Social affairs ministry inspectors have issued a stark warning to parliament, highlighting the ineffectiveness of current fines imposed on employers found guilty of employing non-EU workers without the requisite permits.
At present, the maximum fine that can be levied stands at €8,000 per infringement, a figure that has remained stagnant since 2005. However, inspectors argue that this sum is no longer sufficient to deter illicit employment practices, particularly considering the rising cost of living. If adjusted for inflation, these fines would now amount to €15,000, underscoring the pressing need for a revision in penalty structures.
The inspectors’ assessment reveals a troubling trend wherein illegal employment continues to offer significant financial incentives to unscrupulous employers, despite the imposition of fines. In an analysis of 24 cases, employers were found to have achieved cost savings of up to 60% by engaging in unlawful employment practices.
Even after factoring in the fines, employers still stand to benefit financially compared to adhering to legal employment regulations. For instance, in one egregious case, an Asian restaurant owner paid a cook €1,000 in cash per month for grueling working hours, resulting in savings of €38,000.
These illicit practices extend across various sectors, including cleaning, construction, shipbuilding, and farming. Shockingly, in 90% of the investigated cases, employers recouped the fine within a year, with seven of the 24 cases seeing a full recovery in less than three months.
The findings underscore the urgent need for legislative action to address the pervasive issue of illegal employment. Without meaningful deterrents in place, unscrupulous employers will continue to exploit vulnerable workers and undermine the integrity of the labor market. As parliament deliberates on potential reforms, the imperative to uphold fair and lawful employment practices remains paramount in safeguarding the rights and well-being of all workers.