National Workshop on Labour Inspection and Undeclared WorkNational Workshop on Labour Inspection and Undeclared WorkBudapest, October 2009Budapest, October 2009

Collaboration Collaboration between the GLI EA and Other National Bodiesbetween the GLI EA and Other National Bodies

to Address Undeclared Work:to Address Undeclared Work:Extent and LimitsExtent and Limits

Presented by: Veselina Atanasova- Head of the Projects and Programmes Unit,Presented by: Veselina Atanasova- Head of the Projects and Programmes Unit,

International Cooperation, Projects and Programmes DepartmentInternational Cooperation, Projects and Programmes Department

Legal Framework

• National legislation in force in regard to cooperation and coordination on undeclared work between different administration bodies:

• The 2008 Labour Inspection Act;• Provisions on data exchange and communication of irregularities to the

competent authority in:- The Labour Code;- The Ordinance on the Terms and Procedure to Issue, Refuse and Withdraw

of Work Permits for Foreigners in the Republic of Bulgaria;- The Ordinance on the Terms and Procedure Concerning the Posting of

Employed Persons from MS or from Third Countries in the Republic of Bulgaria within the Framework of the Provision of Services; others.

• Collaboration agreements (bilateral and multilateral) between the GLI EA and other national public bodies:

• The National Revenue Agency;• The Employment Agency;• The State Agency for Child Protection;• The Social Assistance Agency, etc.

Workers not registeredwith the social security authorities

“Self-employed”undeclared workers

“Unemployed”undeclared workers

Underage workers with no preliminary

work permit*

Migrant workerswith irregular

employment status

Scope of CollaborationAspects of Undeclared Work Addressed

Non-payment of taxesand social security contributions

on real employment earnings

Key Actors Involved

EmploymentAgency

NationalPolice

Service

MigrationServices

State Agencyfor Child Protection

SocialAssistance

Agency

NationalRevenueAgency

GLI EA

Forms Of Collaboration

• Mutual exchange of information:• Access to registries and databases managed by another agency /e.g. labour

inspectors are provided direct access to the register of employment contracts administered by the National Revenue Agency/;

• Communication of relevant information on a regular base and upon demand;

• Communication of findings and irregularities to the competent authority.

• Coordination of activities and joint initiatives (ad hoc campaigns and targeted inspection activities, etc.).

• Participation in joint bodies (working groups, committees, etc.), constituted specially to tackle different aspects of undeclared work • Multidisciplinary Teams for Monitoring Child Labour• Coordination Groups /on the concluded agreements/

Joint Inspections of the GLI EAwith Other Public Authorities

0101//0101//20020077-- 3030//009/9/20092009

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

2007 2008 2009*

Total number ofinspectionsconducted

Joint inspectionsconducted

Joint Inspections of the GLI EAwith Other Public Authorities

0101//0101//20020077-- 3030//009/9/20092009

18%

5%

9%

23%

4%

3%2%

5%

31%

National Police Service andMiggration Authorities

National Social SecurityInstitute

Employment Agency

National Revenue Agency

National Construction ControlDirectorate

Civil Protection State Agency

StateTechnical SurveillenceInspection

Technical Control Inspectorate

Others

Results and OutcomesAims and Expectations

Legal basis for collaboration on undeclared work

Better understanding of existing national regulations and procedures

Improved coordination and cooperationwith other public authorities to combat undeclared work

Timely communication of relevant and reliable information

Effective control Effective control to identify, prevent and remedyto identify, prevent and remedy

various situations of undeclared workvarious situations of undeclared work

Joint initiatives, incl. targeted inspection activities

ReducingReducingthe incidencethe incidence

of undeclared workof undeclared work

EnforcementEnforcementof decent workof decent work

conditions and standardsconditions and standards

Results and OutcomesExample of Good Practice and Next Steps

•Since an amendment was made to the labour legislation, obliging employers to register employment contracts, and as labour inspectors were provided access to the register /upon an agreement with the National Social Security Institute at first and later with the National Revenue Agency/, in a number of cases undeclared work has been transformed into formal work, one of the indicators being the considerable decrease of unemployment rates in a relatively short period of time.

•After joint inspections of the GLI EA and the NRA were organized and carried out in August and September, delayed wages and/or due social security contributions have been paid in many enterprises.

•An amendment to the national labour legislation to combat cases of “envelope wages” is under discussion.

•As a result of joint inspection activities of the GLI EA and the Automobile Administration Executive Agency in the transport sector, a proposal for legal provisions tackling undeclared work of carriers is under preparation.

0

2

4

6

8

10

12

14

16

18

20

I II III IV V VI VII VIII IX X XI XII

Unemployment rates in 2003 /based on statistical data, provided bythe Emloyment Agency/

0

10

20

30

40

50

60

70

80

90

100

2002

2003

2004

2005

2006

2007

2008

Economic ActivityRates

Employment Rates

Unemployment Rates*Based on statisticaldata, provided by theEmloyment Agency

Thank youThank youfor the attention!for the attention!

Veselina Atanasova- Head of the Projects and Programmes UnitVeselina Atanasova- Head of the Projects and Programmes Unite-mail: e-mail: vatanasova@gli.government.bg

Website of the GLI EA: http://git-bg.info/Website of the GLI EA: http://git-bg.info/