ILO proposed recommendation Transition from the Informal to the Formal Economy and Migrant Workers

Transcription

1 ILO proposed recommendation Transition from the Informal to the Formal Economy and Migrant Workers by Gloria Moreno-Fontes Chammartin

2 Outline I. Background (concepts and categories) II. Available data and measurements III. Steps to follow in the adoption of the Recommendation IV. Overview of the Recommendation and mentioning of migrant workers

3 17 th International Conference of Labour Statisticians (ICLS) 2003:! Informal Employment refers to employment in informal jobs both inside and outside the informal sector. All employment arrangements that do not provide individuals with legal or social protection through their work whether in informal enterprises, formal enterprises or households. I. Important concepts of informality 15th International Conference of Labour Statisticians (ICLS) 1993:! Employment in the Informal Sector refers to employment in informal enterprises. Definition based on economic units. International Labour Conference (ILC) Resolution 2002:! Informal Economy: all activities that are, in law or practice, not covered or insufficiently covered by formal arrangements

4 I. Categories of the International Classification of Status in Employment (ICSE-93)! Persons employed in the informal sector (including those rare persons who are formally employed in the informal sector): " Employers in informal enterprises; " Employees in informal enterprises; " Own-account (self-employed) workers in their own informal enterprises; " Contributing family workers working in informal enterprises; and, " Members of informal producers cooperatives.! Persons in informal employment outside the informal sector, specifically: " Employees in formal enterprises not covered by social protection through their work; " Paid domestic workers not covered by social protection through their work; and; " Contributing family workers working in formal enterprises.

5 I. Categories of documented migrants in the informal economy! asylum-seekers with a residence, but no work permit;! young migrant students with a part-time work permit;! dependents of principal applicants with a residence permit, but no work permit;! documented migrants with a residence and work permit due to discrimination practices (can include second generation migrants) or language barriers;! documented migrants that do not want themselves, or their employers do not want, to pay social security contributions and/ or taxes;! self-employed migrants; and,! In the case of the EU, nationals of new EU Member States facing transition periods to access the labour market.

6 II. Measuring the Economic Contribution of the Informal Sector and Informal Employment! Data on employment in the informal economy are important as they enable a quantification of the contribution of the sector to total Gross Domestic Product (GDP) or Gross Value Added (GVA).! National data on the informal economy have improved significantly as countries increasingly adopt the ICLS recommendations. Data are now available for Brazil, China, India and Indonesia. In Latin America, 16 countries covering 89 per cent of the working age population in the region. In Mexico, the informal economy contributes 30.4 per cent of total GVA.

7 II. Informal Employment as Per Cent of Non-Agricultural Employment by Sex ( ) South Asia 83% women, 82% men Sub-Saharan Africa 74% women, 61% men Latin America and the Caribbean 54% women, 48% men Urban China 36% women, 30% men East and Southeast Asia (excluding China) 64% women, 65% men Middle East and North Africa 35% women, 47% men Source: WIEGO (Women in Informal Employment: Globalizing and Organizing),

8 II. Available data on women in informal employment! In 30 of the 41 countries for which data were available by sex, the percentage of women in informal non-agricultural employment is higher than that of men;! In general, for women, there is a large proportion of informal employment outside the informal sector.! In Latin America and the Caribbean, as well as in South and East Asia, the bulk of informal employment is concentrated outside the informal sector, for instance domestic work.! In four of eight Sub-Saharan African countries for which data were available, the percentage of women in informal employment outside the informal sector exceeded that of men.! For 6 cities in China, there are higher participation rates for women than men in informal employment, employment in the informal sector and informal employment outside the informal sector.

9 ources: ILO, Department of StaAsAcs; country responses to ILO request for data; special tabulaaons of naaonal labour force survey data and extracts from urvey reports. For LaAn American countries, ILO/SIALC household survey micro- data database published in ILO- WIEGO, Women and Men in the Informal conomy: A Sta7s7cal Picture, Second ediaon, InternaAonal Labour Office, Geneva, 2013, pp II. Informal Employment of Women and Men as percentage of total non- agricultural employment, by sex (latest year available) Informal employment Informal employment outside the informal sector Country Sex % of non- % of non- Thousands agricultural employment Thousands agricultural employment rgenena Women Men razil Women Men osta Rica Women Men ominican Republic Women Men anama Women Men outh Africa Women Men hailand Women n.a. n.a. Men n.a. n.a.

10 II. DomesEc workers - Average hours of work per week, and average wages in per cent of average wages for all paid employees (latest available year) Average hours of work per week Average wages in per cent of average wages for all paid employees (latest available year) Malaysia (2008) 65.9 Botswana (2005/6) 14.1 Saudi Arabia (2009) 63.7 Bahrain (2010) 21.2 Namibia (2004) 62 Qatar (2009) 22.6 Qatar (2009) 60 ArgenEna (2011) 30.9 Thailand (2003) 58.3 Chile (2006) 34.9 Armenia (2008) 44.4 Costa Rica (2006) 35.1 Dominican Rep. (2007) 41.3 Panama (2006) Note on data on average hours of work per week : All data are from labour force surveys. They refer to hours actually worked. Where available data with total employment coverage were preferred. Note on data on average wages in per cent of average wages for all paid employees: All data refer to mean monthly wages Source of data on average hours of work per week: ILO LABORSTA: for Saudi Arabia: Central Department of StaAsAcs and InformaAon of the Kingdom of Saudi Arabia: Manpower Research BulleAn 2009 (Riyadh), table 16; for Qatar: Qatar StaAsAcs Authority; Labour Force Sample Survey 2009 (Doha), table 12 published in Domes7c workers across the world: Global and regional sta7s7cs and the extent of legal protec7on, p.57 Source of data on average wages in per cent of average wages for all paid employees: Wage data for LaAn American and Caribbean countries are from ILO/SIALC (Labour Analysis and InformaAon System for LaAn America and the Caribbean, Panam); data for Bahrain are from the Labour Market Regulatory Authority (LMRA), Bahrain Labour Market Indicators (BLMI), Table B. EsAmated average basic wages by ciazenship and sector, online; data for Botswana are from the Central StaAsAcs Office (2008), 2005/6 Labour Force Report, Gaborone; data for Qatar are from the Qatar StaAsAcs Authority, Labour Force Sample Survey 2009, Doha. 35.2

11 ILO s 2013 report II. Domestic workers across the world: Global and regional statistics and the extent of legal protection! In 2010 only 5.3 million domestic workers (or 10 per cent) were covered by general labour legislation;! Some 15.7 million (or 29.9 per cent) were completely excluded from the scope of national labour legislation;! More than half of all domestic workers were not covered by national legislation setting limits on their normal working hours per week;! Approximately 45 per cent had no entitlement to weekly rest periods and/ or paid annual leave;! Just over half of all domestic workers enjoyed minimum wages protection on an equal basis with other workers, and for some 5.9 per cent the statutory minimum wage rate was lower, leaving some 22.4 million domestic workers lacking minimum wages protection (or 42.6 per cent of the total).! Large gaps in maternity protection coverage: more than a third of all women domestic workers were not entitled to maternity leave and associated maternity cash benefits.

12 August 2013 December 2013 January 2014 June 2014 September 2014 III. STEPS in the adoption of a Recommendation Transition from the Informal to the Formal Economy The ILO Governing Office sends a law and practice report along with a questionnaire to ILO Member States. Governments are requested to consult with the most representative workers organizations and employers' associations. Deadline for submission of replies to the Office The Office sends to ILO Member States a second report examining the replies received to the questionnaire in 2013 First discussion at the International Labour Conference of the ILO. A decision is taken on the form of a proposed ILO Recommendation The Office sends a third report containing the text of a proposed Recommendation to Member States. 30 November 2014 Deadline for submission to the Office of comments on the third report by Member States. Governments are requested to inform whether they consider that the proposed text provides a satisfactory basis for the 2 nd discussion and to indicate which organizations of employers and workers they consulted. March 2015 June 2015 The Office sends two reports to Member States: one examining the replies received on the third report, and the other containing the text of the draft instrument(s) revised in the light of comments received Second discussion at the International Labour Conference of the ILO. A Recommendation will be discussed and adopted or rejected by the ILC.

13 IV. Proposed Recommendation! Introduction considers migrants as «especially vulnerable to the most serious decent work deficits in the informal economy»! Scope Applies to all workers and economic units (including enterprises, entrepreneurs and household) in the informal economy.! Objective a) Facilitate the transition of workers and economic units from the informal to the formal economy while respecting workers fundamental rights; b) Promote the creation, preservation and sustainability of decent jobs in the formal economy; c) Prevent the informalization of formal economy jobs.

14 IV. Proposed Recommendation! Guiding principles: a) need for a balanced approach combining incentives with compliance measures; b) need to prevent and sanction evasion from the formal economy for the purpose of avoiding taxation and the application of social and labour laws and regulations.! Legal and Policy Frameworks: An integrated policy framework to facilitate the transition to the formal economy is included in national development strategies or plans or poverty reduction strategies.! Members should ensure coordination and cooperation between tax authorities, social security institutions, labour inspectorates, customs authorities, migration bodies and employment services.

15 IV. Proposed Recommendation Employment policy framework:! labour market policies and institutions (e.g. wage policies including minimum wages, social protection schemes including cash transfers, public employment programmes and guarantees, and enhanced outreach and delivery of employment services to help low-income households to escape poverty and access freely chosen employment);! education and skills-development policies that support lifelong learning, respond to the evolving needs of the labour market and to new technologies and recognize prior learning such as through informal apprenticeship systems.

16 IV. Proposed Recommendation Members should progressively extend Rights and Social Protection:! in law and practice, to all workers in the informal economy, social security, maternity protection, decent working conditions and, where it exists, a minimum [living] wage.! the coverage of social insurance and, if necessary to adapt administrative procedures, benefits and contributions! Encourage the provision of, and access to, affordable quality childcare and other services.