Setting a labour inspection action plan for undeclared work in Montenegro
The ILO will organize a training for Labour Inspection of Montenegro about the informal economy and undeclared work on the 3rd and 4th of February 2015 in Podgorica, Montenegro.
One of the important forms of the informal economy in Europe, and also in Montenegro is undeclared work, which is mainly resorted to because it reduces labour costs. Some of the consequences of the undeclared work are low wages, non-payment of the social insurance benefits and payroll taxes, all leading to the emergence of unfair competition in the labour market. The undeclared work also leads to a lack of the workforce protection and motivation, and overall it results in the decline of enterprise’ competitiveness.
There are no precise statistical data on the level of undeclared work in the Montenegrin economy. Generally speaking, a high percentage of undeclared work in a country indicates a lack of awareness in society, particularly among workers and employers, about the consequences of informal employment and undeclared work and its cost to the society.
Montenegro needs to further strengthen the capacities and resources of the Labour Inspectorate, as one of the main actors in the fight against undeclared work, so that they can adopt an effective approach to solving this problem. The Labour Inspectorate should also strengthen their cooperation with social partners, representatives of employers and trade unions, which may contribute to the prevention, identification and tackling the undeclared work.
The ILO Convention on the Labour Inspectorate No. 81 and the ILO Convention on Labour Inspection in Agriculture No. 129, both ratified by Montenegro, provide a solid basis for the fight against undeclared work, together with the ILO Recommendation No. 198 on the employment relationship.
The International Labour Organization (ILO) has assisted in developing an action plan for combating undeclared work in Montenegro, which was adopted by the Social Council of Montenegro.
The upcoming ILO training aims to expose labour inspectors to best practices in the fight against undeclared work in accordance with the approaches of the European Union countries and taking into account the EU accession process.
There are no precise statistical data on the level of undeclared work in the Montenegrin economy. Generally speaking, a high percentage of undeclared work in a country indicates a lack of awareness in society, particularly among workers and employers, about the consequences of informal employment and undeclared work and its cost to the society.
Montenegro needs to further strengthen the capacities and resources of the Labour Inspectorate, as one of the main actors in the fight against undeclared work, so that they can adopt an effective approach to solving this problem. The Labour Inspectorate should also strengthen their cooperation with social partners, representatives of employers and trade unions, which may contribute to the prevention, identification and tackling the undeclared work.
The ILO Convention on the Labour Inspectorate No. 81 and the ILO Convention on Labour Inspection in Agriculture No. 129, both ratified by Montenegro, provide a solid basis for the fight against undeclared work, together with the ILO Recommendation No. 198 on the employment relationship.
The International Labour Organization (ILO) has assisted in developing an action plan for combating undeclared work in Montenegro, which was adopted by the Social Council of Montenegro.
The upcoming ILO training aims to expose labour inspectors to best practices in the fight against undeclared work in accordance with the approaches of the European Union countries and taking into account the EU accession process.