28 FEB 2017

Recommendation 204 on transition from the informal to formal economy

Recommendation 204 on transition from the informal to formal economy

SUMMARY

Recommendation No. 204 provides guidance to Members to pursue a threefold objective:

  • facilitate the transition of workers and economic units from the informal to the formal economy, while respecting workers’ fundamental rights and ensuring opportunities for income security, livelihoods and entrepreneurship;
  • promote the creation, preservation and sustainability of enterprises and decent jobs in the formal economy and the coherence of macroeconomic, employment, social protection and other social policies; and
  • prevent the informalization of formal economy jobs.

The Recommendation is built on the shared understanding and experience of constituents of the International Labour Organization that the transition to the formal economy can best be facilitated through an integrated strategy, a policy mix and institutional coordination built on social dialogue to promote the employment and income opportunities, the rights and social protection and an enabling environment for formal enterprises.

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