Tripartite Commission held its regular meeting at ATUC
11 May 2018
On May 11 Azerbaijan Trade Unions Confederation (ATUC) hosted regular meeting of Tripartite Commission for Special and Economic Issues.
The chairman of ATUC, MP Sattar
Mohbaliyev, presiding over the meeting introduced the agenda to attendees and said
that the International Labor Organization's view on " Action plan for
prevention of non-formal employment in the Republic of Azerbaijan" will be
known and the recommendations by
professor Colin Williams, the expert appointed by ILO will be listened
though the monitor.
C. Williams joined the attendees though
the monitor. He first spoke about ILO's view on non-formal economy and
non-formal employment. C. Williams noted that Recommendation 204 developed by
ILO in 2014 deals with the transition from non-formal to formal economy. And
Azerbaijan signed that document as well. As you know, two thirds of new
businesses start in non-formal economy. Respectively, we shouldn't destroy such
businesses. Otherwise, we will have damage entrepreneurship and economy in
whole. We should achieve phased transition of those businesses to formal
economy.
The professor noted that non-formal
economy is a paid work area of economy
though no information is given about the payments. Incomes are partly or
completely concealed from related authorities: "Envelope salary and stated
differently, double payroll is used. Labor contract is refused, civil contracts
are signed with employees".
ILO expert classified employees of
non-formal businesses: 1) Self-employed people. They don't have employees. 2)
Self- employed entrepreneurs. They have employees. 3) Family businesses, etc.
These categories avoid taxes, imposition of legislative requirements. Lower and
higher groups work in non-formal economy. Lower groups conceal their income as
they want to ensure living, and higher groups, mainly professionals such bas
doctors, lawyers and others conceal for better life. Non-formal economy is like
a football game. All classes of population are more or less involved in this
game.
