Illicit work

From ArticleWorld

Illicit work is work that is paid for illegally.


Why is it illegal?

Illicit work is often referred to as being paid “under the table” and is part of an informal economy. It typically is work done without social security or without paying income taxes.

Forms of illicit work

Illicit work can take a variety of forms. It can include child labor, the labor of illegal immigrants or work done “under the table,” which refers to work that is paid for in cash so that the employee does not need to file an income tax return.

Consequences for employees

Illicit work is not recognized by any state or federal entities. This means that the employer is held to no standards of care or treatment of an employee. The employees have no recourse if they are treated poorly on the job, if they are hurt while working (as they typically are uninsured and worker’s compensation benefits would not apply to them) or if they are dismissed improperly (as they would be unable to collect unemployment). They may be compensated below government standards for payment (i.e. minimum wage) and receive no employee benefits.

An employer is also held to know fair employment or hiring practices and therefore potential employees may be discriminated against unfairly.

Consequences for the economy

These workers are paying no income tax or social security taxes on the money they earn doing their work. Therefore they are not contributing to the well being of the government. However, when they get sick or hurt, it is often government funds that pay for their medical treatment.

This work is often performed by illegal immigrants who cannot work legally since they have no documentation. Therefore, illicit work is a particular problem in countries where people can move freely (or with little detection) from one country to another.