Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing a European Platform to enhance cooperation in the prevention and deterrence of undeclared work
Date: 2014-04-09
Institutions: European Commission
Subjects: fraud, intergovernmental cooperation (EU), job creation, labour inspectorate, labour standard

EUROPEAN 
COMMISSION 

Brussels, 9.4.2014  
COM(2014) 221 final 

2014/0124 (COD) 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on establishing a European Platform to enhance cooperation in the prevention and 
deterrence of undeclared work 

(Text with EEA relevance) 

{SWD(2014) 137 final} 
{SWD(2014) 138 final} 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

At EU level, undeclared work is defined as "any paid activities that are lawful as regards their 
nature  but  not  declared  to  public  authorities,  taking  account  differences  in  the  regulatory 
systems of the Member States"1. 

The fact that undeclared work is not observed or registered, and defined differently in national 
legislation,  makes  it  difficult  to  obtain  reliable  estimates  of  how  widespread  it  is  across 
Member States. As a result, estimations of undeclared work vary widely2. 
According to the latest Eurobarometer survey3 of 20134, only 4% of respondents admitted that 
they performed undeclared work. However, 11% admitted that they had purchased goods or 
services in the previous year where they had good reasons to believe it involved undeclared 
work. There are considerable variations across the EU. The incidence and policies to address 
undeclared work are analysed in the chapter "Undeclared work: recent developments" in the 
Employment and Social Developments in Europe 2013 review.5  

Undeclared work has serious budgetary implications through decreased tax and social security 
revenues. It has negative impacts on employment, productivity and working conditions, skills 
development and life-long learning. It results in lower pension rights and less access to health 
care. It causes unfair competition between undertakings. Moving from informal or undeclared 
work to regular employment can also contribute to achieving the employment target as part of 
the Europe 2020 Strategy6. 

A  closely  related  phenomenon  is  falsely  declared  work,  or  bogus  self-employment,  which 
occurs  when  the  worker  is  formally  declared  as  self-employed  on  the  basis  of  a  service 
contract but the work he/she performs fulfils all the criteria that are used by national law and 
practice  to  characterize  an  employment  relationship.  Bogus  self-employment  has  negative 
consequences  in  terms  of  health  and  safety  and  social  security  coverage  of  the  workers 
concerned, as well as on tax revenue, although normally less harmful than undeclared work. 

In  the  Communication  "Towards  a  job-rich  recovery"7,  the  Commission  stressed  that 
strengthening  job-rich  growth  calls  for  employment  policies  that  generate  favourable 

1 

2 

3 

4 

5 
6 

7 

Commission  Communication  "Stepping  up  the  fight  against  undeclared  work"  COM(2007)628, 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52007DC0628:EN:HTML  
See Impact Assessment on establishing a European Platform to enhance cooperation in the prevention 
and deterrence of undeclared work, Annex II. 
All  figures result  from  direct  surveys, which  were based on face-to-face  interviews with  EU  citizens. 
Meaning  that  awareness,  national  definitions,  transparency  of  undeclared  work  and  trust  in  the 
interviewer,  are  important  factors  for  citizens  to  enable  them  to  indicate  that  they  have  performed  or 
benefitted from undeclared work. 
Special 
in 
402 
http://ec.europa.eu/public_opinion/archives/ebs/ebs_402_en.pdf 
European Commission, Employment and Social Developments in Europe 2013, Luxembourg, 2014. 
Communication from the Commission "Europe 2020 – A Strategy for smart, sustainable and inclusive 
growth", COM (2010)2020 of 3 March 2010  
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2010:2020:FIN:EN:PDF 
Communication  from  the  Commission  "An  agenda  for  new  skills  and  jobs:  A  European  contribution 
towards full employment" COM 2010(682) of 23 November 2010  
Communication  from  the  Commission  "Towards  a  job-rich  recovery",  COM(2012)  173  final  of  18 
April 2012 

"Undeclared  work 

European  Union", 

Eurobarometer 

2013 

the 

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conditions  for  job  creation,  and  that  the  transformation  of  informal  or  undeclared  work  into 
regular employment could have a positive impact on labour demand.  

Consequently, the Employment Guideline Nr 7 on "Increasing labour market participation of 
women  and  men,  reducing  structural  unemployment  and  promoting  job  quality"8  urges 
Member  States  to  step  up  social  dialogue  and  tackle  labour  market  segmentation  with 
measures addressing precarious employment, underemployment and undeclared work.  
In the 2012 and 2013 Country Specific Recommendations9, several Member States received 
recommendations  concerning  fighting  undeclared  work,  the  shadow  economy,  tax  evasion 
and/or tax compliance.  

The European Parliament in its Resolution of 14 January 2014 called for stronger cooperation 
and reinforcement of labour inspectorates to fight undeclared work10.  

The new Enforcement Directive on Posting of Workers will contribute to tackling better fraud 
and abuse and certain forms of undeclared work. 

The main responsibility for tackling undeclared work lies with the Member States. The fight 
against  undeclared  work  relies  mostly  on  three  types  of  enforcement  bodies:  (a)  labour 
inspectorates  to  address  abusive  behaviour  regarding  working  conditions  and/or  health  and 
safety norms, (b) social security inspectorates fighting fraud on social insurance contributions, 
and (c) tax authorities to deal with tax evasion. In some Member States, social partners11 are 
also  involved  in  these  tasks.  In  addition,  in  some  Member  States,  customs  authorities, 
migration  bodies,  the  police  and  the  public  prosecutor's  office  are  involved.  It  has  however 
been noticed that, in some cases, cooperation between these different bodies at national level 
is not as structured or effective as necessary.  

Since  measuring  undeclared  work  remains  a  big  challenge,  it  makes  it  more  difficult  to 
develop  targeted  policies  and  to  improve  inspection  practices  for  preventing,  reducing  or  at 
the  very  least  monitoring  the  incidence  of  undeclared  work.  The  common  challenge 
governments  face  in  reducing  undeclared  work  and  ensuring  conditions  of  decent  work  for 
undeclared  workers,  calls  more  coordinated  steps  on  the  part  of  governments  and  public 
institutions. There is a need to pursue policies that will at the same time reduce the incentives 
for employers to use undeclared work and for workers to engage in such activities. 

Undeclared  work  can  occur  in  a  variety  of  sectors.  The  single  sector  most  often  over-
proportionately  affected  by  undeclared  work  is  the  construction  sector12.  Other  sectors  are 
household  services,  which  include  domestic  cleaning  services  as  well  as  child  and  elderly 
care, personal services, private security, industrial cleaning, agriculture and hotel, restaurant 
and catering industry.  

It is found in a wide range of workplaces and involving workers with different profiles and 
backgrounds.  Such  heterogeneity  makes  undeclared  work  difficult  to  approach  and  demand 
specific strategies. 

8 

9 
10 

11 

12 

2010/707/EU  Council  Decision  of  21  October  2010  on  "Guidelines  for  employment  policies  of  the 
Member States"  
http://ec.europa.eu/europe2020/making-it-happen/country-specific-recommendations/index_en.htm 
http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P7-TA-2014-
0012 
In  Germany,  agreements  between  Federal  Ministry  of  Finance  and  social  partners  in  construction, 
painters and industrial textile services sectors, in Bulgaria the establishment of the national "Rules for 
business"  centre  and  in  Luxembourg  introduction of  an ID  card  for  every  worker on  the  construction 
site. 
Special Eurobarometer 402, Undeclared work in the European Union Report, 2013 

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Preventing  and  deterring  undeclared  work  contributes  to  better  enforcement  of  EU  and 
national  law,  especially  in  the  areas  of  employment,  labour  law,  health  and  safety  and 
coordination  of  national  social  security  systems.  As  the  challenges  are  common  to  Member 
States, and as undeclared work often has a cross-border dimension, EU level action can play 
an  important  role  by  reinforcing  cooperation  between  enforcement  authorities  within  and 
between different Member States in the prevention and deterrence of undeclared work. At the 
moment, there is no formal mechanism in place for all relevant authorities from the Member 
States to address issues related to cross-border aspects of undeclared work. 

EU  level  action  would  therefore  help  Member  States  to  tackle  undeclared  work  more 
effectively and efficiently. It would also contribute to addressing at EU level, in a positive and 
constructive  way,  the  challenges  associated  with  labour  mobility,  while  safeguarding  free 
movement of workers as one of EU's fundamental freedoms. 

Cooperation between national enforcement authorities already takes place at EU level, where 
the  work  of  several  committees  or  working  groups  is  linked  to  undeclared  work.  However, 
they do it on an occasional and limited basis: the Senior Labour Inspectors Committee (SLIC) 
looks  at  undeclared  work  from  the  occupational  health  and  safety  angle;  the  Expert 
Committee  on  Posting  of  Workers  deals  with  undeclared  work  in  relation  to  circumventing 
the rules on posting of workers; the Employment Committee (EMCO) discusses the impact of 
employment  policy  on  undeclared  work;  the  Administrative  Commission  for  social  security 
coordination  looks  at  error  and  fraud  in  the  framework  of  social  security  coordination;  the 
Working  Group  on  administrative  cooperation  in  the  field  of  direct  taxation  aims  at 
facilitating the exchange of information, experience and good practice in that field.  

In  addition,  useful  exchange  of  experiences  has  taken  place,  either  in  the  context  of  the 
Mutual  Learning  Programme  under  the  European  Employment  Strategy  or  as  part  of 
multilateral projects13, which shows that Member States are interested in cooperation to tackle 
undeclared work. Member States have also carried out multilateral projects on certain aspects 
of  undeclared  work  and  concluded  bilateral  agreements.  The  Platform  will  not  prevent  the 
application of bilateral agreements or arrangements concerning administrative cooperation.  

However, the lessons learnt show that not all Member States take part in these exercises. In 
case of such voluntary multilateral cooperation, there is no obligation for Member States to 
participate, nor is there a mechanism to make participation mandatory in case the participation 
is found necessary by other Member States. As a result, EU level cooperation remains patchy 
both in terms of the Member States involved and the issues covered.  

The existence of common challenges for the relevant enforcement authorities across Member 
States  is  another  incentive  for  them  to  cooperate  in  this  area.  Inspection  authorities  face 
difficulties  in  cross-border  situations,  in  particular  when  the  aim  is  to  identify  or  sanction 
cases  of  undeclared  work,  because  their  traditional  mechanisms  are  meant  to  tackle  mostly 
domestic  aspects  of  undeclared  work.  Inspecting  the  nature  and/or  conditions  of  the 
employment relationship of migrant workers can be difficult due to communication problems, 
lack of knowledge of rules or the presence of organised networks operating at the margins of 
the  law,  often  making  use  of  complex  legal  constructions,  involving  agencies  or 
intermediaries located in several Member States and sometimes having recourse to bogus self-
employment  forms  of  work.  Many  Member  States  face  difficulties  in  ensuring  appropriate 
communication  and  cooperation  between  different  enforcement  bodies  within  the  Member 
States and in a cross-border context.  

13 

See Impact Assessment on establishing a European Platform to enhance cooperation in the prevention 
and deterrence of undeclared work, Chapter 3.2.2, Table 1 

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In  addition,  it  is  commonly  perceived  that  excessive  taxation  or  regulation  of  labour  may 
boost  undeclared  work  and  that  there  may  be  effective,  non-punitive  ways  to  encourage 
employers to declare work and comply with law.  

Finally, while in general all Member States agree on the need to prevent and deter undeclared 
work, in practice there may be different ways and levels of commitment to this goal and this 
might end up with low political priority and low sense of urgency to tackle undeclared work.  

The  Communication  "Towards  a  job-rich  recovery"  therefore  highlighted  the  need  for 
improved  cooperation  among  Member  States  and  announced  the  launch  of  consultations  on 
setting up an EU-level platform between labour inspectorates and other enforcement bodies to 
combat  undeclared  work,  aimed  at  improving  cooperation,  sharing  best  practices  and 
identifying common principles for inspections.  

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

This proposal stems from various studies and consultations undertaken recently. 
In  2010,  an  external  feasibility  study14  on  the  establishment  of  a  European  platform  for 
cooperation  between  labour  inspectorates  and  other  relevant  monitoring  and  enforcement 
bodies  to  prevent  and  fight  undeclared  work  was  carried  out.  The  study  analysed  existing 
national 
institutional  frameworks  and  policy  measures,  difficulties  encountered  by 
enforcement  bodies  on  national  and  international  levels,  existing  cross-border  co-operation, 
best  practices  and  identifies  possible  options  for  a  European  platform  to  prevent  and  fight 
undeclared work.  
The  special  Eurobarometer15  on  undeclared  work  and  a  recent  report  from  Eurofound  on 
tackling  undeclared  work  in  the  Member  States16  also  fed  into  the  preparation  of  this 
initiative. The Eurofound report was accompanied by an updated database17 of measures taken 
between 2008 and 2013. The database includes 186 case studies from all EU Member States 
as well as from candidate countries. The database can be used to search measures by country, 
type of measures, target group and sector. 

The consultation of stakeholders was carried out in the framework of the group of Directors 
General of Industrial Relations (DG IR), the Senior Labour Inspectors Committee (SLIC) and 
the  Administrative  Commission  for  social  security  coordination.  In  general,  Member  States' 
representatives  recognized  the  added  value  in  EU  level  action  targeted  at  preventing  and 
deterring  undeclared  work  and  welcomed  the  intention  of  the  Commission  to  become  more 
involved in this policy area.  

14 

15 

16 

17 

"Joining up in the fight against undeclared work in Europe: Feasibility study on establishing a European 
platform for cooperation between labour inspectorates, and other relevant monitoring and enforcement 
bodies, to prevent and fight undeclared work", Regioplan 2010 
http://ec.europa.eu/social/BlobServlet?docId=6676&langId=en  
Special Eurobarometer 402, Undeclared work in the European Union Report 
http://ec.europa.eu/public_opinion/archives/ebs/ebs_402_en.pdf  
"Tackling undeclared work in 27 European Union Member States and Norway. Approaches and 
measures since 2008", Eurofound 2013 
http://www.eurofound.europa.eu/publications/htmlfiles/ef13243.htm 
http://www.eurofound.europa.eu/areas/labourmarket/tackling/search.php 

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The views of the European Social Partners have been collected in a 1st stage consultation18 (4 
July  2013  to  4  October  2013).  The  Commission  identified  the  main  problems  related  to 
prevention and deterrence of undeclared work, recalled the most recent activities taken by the 
Commission and introduced the objectives and possible content of the initiative. The aim of 
the  consultation  was  to  consult  management  and  labour  on  the  possible  direction  of  EU 
action.  The  Commission  received  15  replies  from  them  (2  joint  replies,  3  replies  from  the 
workers' representatives and 10 replies from employers' organisations). Social Partners agreed 
with the overall problem description and indicated that action at EU level is justified with the 
main  objective  of  assisting  national  authorities,  such  as  labour  inspectorates,  social  security 
and  tax  authorities  to  prevent  and  deter  undeclared  work.  In  general,  social  partners  agreed 
that a European platform could be an appropriate vehicle for enhancing cooperation between 
Member States. However, the views of social partners were divergent.  

Most  of  the  employers'  representatives  were  of  the  opinion  that  the  Platform  should  be 
established.  However,  they  considered  that  there  was  no  need  for  a  separate  new  structure. 
Instead, options such as the creation of a subgroup to an existing group or better coordination 
of existing groups, could be considered. All trade unions and some employers' representatives 
favoured the establishment of an independent new body in order to ensure that all the facets of 
undeclared  work  be  covered,  which  could  not  happen  if  existing  structures  would  be  used. 
Regarding the participation in the Platform, trade unions and some employers' representatives 
argued  in  favour  of  a  mandatory  approach  for  Member  States,  while  some  employers' 
organisations  preferred  a  voluntary  approach.  The  Social  Partners  supported 
the 
Commission's objective to present an initiative, but did not wish to enter into negotiations on 
this issue. 
A 2nd stage consultation of Social Partners took place from 30 January to 13 March 201419. In 
this  consultation,  the  Commission  presented  an  overview  of  the  results  of  the  1st  stage 
consultation  and  outlined  the  content  of  the  planned  initiative.  The  aim  of  the  consultation 
was to obtain Social Partners' views on the content of the envisaged initiative on enhancing 
cooperation between Member States in the prevention and deterrence of undeclared work. The 
Commission received 16 replies (1 joint reply, 4 replies from the workers' representatives and 
11  replies  from  employers'  organisations).  Social  partners  generally  lent  their  support  for 
action  at  EU  level  to  prevent  and  deter  undeclared  work  and  reiterated  the  views  expressed 
during the 1st stage consultation regarding the objectives, scope, tasks/initiatives, participation 
and form of the Platform. New elements were provided regarding social partners' participation 
in  the  Platform.  Trade  unions  and  employers'  representatives  agreed  that  EU  level  social 
partners, both cross-sectoral and in sectors with high incidence of undeclared work should be 
involved  in  the  Platform  as  observers.  Some  trade  unions  and  employers'  representatives 
suggested that social partners should be given member status20.  

The  Impact  Assessment  included  several  options  for  enhancing  EU  cooperation  in  the 
prevention and deterrence of undeclared work. The first option considered was no new action 
beyond the existing working groups and initiatives. The option of better coordination of the 
work of the different existing working groups and committees was also considered.  

18 

19 

20 

"Consultation of social partners under article 154 TFEU on enhancing EU cooperation in the prevention 
and deterrence of undeclared work", Consultation document C(2013)4145 
http://ec.europa.eu/social/BlobServlet?docId=10345&langId=en 
"Second stage consultation of Social Partners under Article 154 TFEU on enhancing EU cooperation in 
the prevention and deterrence of undeclared work" C(2014)452 final 
http://ec.europa.eu/social/BlobServlet?docId=11424&langId=en 
For more details see Impact Assessment on establishing a European Platform to enhance cooperation in 
the prevention and deterrence of undeclared work, Annex I 

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The third option was the establishment of a European Platform to enhance EU cooperation in 
the  prevention  and  deterrence  of  undeclared  work.  Several  sub-options  were  considered  for 
setting  up  the  Platform,  such  as  a  Platform  with  voluntary  or  mandatory  membership  and 
giving  a  responsibility  for  coordinating  Member  States  actions  against  undeclared  work  to 
Eurofound. An option to create a decentralised agency responsible for enforcement of EU law 
and fight against undeclared work was considered. 

The  analysis  concluded  that  the  preferred  option  would  be  the  establishment  of  a  European 
Platform with mandatory membership. The Platform would provide for the involvement of all 
relevant  authorities  of  all  Member  States  in  the  EU  level  activities  and  enable  regular  and 
operational  cooperation  in  this  area.  The  sub-option  of  a  voluntary  multilateral  cooperation 
was  considered  sub-optimal  since  the  refusal  of  some  Member  States  to  participate  would 
greatly  diminish  the  value  of  EU  cooperation  for  more  ambitious  Member  States.  In 
particular,  mandatory  participation  was  considered  necessary,  because  cooperation  to  tackle 
cross-border aspects of undeclared work could not be fully achieved if some Member States 
were  in  (Member  States  with  high  priority  in  dealing  with  such  aspects,  mostly  destination 
countries)  and  others  out.  The  cross-border  aspects  of  undeclared  work  could  also  have 
negative impact on the functioning of the Single Market as employers providing services in 
other  Member  States  using  undeclared  workers  would  cause  unfair  competition.  These 
employers can provide cheaper services due to the fact that they do not pay taxes or comply 
with  obligations  arising,  for  instance,  from  health  and  safety  and  working  conditions 
regulations. 

Taken  into  account  all  of  the  above,  namely  the  need  for  improved  EU  cooperation,  cross-
border aspects of undeclared work and their impacts on the functioning of the Single Market, 
all Member States need to be included on the mandatory basis in the enhanced cooperation to 
tackle all aspects of the phenomenon.  

Other  options  would  not  guarantee  the  involvement  of  all  the  relevant  authorities  of  all 
Member States, would limit cooperation to the exchanges of best practices or would not allow 
for  enforcement  issues  to  be  addressed  appropriately  and  would  thereby  fail  to  support  the 
holistic approach needed to tackle the problem. In addition, other options would contribute to 
a lesser degree to the visibility and prioritisation of the problem at EU level.  

The  Platform  will  bring  together  different  enforcement  authorities  of  all  Member  States  as 
members.  Other  stakeholders,  in  particular  the  Social  Partners  at  EU  level,  relevant  Union 
decentralised  agencies,  such  as  Eurofound  and  European  Agency  for  Safety  and  Health  at 
Work  (EU-OSHA)  and  international  organisations,  such  as  the  International  Labour 
Organisation (ILO) and representatives of EEA states, will have an observer status. 

The Platform will carry out a number of tasks to be defined and implemented on the basis of 
agreed  work  programmes.  Exchange  of  good  practice  would  be  the  first  practical  step  of 
cooperation.  It  would  improve  the  knowledge  of  the  phenomenon  and  develop  better 
understanding  about  how  undeclared  work  is  tackled  and  who  the  main  actors  are  in  the 
Member  States.  To  make  best  use  of  this  exchange,  based  on  a  Eurofound  database,  a 
Knowledge  Bank  could  be  established,  which  could  inter  alia  elaborate  further  on 
enforcement  issues  and  lead  to  the  development  of  common  guidelines  and  principles.  It  is 
foreseen that the Platform will evolve progressively from a forum for exchange of information 
and good practice to more elaborate forms of cooperation as mutual trust and experience build 
up. Ultimately, the Platform should be able to undertake joint trainings and exchange of staff, 
and coordinate operational actions, including joint inspections and data sharing.  

The  proposal  will  enhance  the  development,  implementation,  monitoring  and  evaluation  of 
the  Union's  instruments,  policies  (promoting  a  high  level  of  quality  and  sustainable 

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employment, guaranteeing adequate and decent social protection, combating social exclusion 
and poverty and improving working conditions) and relevant law and promote evidence-based 
policy-making and social progress, in partnership with different stakeholders. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

3.1. 

Legal basis 

The  EU  has  the  competence  to  act  in  the  field  of  undeclared  work  based  on  Social  Policy 
articles  in  the  TFEU.  In  particular,  Article  151  TFEU  stipulates  that  the  Union  and  the 
Member States "shall have as their objectives the promotion of employment, improved living 
and  working  conditions,  […]  proper  social  protection,  […]  with  the  view  to  lasting  high 
employment and the combating of social exclusion." Article 153 TFEU lists the fields where 
the Union shall support and complement the activities of the Member States, which include 
working  conditions,  integration  of  persons  excluded  from  the  labour  market  and  combating 
social exclusion.  

The  proposal  on  an  enhanced  EU  cooperation  in  deterrence  and  prevention  of  undeclared 
work is based on Article 153 (2) (a) TFEU, which allows for the European Parliament and 
the  Council  to  adopt  measures  designed  to  encourage  cooperation  between  Member  States 
through initiatives aimed at improving knowledge, developing exchanges of information and 
best  practices,  promoting  innovative  approaches  and  evaluating  experiences,  excluding  any 
harmonisation of the laws and regulations of the Member States.  

The  main  objectives  to  be  achieved  by  this  initiative  are  the  promotion  of  employment  and 
improved  working  conditions  (Art  151  TFEU).  Taking  into  account  the  fact  that  the  fight 
against undeclared work in different Member States relies on different types of enforcement 
bodies (as explained in Chapter 1), it is necessary that this initiative is extended to all national 
authorities, including those which will not be active in the employment and social fields, but 
are  also  responsible  for,  or  have  a  role  in  the  deterrence  or  prevention  of  undeclared  work, 
such as taxation, migration and customs authorities.  

3.2. 

Subsidiarity and proportionality principles 

The choice of legal instrument – a Decision of the European Parliament and of the Council – 
is  the  most  appropriate,  taken  into  account  that  the  Article  foresees  the  ordinary  legislative 
procedure for the adoption of the initiative. 

While  the  main  competences  for  tackling  undeclared  work  lie  with  the  Member  States,  the 
challenges  faced,  such  as  the  negative  impact  of  undeclared  work  on  the  economy  and  the 
society,  the  difficulties  in  tackling  cross-border  forms  of  undeclared  work,  the  trade-off 
between  appropriate  levels  of  taxation  /  regulation  and  the  need  to  avoid  encouraging 
employers  to  resort  to  undeclared  work,  and  the  lack  of  cooperation  between  different 
enforcement  authorities,  are  common  to  all  Member  States.  The  EU  action  enhancing 
cooperation  at  EU  level  would  support  the  efforts  of  Member  States  in  the  deterrence  and 
prevention of undeclared work by making it more effective and efficient. It thereby adds value 
to Member States' actions. National enforcement authorities are indeed the most appropriate 
level to tackle the challenges linked to undeclared work. In addition, the cross-border aspects 
can  be  better  tackled  at  EU  level.  The  proposal  thereby  complies  with  the  principle  of 
subsidiarity. 

The  proposal  complies  with  the  proportionality  principle  since  it  is  a  measure  designed  to 
encourage  cooperation  between  Member  States  without  any  harmonisation  of  the  laws  and 
regulations of the Member States. An option of creating a new EU decentralised agency was 

EN 

8 

   EN 

considered,  but  was  discarded  given  the  administration  costs  entailed  in  establishing  a  new 
agency.  

BUDGETARY IMPLICATION 

4. 
Regulation (EU) No 1296/2013 of the European Parliament and of the Council21 establishes a 
European  Union  Programme for Employment and Social Innovation ("EaSI") for the  period 
2014-2020.  Funding  for  the  Platform  will  come  from  the  PROGRESS  axis.  An  indicative 
amount  of  2.1  million  EUR  per  year  is  foreseen  for  carrying  out  the  tasks,  such  as  the 
establishment  of  practical  tools,  support  by  service  providers,  publishing  of  common 
guidelines  and  principles,  and  handbooks,  developing  a  permanent  training  capacity  and  a 
common  framework  for  carrying  out  joint  trainings,  organising  peer  reviews  and  European 
Campaigns.  In  addition,  grants  to  finance  projects  supporting  the  achievement  of  the 
objectives  of  the  Platform  will  be  covered.  Up  to  224  000  EUR  per  year  will  be  used  to 
reimburse the costs related to participation in the Platform meetings. 

It  is  also  recalled  that  the  European  Social  Fund  (ESF)  supports  Member  States'  efforts  to 
improve the quality of public administration and governance and, by doing so, promote their 
structural reforms. Financing is foreseen within the Multiannual Financial Framework 2014-
2020. Member States are encouraged to use the ESF to reinforce the capacity of their national 
authorities in tackling undeclared work. 

The legislative proposal is budget-neutral and does not require additional staff resources. The  
COM  staff  –  2.5  full  time  employees  –  currently  working  in  the  Directorate  General  for 
Employment, Social Affairs and Inclusion – will act as the Platform's Secretariat. Details are 
this  proposal. 
explained 

legislative 

statement 

financial 

annexed 

the 

to 

in 

The  involvement  of  the  European  Union's  decentralised  agencies,  Eurofound  and  European 
Agency  for  Safety  and  Health  at  Work,  in  the  work  of  the  Platform  as  observers  will  not 
extend their existing mandates. Regarding these Agencies, the proposal is budget neutral.  

21 

Regulation (EU) No 1296/2013 of the European Parliament and of the Council of 11 December 2013 on 
a European Union Programme for Employment and Social Innovation ("EaSI") and amending Decision 
No  283/2010/EU  establishing  a  European  Progress  Microfinance  Facility  for  employment  and  social 
inclusion 

EN 

9 

   EN 

 
 
 
 
 
 
 
                                                 
2014/0124 (COD) 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on establishing a European Platform to enhance cooperation in the prevention and 
deterrence of undeclared work 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 153 (2) (a) thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national Parliaments, 
Having regard to the opinion of the European Economic and Social Committee22, 
Having regard to the opinion of the Committee of the Regions23, 

After consulting the European Data Protection Supervisor, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

In  its  Communication  of  18  April  201224,  the  Commission  highlighted  the  need  for 
improved  cooperation  among  Member  States  and  announced 
launch  of 
consultations  on  setting  up  an  EU-level  platform  between  labour  inspectorates  and 
other  enforcement  authorities  to  combat  undeclared  work,  aimed  at  improving 
cooperation, sharing best practices and identifying common principles for inspections. 

the 

In  accordance  with  Article  148(4)  of  the  Treaty,  the  Council  by  Decision 
2010/707/EU25  adopted  guidelines26  for  the  employment  policies  of  the  Member 
States. These integrated guidelines give orientations to the Member States on defining 
their  national  reform  programmes  and  on  implementing  reforms.  The  employment 
guidelines  form  the  basis  for  country-specific  recommendations  that  the  Council 
addresses  to  the  Member  States  under  that  Article.  In  recent  years,  those 
recommendations  have  included  country-specific  recommendations  on  the  fight 
against undeclared work. 

(3) 

Article  151  of  the  Treaty  sets  out  as  objectives  in  the  field  of  social  policy  the 
promotion of employment and improved living and working conditions. With a view 
to achieving these objectives, the Union can support and complement the activities of 

22 
23 
24 

25 

26 

OJ C , , p. . 
OJ C , , p. . 
Communication from the Commission "Towards a job-rich recovery COM (2012)173 of 18 April 2012 
http://ec.europa.eu/social/main.jsp?langId=en&catId=101&newsId=1270&furtherNews=yes 
Council  Decision  2010/707/EU of 21 October 2010 on  guidelines for  the  employment  policies of  the 
Member States (OJ L 308, 24.11.2010, p. 46) 
The guidelines have been maintained for 2011, 2012 and 2013. 

EN 

10 

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

Member  States  in  the  fields  of  health  and  safety  at  work,  working  conditions,  the 
integration  of  persons  excluded  from  the  labour  market  and  the  combating  of  social 
exclusion.  

The  European  Parliament  in  its  resolution  on  "Effective  labour  inspections  as  a 
strategy  to  improve  working  conditions  in  Europe"  welcomed  the  Commission's 
initiative  to  create  a  European  Platform  and  called  for  enhanced  cooperation  at  EU 
level to fight undeclared work27. 

At European level undeclared work is defined as "any paid activities that are lawful as 
regards  their  nature  but  not  declared  to  public  authorities,  taking  into  account 
differences  in  the  regulatory  systems  of  the  Member  States"28,  thus  excluding  all 
illegal activities.  

The  abuse  of  the  status  of  self-employed,  either  at  national  level  or  in  cross-border 
situations,  is  frequently  associated  with  undeclared  work.  Bogus  self-employment 
occurs  when  a  person  is  declared  as  self-employed  while  fulfilling  the  conditions 
characteristic  of an  employment relationship, in order to  avoid certain legal or fiscal 
obligations.  Bogus  self-employment  is,  therefore,  falsely  declared  work  and  should 
come under the scope of the Platform.  

Undeclared work has serious budgetary implications through decreased tax and social 
security  revenues.  It  has  negative  impacts  on  employment,  productivity,  compliance 
with  working  conditions'  standards,  skills  development  and  life-long  learning.  It 
undermines the financial sustainability of social protection systems, deprives workers 
of  adequate  social  benefits  and  results  in  lower  pension  rights  and  less  access  to 
healthcare.  

A wide range of policy approaches and measures to tackle undeclared work have been 
introduced  across  the  Member  States.  Member  States  have  also  concluded  bilateral 
agreements and carried out multilateral projects on certain aspects of undeclared work. 
The Platform will not prevent the application of bilateral agreements or arrangements 
concerning administrative cooperation.  

EU level cooperation remains far from comprehensive, both in terms of the Member 
States involved and the issues covered. There is a no formal mechanism in place for 
cross-border  cooperation  between  Member  States'  relevant  authorities  to  address 
issues related to undeclared work.  

(10)  The  strengthening  of  cooperation  among  Member  States  at  EU  level  is  necessary  to 
help  Member  States  to  prevent  and  deter  undeclared  work  more  efficiently  and 
effectively.  

(11)  The  Platform  will  aim  to  facilitate  the  exchange  of  best  practices  and  information, 
provide  a  framework  at  EU  level  to  develop  expertise  and  analysis,  and  improve 
operational  coordination  of  actions  between  the  different  national  enforcement 
authorities of the Member States. 

(12)  The  Platform  should  make  use  of  all  relevant  sources  of  information,  in  particular 
studies,  bilateral  agreements  concluded  between  Member  States  and  multilateral 

27 

28 

EN 

European Parliament resolution of 14 January 2014 on effective labour inspections as a strategy to 
improve working conditions in Europe (2013/2112/INI) 
http://www.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2013/2112(INI) 
Communication 
COM (2007)628 of 24 October 2007 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52007DC0628:EN:HTML 

the  Commission  "Stepping  up 

from 

the 

fight  against  undeclared  work"  

11 

   EN 

                                                 
 
cooperation projects and create synergies between existing EU level instruments and 
structures  to  maximise  the  deterrent  or  preventive  effect  of  these  measures.  The 
operational coordination of actions of the Member States could take the form of joint 
trainings,  peer  reviews  and  solutions  for  data  sharing.  European  campaigns  or 
common strategies could increase the awareness of undeclared work. 

(13)  Three different national enforcement authorities are mainly involved with undeclared 
work:  labour  inspectorates,  social  security  inspectorates  and  tax  authorities.  In  some 
cases,  migration  authorities  and  employment  services  as  well  as  customs  authorities, 
the police, the public prosecutor's office and the social partners are also involved.  

(14) 

In order to address undeclared work comprehensively and successfully, a policy mix is 
to be implemented in the Member States, that is facilitated by structured cooperation 
between  relevant  authorities.  The  cooperation  should  include  all  national  authorities 
which  are  leading  and/or  active  in  the  prevention  and/or  deterrence  of  undeclared 
work.  

(15)  To  achieve  its  objectives,  the  Platform  should  be  supported  by  a  'Single  point  of 
contact' in each Member State who should have the necessary authority to liaise with 
national authorities dealing with the multifaceted aspects of undeclared work. 

(16)  The Platform should involve the social partners at EU level, both cross-industry and in 
those sectors more severely affected by undeclared work, and cooperate with relevant 
international organisations, such as the International Labour Organisation (ILO), and 
Union  decentralised  agencies,  in  particular  Eurofound  and  European  Agency  for 
Safety and Health at Work. The involvement of Eurofound and European Agency for 
Safety  and  Health  at  Work  in  the  work  of  the  Platform  as  observers  will  not  extend 
their existing mandates. 

(17)  The  Platform  should  adopt  its  rules  of  procedure,  work  programmes  and  regular 

reports. 

(18)  Directive  95/46/EC  on  the  protection  of  individuals  with  regard  to  the  processing  of 
personal  data  and  on  the  free  movement  of  such  data29  as  well  as  the  the  national 
implementing measures thereto apply to the processing of personal data carried out by 
the Member  States in  the  framework  of this  Decision.  As  the Commission is part of 
the European Platform, Regulation (EC) No 45/2001 on the protection of individuals 
with  regard  to  the  processing  of  personal  data  by  the  Community  institutions  and 
bodies  and  on  the  free  movement  of  such  data30  equally  applies  to  processing  of 
personal data carried out in the framework of this Decision.  

(19)  The Platform can establish working groups to examine specific issues and should be 

able to rely on the expertise of professionals with specific competences. 

(20)  The Platform will cooperate with the EU level relevant expert groups and committees 

whose work has links with undeclared work.  

(21)  The  Platform  and  its  tasks  should  be  funded  through  the  PROGRESS  axis  of  the 
programme  for  Employment  and  Social  Innovation  (EaSI)  within  the  appropriations 
set by the budgetary authority. 

29 

30 

Directive  95/46/EC  of  the  European  Parliament  and  of  the  Council  of  24  October  1995  on  the 
protection of  individuals  with  regard  to  the  processing of  personal  data and on  the free  movement  of 
such data (OJ L 281, 23.11.1995, p. 31)  
Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on 
the  protection  of  individuals  with  regard  to  the  processing  of  personal  data  by  the  Community 
institutions and bodies and on the free movement of such data (OJ L 8, 12.01.2001, p. 1) 

EN 

12 

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(22)  The Commission will take the necessary administrative steps to set up the network. 

HAVE ADOPTED THIS DECISION:  

Chapter I 

General provisions 

Article 1 

Establishment of the Platform 

(1) 

A  Platform  to  enhance  EU  cooperation  in  the  prevention  and  deterrence  of 
undeclared work, hereinafter referred to as "the Platform", is hereby established. 

(2) 

The Platform shall be composed of: 

(a)  national enforcement authorities as nominated by all the Member States, 

(b) 

the Commission. 

(3) 

The  following  may  attend  the  meetings  of  the  Platform  as  observers  under  the 
conditions set in its rules of procedure: 

(a) 

(b) 

(c) 

(d) 

representatives of the cross-industry social partners at Union level, as well as 
social partners in sectors with a high incidence of undeclared work, 

a  representative  of  the  European  Foundation  for  the  Improvement  of  Living 
and  Working  Conditions  (Eurofound)  and  a  representative  of  the  European 
Agency for Safety and Health at Work (EU-OSHA), 

a representative of the International Labour Organisation (ILO),  

representatives of EEA states.  

Article 2 

Objectives 

The Platform, as set out in Article 1 (1), shall contribute to better enforcement of EU 
and national law, to the reduction of undeclared work and the emergence of formal 
jobs, hence avoiding the deterioration of quality of work, and to promote integration 
in the labour market and social inclusion by: 

(a) 

(b) 

(c) 

improving  cooperation  between  Member  States'  different  enforcement 
authorities at EU level to prevent and deter undeclared work, including bogus 
self-employment, more efficiently and effectively, 

improving Member States' different enforcement authorities' technical capacity 
to tackle cross-border aspects of undeclared work, 

increasing public awareness on the urgency of action and encouraging Member 
States to step up their efforts in dealing with undeclared work. 

EN 

13 

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Chapter II 

Mission and tasks 

Article 3 

Mission 

To achieve the objectives listed in Article 2, the Platform shall: 

(a)  Exchange best practices and information, 

(b)  Develop expertise and analysis, 

(c)  Coordinate cross-border operational actions.  

Article 4 

Tasks 

(1) 

For  the  execution  of  its  mission,  the  platform  shall  in  particular  carry  out  the 
following tasks: 

(a) 

Improve  the  knowledge  of  undeclared  work  by  means  of  common  concepts, 
measurement  tools  and  promotion  of  joint  comparative  analysis  and  related 
relevant indicators, 

(b)  Develop  the  analysis  of  effectiveness  of  different  policy  measures  in  curbing 
the incidence of undeclared work, including preventive and punitive as well as 
deterrence measures in general, 

(c)  Establish tools, for instance a knowledge bank of different practices/measures, 
including bilateral agreements used in the Member States to deter and prevent 
undeclared work, 

(d)  Adopt non-binding guidelines  for  inspectors, handbooks  of  good practice  and 

common principles of inspections to tackle undeclared work, 

(e)  Develop forms of cooperation increasing the technical capacity to tackle cross-
border aspects of undeclared work by adopting a common framework for joint 
operations for inspections and exchange of staff,  

(f)  Examine  ways  to  improve  data  sharing  in  compliance  with  the  Union  data 
protection rules, including exploring possibilities to use of the Internal Market 
Information  System  (IMI)  and  the  Electronic  Exchange  of  Social  Security 
Information (EESSI). 

(g)  Develop  permanent  training  capacity  for  enforcement  authorities  and  adopt  a 

common framework for carrying out joint trainings, 

(h)  Organise  peer  reviews  to  follow  Member  States  progress  when  fighting 
undeclared work, including support for the implementation of country-specific 
recommendations  related  to  fight  or  prevent  undeclared  work  issued  by  the 
Council. 

EN 

14 

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(i) 

Increase awareness of the problem by carrying out common activities such as 
European  Campaigns  and  adopting  regional  or  EU  wide  strategies,  including 
sectoral approaches. 

(2) 

In  carrying  out  its  tasks,  the  Platform  will  make  use  of  all  relevant  sources  of 
information,  including  studies  and  multilateral  cooperation  projects  and  take  into 
account relevant Union instruments and structures, as well the experience of relevant 
bilateral  agreements.  It  will  establish  appropriate  cooperation  with  Eurofound  and 
EU-OSHA. 

Chapter III 

Functioning of the Platform 

Article 5 

Single point of contact  

(1) 

(2) 

(3) 

(4) 

(1) 

(2) 

Each  Member  State  shall  appoint  one  single  point  of  contact  as  a  member  of  the 
Platform. They may also appoint one alternate member.  

In  appointing  their  representatives,  Member  States  should  involve  all  public 
authorities  having  a  role  in  the  prevention  and/or  deterrence  of  undeclared  work, 
such as labour inspectorates, social security authorities, tax authorities, employment 
services  and  migration  authorities,  hereinafter  referred 
to  as  "enforcement 
authorities". They may also, in accordance with national law and/or practice, involve 
the social partners. 

Member States shall provide the Commission with the list and contact details of all 
enforcement  authorities  which  are  involved  in  the  prevention  and/or  deterrence  of 
undeclared work. 

Single  points  of  contact  shall  liaise  with  all  enforcement  authorities  which  are 
involved  in  the  prevention  and/or  deterrence  of  undeclared  work  regarding  the 
activities  of  the  Platform  and  guarantee  their  participation  at  the  meetings  and/or 
contribution to the activities of the Platform or its working groups if issues discussed 
involve their field of competence. 

Article 6 

Representatives of the social partners 

Representatives of the social partners at cross-industry level, as well as from sectors 
with  high  incidence  of  undeclared  work  may  attend  meetings  of  the  Platform  as 
observers, according to the procedures determined by their organisations. 

On  the  basis  of  the  proposals  from  cross-industry  and  sectoral  social  partners  at 
Union level, this group of observers shall be composed of: 

(a)  A maximum of 8 observers representing social partners at cross-industry level 

(divided evenly between employers' and workers' organisations), 

EN 

15 

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(b)  A maximum of 10 observers representing social partners in sectors with a high 
incidence of undeclared work (divided evenly between employers' and workers' 
organisations). 

Article 7 

Operation 

(1) 

(2) 

(3) 

(4) 

(5) 

The Commission shall coordinate the work of the Platform and chair its meetings.  

For the execution of its mission, the Platform shall adopt by majority decision: 

(a) 

(b) 

(c) 

the rules of procedure, containing, inter alia, the decision-making arrangements 
of the Platform, 

a two-year work programme of the Platform setting out, inter alia, its detailed 
tasks and regular reports of the Platform in every two years,  

the  establishment  of  working  groups  to  examine  issues  specified  in  work 
programmes of the Platform. Such working groups shall be dissolved as soon 
as their mandates are fulfilled. 

Experts with specific competence in a subject under discussion may be invited on a 
case-by-case basis to participate in the Platform's or working group's deliberations if 
this is useful and/or necessary. 

The  Platform  shall  be  assisted  by  a  Secretariat  provided  by  the  Commission.  The 
Secretariat shall prepare the meetings, the work programmes of the Platform and its 
reports.  

The  Commission  shall  inform  regularly  the  European  Parliament  and  the  Council 
about the activities of the Platform. 

Article 8 

Cooperation 

The  Platform  shall  work,  as  appropriate,  in  cooperation  with  other  relevant  Union 
level expert groups and committees, whose work has a link with undeclared work, in 
particular the Senior Labour Inspectors Committee (SLIC), the Expert Committee on 
for  Social  Security 
Posting  of  Workers, 
the  Administrative  Commission 
the  Social  Protection 
Coordination, 
Committee (SPC) and the Working Group on Administrative Cooperation in the field 
of Taxation. Joint meetings may also be organised.  

the  Employment  Committee  (EMCO), 

Article 9 

Reimbursement of expenses 

The Commission shall reimburse travel and, where appropriate, subsistence expenses 
for  members,  observers  and  invited  experts  in  connection  with  the  Platform's 
activities. 

The members, observers and invited experts shall not be remunerated for the services 
they render. 

EN 

16 

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Article 10 

Financial support 

The  global  resources  for  the  implementation  of  this  Decision  shall  be  established 
within  the  framework  of  the  programme  for  Employment  and  Social  Innovation 
(EaSI),  the  annual  appropriations  of  which  shall  be  authorised  by  the  budgetary 
authority within the limits of the Financial Framework. 

Chapter IV 

Final Provisions 

Article 11 

Review 

Four  years  after  its  entry  into  force,  the  Commission  shall  submit  a  report  on  the 
application of this Decision to the European  Parliament,  the  Council, the European 
Economic and Social Committee and the Committee of the Regions. The report shall 
in particular assess to what extent the Platform has contributed to the achievement of 
the objectives set out in Article 2 and fulfilled the tasks as set out in Article 3 and in 
work programmes of the Platform. 

Article 12 

Addressees 

This Decision is addressed to the Member States. 

Article 13 

Entry into force 

This Decision shall enter into force on the day following that of its publication in the Official 
Journal of the European Union. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

EN 

17 

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Legislative financial statement 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1.  Title of the proposal/initiative  

1.2.  Policy area(s) concerned in the ABM/ABB structure 

1.3.  Nature of the proposal/initiative  

1.4.  Objective(s)  

1.5.  Grounds for the proposal/initiative  

1.6.  Duration and financial impact  

1.7.  Management mode(s) envisaged  

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

2.2.  Management and control system  

2.3.  Measures to prevent fraud and irregularities  

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1.  Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

3.2.  Estimated impact on expenditure  

3.2.1. Summary of estimated impact on expenditure  

3.2.2. Estimated impact on operational appropriations  

3.2.3. Estimated impact on appropriations of an administrative nature 

3.2.4. Compatibility with the current multiannual financial framework 

3.2.5. Third-party contributions  

3.3.  Estimated impact on revenue 

EN 

18 

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative  

Proposal  for  a  Decision  of  the  European  Parliament  and  of  the  Council  on 
establishing  a  European  Platform  to  enhance  cooperation  in  the  prevention  and 
deterrence of undeclared work 

1.2. 

Policy area(s) concerned in the ABM/ABB structure31  

Employment, social affairs and inclusion 

1.3. 

Nature of the proposal/initiative  

(cid:132) The proposal/initiative relates to a new action  

(cid:133)  The  proposal/initiative  relates  to  a  new  action  following  a  pilot  project/preparatory 
action32  

(cid:133) The proposal/initiative relates to the extension of an existing action  

(cid:133) The proposal/initiative relates to an action redirected towards a new action  

1.4. 

Objective(s) 

1.4.1.  The  Commission's  multiannual 

strategic  objective(s) 

targeted  by 

the 

proposal/initiative  

Contributing to the Europe 2020 targets: 

- Promote increased participation in the labour market 

- Develop a safe, flexible and mobile European labour market 

- Promote social inclusion 

- Promote social and economic cohesion 

1.4.2. 

Specific objective(s) and ABM/ABB activity(ies) concerned  

Specific objective No 1 

Support the development, implementation, monitoring and evaluation of the Union's 
instruments, policies (promoting a high level of quality and sustainable employment, 
guaranteeing adequate and decent social protection, combating social exclusion and 
poverty and improving working conditions) and relevant law and promote evidence-
based  policy-making,  social  innovation  and  social  progress,  in  partnership  with  the 
social partners, civil society organisations and public and private bodies. 

ABM/ABB activity(ies) concerned: Employment, Social Affairs and Inclusion 

31 
32 

ABM: activity-based management – ABB: activity-based budgeting. 
As referred to in Article 54(2)(a) or (b) of the Financial Regulation. 

EN 

19 

   EN 

 
                                                 
1.4.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

The  objective  of  the  proposal  is  to  improve  cooperation  at  EU  level  between 
enforcement  bodies,  such  as  labour  inspectorates,  social  security,  tax  and  other 
relevant authorities, with the aim of preventing and deterring undeclared work more 
efficiently and effectively. 

1.4.4. 

Indicators of results and impact  

Specify the indicators for monitoring implementation of the proposal/initiative. 

The output indicators to be achieved will be defined in two-year work programmes 
of the Platform. In addition, the Commission will once a year report to the Council 
on  the  work  of  the  Platform.  These  reports  would  inform  about  the  detailed  work 
programmes of the Platform, initiatives taken by the Platform and the frequency of 
meetings. 

Four years after the decision has entered into force, the activities of the Platform will 
be evaluated.  

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term  

The aim of this decision is to contribute to better enforcement of the Union laws, the 
creation of formal jobs, the increase in quality of working conditions, the inclusion in 
the labour market and overall social inclusion by: 

(a) 

(b) 

(c) 

improving  cooperation  between  Member  States'  different  enforcement 
authorities  at  EU  level  to  prevent  and  deter  undeclared  work  more 
efficiently and effectively, 

improving  Member  States'  different  enforcement  authorities'  technical 
capacity to tackle cross-border aspects of undeclared work, 

increasing  Member  States'  awareness  on  the  urgency  of  action  and 
encouraging the efforts in the fight against undeclared work. 

1.5.2.  Added value of EU involvement 

Preventing and deterring undeclared work contributes to a better enforcement of EU 
and  national  law,  especially  in  the  areas  of  employment,  labour  law,  health  and 
safety  and  coordination  of  social  security.  In  accordance  with  the  objectives  set  in 
Article  151,  EU  level  action  to  tackle  undeclared  work  would  contribute  to  the 
creation  of  formal  jobs,  increase  the  quality  of  working  conditions,  and  help  to 
increase  inclusion  to  the  labour  market  and  overall  social  inclusion.  Taking  into 
account  Article  153  TFEU,  where  Member  States  and  the  Union  have  shared 
competencies,  the  EU  action  would  support  the  efforts  of  Member  States  by 
enhancing  cooperation  in  the  deterrence  and  prevention  of  undeclared  work  at  EU 
level,  making  it  more  effective  and  efficient  and  thereby  adding  value  to  Member 
States' actions. 

EN 

20 

   EN 

1.5.3.  Lessons learned from similar experiences in the past 

So far there has been no comprehensive approach involving all relevant authorities of 
all Member States to tackle undeclared work at EU level. 

1.5.4.  Compatibility and possible synergy with other appropriate instruments 

Fundamental rights: The proposal is consistent with the EU's fundamental rights 
strategy (COM(2010) 573 final) 
Europe 2020 strategy: The initiative will contribute to the creation of employment 
and to social inclusion, within the strategy for smart, sustainable and socially 
inclusive growth. (COM (2010) 2020) 

1.6. 

Duration and financial impact  

(cid:133) Proposal/initiative of limited duration  

–  (cid:133)  Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY  

–  (cid:133)  Financial impact from YYYY to YYYY  

(cid:132) Proposal/initiative of unlimited duration 

–  Implementation  with  a  start-up  period  from  the  date  of  the  adoption  of  the 

Decision, 

–  followed by full-scale operation. 
1.7.  Management mode(s) planned33  

(cid:132) Direct management by the Commission 

–  (cid:132) by its departments, including by its staff in the Union delegations;  

–  (cid:133)  by the executive agencies;  

(cid:133) Shared management with the Member States  

(cid:133) Indirect management by delegating implementation tasks to: 

–  (cid:133) third countries or the bodies they have designated; 

–  (cid:133) international organisations and their agencies (to be specified); 

–  (cid:133)the EIB and the European Investment Fund; 

–  (cid:133) bodies referred to in Articles 208 and 209 of the Financial Regulation; 

–  (cid:133) public law bodies; 

–  (cid:133) bodies governed by private law with a public service mission to the extent that 

they provide adequate financial guarantees; 

–  (cid:133) bodies governed by the private law of a Member State that are entrusted with 
the  implementation  of  a  public-private  partnership  and  that  provide  adequate 
financial guarantees; 

–  (cid:133)  persons  entrusted  with  the  implementation  of  specific  actions  in  the  CFSP 

pursuant to Title V of the TEU, and identified in the relevant basic act. 

– 

If more than one management mode is indicated, please provide details in the "Comments" section. 

33 

Details  of  management  modes  and  references  to  the  Financial  Regulation  may  be  found  on  the 
BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html 

EN 

21 

   EN 

                                                 
Comments  

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

Four years after the decision has entered into force, the activities of the Platform will 
be  evaluated.  The  evaluation  will  be  be  based  on  the  result  indicators,  such  as  the 
quality  of  the  cooperation  with  other  Member  States,  regular  reporting  and  further 
research.  The  evaluation  will  assess  to  what  extent  the  Platform  has  contributed  to 
the  achievement  of  the  objectives  of  the  Platform.  This  report  will  be  submitted  to 
the  European  Parliament,  the  Council,  the  European  Economic  and  Social 
Committee and the Committee of Regions. 

2.2.  Management and control system  

2.2.1.  Risk(s) identified  

Regarding  accompanying  measures  under  EU  Programme  for  Employment  and 
Social  Innovation  ("EaSI"):  under  this  programme  direct  management  will  involve 
the attribution of contracts and grants for specific activities and the payment of grants 
to governmental and non-governmental organisations. The main risk will be relating 
to the capacity of (especially) smaller organisations to effectively control expenditure 
as well as to ensure the transparency of operations carried out.  

2.2.2. 

Information concerning the internal control system set up 

Regarding  accompanying  measures  under  EU  Programme  for  Employment  and 
Social  Innovation  ("EaSI"):  the  control  measures  indicated  in  the  Regulation 
1296/2013 will be used. 

2.2.3.  Estimate of the costs and benefits of the controls and assessment of the expected level 

of risk of error  

2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures. 

Regarding  accompanying  measures  under  EU  Programme  for  Employment  and 
Social Innovation ("EaSI"): measures to prevent fraud and irregularities indicated in 
the Regulation 1296/2013 will be used. 

EN 

22 

   EN 

 
 
3. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

•  Existing budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Heading of 
multiannual 
financial 
framework 

Number  
[…]Heading……………………………
…………...……….] 

Type of  
expenditure

Diff./non-
diff. 
(34) 

Contribution  

from 
EFTA 
countries
35 

from 
candidate 
countries36 

from third 
countries 

within the 
meaning of Article 
21(2)(b) of the 
Financial 
Regulation  

1 

1 

04.03.02.01 

EaSI 

04.01.04.02 

EaSI 

Diff 

YES 

YES 

NO 

NO 

non-diff.

YES 

NO 

NO 

NO 

34 
35 
36 

Diff. = Differentiated appropriations / Non-Diff. = Non-differentiated appropriations. 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidate countries from the Western Balkans. 

EN 

23 

   EN 

 
 
 
                                                 
3.2. 

Estimated impact on expenditure  

3.2.1. 

Summary of estimated impact on expenditure  

Heading of multiannual financial  
framework  

1 

Smart and inclusive growth 

EUR million (to three decimal places) 

DG: EMPL 

(cid:121) Operational appropriations  

04.03.02.01 (EaSI) 

Number of budget line 

(2) 
(1a) 
(2a) 
Appropriations  of  an  administrative  nature  financed  from  the 
envelope of specific programmes38  

(1) 

Commitments 
Payments 
Commitments 
Payments 

Year 
201437 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

TOTAL 

0,150 
0 

2,100 
2,100 

1,200 
1,200 

1,800 
1,800 

1,100 
1,100 

1,800 
1,800 

1,000 
1,000 

9,150 
9,000 

04.01.04.02 (EaSI) 

(3) 

0,115 

0,224 

0,224 

0,224 

0,224 

0,224 

0,224 

0,265 

2,324 

1,424 

2,024 

1,324 

2,024 

1,224 

1,459 

10,609 

TOTAL appropriations 
for DG EMPL 

Commitments 

Payments 

=1+1a 
+3 

=2+2a 

+3 

0,115 

2,324 

1,424 

2,024 

1,324 

2,024 

1,224 

10,459 

37 
38 

EN 

Year N is the year in which implementation of the proposal/initiative starts. 
Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former "BA" lines), indirect research, 
direct research. 

24 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
(cid:121) TOTAL operational appropriations  

Commitments 
Payments 

(cid:121)  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelope for specific programmes  

(4) 

(5) 

(6) 

0,150 

0 

2,100 

2,100 

1,200 

1,200 

1,800 

1,800 

1,100 

1,100 

1,800 

1,800 

1,000 

1,000 

0,115 

0,224 

0,224 

0,224 

0,224 

0,224 

0,224 

TOTAL appropriations  
for HEADING <….> 
of the multiannual financial framework 

Commitments 

=4+ 6 

0,265 

2,324 

1,424 

2,024 

1,324 

2,024 

1,224 

Payments 

Payments 

=5+ 6 

0,115 

2,324 

1,424 

2,024 

1,324 

2,024 

1,224 

=5+ 6 

9,150 

9,000 

1,459 

10,609 

10,459 

EN 

25 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
Heading of multiannual financial  
framework  

5 

" Administrative expenditure " 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

TOTAL 

EUR million (to three decimal places) 

DG: EMPL 

(cid:121) Human resources  
(cid:121) Other administrative expenditure  

0,330 

0,330 

0,330 

0,330 

0,330 

0,330 

0,330 

TOTAL DG EMPL 

Appropriations  

0,330 

0,330 

0,330  0,330 

0,330 

0,330 

0,330 

2,310 

2,310 

TOTAL appropriations 
for HEADING 5 
of the multiannual financial framework  

(Total  commitments  = 
Total payments) 

0,330 

0,330 

0,330 

0,330 

0,330 

0,330 

0,330 

2,310 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

TOTAL 

EUR million (to three decimal places) 

TOTAL appropriations  
under HEADINGS 1 to 5 
of the multiannual financial framework  

Commitments 

Payments 

0,595 

2,654 

1,754 

2,354 

1,654 

2,354 

1,554 

0,445 

2,654 

1,754 

2,354 

1,654 

2,354 

1,554 

12,919 

12,769 

EN 

26 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.2.  Estimated impact on operational appropriations  

–  (cid:133)  The proposal/initiative does not require the use of operational appropriations  

–  (cid:132)  The proposal/initiative requires the use of operational appropriations, as explained below: 

Indicate 
objectives and 
outputs  

(cid:216) 

Type39 

Avera
ge 
cost 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

OUTPUTS 

Commitment appropriations in EUR million (to three decimal places) 

Year 
2018 

Year 
2019 

Year 
2020 

TOTAL 

o
N

Cost  N

o

Cost  N

o

Cost 

o
N

Cost  N

o

Cost  N

o

Cost  N

o

Cost 

No 
total 

Total 
cost 

SPECIFIC OBJECTIVE No 140: Support the development, implementation, monitoring and evaluation of the Union's instruments, policies and relevant law and promote evidence-based policy-making, social 
innovation and social progress, in partnership with the social partners, civil society organisations and public and private bodies. 

0,366 

1 

0,15 

4 

2,100 

4 

1,200 

4 

1,800 

4 

1,100 

4 

1,800 

4 

1,000 

25 

9,150 

Exchange of 
best practices 
and information, 
training, 
technical 
capacity 
building to 
enhance 
cooperation, 
awareness 
raising 

Knowledge
bank, 
common 
guidelines 
etc, joint 
operations, 
exchange 
of staff, 
training 
activities,c
ampaigns, 
strategies, 
evaluation 

39 
40 

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). 
As described in point 1.4.2. ‘Specific objective(s)…’  

EN 

27 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
                                                 
Subtotal for specific objective No 1 

1 

0,150 

TOTAL COST 

1 

0,150 

4 

4 

2,100 

2,100 

4 

4 

1,200 

1,200 

4 

4 

1,800 

1,800 

4 

4 

1,100 

4 

1,800 

1,100 

4 

1,800 

4 

4 

1,000 

25 

9,150 

1,000 

25 

9,150 

EN 

28 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.3.  Estimated impact on appropriations of an administrative nature 

3.2.3.1.  Summary  

–  (cid:133)  The  proposal/initiative  does  not  require  the  use  of  appropriations  of  an 

administrative nature  

–  (cid:132)  The proposal/initiative requires the use of appropriations of an administrative 

nature, as explained below: 

EUR million (to three decimal places) 

Year 
201441 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

TOTAL 

HEADING 5 
of the multiannual 
financial framework 

Human resources  

Other 
expenditure  

administrative 

Subtotal HEADING 5 
of the multiannual 
financial framework  

Outside HEADING 542 of 
the multiannual financial 
framework  

Human resources  

Other 
of 
an 
nature 

expenditure  
administrative 

Subtotal  
outside HEADING 5 
of the multiannual 
financial framework  

0,33 

0,33 

0,33 

0,33 

0,33 

0,33 

0,33 

2,31 

0,115 

0,224 

0,224 

0,224 

0,224 

0,224 

0,224 

1,459 

TOTAL 

0,445 

0,554 

0,554 

0,554 

0,554 

0,554 

0,554 

3,769 

The  human  resources  appropriations  required  will  be  met  by  appropriations  from  the  DG  that  are  already  assigned  to 
management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation 
which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints. 

41 
42 

Year N is the year in which implementation of the proposal/initiative starts. 
Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of  EU 
programmes and/or actions (former "BA" lines), indirect research, direct research. 

EN 

29 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.3.2.   Estimated requirements of human resources  

–  (cid:133)  The proposal/initiative does not require the use of human resources.  

–  (cid:132)  The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below: 

Estimate to be expressed in full time equivalent units 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 2019 

Year 2020 

2.5 

2.5 

2.5 

2.5 

2.5 

2.5 

2.5 

(cid:121) Establishment plan posts (officials and temporary staff) 

XX 01 01 01 (Headquarters and Commission’s 
Representation Offices) (2AD+0,5AST) 
XX 01 01 02 (Delegations) 
XX 01 05 01 (Indirect research) 
10 01 05 01 (Direct research) 

(cid:121) External staff (in Full Time Equivalent unit: FTE)43 

XX 01 02 01 (CA, SNE, INT from the "global 
envelope") 
XX 01 02 02 (CA, LA, SNE, INT and JED in the 
delegations) 

XX 01 04 yy44 

- at Headquarters 

- Delegations  

XX 01 05 02 (CA, SNE, INT - Indirect research) 
10 01 05 02 (CA, INT, SNE - Direct research) 
Other budget lines (specify) 
TOTAL 

XX is the policy area or budget title concerned. 

The human resources required will be met by staff from the DG who are already assigned to management of the 
action  and/or  have  been  redeployed  within  the  DG,  together  if  necessary  with  any  additional  allocation  which 
may  be  granted  to  the  managing  DG  under  the  annual  allocation  procedure  and  in  the  light  of  budgetary 
constraints. 

Description of tasks to be carried out: 

Officials and temporary staff (2AD + 
0,5 AST) 

AD1:  Overview  of  the  activities  in  connecction  to  undeclared  work,  organising  the 
work  of  the  secretariat  of  the  Platform,  managing  the  meetings  of  the  Platform, 
including  preparing  the  draft  agenda,  discussion  documents  and  draft  minutes  of  the 
meetings. Coordination of cooperation. Coordination call for proposals/tenders. 

AD2: Overview of the operational activities of the Platform, such as management of 
the  knowledge  bank,  joint  trainings,  inspections,  staff  exchanges,  publishing  of 
common  documents  etc.  Support  to  coordination  of  cooperation.  Support  to  call  for 
proposals/tenders. 

0,5AST:  Administrative  support  to  the  secretariat,  including  document  management, 
organising  meetings  (room  bookings,  invitations,  reimbursement  documents  etc), 
distribution of meeting documents, general correspondence. 

External staff 

43 

44 

CA=  Contract  Staff;  LA  =  Local  Staff;  SNE=  Seconded  National  Expert;  INT  =  agency  staff;  JED= 
Junior Experts in Delegations).  
Sub-ceiling for external staff covered by operational appropriations (former "BA" lines). 

EN 

30 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.4.  Compatibility with the current multiannual financial framework  

–  (cid:132)  Proposal/initiative is compatible the current multiannual financial framework. 

–  (cid:133)  Proposal/initiative  will  entail  reprogramming  of  the  relevant  heading  in  the 

multiannual financial framework. 

Explain what reprogramming is required, specifying the budget lines concerned and the corresponding 
amounts. 

–  (cid:133)  Proposal/initiative requires application of the flexibility instrument or revision 

of the multiannual financial framework45. 

Explain what is required, specifying the headings and budget lines concerned and the corresponding 
amounts. 

3.2.5.  Third-party contributions  

–  (cid:132) The proposal/initiative does not provide for co-financing by third parties.  

–  (cid:133) The proposal/initiative provides for the co-financing estimated below: 

Appropriations in EUR million (to 3 decimal places) 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as necessary 
to show the duration of the 
impact (see point 1.6) 

Total 

Specify  the  co-financing 
body  

TOTAL 
cofinanced  

appropriations 

45 

See points 19 and 24 of the Interinstitutional Agreement (for the period 2007-2013). 

EN 

31 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.3. 

Estimated impact on revenue  

–  (cid:132)  Proposal/initiative has no financial impact on revenue. 

–  (cid:133)  Proposal/initiative has the following financial impact: 

– 

– 

(cid:133) 

(cid:133) 

on own resources  

on miscellaneous revenue  

Appropriation
s available for 
the current 
financial year 

Budget revenue line: 

Article …………. 

EUR million (to three decimal places) 

Impact of the proposal/initiative46 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as necessary to show 
the duration of the impact (see point 1.6) 

For miscellaneous ‘assigned’ revenue, specify the budget expenditure line(s) affected. 

Specify the method for calculating the impact on revenue. 

46 

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net 
amounts, i.e. gross amounts after deduction of 25% for collection costs. 

EN 

32 

   EN