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. International attention intensified in the 1970s, when studies by the International Labour Organization and national governments documented the scale and persistence of hidden workforces. Subsequent decades saw increased scrutiny, as economic crises, globalization, and shifting labor markets underscored the problem’s complexity and its implications for social protection and economic policy.

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 allows unscrupulous employers to evade taxes, safety standards, and legal responsibilities, leaving vulnerable individuals trapped in cycles of abuse and insecurity. Ignoring this issue perpetuates inequality and injustice. Immediate, decisive action is essential to protect workers, uphold the rule of law, and ensure a just society for all.

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.