The underground market, the first competitor of service companies

Undeclared work, a widespread but dangerous practice in personal services

Hours of cleaning here, hours of gardening there, childcare, small services at home, … All this, without any contract, no compensation, no contribution, often no training, but with the risk of fines and san ction, or even injury! Here is a fairly clear definition of the risks represented by moonlighting in home care services. The principle of the “small room” that we used to give for a “small service” is not trivial and in reality hides an underground economy whose habits die hard.

Undeclared work: why be wary of it?

Personal home services are undoubtedly one of the sectors where the concealment of non-salaried activity, total or partial, is among the most widespread. In a report, the Council for compulsory levies (an institution associated with the Court of Auditors) noted that ” private lessons or housework are activities in which declarations were the exception for a long time, until the appearance of the service employment check and hidden work is still practiced there with a strong indulgence on the part of the company ”. Undeclared workers in human services are far from isolated cases and these situations are therefore common in this field. In 2018, according to a TNS-Sofres survey “only” 13% of French people employing someone at home would pay them illegally, but this figure is probably biased by the difficulty of reporting reprehensible behavior in terms of legal. According to another study, 41% of French people admitted not having declared all or part of the hours worked by their employee at home in 2018.

However, whether it is for black workers in the sector or for “employers”, it can prove, in many cases, less expensive, with equivalent net salary, to declare an employee at home rather than not to do so. to declare. Indeed, for 10 euros of net salary paid for one hour of work, the employer is deducted from 6.21 euros in employer and employee social charges (fixed-rate declaration). With the 50% tax credit, the actual charge thus comes out at (16.21 / 2 =) 8.10 euros, ie a “saving” of 19% compared to non-declaration. However, if moonlighting is still enjoying good days, it is because those who resort to it think the opposite in many cases, believing that paying hand to hand is more advantageous for both parties.

Undeclared work, many risks for the employer as well as for the worker

First of all, it should be noted that the employment of a black person constitutes an offense . Indeed, the system to combat illegal work was reinforced by the law of June 16, 2011. Concealed work is defined and prohibited by articles L.8221-1, L. 8221-2, L. 8221-3 and L. 8221-5 of the Labor Code. Thus, the labor code provides, for concealed work, a penalty of up to three years in prison and a fine of € 45,000.

The Labor Code specifically targets two types of situations. In the event of concealed work, the offender is exposed to financial, criminal and administrative sanctions. The employee, considered as a victim, also has several avenues to have his damage recognized.

For the employee, not declaring himself is not without risks either. The most dangerous ? Not being declared, it is, therefore, under the radar of social benefits, allowances and pension rights. As the contributions are not paid to URSSAF, the home employee does not benefit from no social protection : he has no right to social security (daily allowances in the event of sickness or maternity), he does not acquire any rights for his future retirement and, depending on the case, will not be entitled unemployment benefits at the end of the contract.

Likewise, the employee receives unemployment, maternity, sickness, or CAF (parental education allowance) benefits at the same time as the wages for his moonlighting, he may be ordered to reimburse everything he has received or even, in some cases, to pay a heavy fine

What is gray work?

Neither completely moonlighting nor quite casual work, gray work is a very widespread phenomenon in personal services. Unlike moonlighting, “gray” work involves declaring only part of the hours worked. In the personal services sector, 20% of French people admit to using it regularly.

But, as for moonlighting, moonlighting is penalizing for the employee while, for his part, the employer runs the same risks as for moonlighting since he conceals part of his declaration.

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