On Feb 23, 2008, the Alien Labour Act was passed into law. One key feature is that criminal penalties for working without a work permit have been increased for foreign employees and virtually eliminated for employers.   The maximum penalty for an employee working without a work permit is 5 years’ imprisonment, but for an employer in the same situation, there is only a fine.  This is contrasted with the previous Act, where the penalties for the employer, for employing a foreigner without a work permit, was a maximum 3 years and the employee was liable for a maximum sentence of significantly less time than the Employer.

The rationale for the law change, purportedly, is to encourage the employment of aliens.  However, the new policy would seem to encourage the hiring of illegal aliens, since the penalties for Employers are virtually nonexistent.  On a cost-benefit analysis, many employers would determine that it makes more sense to hire aliens “under the table,” without work permits, then to go through the tedious government process of obtaining a work permit.

Also, the new law places alien workers without work permits in vulnerable positions when dealing with unscrupulous employers.  The biggest risk is that the employer can take advantage of an alien worker, and then stifle any dissent by arranging an arrest of his own employee.  Previously, this type of behavior was discouraged to some degree, because the Employer would have greater liability than the Employee.  Under the new law, that is not the case: Employee gets arrested and deported, but Employer pays a miniscule fine.

Contrast this with the USA’s law.  According to Section 8 USC 1324(a)(1)(A)(iv)(b)(iii):
“Any person who . . . encourages or induces an illegal alien to . . . reside . . . knowing or in reckless disregard of the fact that such . . . residence is . . . in violation of law, shall be punished as provided . . . for each illegal alien in respect to whom such a violation occurs . . . fined under title 18 . . . imprisoned not more than 5 years, or both.”