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From typical towards atypical forms of employment

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Presentation on theme: "From typical towards atypical forms of employment"— Presentation transcript:

1 How can social security systems reinvent themselves to address these challenges?

2 From typical towards atypical forms of employment
changes in the “world of work” that entail new challenges for the social security systems correspond to a variety of exceptions to the standard (full time and permanent) employment relationship; The abovementioned core model of employment relationship has influenced strongly the construction and further expand of the welfare state. The new forms of atypical work that deviate from the former standard encompass i.a.: a defined duration of the employment contract (“fixed-term employees”) flexibility of working times (part-time work) cases where the border between employment an self-employment become less clear

3 ACCORDING TO THE NATURE OF THE CHALLENGE
Challenges which are primarily of technical nature: Easier to respond Correlating to wider social policy issues: Demand more sofisticated solutions In the majority of the cases, the issue at stake - i.e. the adaptation of the social security protection to each challenge - consists of the combination of the two. Thus, the social security systems – once again – have to reinvent themselves in order to address these challenges from a technical as well as from a broader socio-political point of view.

4 Indicative evolutions
Part-time work in the EU28 represents 1/5 of the labour force. This quantitative parameter has to be taken into account in correlation with other relative parameters such as the voluntary or involuntary character of the acceptance of a part-time employment from the employee. In the Netherlands almost half of the total labour force has voluntarily chosen to work part- time, while in Greece the overwehlming majority of the part-time workers have been practically forced to accept to converse their employment relationship from a full-time into a part-time one.

5 The defined duration of the employment contract has experienced such a severe growth that it even reaches the status of civil servants, as – in some cases (Greece) - the majority of those who enter the public service as civil servants during the last decade have a contractual private law status of employment of a defined duration which usually does not exceed some months. E.g. teachers are appointed for a period of 8-9 months per year while it is very probable that they will not be given the opportunity to work in the year to come.

6 Of the utmost importance regarding their social security status is the case of the quasi self- employed; People whose activity cannot be clearly classified under the scope of the notion of self employment or under the one of dependent employment. Economically dependent self employed + free lancers Other forms of work (?): portfolio workers (mostly in the creative sector-several employers at the same period of time), apprenticeships, prosumers, crowdwork

7 Why atypical forms of work influence social security systems
Part-timers: in some countries minor employment is excluded from the social security protection granted to other employees who do not fall under an income threshold. Thus, the use of such thresholds reduce the scope of social security provisions Temporary workers: Difficulties to access social security benefits – often not possible to fulfil requirements concerning minimum insurance periods Quasi self-employed: The characterization of an activity as self employment instead of dependent employment entails the lack of responsibility of the probable employer for the paying of contributions

8 Quasi self-employed: Self-employed persons performing work without employees for only one or two clients, thus economically dependent on the latter In some countries they are treated as employees, under certain conditions: continuous and not occasional professional activity on the basis of a contract with one or two employers. Pro rata calculation of social security contributions between employee and employer. Problem: In case the income deriving from such an activity falls under the legislatively defined minimum basis upon which contributions are calculated and given the fact that the contributions are calculated proportionately according to the real income accrued – then it is the employee’s responsibility to pay the rest of the contributions in order that they reach the minimum obligatory statutory-defined amount. These arrangements may provoke additional administrative burden for the social security administration, particularly due to provisions which demand previous declaration of this sui generis form of work either by the employer or the employee.

9 HOW TO ENCOUNTER THE CHALLENGES EMERGING FROM ATYPICAL FORMS OF WORK
Adapting possible good practices which already entailed satisfactory results. The french cheque emploi-service: also adopted in Belgium, Germany and Greece: A compulsory means of paying simultaneously wage and social security contributions for employees who work at the cleaning sector for individuals. A possible shift on the financing of social security based less on the salary and more on the profit earned.

10 Skepticism is one of the least sophisticated forms of surrender.

11 Thank you for your attention


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