IMPACT OF THE LABOUR NON-DECLARATION ON THE WORKFORCE REPRODUCTION: PROBLEMS, REGULATORY POLICY

Abstract

The purpose of the paper is twofold: firstly, to study the consequences of the employment and labour non-declaration for the population standards of living and working potential reproduction, and secondly, to substantiate systemic approaches to regulating and preventing the totality of the undeclared labour negative impacts in Ukraine. The research methodology is founded upon the generalization, comparison, and analysis of factors, manifestations, and consequences of undeclared work. The aim of this analysis is the reproduction and improvement of the population's labour potential and employment sphere. Furthermore, the methodology is based upon the synthesis of obtained results into approaches for optimising national policy and practices of tracking and preventing these violations of legislatively approved socio-labour relations. Results. The undeclared labour refers to work undertaken on a basis of agreements between a worker and an employer, which are usually concluded without reference to the legislatively approved standards for working hours, volumes, productivity, and payment for labour. Such agreements generally fail to provide reliable fiscal reporting on the volumes of performed labour and achieved work results. Undeclared work, which is carried out within the formal and shadow employment sectors, exerts a discernible systemic negative influence on the replenishment of state and local budgets, mandatory state insurance funds, the implementation of state objectives and mechanisms for socio-economic development, the observance of socio-labour rights, social protection of workers and the general population. Conversely, engaging in informal employment, colluding with the employer to conceal the legal labour volume and results, or failing to declare income from entrepreneurship or self-employment, can enhance available working and living capital, savings, and accumulations, thereby elevating one's life quality and standards. Practical implications. The main criterion for the design and implementation of an effective regulatory policy on undeclared work is the balance of its economy-wide, sectoral and industry-specific, control and monitoring, as well as preventive measures, with the involvement of authorised structures for the standardisation, control and monitoring of socio-labour relations, employment and the labour market, law enforcement agencies and civil society institutions. Value / Originality. In light of the prevailing trends and characteristics of undeclared labour in Ukraine, the regulatory policy should prioritise the identification and mitigation of this employment model, with a concomitant emphasis on systemic measures to prevent undeclared labour and its transition into formal employment.