WRITTEN QUESTION E-1305/02

by Miet Smet (PPE-DE) to the Commission

(7 May 2002)

Subject: Study on paid domestic help in private households in the informal economy

On 15 November 2000 during the plenary debate on my own-initiative report on regulating domestic help, Commissioner Diamantopoulou gave an unequivocal assurance that the European Commission would do further statistical work and carry out studies on the problem of regularising domestic help which has hitherto been carried out illegally.

May I also remind the Commission of the other points raised in the resolution adopted by the European Parliament on 30 November 2000 in which it was emphasised that future regulations must take account of the specific situation and working conditions in which domestic workers find themselves and their isolated position and atypical relationship with their employers. Further study is also required of the situation of immigrants carrying out domestic work and solutions should be proposed to enable them to stay in the EU on decent conditions.

Parliament is also asking for the guidelines on employment to include policy measures to allow domestic work of this kind to be recognised as an occupation in its own right with a view to establishing rules on the social rights of

workers, the adjustment of supply and demand in the sector, access to training and co-funding of contributions by the public authorities. To allow domestic work to be included in the guidelines, the Commission will have to carry out a detailed study setting out all the policy options clearly.

Can the Commission say when the study began and what items are covered? Are the findings already available? Will this study also examine the possibilities of switching from the illegal to the legal economy as a means of stepping up the fight against the black economy? Is research being done in several Member States? In short, what progress has been made towards meeting the promise made to the European Parliament?

Answer given by Mrs Diamantopoulou on behalf of the Commission

(9 July 2002)

The Commission is already dealing with the subject of undeclared work which includes domestic work. An important study on undeclared work was recently undertaken for the Commission. Its conclusions were presented at a seminar that took place on 26 February 2002, in which the Honourable Member participated. They highlight the need for both preventive actions and sanctions. This policy mix is found the optimal approach and most effective policy to combat undeclared work. In the press release on the subject that was issued on 28 February 2002(1), it was stated very clearly that Member States must increase efforts to quantify undeclared work, to cut it down and to transform it into regular employment. This is vital because of the direct link between combating undeclared work and hitting the Lisbon target of full employment by 2010 within a sound macroeconomic environment. The broader picture of the shadow economy needs to be examined because the fight against undeclared work can create conditions for higher quality jobs and more healthy competition among enterprises.

Regarding regulation, domestic workers are covered by the directives dealing with working conditions, in so far as these workers are protected, in the Member State where they carry out their work, as employees under national employment law.

The Commission considers these issues to be principally covered by guidelines 9 (undeclared work in the context for entrepeneurial activity) and 10 (which addresses the full range of the services sector). There was considerable resistance at the level of Council and Employment Committee to change the guidelines in 2002, since it is the last edition before the review of the Strategy after five years. The Council, upon the revised Commission proposal for Guidelines 2002 following the Parliament's opinion, has nevertheless strengthened the guideline 9 in the 2002 version by referring to the fight against undeclared work (in addition to prevention).

The National Action Plans tend to comment on measures but lack generally quantitative data on undeclared work or more specifically on domestic help. Also in the context of the ongoing impact evaluation of the employment strategy, Member States have reported very little indications on the effect of tax-benefit reforms or other measures on undeclared work, the less developed aspects of services or on domestic work. In view of this, this will remain a priority for the employment guidelines and the monitoring process.

However, quantified results from these initiatives have not yet been reported and the Commission needs to study in depth the issue. While it will take some time until this programme will be operational it provides funds exactly for this sort of background work for the implementation of the employment strategy. Indeed, the Commission is planning to use funds of this programme for a study which will examine in more detail the informal economy. It is envisaged to start when financial resources are available and most likely in 2003. Domestic work will be one of the items to be reviewed more specifically in this study. In-depth investigation of existing good practice, immigration and the gender dimension are the key aspects for analysis. The study will specifically focus on improving productivity and quality in work with links to earnings and human capital. This study should provide with the necessary information on domestic work which allow in turn to focus attention of Member States on the need to take appropriate action.

(1) IP/02/339.