In terms of social security and labour life dynamics, unregistred employment can be defined as the non-reporting or incomplete reporting to the relevant public institutions and organizations of the work of the persons who are involved in employment by working in legal jobs, in terms of days or wages. According to this definition, there are three types of undeclared work:
- Employees are never notified to the Social Security Institution,
- Incomplete reporting of working days,
- Under-reporting of the earnings amount that is the basis of the insurance premium.
What at the conseqences of unregistered employment?
Informal employment has many negative economic and social consequences. In addition, in the short and long term, they have great damages to a country’s economy and society in all respects. The negative consequences of unregistered employment can be discussed under three headings in terms of workers, employers and the state.
- In terms of employees,
- For employers,
- In terms of the state.
Negative Consequences of Informal Work for Employees
Persons working without social insurance cannot benefit from many of the legal rights provided to employees in accordance with the labour law and social insurance laws. The main negative consequences can be summarised as:
- The days worked by informal employees are not counted towards retirement as they are not registered in the official registry.
- Unregistered workers cannot benefit from invalidity pension if they are disabled for any reason and become unable to work.
- Family members left behind are not entitled to a survivor’s pension.
- They may have to pay their own general health insurance premiums.
- They cannot benefit from the temporary incapacity allowance or permanent incapacity income paid in case they have a work accident and get an occupational disease.
- If they are unemployed, they cannot benefit from unemployment insurance.
- If they quit their job, they will be deprived of the rights provided by the Labour Code No. 4857 such as notice pay and severance pay.
- They cannot benefit from rights such as annual leave, weekly leave, maternity leave.
