between compliance strategies & enforcement mechanisms the case of paid domestic work in...
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Between Compliance Strategies & Enforcement MechanismsThe Case of Paid Domestic Work in Argentina
The 4th Conference of the Regulating for Decent Work NetworkJuly 8 - 10, 2015 International Labour Organization, Geneva
Lorena PobleteCIS-CONICET/IDES - PIIRS, Princeton University
Fung Global Fellow Program
1. Introduction Caracterization of Domestic Work in Argentina Presentation of the 2013 Law on Domestic Work
2. Challenges of implementation
Obstacles of implementation: • naturalization of informality • trivialization of non compliance • employers’ perception of their position
Innovative enforcement mechanisms:• simplification of registration procedures• incentive through tax deductions• coertion through tax collection
3. Conclusion
outline
New strategies for compliance and enforcement
Paid Domestic Work in Argentinacaracterizatio
n
7% all workers
17% working women
23% women employees
Aged: 56.6% over 40 years old
Origins: 31% internal migration / 14% international migration
Working time: 19.6% over 40 weekly hours
39.6% between16-39 weekly hours
32.4% between 6-15 weekly hours
9.3% less than 6 hours weekly hours
Employers: 70% work for 1 employer 17% work for 2 employers 13% work for more than 3
Paid Domestic Work in Argentinacaracterizatio
n
Aged: 56.6% over 40 years old
Origins: 31% internal migration / 14% international migration
Working time: 19.6% over 40 weekly hours
39.6% between16-39 weekly hours
32.4% between 6-15 weekly hours
9.3% less than 6 hours weekly hours
Employers: 70% work for 1 employer 17% work for 2 employers 13% work for more than 3
Paid Domestic Work in Argentinacaracterizatio
n
42%
Aged: 56.6% over 40 years old
Origins: 31% internal migration / 14% international migration
Working time: 19.6% over 40 weekly hours
39.6% between16-39 weekly hours
32.4% between 6-15 weekly hours
9.3% less than 6 hours weekly hours
Employers: 70% work for 1 employer 17% work for 2 employers 13% work for more than 3
Paid Domestic Work in Argentinacaracterizatio
n
42%
30%
2013 Law on Domestic Work
all domestic workers regardless working hours weekly rest
compensation payment in unjustified dismissals
minimum wage
overtime & annual mandatory bonus
leaves: sick leave, special leaves (marriage, death of a relative, study, maternity leave)
Labor Risks Insurance (1995)
Family Benefits: “Universal Child Allowance” (2009)
Social Security Special Regime for Domestic Workers (1999)
caracterization
all domestic workers regardless of the worked hours
weekly rest
compensation payment in unjustified dismissals
minimum wage
overtime & mandatory bonus
leaves: sick leave, special leave (marriage, for death of a relative, study) & maternity leave
Labor Risks Insurance (1995)
Family Benefits: “Universal Child Allowance” (2009)
Social Security Special Regime for Domestic Workers (1999)
improvement on domestic
work regulation
implementation
challenge
challenges of implementation
2013 Law on Domestic Work
all domestic workers regardless of the worked hours
weekly rest
compensation payment in unjustified dismissals
minimum wage
overtime & mandatory bonus
leaves: sick leave, special leave (marriage, for death of a relative, study) & maternity leave
Labor Risks Insurance (1995)
Family Benefits: “Universal Child Allowance” (2009)
Social Security Special Regime for Domestic Workers (1999)
improvement on domestic
work regulation
implementation
challenge
formalization
2013 Law on Domestic Work
1st
step
challenges of implementation
all domestic workers regardless of the worked hours
weekly rest
compensation payment in unjustified dismissals
minimum wage
overtime & mandatory bonus
leaves: sick leave, special leave (marriage, for death of a relative, study) & maternity leave
Labor Risks Insurance (1995)
Family Benefits: “Universal Child Allowance” (2009)
Social Security Special Regime for Domestic Workers (1999)
improvement on domestic
work regulation
implementation
challenge
formalization
2013 Law on Domestic Work
1st
step
95%
challenges of implementation
Legal framework
FORMALIZATIONlabor policy : main goal
2004
Law 25.877Labor Regime
2004
Resolution 231 of
Ministry of LaborLabor
formalization
2008
Law 26.476Declared
work protection
regime
2014
Law 26.940Promotion of enregistered
work and prevention of labor fraude
challenges of implementation
Non Compliance with the Law
formalization
acces to
labor and social rights
obstacles
Naturalization of informality
Trivialization of non compliance
Employers’ perception of their own position
challenges of implementation
Regulation Category not covered
1956Special Regime
4 hours/ 4 days for 1 employer
47.2%
1999Social Security Special Regime for DW
at least 6 weekly hours
for 1 employer
9.4%
2006Single-Tax Regime
less than 6 weekly hours
for 1 employer
0%
Non Compliance with the Law
Legal Exclusion 1956 - 2013
Naturalization of informality
challenges of implementation
Regulation Category not covered
1956Special Regime
4 hours/ 4 days for 1 employer
47.2%
1999Social Security Special Regime for DW
at least 6 weekly hours
for 1 employer
9.4%
2006Single-Tax Regime
less than 6 weekly hours
for 1 employer
0%
Non Compliance with the Law
Legal Exclusion 1956 - 2013
Naturalization of informality
challenges of implementation
95%
Non Compliance with the Law
• tolerance of high levels of informality• Invisibility of partial or temporary informality• Involuntary informality • absence of fraud penalty
• not a real job but a “help” • “the employer is someone else”
Trivialization of non compliance
The employers’ position
challenges of implementation
New strategies for compliance and enforcement enforcement
mechanisms
INNOVATION
new combination of mechanismsalready used
SIMPLIFICATION INCENTIVES COERCION
New strategies for compliance and enforcement
• Modes of registration: web, free call, home banking system• Payment of employer’s contribution: home banking, on-line tax payement
Regulatory background: Single-tax Regime (1998) – self-registration
• Deduction of income tax: 30% of all mandatory contributions & salaries
Regulatory background: Tax Benefices for Domestic Services (2006)
enforcement mechanisms
SIMPLIFICATION OF REGISTRATION PROCEDURES
TAX BENEFITS INCENTIVES
New strategies for compliance and enforcement
• constrained registration base on ex officio determination
Determination of the debt with the social security system when:• there have been no records or if the records are deficient • the state has no the possibily to verify the declared information
Regulatory background:
Social Security Resources Law (1970 & 2006)National Tax Agency Resolution 2927/2010
enforcement mechanisms
COERCION: MAID’S PRESUMPTION
New strategies for compliance and enforcement
• Definition of Minimum Worker Indicator
Calculation of the minimum number of workers needed to performed an specific task or activity
- 2010: MWI for construction sector & textile industry- 2013: MWI for domestic work
annual incomes + property = one domestic worker
National Tax Agency Resolution 3492/2013
enforcement mechanisms
COERCITIVE ACTIONS: MAID’S PRESUMPTION
2003 2006 2008 2012 2013 20150%
20%
40%
60%
80%
100%
New strategies for compliance and enforcement enforcement
mechanisms
INFORMAL DOMESTIC WORK
2003 2006 2008 2012 2013 20150%
20%
40%
60%
80%
100%
New strategies for compliance and enforcement enforcement
mechanisms
INFORMAL DOMESTIC WORK
95%
58%
Between compliance and enforcementconclusion
formalization
acces to labor and social rights
Partial compliance with labor rights: non labor inspection
Limited acces to social rights - multi-employers workers30%
THANKS
MERCI