On September 1, 2023, a tougher penalty regime for employing foreign nationals who lack appropriate work or residency rights came into effect. The new regime both increases existing penalties for the offence of hiring foreign nationals who lack appropriate residency rights, and establishes the new (and broader) offence of hiring foreign nationals in ‘irregular situations’. Accordingly, employers are now liable for an administrative fine of up to EUR 10,000 for each foreign national hired who lacks appropriate work or residency rights (the previous equivalent fine was EUR 2,500). Meanwhile, employers who severely breach these rules are liable for a fine of between EUR 2,501-EUR 125,000 and/or imprisonment of between eight days and one year – depending on the severity of the offence. Aggravating circumstances include repeated breaches; illegally hiring multiple foreign nationals simultaneously; illegally hiring victims of human trafficking or minors; or imposing abusive work conditions (including discrimination on gender or other grounds). Previously, the maximum penalty for such aggravated offending was a fine of up to EUR 20,000 for each foreign national illegally hired. The prison sentences have not changed.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
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