Abstract
The present elaboration is dedicated to problem of tackling undeclared work. Sanctions and incentives that can diminish the scope of the grey economy are introduced and analysed. The negative effects of undeclared work and challenges for both European Union and Member States are presented. Among the sanctions, the author focuses on civil, criminal and administrative measures. The possible incentives contain fiscal allowances, appropriate legal frameworks, training opportunities, and are capable of transforming undeclared work into formal employment. In the author's view, an integrated approach and a comprehensive targeted strategy are indispensable, while priority should be given to incentives. Tackling undeclared work should involve the concerted action of all key labour market actors.
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