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Self-employed workers: Self-employed workers: industrial relations and working conditionsindustrial relations and working conditions
EESC – Brussels, 24 September 2009
‘Trends in self-employed work’
Christian Welz Christian Welz
European Foundation, DublinEuropean Foundation, Dublin
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OutlineOutline
I. Methodology
II. Research objectives
III. Definition (s)
IV. Incidence
V. Social security
VI. Interest representation
VII. Employment & working conditions
VIII. Conclusions
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I. MethodloyI. Methodloy
comparative analytical report
of EIRO and EWCO
27 national reports & NO structured questionnaire
1 overview report
online under:
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II. Research objectivesII. Research objectives
recent trends in self-employment the institutional framework collective representation of self-
employed workers employment and working conditions of
self-employed workers
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III. Definition(s)III. Definition(s)
clear-cut and common definition of ‘self-employed worker’ across all MS is a challenging task
difficulties derive from the specific features of
national contexts and legal frameworks
main problems are linked to the significant
changes in employment relationships in recent
years
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III. Definition(s)III. Definition(s)
common definition across countries of this study refers to the traditional classification of employment
relationships based on legal subordination and the
dependent/independent worker dichotomy
corresponds to the classifications used by the OECD
and the ILO
self-employment is defined in a residual way comprising all contractual relationships not falling
within the boundaries of ‘paid employment
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III. Definition(s)III. Definition(s)
ILO
includes under the heading of ‘self-
employment jobs’ both ‘employers’ and
‘own-account workers’ (Resolution
concerning the International
Classification of Status in Employment
1993)
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III. Definition(s)III. Definition(s)
Labour force survey
persons who work in their own business,
professional practice or farm for the
purpose of earning a profit, and who
employ no other persons;
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IIÌ. National definitions IIÌ. National definitions
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country legal definition main domains in which self-employment has been defined
AT yes Income tax act; Labour law; General social insurance act
BE yes Social security law; Fiscal law BG yes Employment promotion act; Nat. statistical
system CY yes Social insurance law CZ yes Social security insurance law; National statistical
system DE yes Act to promote self-employment; Federal
Labour Court DK yes Employment act; National statistical system EE yes Tax act EL yes Social security law; Case law ES yes Social security law; Self-employed Workers’
Statute FI yes Civil law; Self-employed persons pensions act FR yes social security regime for self-employed
workers; National statistical system HU no - IE no Code of practice on employment status by a
tripartite Employment Status Group
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country legal definition main domains in which self-employment has been defined
IT yes Civil code; Tax law; Social security system; National statistical system
LT yes Law of state social insurance; Law on personal income tax; National statistical system
LU yes Social insurance code LV yes Civil law; National statistical system; Labour laMT yes Social security act NL yes Tax law NO no - PL yes Act of freedom of business activity; Act on PT yes Civil law; Business law; Income tax code; Social
security law RO yes National statistical system; Labour code SE yes Tax law SI yes Civil law; Law on commercial companies; Law
on pension and disability insurance; several sectoral laws concerning ‘liberal’ professions
SK yes Social insurance act; Trade licensing act; Commercial code
UK no Nature of employment assessed on a case-by-case basis if disputes arise
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III. 5 categories of self-employmentIII. 5 categories of self-employment
1. entrepreneurs running their business with employees;2. ‘free professionals’ who meet specific requirements,
abide by regulations/codes and often pass examinations. - they can hire workers, but generally carry out
their activities alone;3. caftworkers, traders and farmers, who represent the
traditional forms of self-employment. Often work with their family members and possibly a small number of employees;
4. self-employed workers in skilled but unregulated occupations (‘new professionals’);
5. self-employed workers in unskilled occupations, who run their business without the help of employees/sometimes be assisted by family members.
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IV. Incidence IV. Incidence
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IV. Incidence IV. Incidence (v(variation on total employment by gender in%)ariation on total employment by gender in%)
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V. Social securityV. Social security
liberal systems self-employed usually excluded from mandatory
public schemes UK
cannot benefit from allowances which are not means tested
nor from protection against unfair dismissal, redundancy compensation and guaranteed pay
can benefit from lower income tax rates and claim back certain expenses against tax
Ireland not entitled to unemployment, disability and
invalidity benefits
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V. Social securityV. Social security
conservative regimes
various compulsory regimes
different programmes devoted to single
occupational groups (esp. traditional
ones)
huge variation within this cluster
numerous recent reforms
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V. Social securityV. Social security
social democratic regimes
large differences
in SF self-employed workers have the
possibility to choose both the composition
and level of their social security
in SE social security does not take seasonal
income fluctuations into account (e.g. for
sickness benefits/parental allowances)
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V. Social securityV. Social security
former socialist regimes
large variety
relevant differences between benefits for
employees and self-employed workers
main distinctions refer to the nature of
insurance schemes (mandatory/voluntary)
& the amount of contributions
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VI. Interest representationVI. Interest representation
Trade Unions organise self-employed workers in some professions
characterised by high skills and significant autonomy in their work (journalists/ performing artists)
construction sector with a high incidence and TU representation
road haulage situation is more mixed, but TU seem to prevail recurrent debates on whether TU should more
clearly try to organise self-employed truck drivers in the other traditional sectors (agriculture/crafts)
business organisations clearly prevail
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VI. Interest representationVI. Interest representation
Trade Unions tried to extend their representation to new groups of
workers which are formally self-employed but have a less
clear-cut professional identity
particularly the case where new types of employment
contracts have been introduced or even with the aim of normalising formerly
unregulated positions
in few countries, self-employed workers seem to be
substantially outside the scope of TUs
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VI. Interest representationVI. Interest representation
Employers organisations self-employed workers are regarded as entrepreneurs
and (potential) employers collective representation is within business
associations / or general interest representation and without specific employer representation
functions typical of the associations of liberal professionals proper employer associations are present in certain
sectors where self-employment is more widespread (agriculture, crafts and retail trade)
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VI. Interest representationVI. Interest representation Employers organisations
almost exclusive attention to the entrepreneurial aspects of self-employed workers
issues of personal work are almost always neglected limited reference to competence building and training by
business organisations were included in the national reports (especially in NMS)
issues of health and safety even less present practically no business representation exists as such for self-
employed workers as own-account workers without employees have to refer to professional associations, small and medium-
sized enterprises (SMEs) or general employer associations and Chambers of Commerce
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VII. Employment & working conditionsVII. Employment & working conditions
1. Working time:
- long working hours (+48 h/week)
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VII. VII. by gender and employment status (%)by gender and employment status (%)
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VII. VII. by sector of activity (%)by sector of activity (%)
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VII. VII. by occupation (%)by occupation (%)
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VII. Employment & working conditionsVII. Employment & working conditions
2. Health and safety
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VII. VII. Impact on health by sector and Impact on health by sector and employment status (%)employment status (%)
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VII. VII. Health-related leave by gender and Health-related leave by gender and employment status (%)employment status (%)
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VII. Employment & working conditionsVII. Employment & working conditions
3. Earning levels
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VII. VII. Distribution of income by employment Distribution of income by employment type (%)type (%)
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VII. VII. Income levels by sector of activity (%)Income levels by sector of activity (%)
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VII. VII. Income levels by size of establishment Income levels by size of establishment (%)(%)
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VIII. ConclusionsVIII. Conclusions very diverse nature of self-employment from a legal point of view
self -employment is commonly defined in a residual way from an economic/social perspective the situation is influenced by a
number of dimensions professional skills the organisation and running of an independent business in a
market environment the autonomy and independence in organising their own work capacity to bargain individually their compensation with
customers these features add to the differences in employment and working
conditions among self-employed workers and their potential
demands for collective representation
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VIII. ConclusionsVIII. Conclusions
domains of most relevant innovations in the regulatory framework in recent years social security regulation collective representation
social security coverage has been extended to certain areas of self-employment in some countries through initiatives that aim to provide basic
protections yet, usually well below those granted to
employees
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VIII. ConclusionsVIII. Conclusions
TU representation (often as service provision and sometimes as CB) offered in improving the economic and employment prospects of self-employed workers
especially in professional freelance positions CB mechanisms encounter important limitations
due to competition laws
restricting the negotiation of standard fees and
contracts for formally independent workers
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VIII. ConclusionsVIII. Conclusions
scope for further research remarkable lack of data
polarisation of earnings significant share of self-employed workers showing low
incomes diffusion of long and non-standard working hours high incidence of industrial accidents and work-
related health problems increasing attention paid by trade unions
indicates a ‘subjective’ demand for protection business-friendly measures have aimed to facilitate
the running of micro-enterprises through fiscal or economic incentives
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http://www.eurofound.europa.eu/comparative/tn0801018s/index.htm
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