European Union

Statement 

International Labour Conference
113^th session

Geneva, 2 - 13 June 2025

________

General Discussion Committee on Promoting Transitions towards Formality

EU Statement - Discussion Point 2

DP2: What policies, regulations and other effective measures and innovative approaches have ILO constituents introduced, in line with international labour standards and ILO policy guidelines, to address the root causes of informality, facilitate the transition to formality, and prevent informalisation? What are the lessons learned, both regarding prerequisites and innovative approaches, that ILO constituents and the Office should consider to address informality more effectively and promote the transition to formality?

Chair,

I speak on behalf of the European Union and its Member States.

The candidate countries North Macedonia, Montenegro, Serbia, Albania*, Ukraine, Republic of Moldova, the EFTA country Norway member of the European Economic Area align themselves with this statement.

1. The EU and its Member States promote comprehensive, data and evidence based, integrated and inclusive rights-based approaches to address the root causes of informality, facilitate transitions to formality, and prevent informalisation. These approaches align with Recommendation No. 204 and international labour standards, and require bringing together economic, social protection, labour market, and fiscal policies into national integrated, costed and time-bound action plans.

2. We recognise that policies must be tailored to, local realities and sectors, and types of informal work, including seasonal, care and platform work. They must also respond to emerging forms of employment driven by new technologies, in particular digitalisation and artificial intelligence, and prioritise leaving no one behind, particularly groups and persons in vulnerable or marginalised situations, in line with the European Pillar of Social Rights.

3. We promote adequate minimum wage frameworks, collective bargaining and effective and inclusive social dialogue, extension of effective and adequate social protection to non-standard, including platform workers, and self-employed, as well as transparent and predictable working conditions.

4. Robust enforcement mechanisms are essential. Formalisation is more sustainable when policies combine deterrence, prevention and incentives. We support strengthening tax administration, labour inspection system and local administrations, and the involvement of social partners, where relevant.. We promote risk-based labour inspections informed by data analytics and behavioural insights. The European Labour Authority fosters cooperation, mutual learning, innovation and support to enforcement. We also promote voluntary disclosure mechanisms guaranteeing protection against retaliation for whistleblowers and reduced penalties for compliant enterprises.

5. Inclusive digitalisation is a critical enabler. We encourage digital tools and e-services to identify undeclared work, facilitate registration, and simplify compliance while respecting data protection.

6. Policies must reflect the diversity and the complexity of informal work. The social economy and cooperatives play a vital role in formalising sectors such as care and domestic work, where informality disproportionately affects women. The European Care Strategy and ILC conclusions on decent work in the care economy provide guidance. Sectoral dialogues and targeted solutions should be prioritised where informality is concentrated.

7. Support to micro, small and medium-sized enterprises and the social and solidarity economy is vital through access to finance, simplified procedures, tailored compliance incentives, and capacity-building.

8. Lifelong education, vocational training, and inclusive labour market services are pivotal. We encourage access to reskilling and upskilling for informal workers, and linking active labour market policies with formal job incentives. 

9. Effective and inclusive social dialogue, with representation of informal workers and their organisations, is essential. Capacity-building for social partners, especially trade unions, is key to representing informal and non-standard workers.

10. Finally, we promote international partnerships that support capacity-building, knowledge and peer exchange, and national formalisation strategies, through initiatives such as SOLIFEM and FORLAC 2.0. We also support productive investment to boost decent job creation.

Thank you.

*North Macedonia, Montenegro and Albania continue to be part of the Stabilisation and Association Process.