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HOW TO MAKE FORMAL WORK ATTRACTIVE? José Ignacio MARTÍN FERNÁNDEZ Labour and Social Security Inspectorate of Spain International Relations Unit 1.

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Presentation on theme: "HOW TO MAKE FORMAL WORK ATTRACTIVE? José Ignacio MARTÍN FERNÁNDEZ Labour and Social Security Inspectorate of Spain International Relations Unit 1."— Presentation transcript:

1 HOW TO MAKE FORMAL WORK ATTRACTIVE? José Ignacio MARTÍN FERNÁNDEZ Labour and Social Security Inspectorate of Spain International Relations Unit 1

2 CHALLENGE 1 UNDECLARED WORK 2 KEY STRATEGIES 3 FORMAL ECONOMY 2

3 TRANSNATIONAL ASPECTS OF INFORMAL WORK ENFORCEMENT IN A GLOBALISED LABOUR MARKET 3

4 TRANSNATIONAL ASPECTS OF INFORMAL WORK ENFORCEMENT IN A GLOBALISED LABOUR MARKET 4 THB

5 TRANSNATIONAL ASPECTS OF INFORMAL WORK LABOUR INSPECTORATES: KEY CHALLENGES DETERMINING APPLICABLE REGULATIONS EU Single Market Supranational National 5

6 TRANSNATIONAL ASPECTS OF INFORMAL WORK LABOUR INSPECTORATES: KEY CHALLENGES 6 Directive 96/71, POSTING OF WORKERS “LEX LOCI LABORIS” SOCIAL DUMPING

7 TRANSNATIONAL ASPECTS OF INFORMAL WORK LABOUR INSPECTORATES: KEY CHALLENGES LANGUAGE BARRIER 7

8 TRANSNATIONAL ASPECTS OF INFORMAL WORK LABOUR INSPECTORATES: KEY CHALLENGES PROFESSIONAL NETWORKS COMMON FORMS (A1 FORM) NEW TECH TOOLS 8

9 TRANSNATIONAL ASPECTS OF INFORMAL WORK LABOUR INSPECTORATES: KEY CHALLENGES ENHANCING COOPERATION “The only thing that will redeem mankind is cooperation” Bertrand Russell 9

10 ONE ENFORCING BODY SEVERAL ENFORCING BODIES TRANSNATIONAL ASPECTS OF INFORMAL WORK ENFORCEMENT COMPETENCES: SYSTEMS LABOUR RELATIONS OSH FOREIGNERS SOCIAL SECURITY “SPECIALIZED” “HOLISTIC” BOTH SYSTEMS WORK WELL, THEY JUST FUNCTION DIFFERENTLY 10

11 TRANSNATIONAL ASPECTS OF INFORMAL WORK LABOUR AND SOCIAL SECURITY INSPECTORATE OF SPAIN ONE ENFORCEMENT ADMINISTRATION BODY -Collective and individual labour relations - OSH - Social Security -Work of foreigners -Employment - Equality (GPG, age, origin,…)  Monitor and enforcement capacities  Improvement notices  Infringement records – proposal of sanctions  Social Security debts  Work stopage  Reports to the Attorney General and other judicial bodies  … 11

12 TRANSNATIONAL ASPECTS OF INFORMAL WORK LABOUR AND SOCIAL SECURITY INSPECTORATE OF SPAIN Custom web-based application 24/7/365 remote access Knowlegde forum Databases: Social Security, etc. Updates and notifications 12

13 TRANSNATIONAL ASPECTS OF INFORMAL WORK NATIONAL STRATEGY AGAINST UNDECLARED WORK European Commission “Tax Report in EU Member States 2013: Tax policy challenges for economic growth and fiscal sustainability” 13

14 TRANSNATIONAL ASPECTS OF INFORMAL WORK NATIONAL STRATEGY AGAINST UNDECLARED WORK PLAN AGAINST FRAUD Legal amendments Collaboration and social awareness Institutional collaboration measures Organizational measures 14

15 TRANSNATIONAL ASPECTS OF INFORMAL WORK NATIONAL STRATEGY AGAINST UNDECLARED WORK PLAN AGAINST FRAUD: SOME RESULTS Mailbox against fraud (August 2013) Workers brought into formal economy Social Security contributions recovered 1.4 mill. € Fines to infringing companies 4.4 mill. € 15

16 TRANSNATIONAL ASPECTS OF INFORMAL WORK NATIONAL STRATEGY AGAINST UNDECLARED WORK PLAN AGAINST FRAUD: SOME RESULTS Collaboration and social awareness YouTube: https://www.youtube.com/watch?v=2udj2LeZvSchttps://www.youtube.com/watch?v=2udj2LeZvSc 16

17 TRANSNATIONAL ASPECTS OF INFORMAL WORK NATIONAL STRATEGY AGAINST UNDECLARED WORK PLAN AGAINST FRAUD: SOME RESULTS PEOPLE DETECTED IN INFORMAL ECONOMY AND BROUGHT INTO FORMAL ECONOMY PERIOD Number of inspections Number of affected workers

18 TRANSNATIONAL ASPECTS OF INFORMAL WORK NATIONAL STRATEGY AGAINST UNDECLARED WORK PLAN AGAINST FRAUD: SOME RESULTS SANCTIONS TO COMPANIES COMMITING FRAUD TO OBTAIN UNRIGHTFULLY SOCIAL SECURITY BENEFITS SUCH AS UNEMPLOYMENT BENEFITS PERIOD Number of inspections Number of detected infringements

19 TRANSNATIONAL ASPECTS OF INFORMAL WORK EUROPEAN TRANSNATIONAL INITIATIVES (18 June 2016) Directive 2014/67 -> Directive 96/71 Eurodetachèment 3 SLIC Working Group – Cross-Border Enforcement Future European Platform against UW 19

20 TRANSNATIONAL ASPECTS OF INFORMAL WORK THE IMPORTANCE OF TRANSNATIONAL COOPERATION Bilateral and Multilateral Agreements: Gathering an understanding between systems with different internal organization 20

21 TRANSNATIONAL ASPECTS OF INFORMAL WORK THE IMPORTANCE OF TRANSNATIONAL COOPERATION PROFESSIONAL EUROPEAN NETWORKS: IMI (Regulation 1024/2012) 21

22 TRANSNATIONAL ASPECTS OF INFORMAL WORK THE IMPORTANCE OF TRANSNATIONAL COOPERATION PROFESSIONAL EUROPEAN NETWORKS: IMI 22 PILOT EXPERIENCE JUNE 2011

23 TRANSNATIONAL ASPECTS OF INFORMAL WORK THE IMPORTANCE OF TRANSNATIONAL COOPERATION PROFESSIONAL EUROPEAN NETWORKS: KSS 23

24 TRANSNATIONAL ASPECTS OF INFORMAL WORK SUMMARY OF IDEAS Globalization of the labour market (formal and informal) Undeniable transnational implications. Present a common front from all the institutions involved. Cooperation, national and international level. A clear regulation, commitment based in agreements, and seizing the IT advantages Mind shift among the citizens: raise awareness and sensitize 24

25 THANK YOU FOR YOUR ATTENTION 25 AČIŪ UŽ DĖMESĮ

26 IMAGES USED IN THIS PRESENTATION 26


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