EU Firms Face Jail, Fines, For Illegal Migrants

Employers could be fined, forced to pay wages in arrears or even banned for up to five years for bidding for public sector contracts.

Employers that hire illegal immigrants will face fines or prison across the European Union under new rules backed by EU lawmakers in a debate on Tuesday.

EU states have already endorsed the measure which the European Parliament is set to vote through on Wednesday, sparking concerns about higher costs among businesses.

Employers could be fined, forced to pay wages in arrears or even banned for up to five years for bidding for public sector contracts or from receiving state aid.

An employer could also be punished if one of its subcontractors hired illegal immigrants, and agencies providing temporary staff will also be covered by the new rules.

For the worst abuses involving human trafficking or repeated employment of illegal workers, the plan would force EU states to impose tougher punishments. EU states would be free to decide if that meant fines or a jail sentence.

"This is a significant step to combating illegal immigration by targeting the employers while trying to protect migrants who are often the victims," EU Justice Commissioner, Jacques Barrot, told parliament.

The rules will take effect in 2011.

Figures from 21 of the bloc's 27 member states indicate that 893,000 to 923,000 illegal immigrants enter the EU each year, with some deported, others made legal and seasonal workers often leaving once the job is finished, the parliament said in a note.

The aim of the new rules is to adopt a more consistent approach to penalties some member states already apply.

EU companies lobby BusinessEurope said it supported the measure's objectives as the use of illegal immigrants can create unfair competition but that it did not like some parts of it.

"There are elements we don't like which shift the burden of public authorities onto employers such as the control of compliance of subcontractors," said BusinessEurope's social affairs adviser, Marcus Schwenke.

EU lawmakers said they were able to persuade members that employers of clandestine immigrants as domestic staff should face lower financial penalties as long as there was no exploitation.

"The text is a way of protecting those who have to work illegally by mafia criminal gangs," said Claudio Fava, an Italian socialist who steered the measure through parliament.

"Immigration in Europe is now a collective responsibility and not just some vague standards against immigrants."

The measure is part of a wider package on migration that includes separate initiatives to harmonise rules on the expulsion of illegal immigrants and the "blue card" designed to smooth entry into the EU of skilled migrant workers.