What the illegal economy is about

vickylass By vickylass, 17th Aug 2014 | Follow this author | RSS Feed | Short URL http://nut.bz/42lvvlyn/
Posted in Wikinut>Business>Ethics

Social Security schemes as they were established in many European countries is part of the Welfare State.

What the illegal economy is about

This chart shows the figures of the illegal economy in some developed countries, being the average percentage 13,2 % but only few of these countries are below it.
but what´s the illegal economy about?
Employees have no contract nor specific hours or job to perform. It means that they have to be at an employer´s mercy.
If they get sick or have an accident at work, they´ll have to pay for everything apart that they won´t get paid during sick leave. If they´re made redundant, they won´t be entitled to unemployment benefits. The employee or the employer won't be paying stamps to the Social Security, so, the employee won't be able to secure a pension when he retires from work.
In some European countries such as Spain, to be entitled to a Social Security pension in retirement, employees have to have at least 15 years paid in the Social Security and these 15 years will guaranty the employee a minimum pension, but to achieve on this, the employee must be contracted legally. He will pay his fees to the Social Security as well as the employer, but many employers avoid this to be free of their compulsory payment to the Social Security.
In Spain, the people that work within this illegal economy count by millions. Many of them would like to have a contract and to pay their fees to the Social Security, but an employer has always his last word on this and it's a take it or leave it. If one still wants to work, one will work risking its future.
Domestic service.
Different services.
There may be employees that have a legal contract and therefore they're paying their stamps to secure themselves a pension in retirement, but these count for a minority.
Illegal employees are used against those who have a contract and certain assets. "If you don´t like it like this, there is the door!" This is a common threat in many workplaces.
On such situation, employer can handle them as they please and to suit their needs without no other responsabilites on their side -changing their working times without a previous notice or not letting them have a day off or a break when asked by an employee, even if they still have holidays to take, employers will always tell them that it´s way too busy and that they can´t spare them.
If these employees were contracted and paid their Social Security stamps, they would be able to have sick leave without risking to be fired. They´d be entitled to unemployment benefits when losing their jobs and most important of all they´d be entitled to a pension when they retire.
The Social Security wherever it was established is part of the Welfare State such as health care, education, public transport or housing and therefore it should be supported and defended from governments that would like to abolish it.
A Social Security scheme will secure us unemployment benefits when we lose our jobs or need sick or maternity leave, but most important of all it'll secure us a pension when we can't work anymore.

(C) Copyright. Vicky Pino. August 17th 2014.


Economy, Employees, Employers, Pnesion, Social Security

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author avatar vickylass
Feature article writer whose motto is that inspiration does exist, but it has to meet us at work.

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