CELEX: 52014PC0221
Language: en
Date: 2014-04-09
Title: 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

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		52014PC0221
		
			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 /* COM/2014/0221 final - 2014/0124 (COD) */
			
				
		
		
			
			   	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 widely[2].
According to the latest Eurobarometer
survey[3]
of 2013[4],
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 Strategy[6].
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 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
Recommendations[9],
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 work[10].

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 partners[11]
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 sector[12].
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.
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 projects[13], 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. 
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 study[14] 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 Eurobarometer[15] on undeclared work and
a recent report from Eurofound on tackling undeclared work in the Member States[16] also fed into the preparation
of this initiative. The Eurofound report was accompanied by an updated database[17] 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. 
The views of the European Social Partners
have been collected in a 1st stage consultation[18] (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 2014[19]. 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 status[20].

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. 
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 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 considered, but was discarded given the administration costs entailed in establishing
a new agency. 
4.           BUDGETARY IMPLICATION
Regulation (EU) No 1296/2013 of the European Parliament and of the
Council[21]
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 explained in the legislative financial
statement annexed to this proposal.
            
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.       

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 Committee[22],
Having regard to the opinion of the
Committee of the Regions[23],
After consulting the European Data
Protection Supervisor,
Acting in accordance with the ordinary
legislative procedure,
Whereas:
(1)       In its Communication of 18
April 2012[24],
the Commission 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
authorities to combat undeclared work, aimed at improving cooperation, sharing
best practices and identifying common principles for inspections.
(2)       In
accordance with Article 148(4) of the Treaty, the Council by Decision
2010/707/EU[25] adopted guidelines[26] 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 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. 
(4)       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 work[27].
(5)       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. 
(6)       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. 
(7)       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. 
(8)       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. 
(9)       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 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 data[29]
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 data[30]
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.
(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)         
representatives of the cross-industry social
partners at Union level, as well as social partners in sectors with a high
incidence of undeclared work,
(b)         
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),
(c)         
a representative of the International Labour
Organisation (ILO), 
(d)        
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)         
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,
(b)         
improving Member States' different enforcement
authorities' technical capacity to tackle cross-border aspects of undeclared
work,
(c)         
increasing public awareness on the urgency of
action and encouraging Member States to step up their efforts in dealing with
undeclared work.
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.
(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)                   
Each Member State shall appoint one single point
of contact as a member of the Platform. They may also appoint one alternate
member. 
(2)                   
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.
(3)                   
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.
(4)                   
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
(1)                   
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.
(2)                   
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),
(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)                   
The Commission shall coordinate the work of the
Platform and chair its meetings. 
(2)                   
For the execution of its mission, the Platform
shall adopt by majority decision:
(a)         
the rules of procedure, containing, inter alia,
the decision-making arrangements of the Platform,
(b)         
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, 
(c)         
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.
(3)                   
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.
(4)                   
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. 
(5)                   
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 Posting of Workers, the
Administrative Commission for Social Security Coordination, the Employment
Committee (EMCO), the Social Protection Committee (SPC) and the Working Group on
Administrative Cooperation in the field of Taxation. Joint meetings may also be
organised. 
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.
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                        For
the Council
The President                                                 The
President
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
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 structure[31] 
 Employment, social affairs and inclusion 
1.3.        Nature of the
proposal/initiative 
n The proposal/initiative relates to a new action 
¨ The proposal/initiative relates to a new action
following a pilot project/preparatory action[32]

¨ The proposal/initiative relates to the extension of
an existing action 
¨ 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
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)                    improving cooperation between Member States' different enforcement authorities at EU level to prevent and deter undeclared work more efficiently and effectively, (b)                     improving Member States' different enforcement authorities' technical capacity to tackle cross-border aspects of undeclared work, (c)                      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. 
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 
¨ Proposal/initiative of limited
duration 
–     
¨  Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY 
–     
¨  Financial impact from YYYY to YYYY 
n 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) planned[33] 
n Direct management by the Commission
–     
n by its departments, including by its staff in the Union
delegations; 
–     
¨  by the executive agencies; 
¨ Shared management with the Member States 
¨ Indirect management by delegating implementation tasks to:
–     
¨ third countries or the bodies they have designated;
–     
¨ international organisations and their agencies (to be specified);
–     
¨the EIB and the European Investment Fund;
–     
¨ bodies referred to in Articles 208 and 209 of the Financial
Regulation;
–     
¨ public law bodies;
–     
¨ bodies governed by private law with a public service mission to the
extent that they provide adequate financial guarantees;
–     
¨ 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;
–     
¨ 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.
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. 
3.           ESTIMATED FINANCIAL
IMPACT OF THE PROPOSAL/INITIATIVE 
3.1.        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.
 Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution 
 Number […]Heading………………………………………...……….] || Diff./non-diff. ([34])   || from EFTA countries[35]   || from candidate countries[36]   || from third countries || within the meaning of Article 21(2)(b) of the Financial Regulation 
 1 || 04.03.02.01 EaSI || Diff || YES || YES || NO || NO 
 1 || 04.01.04.02 EaSI || non-diff. || YES || NO || NO || NO 
3.2.        Estimated impact on
expenditure 
3.2.1.     Summary of estimated impact
on expenditure 
EUR million (to three decimal places)
 Heading of multiannual financial framework || 1 || Smart and inclusive growth 
 DG: EMPL ||   ||   || Year 2014[37]   || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || TOTAL 
  Operational appropriations ||   ||   ||   ||   ||   ||   ||   ||   
 04.03.02.01 (EaSI) || Commitments || (1) || 0,150 || 2,100 || 1,200 || 1,800 || 1,100 || 1,800 || 1,000 || 9,150 
 Payments || (2) || 0 || 2,100 || 1,200 || 1,800 || 1,100 || 1,800 || 1,000 || 9,000 
 Number of budget line || Commitments || (1a) ||   ||   ||   ||   ||   ||   ||   ||   
 Payments || (2a) ||   ||   ||   ||   ||   ||   ||   ||   
 Appropriations of an administrative nature financed from the envelope of specific programmes[38]   ||   ||   ||   ||   ||   ||   ||   ||   
 04.01.04.02 (EaSI) ||   || (3) || 0,115 || 0,224 || 0,224 || 0,224 || 0,224 || 0,224 || 0,224 || 1,459 
 TOTAL appropriations for DG EMPL || Commitments || =1+1a +3 || 0,265 || 2,324 || 1,424 || 2,024 || 1,324 || 2,024 || 1,224 || 10,609 
 Payments || =2+2a +3 || 0,115 || 2,324 || 1,424 || 2,024 || 1,324 || 2,024 || 1,224 || 10,459 
  TOTAL operational appropriations || Commitments || (4) || 0,150 || 2,100 || 1,200 || 1,800 || 1,100 || 1,800 || 1,000 || 9,150 
 Payments || (5) || 0 || 2,100 || 1,200 || 1,800 || 1,100 || 1,800 || 1,000 || 9,000 
  TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) || 0,115 || 0,224 || 0,224 || 0,224 || 0,224 || 0,224 || 0,224 || 1,459 
 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 || 10,609 
 Payments || =5+ 6 || 0,115 || 2,324 || 1,424 || 2,024 || 1,324 || 2,024 || 1,224 || 10,459 
 Payments || =5+ 6 ||   ||   ||   ||   ||   ||   ||   ||   
 Heading of multiannual financial framework || 5 || " Administrative expenditure " 
EUR million (to three decimal places)
   ||   ||   || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || TOTAL 
 DG: EMPL ||   || 
  Human resources || 0,330 || 0,330 || 0,330 || 0,330 || 0,330 || 0,330 || 0,330 || 2,310 
  Other administrative expenditure ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL DG EMPL || Appropriations || 0,330 || 0,330 || 0,330 || 0,330 || 0,330 || 0,330 || 0,330 || 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 
EUR million (to three decimal places)
   ||   ||   || Year 2014   || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || TOTAL 
 TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || 0,595 || 2,654 || 1,754 || 2,354 || 1,654 || 2,354 || 1,554 || 12,919 
 Payments || 0,445 || 2,654 || 1,754 || 2,354 || 1,654 || 2,354 || 1,554 || 12,769 
3.2.2.     Estimated impact on
operational appropriations 
–     
¨  The proposal/initiative does not require the use of operational
appropriations 
–     
n  The proposal/initiative requires the use of operational
appropriations, as explained below:
Commitment appropriations in EUR million (to three
decimal places)
 Indicate objectives and outputs   ò ||   ||   || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || TOTAL 
 OUTPUTS 
 Type[39]   || Average cost || No || Cost || No || Cost || No || Cost || No || Cost || No || Cost || No || Cost || No || Cost || No total || Total cost 
 SPECIFIC OBJECTIVE No 1[40]: 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. 
 Exchange of best practices and information, training, technical capacity building to enhance cooperation, awareness raising || Knowledgebank, common guidelines etc, joint operations, exchange of staff, training activities,campaigns, strategies, evaluation || 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 
   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 Subtotal for specific objective No 1 || 1 || 0,150 || 4 || 2,100 || 4 || 1,200 || 4 || 1,800 || 4 || 1,100 || 4 || 1,800 || 4 || 1,000 || 25 || 9,150 
 TOTAL COST || 1 || 0,150 || 4 || 2,100 || 4 || 1,200 || 4 || 1,800 || 4 || 1,100 || 4 || 1,800 || 4 || 1,000 || 25 || 9,150 
3.2.3.     Estimated impact on
appropriations of an administrative nature
3.2.3.1.  Summary

–     
¨  The proposal/initiative does not require the use of appropriations
of an administrative nature 
–     
n  The proposal/initiative requires the use of appropriations of an
administrative nature, as explained below:
EUR million (to
three decimal places)
   || Year 2014[41]   || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || TOTAL 
 HEADING 5 of the multiannual financial framework ||   ||   ||   ||   ||   ||   ||   ||   
 Human resources || 0,33 || 0,33 || 0,33 || 0,33 || 0,33 || 0,33 || 0,33 || 2,31 
 Other administrative expenditure ||   ||   ||   ||   ||   ||   ||   ||   
 Subtotal HEADING 5 of the multiannual financial framework ||   ||   ||   ||   ||   ||   ||   ||   
 Outside HEADING 5[42] of the multiannual financial framework   ||   ||   ||   ||   ||   ||   ||   ||   
 Human resources ||   ||   ||   ||   ||   ||   ||   ||   
 Other expenditure of an administrative nature || 0,115 || 0,224 || 0,224 || 0,224 || 0,224 || 0,224 || 0,224 || 1,459 
 Subtotal outside HEADING 5 of the multiannual financial framework ||   ||   ||   ||   ||   ||   ||   ||   
 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.
3.2.3.2.   Estimated
requirements of human resources 
–     
¨  The proposal/initiative does not require the use of human
resources. 
–     
n  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 
 ||  Establishment plan posts (officials and temporary staff) ||   ||   
 || XX 01 01 01 (Headquarters and Commission’s Representation Offices) (2AD+0,5AST) || 2.5 || 2.5 || 2.5 || 2.5 || 2.5 || 2.5 || 2.5 
 || XX 01 01 02 (Delegations) ||   ||   ||   ||   ||   ||   ||   
 || XX 01 05 01 (Indirect research) ||   ||   ||   ||   ||   ||   ||   
 || 10 01 05 01 (Direct research) ||   ||   ||   ||   ||   ||   ||   
  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 yy[44]   || - 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 ||   
3.2.4.     Compatibility with the
current multiannual financial framework 
–     
n  Proposal/initiative is compatible the current multiannual
financial framework.
–     
¨  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.
–     
¨  Proposal/initiative requires application of the flexibility
instrument or revision of the multiannual financial framework[45].
Explain what is required, specifying the
headings and budget lines concerned and the corresponding amounts.
3.2.5.     Third-party contributions 
–     
n The proposal/initiative does not provide for co-financing by third
parties. 
–     
¨ 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 appropriations cofinanced ||   ||   ||   ||   ||   ||   ||   ||   
3.3.        Estimated impact on
revenue 
–     
n  Proposal/initiative has no financial impact on revenue.
–     
¨  Proposal/initiative has the following financial impact:
–                   
¨         on own resources 
–                   
¨         on miscellaneous revenue 
EUR million (to three decimal places)
 Budget revenue line: || Appropriations available for the current financial year || Impact of the proposal/initiative[46]   
 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) 
 Article …………. ||   ||   ||   ||   ||   ||   ||   ||   
For miscellaneous
‘assigned’ revenue, specify the budget expenditure line(s) affected.
Specify the method
for calculating the impact on revenue.    

[1]               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 
[2]               See Impact Assessment on
establishing a European Platform to enhance cooperation in the prevention and
deterrence of undeclared work, Annex II.
[3]               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.
[4]               Special Eurobarometer 402
"Undeclared work in the European Union", 2013 http://ec.europa.eu/public_opinion/archives/ebs/ebs_402_en.pdf
[5]               European Commission, Employment and Social
Developments in Europe 2013, Luxembourg, 2014.
[6]               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 
[7]               Communication from the Commission "Towards a
job-rich recovery", COM(2012) 173 final of 18 April 2012
[8]               2010/707/EU Council Decision of
21 October 2010 on "Guidelines for employment policies of the Member
States" 
[9]               http://ec.europa.eu/europe2020/making-it-happen/country-specific-recommendations/index_en.htm
[10]             http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P7-TA-2014-0012
[11]             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.
[12]             Special Eurobarometer 402,
Undeclared work in the European Union Report, 2013
[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
[14]             "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

[15]             Special Eurobarometer 402, Undeclared work in the
European Union Report       
http://ec.europa.eu/public_opinion/archives/ebs/ebs_402_en.pdf

[16]             "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
[17]             http://www.eurofound.europa.eu/areas/labourmarket/tackling/search.php
[18]             "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
[19]             "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
[20]             For more details see Impact Assessment on establishing a
European Platform to enhance cooperation in the prevention and deterrence of
undeclared work, Annex I
[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
[22]             OJ C , , p. .
[23]             OJ C , , p. .
[24]             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
[25]             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)
[26]             The guidelines have been maintained for 2011, 2012 and
2013.
[27]             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)
[28]             Communication from the Commission "Stepping up the fight against undeclared work" 
COM (2007)628 of 24 October 2007              
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52007DC0628:EN:HTML
[29]             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) 
[30]             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)
[31]             ABM: activity-based management – ABB: activity-based
budgeting.
[32]             As referred to in Article 54(2)(a) or (b) of the
Financial Regulation.
[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
[34]             Diff. = Differentiated appropriations / Non-Diff. =
Non-differentiated appropriations.
[35]             EFTA: European Free Trade Association. 
[36]             Candidate countries and, where applicable, potential
candidate countries from the Western Balkans.
[37]             Year N is the year in which implementation of the proposal/initiative
starts.
[38]             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.
[39]             Outputs are products and services to be supplied (e.g.:
number of student exchanges financed, number of km of roads built, etc.).
[40]             As described in point 1.4.2. ‘Specific objective(s)…’ 
[41]             Year N is the year in which implementation of the
proposal/initiative starts.
[42]             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.
[43]             CA= Contract Staff; LA = Local Staff; SNE= Seconded
National Expert; INT = agency staff; JED= Junior Experts in Delegations). 
[44]             Sub-ceiling for external staff covered by operational
appropriations (former "BA" lines).
[45]             See points 19 and 24 of the Interinstitutional
Agreement (for the period 2007-2013).
[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.