The warning comes after the government imposed strict restrictions on the number of Bulgarian and Romanian nationals allowed to work in the UK. Both countries joined the EU on January 1, 2007 but their citizens will not enjoy the same freedom to work in the UK that was granted to Polish and other ‘A8’ nationals when they joined the EU on May 1 2004.

Bulgarian and Romanian nationals coming to work in the UK will be subject to new working restrictions, following the Home Office's decision that the UK's labour market would be opened gradually to citizens of the two newest members of the EU. But the market will be open for self-employed people.

Ansar Ali, employment lawyer with law firm DWF: “The rules make it very difficult indeed to employ people from Bulgaria and Romania and could encourage a rise in illegal employment. Companies who are caught doing this could face stiff penalties.

“When employing any foreign national, always check that they have permission to work in the UK and to do the job offered. If you are making an offer of employment to a highly skilled person who does not have a permit, allow sufficient time to apply for one before the individual commences work. There is nothing to stop employers using self-employed people from these countries, but ensure that the arrangement is genuine and they are not operating as employees under another name.”

Self-employed
There will be no restrictions on people arriving from Bulgaria and Romania who are seeking to work as 'self-employed'. This has already led to fears that the 'self-employed' loophole will be exploited, as critics have claimed that the new rules will be easy to evade and that many newcomers will claim to be self-employed or will merge into the black economy.

The Home Office has said that 'the self-employed will continue to be able to work here, but must be able to prove they are genuinely self-employed'. It has claimed it will'continue to work closely with HM Revenue and Customs to tackle bogus self-employment'.

The explanatory leaflet aimed at those considering coming to the UK says: "You do not need a document confirming that you have permission to be self-employed, but you will need to be able to demonstrate that you are genuinely self-employed if you are challenged. You must register with the Inland Revenue immediately by telephoning 0845 915 4515. There is a penalty of £100 for late registration."

Restrictions
The restrictions on employees are to prevent a mass influx of workers from the new EU countries after the Government seriously underestimated the impact of East European workers on the UK in 2004 when more than 600,000 from 10 countries came to Britain. At the time, Government estimates predicted that about 13,000 would arrive.

This time around, the UK is limiting access for low-skilled workers from Romania and Bulgaria to its labour market, restricting them to existing quota based schemes which will fill vacancies in the agricultural and food processing sectors.

Skilled workers will continue to be able to work in the UK if they get a work permit, qualify under the Highly Skilled Migrant Programme, are a student, or are self employed.

These new arrangements will be reviewed within 12 months.

Employers
The Home Office has warned that employers and employees will have a duty to abide by the new rules and there are controls in place for rogue employers and illegal workers, which mean if found breaking the law they could face an on the spot fine of £1,000, with the company employing the individual being fined up to £5,000.

Home Office Minister Liam Byrne said: "A bigger Europe is good for Britain and the economy. But we need to understand the transitional impacts from the last round of accession before we take the next step. The measures in place from today will allow us to manage the flow of workers from Bulgaria and Romania as part of this process.

"Workers or employers who are tempted to break the rules should be aware that penalties will be robustly enforced, with fines if necessary. We are committed to enforcing our immigration rules and ensuring fairness in our system. Through this measured response to accession we will ensure that migration is, and continues to be, managed in the best interests of the country as a whole."

The Home Office is reported to have spent £300,000 on a last-minute advertising campaign in Romania and Bulgaria to dissuade workers from coming to Britain.

The advertisements on television and radio warn that entry into the UK may not be as easy as migrants expect, while hoardings outside the British Embassy in Bucharest display the message 'Don't come to Britain without a work permit'.

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Susie Hughes
The Editor © Hardhatter 2006