Voucher-Based Work Solutions For Care Economy Work

Policy or Initiative Description

State governments should incentive job creation in the care economy via voucher based work solutions. An employer would receive a voucher from a public authority to be used as payment for a worker’s service. This would help to legalize undeclared work in casual work industries such as agriculture and household services.

Example

“The Titres-Services voucher model established in Belgium since 2004 is one such successful example. Workers are employed by an organisation (private or public, for-profit or not) that sells the services to different households. Households pre-purchase vouchers, usually on-line and use these to request the services they need (cleaning, washing, ironing, gardening, shopping, meal preparation, etc) from the company. The company then assigns the tasks to a worker. The price of each hourly voucher is set by the state which also offers a 30% tax deduction to users of Titres-Services, thereby providing users with an incentive to prefer a formal arrangement for these services over undeclared work. For the worker, the accumulation of vouchers by working in different households each day offers them access to a formal labour contract guaranteeing the same rights as any other worker, including paid vacation, health and pension rights. Depending on the number of vouchers collected the worker may choose to work part-time or full-time and after three consecutive months with the same provider, fixed-term contracts become open-ended. Employers can benefit from a reduction in their social contribution if they recruit long-term unemployed participating in activation programmes. Unemployed persons and recipients of social assistance are targeted by this measure, as 60% of jobs under the scheme must be attributed to such categories of people.”

Source

European Political Strategy Centre. “The Future of Work: Skills and Resilience for a World of Change.” Issue 13. 10 June 2016

Source

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