The illegal employment of foreigners from outside the EU is a serious issue. It not only hurts tax revenue and social security systems but also puts workers at risk of exploitation.
To combat this issue more effectively, member states have introduced various legal and institutional changes. A recent study by the European Migration Network (EMN) analysed developments between 2017 and 2022, highlighting reforms, inspections, and challenges related to enforcement.
Stricter sanctions for employers
The illegal employment of foreign workers is a big problem for EU countries, especially after COVID-19 and the war in Ukraine.
This practice is most common in small and medium-sized businesses, especially in construction, hospitality, food services, manufacturing, and agriculture. People are also starting to worry about illegal employment in the beauty industry, security, delivery, and event management.
To fight back against the increase in illegal employment, many countries have taken steps to better enforce the rules. The biggest legal changes between 2017 and 2022 were focused on making the penalties for employers harsher.
For example, in 2021, Cyprus increased their sanctions. Now, business owners who hire illegal workers can face up to five years in jail and/or fines of up to €20,000. Estonia also took action in 2018 by increasing the financial penalties for breaking labor laws by ten times the original amount.
Besides financial and criminal penalties, preventative measures have also been put into place, like mandatory reporting when hiring foreign workers and making lists of employers who don’t follow the rules.
Inspections and audits – key to effective enforcement
Between 2017 and 2022, all EMN member states carried out regular workplace inspections to find cases of illegal employment. Many countries ramped up the number of inspections and made audits more thorough.
A great example of an effective inspection policy is Luxembourg, where the number of labor inspectors shot up from 22 in 2018 to 86 in 2021. Because of this, the number of detected cases of illegal foreign employment in 2022 was twice as high as the previous year.
Even though there were more inspections, some challenges still get in the way of effective enforcement. These include language barriers, problems with monitoring, and restrictions related to data protection regulations.
Collaboration is key
To fight illegal employment, different organizations need to work together. Since 2017, EU countries have been getting better at teamwork between labor inspectors, migration services, tax people, police, border control, and social security.
Plus, there are more and more cross-border projects. One good example is the European Platform Tackling Undeclared Work, which is part of the European Labour Authority (ELA). This platform helps EU countries find rule breakers and enforce the rules better.
What happens to employees caught working illegally?
Illegal employment has serious consequences for both employers and foreign workers. If caught, the employee could lose the chance to get or renew a residence permit. In extreme cases, they might have to leave the country and may not be allowed to come back for a certain period.
Ireland is a good example of strict rules – if you’re found working illegally, your residence permit can be taken away, and you’ll be considered as living in the country illegally.
However, some countries have special processes for people who have been exploited or trafficked. These might include the chance to get temporary residence permits or apply for international protection.
Next steps
The illegal employment of foreign workers is still a big problem for EU countries. Even though there’s been progress with inspections, harsher penalties, and better international cooperation, there’s still more to do.
Taking effective action against illegal employment means focusing on three key things: strict sanctions for employers, efficient inspections, and collaboration between institutions. In the coming years, we also need to develop tools to protect foreign workers who are exploited by their employers.
Future steps to fight illegal employment will need both better law enforcement and more effective prevention and education for both employers and workers.
Do you have anything to add to this story? Any ideas for interviews or angles we should explore? Let us know if you’d like to write a follow-up, a counterpoint, or share a similar story.
