NOS News•today, 3:32 PM
Fines that employers receive if they allow employees from abroad to work illegally are not a deterrent enough. This is what the Labor Inspectorate said after an investigation into 24 companies that violated the law.
Since 2005, employers have been fined a maximum of 8,000 euros for a first violation, which can be increased if it is repeated. That amount has never grown with inflation or prosperity over the years, otherwise it would now be around 15,000 euros. Due to the low amount, the fine is ‘recouped’ within a year for nine out of ten employers, the researchers conclude.
1000 euros per month salary
For example, the Labor Inspectorate found someone who worked in an Asian kitchen 6 days a week and about 10 hours a day. He was paid 1,000 euros a month in cash, plus a place to sleep and food.
Due to this construction, his employer paid a salary that was below the minimum wage and also paid no taxes. This provided him with more than 38,000 euros in financial benefits per year. But the fine he received from the Labor Inspectorate was only 8,000 euros.
For many employers, the fines are also lower than 8,000 euros if there are extenuating circumstances. This could be the case, for example, if a company hired someone through an employment agency and therefore thought that the paperwork was in order.
Tens of thousands of people
It is not known approximately how many people work illegally in the Netherlands. The Labor Inspectorate estimates that this concerns tens of thousands of people.
According to the law, they are entitled to receive the underpaid wages, but according to experts it is difficult for them to actually achieve this. As a result, they are often left empty-handed, even if the company they worked for is fined.
Outgoing Minister Van Gennip of Social Affairs and Employment is still considering whether the fines for employers will indeed be increased. She wants to inform the House of Representatives further about this at the end of this year.
