Pilot program of targeted inspections, with joint inspection teams, under the three-year plan – roadmap for combating undeclared work 2017-2019.
1. The Action
The pilot program of targeted inspections was an action of the three-year road map for the implementation of a holistic strategic approach to tackle undeclared work in Greece, validated in a tripartite level on 26/10/2016 among the Greek Government, the International Labour Organization (ILO) and the social partners.
The action constituted a guide of good practice for effective inspections and its results are implemented in practice with aim to tackle the phenomenon of undeclared work in Greece.
2. The Strategic Objectives
The pilot program of targeted inspections had the following strategic objectives:
- The strengthening of business voluntary compliance. Through a specific information campaign, which accompanied the inspection program, the goal was to raise the awareness of employers, increase compliance and reduce the intensity of the phenomenon.
- The reduction of the percentage of undeclared work recorded in inspections of the mechanisms, to a level below 10% in the regulated area at the end of the pilot project.
- The reduction of the delinquency rate (including offenses relating to under-declared work) by at least 25% in the follow-up inspection in the selected sectors of the regulated area.
- The strengthening of the inspection mechanisms extroversion, in order to increase the confidence of the economic transactors (employers and workers). The strengthening of business confidence is crucial in tackling undeclared work, with multiple benefits for all parties involved.
3. Participating Inspection Authorities
The following inspection authorities worked together at both levels of (a) onsite inspections and (b) exchanging and cross-checking data and information:
- The Labour Inspectorate (SEPE)
- The Unified Social Security Institution (EFKA) with its Inspection Mechanism
- The Financial Police and
- The Financial and Economic Crime Unit (SDOE).
4. Selection of area and/ or sector to be inspected
The pilot program took place in the Metropolitan Municipality of Athens in the region of Attica for the following reasons:
- The implementation of the pilot program was facilitated due to the large number of enterprises in various sectors of the economic activity, as well as to the size – branch diversity.
- The Region of Attica is the geographical area where approximately 50% of the undeclared work – related offenses are recorded.
- It made possible for the social partners to participate more actively in the information campaign.
- There were human and material resources available by the inspection mechanisms on an operational level for conducting the pilot project.
5. Action Plan
1. Information and awareness
Implementation of an informative campaign for the social partners at the Region of Attica, for employers and employees and for the general public, including the publication of a leaflet regarding undeclared work in printed and electronic form.
The brochure was comprehensible and friendly to the public and provided clear information and guidance.
2. Educational actions for Inspectors
Implementation of a training workshop specialized for inspectors of all the participating authorities (SEPE, EFKA, SDOE, Financial Police), who conducted inspections, in order to experience the process and its methodology.
3. Implementation of targeted inspections
- In order to carry out the targeted inspections, a Cooperation Protocol was established among the Labor Inspectorate (SEPE), the Unified Social Insurance Institution (EFCA), the Financial Police and the Financial and Economic Crime Unit (SDOE). The Cooperation Protocol concerned the basic principles and the methodology for the implementation of the program.
- Selection of the enterprises to be inspected through the use of SEPE risk analysis MIS and by utilizing the data of the ERGANI information system.
- The Directorate for Planning and Coordination of Labor Relations Inspection of SEPE coordinated the implementation of the pilot program, in cooperation with the relevant departments of the participating inspection mechanisms and services.
- For the recording, processing, and the evaluation of the results of the action, a common inspection enumeration sheet was drawn up to be completed by the inspection conductors.
6. Evaluation of the Action
The results of the action were derived after the comparison of the results of the inspection and re-inspection periods and the success of the action, in terms of achieving the objectives of quantified and qualitative targets set.
The results report was completed by 15 October 2017 and included proposals for the utilization of the action results.
7. Implementation Schedule
- Implementation of an information and awareness campaign for employers and workers with the involvement of the social partners in May 2017.
- Inspections process in two cycles from 1 May to 30 September 2017.
- Evaluation of the action on the October 15th, 2017.