Countering undeclared employment

Countering black wages, illegal immigration, trafficking of people and unfair competition. These are some of the many objectives of the EU Directive sanctioning enterprises that hire illegal immigrants. The European Parliament approved the document (18-19 February session). After the final approval of the Council, expected in the Spring, Member States will have two years’ time to introduce the bill in their national legislation. It is envisaged that the Directive will be in force in Summer 2011.Different kinds of sanctions. During the reunion of February 19, the EU Chamber approved the new bill with 522 ayes, 105 noes and 34 abstentions. The Directive “completes legislation on EU blue card and repatriation”. It envisages sanctions “against employers of illegal immigrants” in the 27 EU countries. Sanctions consist in “fines” (including the covering of expenses in case of repatriation) other “administrative measures” (such as licensing for using patents withdrawal or shutting down of the company). The directive provides for “criminal penalties in the most serious cases”. Member States are required to adopt “mechanisms through which the migrant can lodge complaints to the employer and provide for regular inspections in the working environments that are more at risk”. MEPs repeatedly pointed out that the provision must not be understood as being against Third countries’ workers who are longing for a better future, rather, it must be viewed as a tool to counter the exploitation of all weak brackets, of those people “with no rights”, who benefit the companies that fail to pay equal wages and don’t pay social contributions.“A form of slavery”. “I am very glad to see that on such a sensitive and complex issue, Parliament and Council have been able to find solutions which will have a significant impact on the ground” stated Vice-President Jacques Barrot, EU Commissioner responsible for Justice, Freedom and Security, adding that ” the ease of finding illegal work in EU Member States is a main driving force behind illegal immigration from third countries”. The employment of illegally staying migrants “is not a trivial matter, as it is harmful in many respects. Because of their dependency on the employer, such persons run a high risk of ending up in the harsh reality of exploitation and even sometimes slavery-like conditions. The pull factor created by illegal employment is also strongly linked to the sometimes tragic journeys, causing several thousand deaths every year, that illegal migrants take to come to the EU”. President Barrot pointed out that “illegal employment also distorts competition and the functioning of the internal market”.Widespread and increasing phenomenon. It’s hard for the Commission to establish the amplitude of this phenomenon, but “estimates of illegally staying migrants in the EU range between 4.5 and 8 million, with an estimated increase from 350 000 to 500000 per year”. “From 7 to 16% of the EU’s GDP” is estimated to come from the shadow economy, although – Barrot pointed out – this includes undeclared work undertaken by EU citizens”. Many sectors of the economy are prone to resort to “undocumented work”, which generally attract “illegally staying migrants in particular”. These include, according to the Commission: Construction, agriculture, house-work, cleaning, catering and other hospitality services.Compulsory assessments and controls. The Directive envisages sanctions against the employer, not the migrant, it “covers companies and private individuals” (such as domestic workers and those hired to assist sick and old people). Employers are thus required to undertake certain checks before recruiting a third-country national and notify a competent national authority. “Member States are required to provide for criminal penalties in the five most serious cases: repeated infringements, simultaneously employing a significant number of persons, particularly exploitative working conditions, knowingly using work or services exacted by a person who is a victim of human trafficking and illegally employing a minor”. According to the Directive, Member States are obliged “to put in place effective mechanisms through which the migrant or designated third parties such as trade unions can lodge complaints against the employer”. Illegally staying migrants who cooperate with the competent authorities in criminal proceedings against their employer will be able, “under certain conditions”, to obtain a temporary residence permit.