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Social Affairs and Employment
Hogere boetes bij illegale arbeid
Source published: 29 January 2025

Higher fines for illegal employment

The Dutch Labor Inspectorate can impose higher fines from February 1, 2025, on employers who illegally employ migrant workers. Companies without a permit for EU workers risk a fine of up to € 11,250 per worker. This is an increase from the current maximum fine of € 8,000. Heavier fines will be imposed if illegal employment is accompanied by passport seizures or poor housing. The maximum amount applies in cases of intentional violations.

Minister Eddy van Hijum of Social Affairs and Employment states: "In a civilized country like the Netherlands, we must treat migrant workers more fairly. Many issues arise from recruitment agencies that underpay workers and provide substandard housing. Migrant workers working here illegally are the most vulnerable as it is harder for them to seek help. Therefore, it is crucial that employers are penalized more severely with higher fines."

From February 1, the Dutch Labor Inspectorate can impose fines ranging from € 2,250 to € 11,250 per worker for illegal employment. Until now, the standard fine for violating the Foreign Labor Act was € 8,000. The Council of State emphasizes that the severity of the violation must be considered, so that an employer who intentionally breaks the law receives a higher fine than one who does so accidentally. Fines will also increase when violations are linked to issues like poor working conditions or the confiscation of migrant workers passports.

Research on higher fines

The Ministry of Social Affairs and Employment is currently investigating all fines related to fair work. In the Netherlands, all employers must ensure that a worker receives the minimum wage and legally mandated vacation pay. If an employer fails to comply with these labor laws, a fine will be imposed by the Dutch Labor Inspectorate.
The research examines the effectiveness of the fine amounts and the reasons for employers compliance or non-compliance with labor laws. It also investigates whether higher fines make it less attractive for employers to violate labor laws. After the research, each labor law will be reviewed to determine if fines need to be adjusted.

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Source last updated: 29 January 2025
Published on Openrijk: 29 January 2025
Source: Sociale Zaken en Werkgelegenheid