| Summary: | In social life, undeclared work has acquired economic and legal connotations that are more
and more pronounced, with major influences on social security systems on the one hand and on
budget revenues on the other. Therefore, knowing the causes of this phenomenon, the forms of
manifestation in each EU Member State, may determine a more realistic assessment of the socialeconomic
impact, and may also identify legal action ways of reducing illicit work. In a European
Union which has set the objective to create more and saferjobs, the vulnerability of theose under
undeclared employment is an important problem, whose solution can be found not only at European
level. Identification of the means of action against undeclared work is a concern of each Member
State of the European Union, due to the fact that the underground economy undermines national
social programs and funding has a negative effect on economic growth. In this respect, the
Community institutions have proposed the Member States, for effectively combating undeclared
work, reducing work-related taxes and bureaucracy, and a more active involvement of society in the
fight against undeclared work. Also, undeclared work could be reduced by improving checks taken by
authorities in all categories of employers. In the context of a labor market with normative dimensions
in constant evolution, the employee status is quite difficult. In consistence with the principle of
protecting employee rights, labor law has imposed new measures that counterbalance the employerřs
position of authority within the employment relationship, both at European and national levels. These
include the obligation to inform the employee about the essential elements of his working
relationship, obligation established at European level by Council Directive 91/533/EEC of 14 October
1991, and at national level by the Labor Code.
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