A newly released study by the European Migration Network (EMN) provides an in-depth analysis of illegal employment among third-country nationals (TCNs) in EMN Member Countries from 2017 to 2022. The report, titled "Illegal Employment of Third-Country Nationals: 2017-2022 Situation Analysis," explores the key legislative and policy frameworks, challenges, and measures taken to address this issue. It also details the various ways in which TCNs engage in illegal employment and the challenges faced by both foreign workers and authorities.
Illegal employment remains a significant political concern. Many EMN Member Countries have introduced legislative reforms to curb illegal employment, including stricter employer sanctions. These include for example Cyprus who increased penalties for labor law violations in 2021, with fines reaching up to EUR 20,000 and prison sentences of up to five years. Similarly, Estonia implemented a tenfold increase in fines for legal entities engaged in illegal employment practices in 2018.
Preventive measures primarily focus on awareness campaigns, mandatory notifications for hiring TCNs, and maintaining blacklists of non-compliant employers. However, monitoring and enforcement efforts have intensified. Between 2017 and 2022, all EMN Member Countries conducted on-site inspections to detect illegal employment, with some countries integrating these checks into broader labor inspections.
To enhance enforcement, EMN Member Countries have strengthened cooperation between national authorities and across borders. New collaborative frameworks between labor inspectorates, immigration services, law enforcement, and tax authorities have been introduced since 2017. At the European level, initiatives such as the European Labour Authority’s (ELA) Platform tackling undeclared work have facilitated cross-border cooperation.
Small to medium-sized enterprises (SMEs) are the most frequent employers of illegally employed TCNs, particularly in sectors such as construction, accommodation, food services, and agriculture. The study also highlights emerging high-risk sectors, including beauty and wellness, delivery services, and event management.
The consequences for TCNs found working illegally vary based on their residence status and work permit history. Sanctions range from fines and residence permit revocations to return decisions. However, most EMN Member Countries have special provisions for victims of labor exploitation and human trafficking, offering temporary residence permits and access to asylum procedures.
The full study, "Illegal Employment of Third-Country Nationals: 2017-2022 Situation Analysis," is available in the Publications section on the EMN website.