REPUBLIC OF SLOVENIA MINISTRY OF LABOUR FAMILY SOCIAL

REPUBLIC OF SLOVENIA MINISTRY OF LABOUR, FAMILY, SOCIAL AFFAIRS AND EQUAL OPPORTUNITIES HOW TO MAKE LEGAL WORK ATTRACTIVE Peter Pogacar, Director General International Conference How to make formal work attractive, 17. - 18. 09. 2014, Vilnius, Lithuania

REPUBLIC OF SLOVENIA MINISTRY OF LABOUR, FAMILY, SOCIAL AFFAIRS AND EQUAL OPPORTUNITIES REASONS FOR THE USE OF UNDECLARED WORK ØLow awareness of the risks of undeclared work for workers, users and other actors on the labour market Ø Cost burden of legal work (tax, social security contributions, etc) Ø Administrative burden of legal work (labour law, etc) Ø Additional influence of actual economic situation?

REPUBLIC OF SLOVENIA MINISTRY OF LABOUR, FAMILY, SOCIAL AFFAIRS AND EQUAL OPPORTUNITIES SLOVENIA Ø Broad awareness raising campaign against grey economy, including on the risks of undeclared work for workers and users – coordinated strategy of the government ØSimplification of administrative procedures (labour legislation, etc) Ø Various tax incentives and social security contributions deductions/subsidies Ø Registrations of workers prior to starting work – efficiency of supervision Ø Measures to improve knowledge (in the areas of labour law, social security, tax, etc) – information, campaigns and counselling (FURS, IRSD, MDDSZ, …)

REPUBLIC OF SLOVENIA MINISTRY OF LABOUR, FAMILY, SOCIAL AFFAIRS AND EQUAL OPPORTUNITIES SLOVENIA NEW ACT ON THE PREVENTION OF UNDECLARED WORK AND EMPLOYMENT Ø adopted in April 2014 (first act in 2000) Ø improved supervision - custom officials are gaining powers to prosecute undeclared work and employment Ø higher penalties Ø activities not deemed as undeclared work or employment – mutual neighbourly help, help among close relatives, emergency work, humanitarian, charity, voluntary and aid work, short-term work, personal supplementary work – new voucher system

REPUBLIC OF SLOVENIA MINISTRY OF LABOUR, FAMILY, SOCIAL AFFAIRS AND EQUAL OPPORTUNITIES PERSONAL SUPLEMENTARY WORK Øactivities often performed as undeclared work Øwork carried out by an individual as a domestic help and similar, the harvesting and sale of forest fruit and herbs, and other minor jobs , the personal manufacture of domestic art and craft products Ø simplified procedure for registration VOUCHER: Ø new instrument, easy to obtain Ø contribution to social security systems, acquiring social security rights Ø basis for legal work, contributes to more effective supervision

REPUBLIC OF SLOVENIA MINISTRY OF LABOUR, FAMILY, SOCIAL AFFAIRS AND EQUAL OPPORTUNITIES INSTITUTIONAL COOPERATION FOR MORE EFFECTIVE FIGHT AGAINST INFORMAL WORK IN CROSS BORDER CASES A new platform that is to be established should: Ø involve all MS in order to be effective and efficient Ø be partly flexible in its initiatives in order to be able to respond to upto-date situations Ø cooperation with already existing organizations dealing with similar issues should be well organised in order not to duplicate work or to become useless The importance of exchanging views and practices!

REPUBLIC OF SLOVENIA MINISTRY OF LABOUR, FAMILY, SOCIAL AFFAIRS AND EQUAL OPPORTUNITIES THE ROLE OF WORKERS‘ AND EMPLOYERS‘ ORGANIZATIONS Crucial role of social partners! Common responsibility for the general awareness that with undeclared work we are all losers (unfair competition, legal and social rights, etc) Need for common message Slovenia - the new Act foresees the Tripartite committee for the prevention of undeclared work and employment

REPUBLIC OF SLOVENIA MINISTRY OF LABOUR, FAMILY, SOCIAL AFFAIRS AND EQUAL OPPORTUNITIES Thank you for your attention! Peter Pogacar