On the spot fines for employers employing illegal workers in UK

February 14, 2008: Post 9/11, all countries are working to curb the illegal entry of workers. Though because of negative population growth and high demand for skilled workers is forcing immigration open in western countries, efforts are on to ensure only the well qualified and affluent people enter their country.

Increase in immigration fees by UK is a step in the direction to help economy gain from the immigrants. Though not officially admitted, but the feeling is, if the immigrants are willing to shell out heavy money to the agents, why not get a part of it towards the fees. Statement of UK Immigration Minister Liam Byrne that it was fair that those who benefit most from using the immigration system should fund it, is an indicator in this direction.

He said this while announcing increased visa rates for entry in UK. Under new rates, a short-term visitor visa goes up to 65 pounds from 63 while a work permit visa will cost 205 pounds from the fiscal year beginning in April, up from 200 pounds. A settlement visa will cost 515 pounds, up from 500 pounds while companies looking to hire outside the EU will now have to pay a one-off license fee of either 300 or 1000 pounds, depending on the size of the company.

Illegal entrants in any country are willing to work at a lower rate as they are not entitled get any job legally. These workers have the effect of reducing the wage rate and certain jobs practically get reserved for them because of the lower wages they are willing to accept and work for. To curb this practice, changes are being proposed under Britain’s immigration reform plan. On-the-spot fines for employers who don’t ensure their workers are there legally will also be part of the new plan along with compulsory ID cards for foreign national UK residents. It also plans to bar unskilled migrants from countries outside the EU from working in the U.K.

Announcing this, the minister said, "We welcome the contribution that legal migrants make to the economy and cultural life in the UK and we have ensured that these fees, which will usher in the biggest reforms to the immigration system in a generation, are at levels that will not damage our international competitiveness. We are confident that we are not out of line with other countries' prices and that the people we want to come here will not be deterred from doing so".