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Tackling under-declared employment in the European Union: input paper to thematic discussion of European Platform Tackling Undeclared Work
(2018)
  • Colin C Williams
Abstract
The under-declaration of work ranges from employers using unregistered employees, through the under-declaration of income by the formal self-employed and formal businesses, to the misuse of collaborative platforms and the digital economy to conceal the full amount of incomes and social security due.
The objective of this thematic discussion on under-declared employment in the European Union is: (i) to exchange information on what works and what does not, (ii) to generate knowledge about under-declared employment, and (iii) to explore how the Platform activities can contribute to tackling under-declared employment.
The intention is to focus upon two types of under-declaring work:
(1)      ‘conventional’ under-declared employment, when formal employers pay their formal employees two salaries - an official declared salary, and an additional undeclared ‘envelope’ wage[1] - and/or under-declare working time, and
(2)      ‘modern’ emergent forms of under-declaring work[2], including:
a.    non-declaration of a second job;
b.    not reporting income from online trade/services; and the misuse of collaborative platforms, the sharing and gig economies; and
c.    the payment of wages disguised as trusts, loans, transfers of assets and rights, loyalty points bonuses and shares.
This thematic discussion will focus attention on two key issues. In Section 1, the extent and character of conventional under-declared employment is addressed and section 2 evaluates how these forms of under-declared employment can be tackled. Section 3   outlines the ‘modern’ emergent forms of under-declaring work and how they might be addressed.


[1]Williams, C.C. and Horodnic, I. (2017) Under-declaring work/falsely declaring work: under-declared employment in the European Union, European Commission, Brussels.
[2]Mineva, D. and Stefanov, R. (2018) Evasion of Taxes and Social Security Contributions, European Commission, Brussels
Keywords
  • informal sector,
  • informal economy,
  • shadow economy,
  • underground economy,
  • social sciences,
  • economics,
  • sociology,
  • business,
  • labor law,
  • labour law,
  • economic sociology,
  • business ethics,
  • envelope wages,
  • European Union,
  • industrial relations
Publication Date
October 19, 2018
Publisher
European Platform Tackling Undeclared Work, European Commission
Citation Information
Colin C Williams. Tackling under-declared employment in the European Union: input paper to thematic discussion of European Platform Tackling Undeclared Work. Brussels(2018)
Available at: http://works.bepress.com/colin_williams/99/