Social affairs ministry inspectors have warned parliament that the fines they can levy on employers who use non-EU workers without the proper permits are no longer high enough to have an impact.
The size of the fines is currently maximized at €8,000 per infringement, a sum which has not increased since 2005. If the fines had risen in line with inflation, they would now be €15,000, the inspectors say.
Illegal employment has “financial advantages” even if the employer is fined. The claim is based on an assessment of 24 cases in which, the inspectors say, the employers were able to cut their costs by 60%.
Even if an employer is fined, they are still better off than if they had paid the regulation salary and associated costs.
In one case, a cook in an Asian restaurant was paid €1,000 cash a month to work nine or 10 hours a day, six days a week. By paying him under the counter, the owner was able to save €38,000.
Other cases involved cleaning, construction, shipbuilding and farming. In 90% of the researched cases, employers “earned back” the fine in less than a year and in seven of the 24 in less than three months.
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