Ways to reduce undeclared work

AuthorValeria Gheorghiu
Lecturer Valeria GHEORGHIU
Negative consequences of undeclar ed work are reflected in the economy by distor ting competition. Thus,
employers who do not use decla red work have fewer financial obligations and ther efore a re competing unfairly with
those employers who use all kinds of resour ces and making rea l efforts to comply with legal obligations incumbent
on them.
Keywords: undeclared work, the economy, competition, employer, employee, outsourcing
JEL Classification: K 31
Undeclared work is the most important issue in the field of labor relations. The concept of
undeclared work (known as black labor) is the activity performed by an employee for and under
the authority of an employer, person or entity without the legal provisions in force concerning the
conclusion, performance, amendment, suspension and termination of the individual employment
In Romania, as in European Union countries, undeclared work, by its nature, is difficult to
say exactly, so the size of this phenomenon can only be estimated.
Undeclared work has negative effects in the short term but especially long-term, both for
individuals and for society, and the state budget, there is a relation between contributions and tax
and social security access rights and other social protection measures.
Failure to pay these legal obligations leads, on the one hand, the lack of revenue to the
state budget, affecting also the social security systems, on the other hand - and most importantly -
the fact that people can not perform undeclared work receive any of the forms of social protection
under the law.
Whereas undeclared work involves insecure, with short-term perspective without
professional development opportunities, lower wages than on employment, social protection
without negative effects for those providing undeclared activity is also manifested precarious
socio-economic position compared to workers employed illegally.
Negative consequences of undeclared work are reflected in the economy by distorting
competition. Thus, employers who do not use declared work have fewer financial obligations and
therefore are competing unfairly with those employers who use all kinds of resources and making
real efforts to comply with legal obligations incumbent on them.
Undeclared work can occur only with the involvement of two parts, namely employers
and their employees, based on unfair practices that deplete the sense of responsibility necessary
in a society where resources is an important part of social helmet.
The main cause of the perpetuation of this phenomenon is the immediate financial
advantage obtained both employer and employee, generated by evasion of taxes and social
It requires that all forms of combat undeclared work to fit in employment policies,
because doing so will help state joint efforts to implement other strategies in the field of
government (legal jobs, improving quality and productivity at work, strengthening social
cohesion and the elimination of poverty, avoid market distortions).
The most common forms in which it manifests undeclared work are:
Valeria Gheorghiu, "Alexandru Ioan Cuza" Police Academy of Bucharest, valeria.gheorghiu@yahoo.com

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