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Thematic study | Illegal employment

Additional protection and improved detection of illegal employment needed in EU Member States

August 2017

Illegal employment by migrants from non-EU/EFTA countries in the European Union must be addressed more firmly. This is stated in the EMN study ‘Illegal employment of third-country nationals in the European Union’, conducted in 23 Member States (August 2017). The focus is primarily on providing additional protection for migrants and improving the detection of illegal employment.


The number of migrants working illegally, the number of convictions and the sanctions imposed on employers differ significantly between Member States. However, it is difficult to provide a complete picture. Illegal employment takes place in the so-called ‘grey economy’ and is therefore invisible to the authorities. Moreover, the research data depend on national legislation on illegal employment and on detection approaches.

EU Directive on illegal employment

Numbers of migrants

  • Of the 15 Member States that keep records on irregularly staying migrants who work illegally, France had the highest numbers (2,311 in 2014 and 1,774 in 2016), followed by the Netherlands and Belgium.
  • Of the eight Member States that keep records on legally residing migrants who work illegally, Czechia (1,128 in 2016) and Greece (832 in 2016) recorded the highest numbers, and Bulgaria the lowest (32 in 2016).

Sectors

  • Illegal employment mainly occurs in labour-intensive, low-skilled work, in sectors with high turnover and low wages. This applies particularly to agriculture, construction, manufacturing, hospitality and food.

Preventive measures

  • Nineteen Member States have information campaigns for employers about the risks and liability related to illegal employment. In seven Member States, these campaigns addressed illegal employment in general.
  • Thirteen Member States have information campaigns for migrants.
  • All Member States provide information for employers and employees on illegal employment, usually via an online platform.
  • Each Member State offers migrants the possibility to lodge a complaint with the authorities. In all Member States, employers are obliged to notify authorities if they illegally employ migrants from non-EU/EFTA countries.

Measures

Most Member States have recently introduced measures or are working on them. These measures include:

  • introducing (additional) sanctions for employers and migrants;
  • maintaining lists of reliable and unreliable employers;
  • addressing misconduct by intermediary agencies, such as employment agencies;
  • communication campaigns;
  • improving detection.

Detection

  • In most Member States, labour inspection authorities are responsible for detecting illegal employment, whether or not in cooperation with other authorities.
  • All Member States carry out risk analyses to detect illegal employment, combined with reports from migrants themselves or from the public. In most Member States this involves labour inspectors, immigration authorities, police, border control and customs, fiscal authorities and ministries of finance.
  • Workplace inspections are carried out in all Member States.
  • Most Member States have a telephone hotline for reporting illegal work. This hotline is usually not specifically intended for reporting illegal work by migrants from non-EU/EFTA countries.
  • Succes factors:
    • cooperation and information exchange between relevant authorities, such as maintaining a joint database;
    • the possibility for migrants to lodge complaints.
  • Challenges:
    • language barriers preventing migrants from understanding information about their rights and from communicating about this during workplace inspections;
    • insufficient capacity or staff to carry out inspections.

Sanctions for illegal employment

  • All Member States impose financial penalties on employers for illegal employment. In most Member States, fines for irregularly staying migrants are much higher than for legally residing migrants.
  • In 17 Member States, employers may receive a prison sentence for irregularly staying migrants, and in 13 Member States also for legally residing migrants.
  • Other sanctions applied by Member States include:
    • confiscation of financial gains;
    • exclusion from public contracts;
    • temporary or permanent closure of the business;
    • withdrawal of the business licence;
    • withdrawal of the residence permit if the employer is themselves a migrant from a non-EU/EFTA country;
    • naming and shaming (public disclosure of employers’ names), which proved successful in France and Slovakia;
    • criminal prosecution in serious cases in 17 Member States.
  • Criminal prosecution in serious cases in 17 Member States.
  • The effectiveness of sanctions varies between Member States. National legislation and enforcement approaches are decisive in deterring employers.

Consequences for migrants working undeclared

  • In most Member States, irregularly staying migrants are required to leave the country. Usually, they are first given the opportunity to return voluntarily.
  • Other measures applied by Member States to irregularly staying migrants include forced return (possibly preceded by detention) and the imposition of fines.
  • Twelve Member States impose fines on irregularly staying migrants. The amounts vary widely: from €140–170 in Latvia and €330 in Slovakia to €5,000 in Germany/Slovenia and £20,000 in the United Kingdom.
  • For legally residing migrants, the residence permit may be withdrawn, in 11 Member States possibly followed by detention.
  • In 21 Member States, victims of human smuggling may obtain a (temporary) residence and work permit.
  • In almost all Member States, migrants can claim outstanding wages from their employer, with or without assistance from an advocate. In practice, however, this is rarely used due to:
    • language barriers;
    • reluctance to cooperate with the police;
    • difficulty proving employment.
  • Eleven Member States provide information to migrants from non-EU/EFTA countries about their rights when working illegally. In several Member States, civil society and social partners are involved, including the provision of counselling and legal assistance.

 

In addition, watch the EMN Belgium video for more information about the study.

Comparative study of EU Member States:: 'Illegal employment of third-country nationals in the European Union' (Inform), August 2017

Comparative study of EU Member States: 'Illegal employment of third-country nationals in the European Union', (Synthesis Report), August 2017

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Written By Stijn Bleichrodt