Illegal Work

By Maria Kotrotsiou from E-SCHOOL

The most common terms for undeclared labour include “black” labour, underground or hidden labour, moonlighting, and illegal employment. Undeclared work, as defined in the EC’s Communication on Undeclared Work, is related to the following: ‘paid activities that are lawful as regards their nature but not declared to the public authorities, bearing in mind that differences in the regulatory system of Member States must be taken into account.’

A 1998 report by the European Commission on undeclared work estimated that illegal labour comprised 19% of total employment and accounted for approximately 16% of the EU’s gross domestic product. Undeclared labour accounted for an estimated 11.6% of total labour input in the private sector of the European Union in 2017, according to a study by the EU Commission. On average, undeclared work accounts for 16.4% of the EU’s total GDP.

The European Labour Authority, in February 2023, conducted a study to assess the prevalence of undeclared work within the European Union. The findings indicated considerable fluctuations in 19 out of the 23 member states of the EU between the years 2019 and 2023. According to the findings of 2023, an estimated 11.1% of total labour input in the private sector of the European Union is undeclared, representing approximately 14.8% of the EU’s total GPD (a decrease from 11.6% in 2013).

It is imperative to acknowledge that substantial variations exist among European nations concerning undeclared labour. Significant prevalence of undeclared labour can be observed in the subsequent nations: Bulgaria (19.3%), Lithuania (20.8%), and Romania (21.7%). The lowest levels are observed in Austria (5.1%), Germany (3.9%), and the Netherlands (4.8%). A significant proportion of nations surpassing the EU average in rankings are those that acceded to EU membership in 2004 or subsequent years (Josip Franic, 2023).

The EU employs between 4.5 and 8 million unauthorised immigrants in the construction, agriculture, hotel, and other sectors. As per a proposed new directive, employers who engage in illegal working conditions would be subject to penalties. All members of EU are requesting criminal law sanctions in the most serious cases and want to make companies responsible for the actions of their subcontractors. In the most severe instances, every member state of the EU demanded, and achieved, criminal law penalties and seeks to hold business owners responsible for the conduct of their employees.

References

• EUR-Lex Access to European Union Law. (2009 , May 25 ). Ανάκτηση από Directive – 2009/50 – EN – EUR-Lex: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32009L0050 OECD. (2023). International Migration Outlook. Paris: OECD Publishing.
• Organization, I. L. (2010, January). Labour inspection in Europe: undeclared work, migration, trafficking. Geneva: International Labour Organization.