* Employer/HR Employment of foreign employees: the disadvantages By: Together Abroad 12-02-2014 11:09 AM -- -- [togeth_139219987752fb48c58fd4e.jpg] Employing foreigners does not only bring benefits, there are also some disadvantages. An example is unfair competition for Dutch workers or the fact that foreign workers sometimes face abuse. Unjust Competition and Repression -- Unjust Competition and Repression Foreign employees are often less expensive to employ than Dutch workers. This may lead to competition distortion. Dutch workers could therefore lose their jobs. In the rule, foreign self-employed workers will also work for a lower rate than their Dutch colleagues. -- will also work for a lower rate than their Dutch colleagues. Foreign Employee Abuse Some employers abuse foreign employees. Examples of this abuse are: * Paying foreign workers less than the legal minimum wage; * Ignoring the Collective Labour Agreements; * Not paying employee insurance premiums. -- -- * Not paying employee insurance premiums. Relatively speaking, there are many foreign workers employed in the agricultural, building and service sectors. This was made clear by investigations performed by the Social Affairs and Employment -- -- the battle against illegal labour are: * Higher fines A private person hiring an illegal foreign worker, risks receiving a € 4000 fine. A business hiring illegal foreign staff, risks a fine of € 8000. If the Labour Inspection ascertains another violation within 24 months, then the fine is increased by 50 -- -- the Public Prosecution’s Office. * Hold accountable Businesses hiring workers through non-certified employment agencies, may be held accountable, should the temporary employee -- agencies, may be held accountable, should the temporary employee receive less than the minimum wage. The temporary worker will be able to claim extra wages up to the minimum wage afterwards. The Labour Standardisation Institute (Stichting Normering Arbeid SNA) -- -- * Battling abuse and fraud The cabinet is taking measures against the abuse and fraud in the skilled migrant programme. The Immigration and Naturalisation Service may for instance, refuse a residence permit application if the wages are disproportionately high for the position.