industrial relations, self-employed workers_industrial relations and working conditions

1. 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 WelzChristian Welz
European Foundation, DublinEuropean Foundation, Dublin

2. 14/04/15 2
OutlineOutline
I. Methodology
II. Research objectives
III. Definition (s)
IV. Incidence
V. Social security
VI. Interest representation
VII. Employment & working
conditions
VIII. Conclusions

3. 14/04/15 3
I. MethodloyI. Methodloy

comparative analytical report
of EIRO and EWCO
 27 national reports & NO

structured questionnaire
 1 overview report
 online under:

4. 14/04/15 4
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

5. 14/04/15 5
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

6. 14/04/15 6
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

7. 14/04/15 7
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)

8. 14/04/15 8
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;

9. 14/04/15 9
IIÌ. National definitionsIIÌ. National definitions

10. 14/04/15 10
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

11. 14/04/15 11
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 la
MT 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

12. 14/04/15 12
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.

13. 14/04/15 13
IV. IncidenceIV. Incidence

14. 14/04/15 14
IV. IncidenceIV. Incidence
(v(variation on total employment by gender in%)ariation on total employment by gender in%)

15. 14/04/15 15
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

16. 14/04/15 16
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

17. 14/04/15 17
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)

18. 14/04/15 18
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

19. 14/04/15 19
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

20. 14/04/15 20
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

21. 14/04/15 21
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)

22. 14/04/15 22
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

23. 14/04/15 23
VII. Employment & working conditionsVII. Employment & working conditions
1. Working time:
- long working hours (+48 h/week)

24. 14/04/15 24
VII.VII. by gender and employment status (%)by gender and employment status (%)

25. 14/04/15 25
VII.VII. by sector of activity (%)by sector of activity (%)

26. 14/04/15 26
VII.VII. by occupation (%)by occupation (%)

27. 14/04/15 27
VII. Employment & working conditionsVII. Employment & working conditions
2. Health and safety

28. 14/04/15 28
VII.VII. Impact on health by sector andImpact on health by sector and
employment status (%)employment status (%)

29. 14/04/15 29
VII.VII. Health-related leave by gender andHealth-related leave by gender and
employment status (%)employment status (%)

30. 14/04/15 30
VII. Employment & working conditionsVII. Employment & working conditions
3. Earning levels

31. 14/04/15 31
VII.VII. Distribution of income by employmentDistribution of income by employment
type (%)type (%)

32. 14/04/15 32
VII.VII. Income levels by sector of activity (%)Income levels by sector of activity (%)

33. 14/04/15 33
VII.VII. Income levels by size of establishmentIncome levels by size of establishment
(%)(%)

34. 14/04/15 34
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

35. 14/04/15 35
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

36. 14/04/15 36
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

37. 14/04/15 37
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

38. 14/04/15 38

http://www.eurofound.europa.eu/comparative/tn0801
018s/index.htm

christian.welz@eurofound.europa.eu
Further informationFurther information