Fraud Blocker The exploitation of Europe's immigration regulation

A close look into the abuse of Europe’s immigration regulations.

Yesterday, our CEO, Johan Opperman was featured on the Dutch national radio station BNR News. Here, he spoke about the misuse of the highly skilled migrant visa by payrolling/Employer of Record companies, in which individuals obtain a work- and residence permit through an EOR-payroll setup without any actual employment activities attached.

The so-called ‘lifestyle visa’ came into disrepute because it was linked to a Russian espionage case. The employee used his own US-based company as client in the EOR setup, obtaining a work- and residence permit for himself. The employee then used his presence in Netherlands for activities related to the Russian government. The item by BNR News discusses the practices of payrolling companies that sell such Dutch residence permits to foreign workers at high prices, using scam constructions. These practices are described as a growing problem because they manipulate the immigration process and distort the labour market.

With a recognized sponsorship (Erkend Referent), Parakar can quickly provide employees with work permits in the Netherlands. However, this should always be linked to an employment contract. The same goes for the EU Bluecard schemes that are more popular in other EU countries.

If you are considering setting up a company with yourself or a family member as the owner, and using that company to hire yourself as a foreign worker, it is important to understand that this is illegal and could have serious consequences. It is considered to be a form of fraud or misuse of the immigration system. If a company is set up with intent to abuse the system, it undermines the system and the fair opportunity for other foreign workers and damages the reputation of the companies who act within legal bound.

Outsourcing employment with Parakar

At Parakar, we take our responsibilities very seriously when it comes to the legal and ethical aspects of EOR. When a client approaches us with a request for hiring foreign workers, we take the time to review the situation and assess whether everything is going according to the laws and regulations. Our strength is our personal approach and custom agreements. Our flexibility allows us to tailor our service to meet the specific needs and requests of each client.

Having a local experts present in the countries where we operate, is the key to our success and the high-quality service we provide. Not only does it make us more approachable to our clients and the employees, but it also allows us to respond to their needs and requests quickly and completely.

If there is any doubt about the construction in a request we receive, we will not advise or offer our services. We want to ensure that we do not cause unintended consequences for both our clients and the foreign workers, and we do not want to be involved in any fraud or abuse of the scheme.

It is important to be fully informed of the laws and regulations in place, and to seek legal advice if you have any doubts about the legitimacy of your proposed business arrangement.

The article and interview published by BNR can be found here.

Can we help you?

Expanding your business to any new market comes along with its challenges. Local knowledge is essential for growing without risk. At Parakar we are locally based in the countries we serve. We implemented many professional outsourced employment situations in the Netherlands for companies and individuals all over the world! Our local HR experts can tell you more about the services we offer.

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