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Institutional management in fighting against undeclared work. Considerations on some selections from notable studies in the matter

Marilena-Nicoleta G. Balabuti ()
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Marilena-Nicoleta G. Balabuti: Advanced Studies, Romanian Academy, Calea Victoriei, Bucharest, Romania

Manager Journal, 2016, vol. 24, issue 1, 61-67

Abstract: Fighting against undeclared work represents a task that most of the countries need to do. Regarded as a phenomenon which undermines the economy of a country, the undeclared work became subject of analysis and debate in European Union, more and more, mostly after 2001. In the research that aims to analyze the institutional management of the fight against undeclared work, first we must see some selections of notable studies made by important bodies and organizations. The role of the European Commission and the International Labour Organization in the research is important; what those institutions were released in the matter has strong impact on national policies and also in the targets that management of the national authorities is considering to implement. The European Commission had made some research on the undeclared work, focusing on the forms and on the tools that national institutions could or should use to fight efficiently against this phenomenon. According to some research made by European Commission1, “undeclared work may come in different forms. The most common type is work carried out in a formal undertaking, partially or fully undeclared. Partially undeclared work is sometimes also called “under-declared work”, “envelope wages” or “cash-in-hand”. Another type is undeclared “own account” or self-employed work, where self-employed persons provide services either to a formal enterprise or to other clients, such as households. Undeclared work occurs in all kind of economic sectors, both within countries and across borders. It is often carried out in sectors like construction, renovation or repair works, gardening, cleaning, provision of childcare or HORECA (Hotel / Restaurant / Catering – food services)”. Most of the member states in E.U had implemented a national system of labour inspection that is enforced to tackle the phenomenon of undeclared work and to diminish it. Definitely, the undeclared work creates an unfair competition between employers, who are positioned on different levels regarding the costs of the labour that are taking into consideration when their profit is analyzed. Also, it creates a discriminatory situation between legal employed workers and those workers who performed undeclared work, because the latter are not properly and equally ensured in the national insurances systems that protects them from unemployment, sick and loose of the working capacity. For this reason, the institutionalized fight against undeclared work is subject to proper management, starting from the legal tools that national system provides for the organizations that are entitled to do this. In this regard, we must consider the general background that comes from the European Commission and the ILO, and the national background, that comes from the national law and administrative system and from the national policies that are deriving from European in this aspect.

Keywords: institutional management; undeclared work; labour administration. (search for similar items in EconPapers)
Date: 2016
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Handle: RePEc:but:manage:v:24:y:2016:i:1:p:61-67