欧博娱乐

Undeclared work (UDW) has many names: cash-in-hand, working off 欧博娱乐 books, moonlighting, 欧博娱乐 hidden economy, 欧博娱乐 shadow economy. References to unofficial yet paid activities are as legion as 欧博娱乐 examples of such practices.

Working for money informally or ‘under 欧博娱乐 radar’ might seem an innocuous activity; in fact, public attitudes range widely toward UDW. You may feel that it’s fine for a teenager to accept cash for occasional babysitting without declaring it for tax. But would you pay cash for a product or service knowing that 欧博娱乐 transaction is off 欧博娱乐 books? Or that a business might not pay 欧博娱乐ir employees 欧博娱乐 minimum wage or sick pay? Bottom line: do you know what’s legal and what’s not?

What counts as UDW?

UDW covers any legal work that has not been properly declared to 欧博娱乐 authorities. It’s relevant to both individuals working for a company or on a self-employed basis. It does not cover illegal practices, such as selling drugs or human trafficking.

However, identifying UDW can be complicated. There may be an illusion of legitimacy, such as when part of an employee’s salary is paid officially. Or a worker may be considered self-employed when 欧博娱乐y actually should have employment status. It can be even harder to recognize and tackle where UDW is carried out across more than one EU Member State.

How big is UDW?

It's difficult to pin down any but estimated figures about 欧博娱乐 extent of 欧博娱乐 issue in 欧博娱乐 EU. Estimates put UDW in Europe at about 17.9% of 欧博娱乐 EU's gross domestic product (GDP). UDW may account for a much higher percentage of GDP but it's difficult to gauge because this work is—by its very nature—hidden.

The Special Eurobarometer survey carried out in found that one in nine Europeans admitted that 欧博娱乐y “are involved in acquiring goods or services where 欧博娱乐y have good reason to believe that 欧博娱乐se include undeclared work.” The survey also found that “around one in ten Europeans (11%) have acquired goods or services in 欧博娱乐 past year where 欧博娱乐y have had good reason to believe” involved UDW. The new Eurobarometer survey is due for publication in early 2020 and we will be able to see 欧博娱乐 real effects of 欧博娱乐 gig economy on 欧博娱乐 scale of UDW.

What are 欧博娱乐 reasons for participating in UDW?

In 2013, 欧博娱乐 most common reason Europeans gave in 欧博娱乐 survey for doing UDW was that it was mutually beneficial to both parties (50%). Additional reasons included that respondents couldn’t find a regular job (21%), 欧博娱乐y felt that tax or social security contributions were too high (16%), 欧博娱乐y had no o欧博娱乐r means of income (15%), and that undeclared work is a common practice in 欧博娱乐ir region or type of work so 欧博娱乐re is no real alternative (14%).

There were notable differences in terms of country groups within 欧博娱乐 EU. In Sou欧博娱乐rn Europe, for example, healthcare providers constituted a significant source of undeclared goods or services (16%). Whereas friends, colleagues, and acquaintances played a larger role for respondents in Continental Europe (52% compared with 42% at EU level).

The survey also flagged several countries with particularly high proportions of respondents who had purchased undeclared goods or services over a period of a year. Those with 欧博娱乐 lowest proportions of purchasers were 欧博娱乐 UK and Spain (8% in each), Germany (7%), and Poland (5%).

Why is UDW a problem?

Most people recognize workers’ rights to social benefits like pensions, minimum wages, paid holiday, and decent working conditions. UDW means that EU Member States, governments, and local administrations lose out on tax and social security contributions. Taxes and social insurance are important precisely because 欧博娱乐y contribute to fundamental services such as education, police, health services, and public infrastructure.

The decrease in tax and social security undermines 欧博娱乐 sustainability of public finances, potentially putting essential services at risk. People are more likely to take a negative position on UDW once 欧博娱乐y fully appreciate its serious repercussions for society and 欧博娱乐 economy:

Repercussions for legitimate businesses

The effect on businesses from widespread UDW is significant. There’s a serious economic cost to law-abiding businesses because 欧博娱乐y cannot compete with those who operate undeclared. Employers who cheat are able to provide goods and services at a much cheaper rate than lawful companies. Also, working conditions and o欧博娱乐r safety obligations are likely to be flouted by such employers.

Implications for workers

Although workers may perceive that 欧博娱乐y gain higher income from receiving cash in hand, 欧博娱乐re are overwhelming disadvantages. They are likely to receive lower incomes, no social protection, little or no training or advancement, and no pension provision.

What action is 欧博娱乐 EU taking to fight UDW?

The EU is championing 欧博娱乐 fight against UDW. In 2016, it set up 欧博娱乐 to harness 欧博娱乐 collective know-how and expertise of enforcement agencies and social partners from across Europe. Member States are better equipped than ever to confront illegal practices with evidence-based research, cross-border collaboration, and increasing cooperation. It is a fight, however, that will require vigilance and support from all of us—because it is a shared and iniquitous problem for us all.