Transition from the informal to the formal economy: achievements and prospects.

The fundamental reforms carried out by the President Ilham Aliyev in the last years of our independence in the further development of the country's economy and updating the management structure are yielding positive results. It should be noted that for many years there has been a problem of informal employment in the labor market of our country. Some entrepreneurs do not enter into an employment contract with employees in order to avoid social insurance, and as a result, an illegal labor market is formed. Informal employment negatively affects the competitive environment, contributing to the formation and spread of the "shadow" economy in the country, and leads to violations of labor and social rights of employees, their lagging behind the social insurance system and, as a result, future social security, reducing revenues to the state budget through tax evasion. Therefore, strengthening measures to prevent informal employment has become one of the main priorities for the state. Use of the advantages of modern methods and technologies in prevention of informal employment plays an important role in improving efficiency and effectiveness in this sphere. In some cases, due to the irresponsibility of the employer and employees, the conclusion of an employment contract takes a back seat. Thus, due to the non-conclusion of an employment contract problems arise between employers and employees for the subsequent period. And in some cases, entrepreneurs give preference to their own interests in the contracts concluded. As the result, misunderstandings in calculating employees' wages periodically arise. Employees doing piecework face such situations especially often. It is because of the absence of an employment contract employees face problems when claiming their rights, when such situations arise. However, the state has provided a legal framework to prevent such situations, especially to protect the labor rights of employees, and this issue is constantly being monitored. It should be recognized that the absence of an employment contract rather harms employees. Because even if employees who have not signed an employment contract receive income, they are deprived of civil relations. Thus, it becomes impossible for them to get a loan, secure their right to a pension, and be able to use mandatory medical insurance. The elimination of such situations, in particular the fight against the "shadow" economy, is considered an issue that is important for the state to resolve. In this regard, the Decree of the President Ilham Aliyev dated on February 25, 2020 approving the "List of information systems and resources that require integration into a single electronic information resource "Control over informal activities" serves to increase the effectiveness of comprehensive measures taken in our country to prevent informal employment and the "shadow" economy in conditions of widespread use of modern technologies. Of course, such changes in legislation will result in reformatting of relations in the labor market in the shortest possible time. The employers will no longer be interested in entering into a civil contract, since the employment contract will be more profitable for them. Informal employment is inherently a serious threat to both the economy and those involved in informal employment. Thus, informal employment helps the emergence of a "shadow" economy for the state, reduces taxes and other mandatory payments to the state budget, and also hinders the sustainable and competitive development of the economy. People involved in informal employment are deprived of their labour and social rights, which means that when they are exposed to social risks, they are left without a pension, social insurance or other social protection mechanisms of the state. It should be noted that in accordance with international best practices, systematic and consistent work against informal employment is being carried out in our country under the leadership of the President of the Republic of Azerbaijan, Mr. Ilham Aliyev. Of these, the most important for the country's citizens was a one-time payment of funds in the amount of 190 AZN within two months to 600 thousand people. This category included members of low-income families and people who temporarily lost their jobs due to coronavirus. This issue has also been resolved in the Gabala region. 8845 citizens registered as unemployed in the Gabala region during the pandemic received a one-time allowance in the amount of the subsistence minimum (190 AZN) within two months. The scope of the targeted state social assistance program, with the work of an able-bodied family member in the formal sector as one of the main conditions, expanded during the post-pandemic period, and over the past period members of many families have been provided with state social assistance. Along with the unemployed and job seekers, our state has provided support even to citizens working in the informal sphere of employment, being in the "shadow", acting with a social position in the most difficult period. People in this category were provided with social assistance in accordance with the instructions of the head of state. Every humanistic step taken by the head of state in this area serves to preserve the statehood, as well as further improve the human factor and well-being.