1. Between Compliance Strategies & Enforcement Mechanisms The Case of Paid Domestic Work in Argentina The 4 th Conference of the Regulating for Decent Work Network July 8 - 10, 2015 International Labour Organization, Geneva Lorena Poblete CIS-CONICET/IDES - PIIRS, Princeton University Fung Global Fellow Program

2. 1. Introduction  Caracterization of Domestic Work in Argentina  Presentation of the 2013 Law on Domestic Work 2. Challenges of implementation  Obstacles of implementation: naturalization of informality trivialization of non compliance employers’ perception of their position  Innovative enforcement mechanisms: simplification of registration procedures incentive through tax deductions coertion through tax collection 3. Conclusion outline New strategies for compliance and enforcement

3. Paid Domestic Work in Argentina caracterization

4.  Aged: 56.6% over 40 years old  Origins: 31% internal migration / 14% international migration  Working time: 19.6% over 40 weekly hours 39.6% between16-39 weekly hours 32.4% between 6-15 weekly hours 9.3% less than 6 hours weekly hours  Employers: 70% work for 1 employer 17% work for 2 employers 13% work for more than 3 Paid Domestic Work in Argentina caracterization

5.  Aged: 56.6% over 40 years old  Origins: 31% internal migration / 14% international migration  Working time: 19.6% over 40 weekly hours 39.6% between16-39 weekly hours 32.4% between 6-15 weekly hours 9.3% less than 6 hours weekly hours  Employers: 70% work for 1 employer 17% work for 2 employers 13% work for more than 3 Paid Domestic Work in Argentina caracterization 42%

6.  Aged: 56.6% over 40 years old  Origins: 31% internal migration / 14% international migration  Working time: 19.6% over 40 weekly hours 39.6% between16-39 weekly hours 32.4% between 6-15 weekly hours 9.3% less than 6 hours weekly hours  Employers: 70% work for 1 employer 17% work for 2 employers 13% work for more than 3 Paid Domestic Work in Argentina caracterization 42% 30%

7. 2013 Law on Domestic Work  all domestic workers regardless working hours  weekly rest  compensation payment in unjustified dismissals  minimum wage  overtime & annual mandatory bonus  leaves: sick leave, special leaves (marriage, death of a relative, study, maternity leave)  Labor Risks Insurance (1995)  Family Benefits: “Universal Child Allowance” (2009)  Social Security Special Regime for Domestic Workers (1999) caracterization

8.  all domestic workers regardless of the worked hours  weekly rest  compensation payment in unjustified dismissals  minimum wage  overtime & mandatory bonus  leaves: sick leave, special leave (marriage, for death of a relative, study) & maternity leave  Labor Risks Insurance (1995)  Family Benefits: “Universal Child Allowance” (2009)  Social Security Special Regime for Domestic Workers (1999) improvement on domestic work regulation implementation challenge challenges of implementation 2013 Law on Domestic Work

9.  all domestic workers regardless of the worked hours  weekly rest  compensation payment in unjustified dismissals  minimum wage  overtime & mandatory bonus  leaves: sick leave, special leave (marriage, for death of a relative, study) & maternity leave  Labor Risks Insurance (1995)  Family Benefits: “Universal Child Allowance” (2009)  Social Security Special Regime for Domestic Workers (1999) improvement on domestic work regulation implementation challenge formalization 2013 Law on Domestic Work 1st step challenges of implementation

10.  all domestic workers regardless of the worked hours  weekly rest  compensation payment in unjustified dismissals  minimum wage  overtime & mandatory bonus  leaves: sick leave, special leave (marriage, for death of a relative, study) & maternity leave  Labor Risks Insurance (1995)  Family Benefits: “Universal Child Allowance” (2009)  Social Security Special Regime for Domestic Workers (1999) improvement on domestic work regulation implementation challenge formalization 2013 Law on Domestic Work 1st step 95% challenges of implementation

11. Legal framework FORMALIZATION labor policy : main goal 2004 Law 25.877 Labor Regime 2004 Resolution 231 of Ministry of Labor Labor formalization 2008 Law 26.476 Declared work protection regime 2014 Law 26.940 Promotion of enregistered work and prevention of labor fraude challenges of implementation

12. Non Compliance with the Law formalization acces to labor and social rights obstacles Naturalization of informality Trivialization of non compliance Employers’ perception of their own position challenges of implementation

13. RegulationCategorynot covered 1956 Special Regime 4 hours/ 4 days for 1 employer 47.2% 1999 Social Security Special Regime for DW at least 6 weekly hours for 1 employer 9.4% 2006 Single-Tax Regime less than 6 weekly hours for 1 employer 0% Non Compliance with the Law Legal Exclusion 1956 - 2013 Naturalization of informality challenges of implementation

14. RegulationCategorynot covered 1956 Special Regime 4 hours/ 4 days for 1 employer 47.2% 1999 Social Security Special Regime for DW at least 6 weekly hours for 1 employer 9.4% 2006 Single-Tax Regime less than 6 weekly hours for 1 employer 0% Non Compliance with the Law Legal Exclusion 1956 - 2013 Naturalization of informality challenges of implementation 95%

15. Non Compliance with the Law tolerance of high levels of informality Invisibility of partial or temporary informality Involuntary informality absence of fraud penalty not a real job but a “help” “the employer is someone else” Trivialization of non compliance The employers’ position challenges of implementation

16. New strategies for compliance and enforcement enforcement mechanisms INNOVATION new combination of mechanisms already used SIMPLIFICATIONINCENTIVESCOERCION

17. New strategies for compliance and enforcement Modes of registration: web, free call, home banking system Payment of employer’s contribution: home banking, on-line tax payement Regulatory background: Single-tax Regime (1998) – self-registration Deduction of income tax: 30% of all mandatory contributions & salaries Regulatory background: Tax Benefices for Domestic Services (2006) enforcement mechanisms SIMPLIFICATION OF REGISTRATION PROCEDURES TAX BENEFITS INCENTIVES

18. New strategies for compliance and enforcement constrained registration base on ex officio determination Determination of the debt with the social security system when: there have been no records or if the records are deficient the state has no the possibily to verify the declared information Regulatory background: Social Security Resources Law (1970 & 2006) National Tax Agency Resolution 2927/2010 enforcement mechanisms COERCION: MAID’S PRESUMPTION

19. New strategies for compliance and enforcement Definition of Minimum Worker Indicator Calculation of the minimum number of workers needed to performed an specific task or activity -2010: MWI for construction sector & textile industry -2013: MWI for domestic work annual incomes + property = one domestic worker National Tax Agency Resolution 3492/2013 enforcement mechanisms COERCITIVE ACTIONS: MAID’S PRESUMPTION

20. New strategies for compliance and enforcement enforcement mechanisms INFORMAL DOMESTIC WORK

21. New strategies for compliance and enforcement enforcement mechanisms INFORMAL DOMESTIC WORK 95% 58%

22. Between compliance and enforcement conclusion formalization acces to labor and social rights Partial compliance with labor rights: non labor inspection Limited acces to social rights - multi-employers workers 30%

23. THANKS MERCI