The European Labour Authority has launched an EU-wide campaign warning workers and employers about the risks of “undeclared work” — jobs paid “cash in hand” or otherwise not properly reported to authorities.
Undeclared work can include situations where a person has no written contract, only some working hours are declared, or someone is registered as self-employed while a company controls their working time and duties, the European Labour Authority said on Friday in details of its “Declared work benefits all!” campaign.
About one in 10 people in Europe say they have bought goods or services in the past year that may have involved undeclared work, and around a third say they know someone who works undeclared, according to figures cited in the campaign information.
The authority stressed that undeclared work reduces public revenue, undermines social security systems and fuels unfair competition.
Workers who are not properly declared can miss out on protections such as guaranteed pay, paid annual leave, sick leave, and maternity or paternity benefits.
If a workplace accident happens, undeclared workers may have to cover their own medical and rehabilitation costs, according to the campaign material.
Undeclared work can also affect retirement income because pension contributions may not be paid, leaving people with fewer or no pension rights later in life.
What the campaign says to look for
Workers can check whether their job is properly declared by looking for basics such as a written contract, regular pay that reflects overtime, and access to social security coverage that supports healthcare, unemployment benefits and pensions, the authority said.
Employers were urged to follow national rules on employment conditions, verify that workers have the right to work legally, and keep accurate records of working hours and payments, according to the campaign information.
The European Labour Authority also pointed employers to resources on tackling undeclared work alongside the “Declared work benefits all!” campaign.
