EMPLOYMENT AND WAGES IN UKRAINE IN THE CONTEXT OF TRENDS IN THEIR NON-DECLARATION

Abstract

The purpose of the paper is to identify the extent and tendencies of employment and wages’ non-declaration in Ukraine, as well as to study approaches and prospects for their preventing in the unstable socio-economic conditions. Labour non-declaration (both in forms of undeclared employment and wages) plays the important role in the practice of businesses management and competitiveness stimulation in the countries with industrial, neo- and post-industrial economies, which has been developed almost since the middle of the 20th century. The paper proves that undeclared labour is a broad concept that covers legalized (both official and manipulative), as well as shadowy mechanisms of its occurrence and functioning. The expediency of identifying institutionalized and manipulative mechanisms of undeclared labour, their formal and illegal foundations is confirmed by the classification of the undeclared labour main forms, used by the EU, ILO and the State Labour Service of Ukraine; this approach will increase the complexity and effectiveness of systemic measures for its regulation. In the conditions of problematic performance of national authorities’ inspection and sanction powers, as well as due to the significant spread of non-standard labour relations (with mediation of an employer’s functions, outsourcing enterprises’ contingents of auxiliary, service and part of specialized personnel), tariff-free remuneration systems stimulate numerous manipulations in the field of labour declaration and decent wages. The source of problems with the spread of remuneration systems, formed on assessments of the performed work complexity and employees’ qualifications, as well as with decent occupation conditions for agency (temporary) workers, should be recognized as the vagueness of their legislative regulation. The priorities for preventing undeclared labour in Ukraine include: wages’ share consistent growth in the structure of production costs; strengthening a cross-control over the obligations’ fulfilment to pay the minimum wage within tariff-free and hourly wage systems; implementation of the well-founded methodology for harmonizing the minimum wage, the subsistence minimum, and the rest of basic social standards attached to them.