Judgment of the week: Employer pays for deportation costs in case of illegal employment

Employing foreign nationals without a valid work permit in Germany poses a serious risk for both employees and employers. Third-country nationals who do not come from the EU, EEA, or Switzerland, in particular, generally require a work permit in addition to a residence permit . Anyone who ignores these requirements risks not only fines but also criminal prosecution, including imprisonment. The consequences for employers can be even more serious: in addition to high fines, they may also face registration in the Central Trade Register . In the worst case, they may even have to cover the costs of deportation. Employees also face the risk of deportation and an entry ban, which can severely impact their personal and professional future.

What penalties do employees and employers face?

The law is clear: Anyone who works in Germany without a valid work permit or who, as an employer, employs foreigners without a work permit is violating the Residence Act . Employees can expect a fine of up to 5,000 euros, a prison sentence of up to one year, or a monetary penalty. In addition, they risk being deported and being banned from entering the country . Employers are hit even harder: Fines of up to 500,000 euros can be imposed. They can also face a prison sentence of up to three years or a monetary penalty. Particularly serious is the fact that, according to current case law, employers must also bear the costs of deportation . This puts not only the job but also the financial existence of the company at risk.

Employers are also liable for deportation costs

A case before the Koblenz Administrative Court ( Koblenz Administrative Court, judgment of February 27, 2024, 1 K 859/23.KO ) shows how serious the situation is. A construction company had employed an Albanian national even though he did not have a work or residence permit. After the authorities checked the man at a construction site, he was detained and deported to Albania. The costs for this amounted to just under 6,000 euros – and the employer had to bear them . The judges based their decision on Section 66, Paragraph 4 of the Residence Act, which states that employers are liable for deportation costs if they employ foreigners without a valid work permit. In addition to the penalties already threatened, these costs can represent a considerable financial burden and cause lasting damage to companies.

Conclusion: Legal advice protects against high risks

It is essential for companies in Germany to strictly adhere to labor and residence law regulations. Anyone employing skilled foreign workers should ensure that they have all the necessary residence permits and work permits. Employees coming to Germany, for their part, must submit the necessary applications early on to avoid legal problems. Early legal advice is the safest way forward. This is precisely where VISAGUARD comes in: We connect lawyers specializing in immigration law who help both employers and employees act in compliance with the law. This way, penalties, financial risks, and lengthy proceedings can be avoided. Those who seek expert support early on protect not only themselves but also their company from serious consequences.