France: New Fines for Employing Illegal Foreign Workers

In an attempt to clamp down on illegal foreign workers, the 26 January 2024 Immigration Law provided a new administrative fine equal to a maximum of 5000 times the hourly minimum wage i.e., currently, a maximum fine is equal to 20,750€ per worker. In case of repeated offences, the maximum fine will be 15000 times the hourly minimum wage i.e., currently, a maximum fine is equal to 62,250€ per worker.

The decree dated 9 July 2024 allows the fine to be reduced to 2000 times if the employer pays the illegal worker all salaries and indemnities due and provides all necessary documentation, such as payslips and work certificates. The decree also indicates that an offence is deemed to be repeated if the employer has been fined during the last 5 years.

Entities who knowingly have recourse to employers using illegal foreign workers can be held jointly liable for the payment of such fines as well as entities who have not taken necessary measures to ensure their suppliers and providers are not using illegal workers. For memory, all entities entering a contract for goods and services the value of which is at least equal to 5000€ are required to request the supplier/provider, upon concluding the contract and every 6 months until the end of the contract, to confirm that they are not using illegal workers.

The decree also provides for heightened requirements regarding the delivery of work permits and creates a new reason allowing such permits to be delivered and namely when the level of hiring is manifestly disproportionate with the entity’s economic activity.

Key Action Points for Human Resources and In-House Counsel

Ensure that your hiring process contains the necessary checks regarding hiring of foreign workers and ensure your purchasing department (or whoever is in charge of contracting and/or paying suppliers/providers) has a process in place to request the necessary documentation from suppliers/providers about their use of foreign workers.