to employment, working conditions and all other social and tax advantages.  It entails the abolition of any discrimination based on nationality between workers of the Member States.

This is a model for implementing the holistic approach that combines the range of policy approaches and measures available. This model asserts that the most effective approach is to concurrently implement direct measures (e.g. workplace inspections) to enhance the power of authorities as well as indirect measures (e.g. awareness raising) to enhance trust in authorities.  It is based on evidence that a high trust high power approach is the most effective in tackling undeclared work.   

Where national governments use a whole government approach to tackle undeclared work, by joining-up on the policy and enforcement level of both strategy and operations the fields of labour, tax and social security law, and involve and cooperate with social partners and other stakeholders.

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.]

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.

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).

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.).

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.]

coordinated and targeted campaign on a specific topic, such as labour mobility, with the aim of addressing information gaps, by providing valuable information and raising awareness about that topic

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.

inspection carried out in a Member State with the participation of the national authorities of one or more other Member States, and supported, where appropriate, by the European Labour Authority staff