Clandestine employment

Undeclared self-employment
Undisclosed earnings
Undeclared wages

Nature

Unlike double-jobbing, clandestine employment is often the only job that many workers have. It is carried out on the fringes of the law or outside it altogether, and takes three main forms - the undeclared employment of workers, undeclared self-employment, and undeclared multiple jobholding.

Background

Clandestine employment emerged as a recognized global issue in the mid-20th century, as postwar economic expansion and migration revealed widespread unregulated labor practices. Its significance grew with the rise of transnational labor flows and informal economies, prompting international organizations and governments to document its scale and impact. Heightened scrutiny in the 1990s, driven by globalization and labor rights movements, further illuminated the pervasive and persistent nature of clandestine employment across diverse economic sectors.

Incidence

Clandestine employment particularly involves the unemployed, migrant workers, pensioners, unregistered self-employed workers, housewives, houseworkers, temporary staff, students and children. Their numbers are hard to estimate.

Undeclared income was estimated to be 13 percent of Belgium's GDP in 1999. This was almost three times the share of neighbouring Netherlands, though lower than Italy and Greece.

Claim

Clandestine employment is a grave and urgent problem that undermines workers’ rights, fuels exploitation, and erodes the foundations of fair economies. It enables tax evasion, unsafe working conditions, and wage theft, leaving vulnerable individuals without protection or recourse. Ignoring this issue perpetuates inequality and injustice. Governments and societies must prioritize eradicating clandestine employment to ensure dignity, safety, and fairness for all workers. This hidden crisis demands immediate and decisive action.

Counter-claim

Clandestine employment has always existed because both the employer and the employed benefit from it. The employer does not pay social security contributions or taxes so that the cost of labour is relatively low for him; the employed usually receives a higher take-home pay.