Foreign Workers: Information on Selected Countries' Experiences  
(08-SEP-06, GAO-06-1055).					 
                                                                 
The opportunity for employment is an important magnet attracting 
immigrants, including unauthorized immigrants, to countries. The 
policies and practices used by other countries to manage foreign 
workers, including actions to limit illegal immigration and to	 
reduce the employment of unauthorized foreign workers, have been 
shaped by country-specific economic, demographic, and political  
factors. Immigration reform is a matter of continuing debate in  
the United States. This report examines selected countries' (1)  
programs for admitting foreign workers; (2) efforts to limit the 
employment of unauthorized foreign workers; and (3) programs for 
providing unauthorized immigrants with an opportunity to obtain  
legal status, referred to as regularization. To address these	 
objectives, we examined reports from foreign countries, 	 
intergovernmental organizations, and research organizations. We  
also interviewed government officials and experts from 8	 
countries--Australia, Belgium, Canada, France, Germany, Spain,	 
Switzerland, and the United Kingdom--and surveyed 6 other	 
countries. We selected these countries based on their net	 
immigration rate, population size, membership in the Organisation
for Economic Co-operation and Development or World Bank 	 
classification as high income, range of immigration policies, and
geographic location.						 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-06-1055					        
    ACCNO:   A60491						        
  TITLE:     Foreign Workers: Information on Selected Countries'      
Experiences							 
     DATE:   09/08/2006 
  SUBJECT:   Foreign governments				 
	     Foreign policies					 
	     Immigrants 					 
	     Immigration					 
	     Migrant workers					 
	     Policy evaluation					 
	     Immigration and naturalization law 		 
	     Law enforcement					 
	     Australia						 
	     Belgium						 
	     Canada						 
	     France						 
	     Germany						 
	     Spain						 
	     Switzerland					 
	     United Kingdom					 

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GAO-06-1055

     

     * Results in Brief
     * Background
          * Political and Social Factors Related to Immigration
          * Economic and Demographic Factors Related to Immigration
          * Free Movement among EU Countries
          * Immigration-Related Programs in the United States
     * Countries' Programs for Admitting Foreign Workers
          * Countries Recruit Foreign Workers Based on Skill Level and C
               * Countries Recruit Foreign Workers with Different Skill Level
               * Countries Can Use Bilateral Agreements or Third Party Entiti
          * Countries Control the Admissions of Foreign Workers by Limit
               * Countries Manage Foreign Worker Admissions Using Various Met
               * Countries' Foreign Worker Programs Specify Employer and Work
          * Countries' Foreign Worker Programs Are Generally Temporary b
          * Additional Insights from Countries' Temporary Foreign Worker
     * Countries Use Various Means to Limit Employment of Unauthori
          * Countries Require Employers to Report or Verify Workers' Emp
          * Some Countries Focus Enforcement Efforts on All Illegal Labo
          * Countries Use Various Tools to Limit Unauthorized Foreign Wo
               * Countries' Enforcement Efforts Are Employer-focused but Also
               * Governments Receive Tips and Check Multiple Databases to Ide
               * Frequency and Publicity of Employer Inspections May Help Det
               * Countries Use Monetary Fines to Penalize Employers' Use of U
               * Some Countries Require Employers to Forfeit Benefits or Pay
          * Additional Insights from Countries' Worksite Enforcement Eff
     * Countries' Experiences with Regularization Programs
          * Countries Have Implemented Regularization Programs for a Var
          * Countries Require Unauthorized Immigrants to Meet Criteria f
          * Employers and Unauthorized Foreign Workers Have Incentives t
          * Governments Perceive Benefits from Regularization Programs b
          * Impact of Regularization Programs on Illegal Immigration and
          * Additional Insights from Countries' Regularization Programs
     * Concluding Observations
     * Foreign Worker Admissions
          * Employer-Sponsored Program
               * Temporary Business-Standard Business Sponsorship
          * Labor Agreements
               * Employer Nomination Scheme
          * Regional, State, or Territory Visa Programs
               * Regional Sponsored Migration Scheme
               * Independent Regional Visa
               * State-Territory Nominated Independent Visa
               * Skill Matching Visa
               * Skill Matching Database
          * Professionals and Other Skilled Migrants Programs
               * Skilled-Independent Visa
          * Working Holiday Maker and Work and Holiday Visas
     * Employment Verification Process
     * Enforcement of Laws That Prohibit Employment of Unauthorized
     * Foreign Worker Admissions
     * Employment Verification and Registration Process
     * Enforcement of Laws That Prohibit Employment of Unauthorized
     * Subsidization of Legal Work
     * Regularization Efforts
     * Foreign Worker Admissions
          * Seasonal Agricultural Worker Program
          * Low Skilled Foreign Worker Pilot Program
          * Foreign Worker Change of Status
          * Points-Based System
     * Enforcement of Laws that Prohibit Employment of Unauthorized
     * Regularization Efforts
     * Foreign Worker Admissions
     * Employment Verification Process
     * Enforcement of Laws That Prohibit Employment of Unauthorized
     * Regularization Efforts
     * Foreign Worker Admissions
          * German Guest Worker Programs
          * Current Foreign Worker Programs
               * High-Skilled Foreign Worker Admissions
               * Seasonal Foreign Worker Admissions
               * Low-Skilled Foreign Worker Admissions
               * Integration Courses
     * Employment Verification and Registration Process
     * Enforcement of Laws That Prohibit Employment of Unauthorized
     * Efforts to Streamline Employment Processes
     * Foreign Worker Admissions
     * Employment Verification and the Enforcement of Laws That Pro
     * Regularization Efforts
     * Foreign Worker Admissions
     * Employment Verification and Registration Process
     * Enforcement of Laws That Prohibit Employment of Unauthorized
     * Foreign Worker Admissions
          * Highly Skilled Migrant Programme
          * Seasonal Agricultural Workers Scheme (SAWS)
          * Sector-Based Scheme
          * Working Holidaymakers Scheme
          * Points-Based System
     * Employment Verification Process
     * Enforcement of Laws That Prohibit Employment of Unauthorized
     * Regularization Efforts
     * GAO Contact
     * Staff Acknowledgments
     * GAO's Mission
     * Obtaining Copies of GAO Reports and Testimony
          * Order by Mail or Phone
     * To Report Fraud, Waste, and Abuse in Federal Programs
     * Congressional Relations
     * Public Affairs

Report to the Chairman, Committee on the Judiciary, House of
Representatives

United States Government Accountability Office

GAO

September 2006

FOREIGN WORKERS

Information on Selected Countries' Experiences

GAO-06-1055

Contents

Letter 1

Results in Brief 4
Background 8
Countries' Programs for Admitting Foreign Workers 18
Countries Use Various Means to Limit Employment of Unauthorized Foreign
Workers 30
Countries' Experiences with Regularization Programs 39
Concluding Observations 52
Appendix I Scope and Methodology 54
Appendix II Information on Immigration-Related Programs in Selected
Countries 57
Appendix III Information on Selected Immigration-Related Programs in
Australia 70
Appendix IV Information on Selected Immigration-Related Programs in
Belgium 78
Appendix V Information on Selected Immigration-Related Programs in Canada
82
Appendix VI Information on Selected Immigration-Related Programs in France
87
Appendix VII Information on Selected Immigration-Related Programs in
Germany 91
Appendix VIII Information on Selected Immigration-Related Programs in
Spain 97
Appendix IX Information on Selected Immigration-Related Programs in
Switzerland 101
Appendix X Information on Selected Immigration-Related Programs in the
United Kingdom 106
Appendix XI Foreign Country Questionnaires 116
Appendix XII Acknowledgement of Government and Other Entities' Assistance
149
Appendix XIII GAO Contact and Staff Acknowledgments 151
Bibliography 152

Tables

Table 1: Examples of Temporary Employment-Based Visas in the United States
15
Table 2: Examples of Tools to Encourage Foreign Worker Return, as Reported
by Government Officials and Experts 28
Table 3: Resources for Enforcement of Illegal Labor Practices as Reported
by Various Countries 33
Table 4: Civil and Criminal Monetary Fine Amount Ranges for Hiring
Unauthorized Workers Reported by Various Countries 37
Table 5: Selected Countries' Regularization Programs 42
Table 6: Selected Information on Countries' Population Characteristics 57
Table 7: Selected Information on High-Skilled Temporary Foreign Worker
Programs 58
Table 8: Selected Information on Low-Skilled Temporary Foreign Worker
Programs 60
Table 9: Selected Information on Seasonal Temporary Foreign Worker
Programs 61
Table 10: Selected Information on Employment Eligibility Verification
Processes 63
Table 11: Selected Information on Worksite Enforcement Efforts 66
Table 12: Canada Points-Based System 84
Table 13: Data on the Department for the Financial Investigation of
Clandestine Labor Enforcement Activities for 2003 through 2005 96
Table 14: Tier 1 Points-Based System 109
Table 15: Tier 2 Points-Based System 110
Table 16: Lists of Documents that Potential Employees Can Present to Show
Work Authorization 113
Table 17: Number of Employer Criminal Prosecutions for Each Year from 2000
through 2004 114

Abbreviations

ANAEM Agence Nationale de l'Accueil des Etrangers et des Migrations CIC
Citizenship and Immigration Canada COLTI Comite Operationnel de Lutte
contre le Travail Illegal DILTI Delegation Interministerielle `a la Lutte
contre le Travail Illegal DDTEFP Direction Departmentale du Travail, de
l'Emploi et de la Formation Professionelle DHS Department of Homeland
Security EEA European Economic Area EU European Union FARMS Foreign
Agricultural Resource Management Services HRSDC Human Resources and Skills
Development Canada ICE U.S. Immigration and Customs Enforcement IIRIRA The
Illegal Immigration Reform and Immigrant Responsibility Act ILO
International Labour Organization INS U.S. Immigration and Naturalization
Service IOM International Organization for Migration IRCA Immigration
Reform and Control Act OECD Organisation for Economic Co-operation and
Development SAWS Seasonal Agricultural Workers Scheme USCIS U.S.
Citizenship and Immigration Services

This is a work of the U.S. government and is not subject to copyright
protection in the United States. It may be reproduced and distributed in
its entirety without further permission from GAO. However, because this
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separately.

United States Government Accountability Office

Washington, DC 20548

September 8, 2006

The Honorable F. James Sensenbrenner, Jr. Chairman Committee on the
Judiciary House of Representatives

According to various studies, immigration affects nearly every country in
the world, as countries are points of origin for immigrants, places of
transit, final destinations, or can serve as all three. Migrants move
between countries for a variety of reasons, including family
reunification, political protection, and employment. However, the
opportunity for employment is one of the most important magnets attracting
immigrants, including unauthorized immigrants, to countries. Reports
indicate that migrants, especially labor migrants, help to keep viable
segments of certain labor-intensive industries, expand foreign trade,
provide valuable language and cultural expertise to companies, and
contribute to the economic revitalization of some communities. Yet these
reports also note that immigration, particularly illegal immigration, may
have adverse consequences, such as helping to depress wages for
low-skilled workers and creating net fiscal costs for some levels of
governments.1

Countries use a variety of policies and practices related to foreign
worker programs, including actions to limit illegal immigration and to
reduce employment of unauthorized foreign workers. These policies and
practices have been shaped by country-specific economic, demographic, and
political factors, such as countries' unemployment rates and population
characteristics. They may include visa categories to allow migrants to
enter and work in a country on a legal basis, mechanisms to regularize the
status of unauthorized migrants currently residing in a country,2 means to
verify workers' employment authorization status, and efforts to enforce
laws that prohibit the employment of unauthorized workers.

1 See U.S. Commission on Immigration Reform, Becoming an American:
Immigration and Immigrant Policy (Washington, D.C.: 1997) and National
Academy of Sciences, The New Americans: Economic, Demographic, and Fiscal
Effects of Immigration, 2003.

2 The term "regularization" describes programs that provide unauthorized
migrants already residing in a country with the opportunity to secure
legal status on a permanent or temporary basis. In some countries,
regularization programs have provided unauthorized migrants with temporary
work permits and residence status, while in other countries,
regularization programs have provided unauthorized migrants with permanent
residence status.

As in other countries, immigrants can legally enter and reside in the
United States through different channels, such as work visa programs, but
some also illegally enter or overstay their visas and illegally remain in
the United States. Various reports have estimated that the U.S.
unauthorized immigrant population was about 11 million in 2005. Congress
has passed laws to provide legal channels for immigrants to live, work,
and become naturalized citizens and to prohibit unauthorized migrants from
entering and working in the United States. In 1986 Congress passed the
Immigration Reform and Control Act (IRCA),3 making it illegal for
individuals or entities to knowingly employ unauthorized workers and
establishing an employment eligibility verification process and a
sanctions program for fining employers who do not comply with the act. The
Illegal Immigration Reform and Immigrant Responsibility Act (IIRIRA) of
19964 revised some provisions of IRCA and established voluntary pilot
programs for employers to electronically verify employees' work
eligibility.

More recently, the House of Representatives and the Senate passed
different bills to further revise certain elements of U.S. immigration
law. Among other things, these proposals would revise current border and
interior enforcement measures and require employers' mandatory
participation in an electronic employment eligibility verification system.
The Senate proposal would also establish a new temporary foreign worker
program and allow certain unauthorized immigrants currently residing in
the United States to apply to regularize their status.

You asked us to review other countries' efforts to reduce the unauthorized
employment of foreign workers. This report addresses the following
questions: (1) What are selected countries' programs for admitting foreign
workers, and what are the reported advantages and disadvantages of these
programs? (2) What are selected countries' efforts to limit the employment
of unauthorized foreign workers, and what are the reported advantages and
disadvantages of these efforts? (3) What are selected countries' programs
for providing unauthorized immigrants with an opportunity to obtain legal
status, referred to as regularization, and what are the reported
advantages and disadvantages of these programs? In addition, this report
provides information on selected countries' foreign worker programs,
worksite enforcement efforts, and regularization programs in appendixes II
through X.

3 Pub. L. No. 99-603, S:101(a)(1) (codified at 8 U.S.C. S:1324a).

4 Pub. L. No. 104-208, div C, S:S: 401-405, 411, 412, 416, 110 Stat.
3009-547, 3009-649, 655-69.

To answer these questions, we obtained government agency reports and other
documents and interviewed officials during site visits to Belgium, Canada,
France, Germany, Spain, Switzerland, and the United Kingdom. We also
interviewed officials and obtained documents from, but did not visit,
Australia. In addition, we sent four questionnaires to government agencies
in 13 countries and received responses from Argentina, Austria, the
Netherlands, New Zealand, Portugal, and Singapore.5 We selected the
countries for our review based on their net immigration rate, size of
population, membership in the Organisation for Economic Co-operation and
Development (OECD) or World Bank classification as high income, range of
immigration policies, and geographic location. In the 7 countries we
visited and Australia, we interviewed officials from the labor ministries,
interior ministries, finance ministries, treasury departments, social
security agencies, immigration agencies, law enforcement agencies, and
local government agencies. We analyzed information and documents, such as
agency annual reports, manuals, and briefing materials, from these
countries to determine the characteristics, functions, resources, and
outputs of the countries' programs to admit foreign workers, enforce laws
that prohibit the employment of unauthorized foreign workers, and
regularize unauthorized immigrants. Our questionnaires included general
questions about the characteristics, functions, outputs, and agency views
on the advantages and disadvantages of these programs in the surveyed
countries. We did not independently examine countries' laws and
regulations, but rather based characterizations of countries' programs on
information provided by countries in response to the questionnaires or in
interviews as of July 2006.

In addition, we interviewed officials and analyzed reports from the
International Labour Organization (ILO),6 the International Organization
for Migration (IOM), OECD, and the European Union (EU). We also examined
reports and studies from research organizations and immigration experts,
including reports from the Migration Policy Institute; the Center on
Migration, Policy and Society at Oxford University; and the Center for
Comparative Immigration Studies. In addition, we interviewed officials
from the United Nations High Commission for Refugees; the United Nations
High Commission for Human Rights; the Intergovernmental Consultations on
Asylum, Refugee, and Migration Policies; 6 employer associations; 10 labor
groups; and 1 advocacy group, as well as 19 immigration experts in
Belgium, Canada, France, Germany, Spain, Switzerland, the United Kingdom,
and the United States.7 We selected the experts based on the following
criteria: type and depth of experience; recognition in the professional
community; relevance of published work; employment history; and
researchers' recommendations. We also interviewed officials from the
Departments of Labor and Homeland Security in the United States. We
analyzed information from these sources to determine their views on the
advantages and disadvantages of countries' temporary foreign worker
programs, efforts to enforce laws that prohibit the employment of
unauthorized foreign workers, and regularization efforts. For more
detailed information on our scope and methodology, see appendix I. We
conducted our work from September 2005 through August 2006 in accordance
with generally accepted government auditing standards.

5 See appendix XI for copies of the questionnaires.

6 In addition, we reviewed studies from the International Labour Office
and the International Labour Conference, which are two of the main bodies
of the International Labour Organization.

                                Results in Brief

The countries in our review have programs for admitting foreign workers,
which have advantages, such as providing employers with a legal workforce,
and disadvantages, such as difficulties in ensuring that foreign workers
under temporary foreign worker programs return to their home countries.
Countries' programs are generally focused on recruiting high-skilled or
seasonal foreign workers, and countries do not recruit significant numbers
of low-skilled workers.8 Some countries manage the recruitment of workers
by bilateral agreements or the use of private sector entities, often
called third party entities. For example, Canada uses bilateral agreements
with Mexico and several Caribbean nations to recruit seasonal foreign
workers to work in agricultural sectors.9 The countries we studied
determine the number of foreign workers that can be admitted by a variety
of means, such as quota systems. However, experts stated that it is
difficult to implement a system that flexibly responds to changing labor
market needs and does not provide an incentive for employers to hire
unauthorized workers. In addition, countries regulate foreign worker
admissions by specifying requirements for participation in a foreign
worker program. These requirements may state, among other things, that the
foreign worker or potential employer must pay a fee to obtain a work
permit and specify whether the foreign worker is entitled to bring family
members. Moreover, the foreign worker programs we studied differ in their
requirements for foreign workers to return to their home countries. Some
temporary programs require temporary foreign workers to return upon
expiration of the work permit, while others allow a foreign worker to
apply for permanent resident status. Programs that require a foreign
worker to return home after a work permit expires may include a variety of
tools to encourage or enforce the return of temporary foreign workers,
such as allowing foreign workers to collect withheld earnings upon return.
However, experts and government officials noted that it is difficult to
successfully ensure foreign workers' return, and as a result, countries we
studied estimated that a significant number of immigrants overstayed their
work permits, thus lapsing into illegal status.

7 See appendix XII for a list of the experts we interviewed.

8 For the purposes of our report, we define "high-skilled foreign
workers," also referred to as "skilled foreign workers," as workers
brought in or allowed entry from foreign countries by the government for a
specified amount of time, on the basis of intermittent, peak load, or one
time labor market needs for jobs requiring specialized knowledge or
skills, generally gained through the completion of higher education,
training, or professional experience. We define "low-skilled foreign
workers," also referred to as "unskilled foreign workers," as those
workers brought in for non-seasonal jobs that require limited education,
training, or experience. We define "seasonal foreign workers" as workers
brought in to meet the seasonal, intermittent, peak load, or one time
needs of seasonal jobs, such as those of agricultural producers.

Countries we studied use a variety of efforts in enforcing laws designed
to limit the employment of unauthorized foreign workers, which have helped
countries address the underground economy, 10 but they have also faced
difficulties in effectively implementing these efforts, such as
identifying those who are not authorized to work and collecting employer
monetary fine amounts. In many of the countries, employers are required to
register the employment of workers with government agencies, and in some
of these countries, employers are also required to verify workers'
authorization status. For example, employers in the United Kingdom are
required to verify the work authorization status of all workers to
establish an affirmative defense against a charge of employing
unauthorized foreign workers,11 while in Belgium, employers are required
to review foreign workers' authorization. In the countries we studied, the
employment of unauthorized foreign workers is generally considered one of
various illegal labor practices, including failure to pay taxes or social
insurance contributions or provide fair wages and safe working conditions.
As a result, government agencies in these countries generally focus their
enforcement efforts and allocate resources to detect any illegal labor
practices on the part of employers. Countries in our review use different
tools to conduct enforcement actions against employers engaged in such
practices. To obtain information on potential cases of unauthorized
foreign worker employment, for example, enforcement agencies may examine
various sources, such as tips from the public or data in government
databases. On the basis of this and other information, enforcement
agencies may inspect or investigate employers' worksites. According to
governmental and nongovernmental officials, conducting frequent employer
investigations and publicizing those investigations helps deter employers
from hiring unauthorized foreign workers, although countries have faced
challenges, such as the prevalence of document fraud, in investigating and
penalizing employers. Government agencies may monetarily sanction
employers for hiring unauthorized foreign workers, although the deterrent
effect of monetary fines on employers' hiring of unauthorized foreign
workers is unclear. In addition, countries use other tools, such as
excluding employers from receipt of public contracts and seizing
employers' assets, to penalize employers for hiring unauthorized foreign
workers.

9 Canada also maintains bilateral agreements with Barbados, Jamaica,
Trinidad and Tobago, and the Organization of Eastern Caribbean States for
the admission of seasonal workers.

10 According to studies, the underground economy includes any employment
in a country for which employers do not pay taxes or social insurance
contributions and is thus composed of both unauthorized foreign workers
and native workers for whom appropriate contributions are not paid.

Some of the countries we studied have implemented large-scale
regularization programs that allow unauthorized immigrants to apply for
legal status on either a temporary or a permanent basis. While
regularization programs have provided benefits to countries, such as
reducing employment in the underground economy, countries have also faced
challenges in implementing and assessing the programs. Countries have
implemented regularization programs for various reasons, such as to help
socially and economically integrate unauthorized foreign workers. Under
most programs, countries required unauthorized immigrants to meet
specified eligibility requirements, such as residency and employment
requirements, before applying for or receiving legal status. In these
countries, employers and unauthorized foreign workers have incentives for
participation in regularization programs, but may not want to participate
for different reasons. For example, experts have noted that employers save
money by employing unauthorized foreign workers for whom they do not pay
taxes or social insurance contributions, and thus, employers may choose
not to participate in a country's regularization program. Governments in
countries that have implemented regularization programs to provide
unauthorized immigrants with legal status perceive benefits from such
programs. According to government officials and experts, governments can
collect taxes and social insurance contributions from unauthorized
immigrants who gain legal status and did not previously pay these
contributions. Yet governments may incur costs and face difficulties in
implementing regularization programs, such as in managing the application
process and in determining whether immigrants granted temporary legal
status renew their status. In addition, experts have reported that the
effect of regularization programs on illegal immigration and employment in
countries that have implemented such programs is unclear. For example,
some have suggested that regularization programs encourage further illegal
immigration, while others have noted that a lack of evaluation hinders
efforts to determine the impact of regularization programs on future
illegal immigration.

11 It is a criminal offense in the United Kingdom for employers to employ
someone subject to immigration control who has no right to work in the
country, or no right to do the work being offered. Employers can establish
a defense against conviction for employing an unauthorized worker by
checking and copying certain original documents presented by potential new
workers.

The policies and practices employed by other countries to regulate the
employment of foreign workers are shaped by each country's unique
political, social, cultural, and economic characteristics. These
characteristics inform countries' decision-making processes and may not be
readily applicable to the United States. In particular, the unauthorized
workers who could be affected by a regularization program in this country
far outnumber the participants in past programs in the countries we
studied. However, the experiences of other countries in addressing foreign
worker flows and employment are useful in identifying a broad range of
issues for consideration by any country that attempts to reform its
immigration policy and can illuminate the potential advantages and
pitfalls associated with them.

                                   Background

Political and Social Factors Related to Immigration

Individuals migrate between countries for different reasons, including for
family reunification, humanitarian, and work purposes. Many countries
provide channels through which immigrants can legally enter to live with
their immediate family members, and most countries we studied also admit
immigrants who are refugees or claim asylum. Countries also have
established temporary and permanent migration channels through which
individuals can legally enter for employment.

Social and political factors in countries may affect countries'
immigration policies. For example, studies have noted that a country's
perception of its national identity can affect the country's policies for
admitting and integrating immigrants.12 A country that perceives itself as
being culturally homogeneous may view immigration differently than
countries with long histories of immigration. Relatedly, countries'
policies for granting permanent residence or citizenship to immigrants may
affect countries' immigration programs. For instance, policies regarding
permanent residency and citizenship may help shape the types of programs
countries implement for admitting immigrants and facilitating immigrants'
social and economic integration.

Studies have noted the importance of social and economic integration for
immigrants.13 Programs to integrate immigrants into a country provide
benefits to both the country and immigrants by promoting social cohesion;
fostering immigrants' support for and participation in the country's
political, economic, and social systems; and helping to ensure the
protection of immigrants' rights and to enhance their ability to access
the labor market. These programs may provide immigrants with job training
or work experience, language or civics courses, and other educational
opportunities.

12 See, for example, International Organization for Migration, World
Migration 2005: Costs and Benefits of International Migration (Geneva,
Switzerland: 2005).

13 See, for example, Organisation for Economic Co-operation and
Development, Trends in International Migration (Paris, France: 2005), and
Organization for Security and Co-operation in Europe, International
Organization for Migration, and International Labour Office, Handbook on
Establishing Effective Labour Migration Policies in Countries of Origin
and Destination, 2006.

Countries may implement changes to existing immigration policies,
including to reduce immigrant admissions or, conversely, to provide
increased opportunities for legal immigration, based on different factors
or events. Countries may revise their immigration policies to respond to
external events, such as humanitarian crises in other countries or
international conflicts by, for example, changing the number of refugees
and asylum seekers admitted to the countries. Moreover, countries may
strengthen their border control efforts, for instance, in response to
increased illegal immigration flows from neighboring countries.

Economic and Demographic Factors Related to Immigration

Various economic and demographic characteristics are linked to countries'
immigration policies. In particular, studies have noted that economic
factors, such as unemployment rates, economic growth rates, and the size
of the underground economy, may affect countries' immigration policies.14
For example, high unemployment rates may limit the number of foreign
workers countries admit, as unemployed native workers take jobs typically
filled by foreign workers. Therefore, high unemployment rates in certain
countries may encourage foreign workers to seek employment in other
countries with lower unemployment rates. Likewise, studies have suggested
that the relative difference in the size and growth of countries'
economies can affect immigration flows. Countries with large or
fast-growing economies are attractive to foreign workers-including
unauthorized immigrants.

The employment of unauthorized foreign workers contributes to countries'
underground economies. The underground economy includes any employment in
a country for which employers do not pay taxes or social insurance
contributions and is thus composed of both unauthorized foreign workers
and native workers for whom appropriate contributions are not paid.
Studies have noted that both employers and workers benefit from working in
the underground economy because in doing so, neither group pays taxes or
social insurance contributions.15 Employment in the underground economy
may negatively affect government revenue because governments do not
collect taxes and social insurance contributions on underground
employment. Likewise, workers in the underground economy may find it more
difficult to access social insurance benefits and may be more at risk for
exploitation.

14 See, for example, International Organization for Migration, World
Migration 2005 and International Labour Office, Towards a Fair Deal for
Migrant Workers in the Global Economy (Geneva, Switzerland: 2004).

15 See, for example, Friedrich Schneider and Robert Klinglmair, Shadow
Economies Around the World: What Do We Know? Johannes Kepler University of
Linz, (Linz-Auhof, Austria: April 2004).

Demographic factors, particularly countries' birthrates and population
characteristics, may also affect immigration policies. Studies have noted
that aging, low-growth populations may have long-term effects on
countries' fiscal and economic outlook, and these countries may be more
disposed to admitting foreign workers than other countries.16 For example,
as the number of younger people in a country decreases relative to the
increase in the number of older people, contributions made by younger
workers to countries' social insurance systems may not be sufficient to
provide insurance benefits for the increasing older population. Therefore,
countries with aging, low-growth populations may have an incentive to
encourage legal immigration and admit large numbers of foreign workers who
can contribute to countries' tax and social insurance systems and may be
more at risk for exploitation.

Yet foreign workers in countries may also be eligible to receive some
social insurance benefits, and foreign workers' access to such benefits
varies among countries. For example, in some countries foreign workers,
including unauthorized foreign workers, can access unemployment and health
insurance but cannot receive retirement benefits. Given that foreign
workers contribute to tax and social insurance systems but also can
receive social insurance benefits, in most countries it is unclear whether
foreign workers' contributions are greater than the benefits they receive
or whether foreign workers, particularly unauthorized workers, create net
fiscal costs for governments. In addition, studies suggest that
unauthorized foreign workers create other costs for governments, such as
costs for social services as well as for border and interior enforcement
efforts.

Experts have reported that immigration provides economic benefits to
countries that may exceed any fiscal costs to governments resulting from
unauthorized immigration.17 These experts have suggested that migration
helps to allocate labor resources among global labor markets, creating net
gains for migrants and countries receiving the migrants. For example, in
some countries there is little direct competition between immigrants and
local workers for jobs in most sectors. In such instances, foreign workers
can fill needed jobs for which no native workers are available. In
countries with more direct competition between immigrant and resident
workers, particularly for low-skilled jobs, immigrants tend to compete
with native workers as well as with other immigrants already residing in
the country with similar skills. In these cases, resident workers, both
citizens and noncitizens, may experience declining wages or wages that
rise slowly and increasing unemployment rates. Moreover, studies have
suggested that a high concentration of foreign workers in certain
industries or geographical areas can depress employment and working
conditions in the local labor force.18

16 See, for example, International Organisation for Migration, World
Migration 2005.

17 See, for example, Global Commission on International Migration,
Migration in an Interconnected World: New Directions for Action
(Switzerland, October 2005) and Organisation for Economic Cooperation and
Development, Combating the Illegal Employment of Foreign Workers (Paris,
France: 2000).

Free Movement among EU Countries

Among EU countries, policies and practices established by the EU may
affect member countries' immigration policies. In particular, within the
EU, nationals or citizens of member countries can move freely between
other member countries without being subject to border controls. In June
1985, five EU countries initially signed a treaty to create a territory
within the EU that did not have internal border checkpoints and controls,
which became known as the Schengen area. This treaty includes EU members,
other than the United Kingdom and Ireland, and does not yet fully apply to
the 10 new members that acceded to the EU in May 2004.19 When the Schengen
area came into effect, it abolished the internal borders of the signatory
states and created a single external border for immigration checks for all
states within the Schengen area.

In addition to the right of free movement, nationals of EU member
countries have the right to work in any other member country. However,
this right has not yet been fully extended to new member countries that
acceded to the EU in May 2004. For the first 2 years following accession,
new member countries' access to labor markets in the existing member
countries depended on the national policy of each existing member country.
Among the existing member countries, Ireland, Sweden, and the United
Kingdom fully opened their labor markets to workers from all the new
member states. Other existing member countries limited workers' access to
labor markets under transitional arrangements for various reasons,
including to limit competition among domestic and foreign labor forces. At
the end of the initial 2-year period, the European Commission assessed the
transitional arrangements for workers from the new EU countries.20 In
addition, existing member countries decided whether to continue the
arrangements for an additional 3 years or to allow workers from the new
member countries full access to labor markets. Finland, Greece, Portugal,
and Spain opened their labor markets to workers from the new EU countries
as of May 1, 2006, while the other EU member countries decided to continue
the transitional arrangements. At the end of this 3-year period, existing
member countries can, under limited conditions, restrict labor access for
an additional 2-year period. Member countries cannot extend the
transitional arrangements beyond 7 years after the new members' EU
accession.

18 See, for example, International Organisation for Migration, World
Migration 2005.

19 The members of the Schengen area are Austria, Belgium, Denmark,
Finland, France, Germany, Greece, Iceland, Italy, Luxembourg, the
Netherlands, Norway, Portugal, Spain, and Sweden. All these countries
except Norway and Iceland are European Union members. The member states
that joined the European Union on May 1, 2004, are bound by the entire
Schengen agreement, but certain provisions will apply to them only after
border controls have been abolished. These 10 new EU members are: Cyprus,
the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland,
Slovakia, and Slovenia.

Immigration-Related Programs in the United States

United States immigration policy distinguishes between temporary and
permanent admissions by providing for two types of U.S. visas for foreign
nationals entering the country. Immigrant visas are issued to foreign
nationals who intend to live permanently in the United States, while
nonimmigrant visas are for foreign nationals wishing to enter the country
on a temporary basis, such as for temporary work, study, or tourism. The
immigrant visas generally provide a path to eventual citizenship, while
the nonimmigrant visas require that, upon expiration of the visa, the visa
holder must either leave the country or change status to a new visa
category.

Permanent immigrant visas are issued for family reunification, employment,
or humanitarian reasons. Immigrants who apply to enter the United States
for work purposes are required to follow a multistep process. First, the
potential worker and employer determine if the worker is eligible for a
permanent employment-based visa based on the applicant's skills. Second,
most employment categories require that the U.S. employer complete a labor
certification request for the applicant and submit it to the Department of
Labor's Employment and Training Administration Office of Foreign Labor
Certification. This office provides labor certifications to employers once
employers have demonstrated that there are insufficient qualified U.S.
workers available and willing to perform the work at wages that meet or
exceed the prevailing wage paid for the occupation, and employment of the
immigrant will not adversely affect the wages and working conditions of
U.S. workers similarly employed. Third, once the employer receives the
labor certification, the employer files an immigrant visa petition, which
must be approved by U.S. Citizenship and Immigration Services (USCIS) in
the Department of Homeland Security (DHS). Finally, the Department of
State provides the applicant an immigrant visa number. The visa number
indicates that a visa has been assigned to the applicant, but the
applicant is required to wait, sometimes for years, for the visa number to
become available in order to complete the process of becoming a permanent
resident.

20 Commission of the European Communities, Report on the Functioning of
the Transitional Arrangements set out in the 2003 Accession Treaty
(Brussels, Belgium: 2006).

Current U.S. law allows for 140,000 permanent employment-based visas per
year and preferentially grants these visas based on skill level, with
highly skilled applicants receiving the highest preference. The first
level of preference is provided to persons of "extraordinary ability" in
the arts, sciences, education, business, or athletics; outstanding
professors and researchers; and multinational executives and managers all
of whom must meet certain specified criteria.21 The second level of
preference is provided to members of professions holding advanced degrees
or persons of "exceptional ability" in the sciences, art, or business who
meet certain specified criteria.22 The third preference level is provided
to skilled workers with at least 2 years' training or experience,
professionals with baccalaureate degrees, and up to 10,000 unskilled
shortage workers performing work that is not of a temporary or seasonal
nature.

The majority of work-related visas that are granted in the United States
are for a temporary period and require the employer to file a petition
with USCIS. The beneficiaries of the visa petition generally must provide
evidence that they are not coming to live permanently in the country, and
in some cases, as discussed above, employers must receive an employment
certification from the U.S. Department of Labor. The United States
currently has 72 specific types of temporary visas, and a subset of these
permit the visa holder to be employed while in the United States. Table 1
provides examples of some of these temporary, employment-based visa
programs. Some work visas are designed to attract workers in specific
labor market sectors, such as nursing or corporate managers. One of the
largest categories for work-related visas is the H visa, which includes
the H-1B, H-2A, and H-2B visas, and is not specific to a particular
market. H-1B visas are for professional specialty workers with highly
specialized knowledge or distinguished fashion models and are renewable
for up to 6 years. The H-2A visa is for seasonal or temporary agricultural
workers and allows for a maximum stay of 3 years. Finally, the H-2B visa
is a general, temporary visa for nonagricultural workers; is limited to
66,000 visas annually; and does not have requirements for skill levels.
After the temporary visas expire, the foreign worker is required to leave
the United States. Migrants who overstay their visas contribute to the
unauthorized foreign worker population in the United States, despite
provisions in the law that limit or control the ability of unauthorized
migrants to find employment. We have previously reported that the United
States has difficulty in tracking the status of immigrants who enter the
country legally and then overstay their visas.23

21 "Extraordinary ability" must be demonstrated by sustained national or
international acclaim and achievements that have been recognized in the
field through extensive documentation. 8 U.S.C. S: 1153(b)(1)(A).

22 According to 8 U.S.C. S: 1153(b)(2)(A), individuals with "exceptional
ability" are those who will substantially benefit prospectively the
national economy, cultural or educational interests, or welfare of the
United States, and whose services in the sciences, arts, professions, or
business are sought by an employer in the United States.

23 GAO, Overstay Tracking: A Key Component of Homeland Security and a
Layered Defense, GAO-04-82 (Washington, D.C.: May 21, 2004).

Table 1: Examples of Temporary Employment-Based Visas in the United States

                                           Annual numeric                     
Visa Type of foreign workers            limit          Length of stay
E    International investors and        None           Renewable up to 2   
        traders                                           years with possible 
                                                          extension of stay   
H-1B Temporary workers in professional  65,000         Renewable up to 6   
        specialty occupations with highly                 years               
        specialized knowledge or fashion   (with certain  
        models of distinguished merit and  exceptions)    
        ability                                           
H-2A Temporary agricultural workers     None           Maximum stay of 3   
                                                          years               
H-2B Temporary nonagricultural workers  66,000         Maximum stay of 3   
                                                          years               
J    Instructors or researchers in      None           No maximum stay     
        education and cultural exchange                   restriction         
        programs designated by the                        
        Department of State                               
L    Intercompany transfers in a        None           5-7 years           
        capacity that is managerial,                      
        executive, or involves specialized                
        knowledge                                         
O    Persons with extraordinary ability None           3-4 years           
        in the sciences, arts, education,                 
        business, or athletics or certain                 
        persons accompanying or assisting                 
        them                                              
P    Internationally recognized         None           10 years            
        athletes, members of an                           
        entertainment group, or certain                   
        other individual performing                       
        artists or entertainers                           
Q-1  Providers of practical training,   None           Maximum stay of 15  
        employment or experience in                       months              
        cultural exchange programs                        
        approved by USCIS                                 
R    Religious workers                  None           Maximum stay of 5   
                                                          years               
TN   Temporary workers under the North  None           Renewable up to 2   
        American Free Trade Agreement                     years               

Source: GAO analysis of USCIS data.

U.S. immigration laws have also established a variety of means by which
immigrants can change their status after entering the country. For
example, some temporary visa categories allow a legal visa holder to apply
to adjust to lawful permanent resident status under a permanent
employment- or family-based category after a specified period of time of
working legally in the United States. In addition, IRCA established a
regularization program to provide legal status to aliens who had
continuously resided in the United States illegally prior to January 1,
1982. It is estimated that the programs under IRCA regularized the status
of nearly 3 million unauthorized immigrants.

IRCA also established procedures for verifying the work authorization of
foreign employees and for enforcing laws to limit the employment of
unauthorized workers. The act made it illegal for individuals to knowingly
hire, continue to employ, or recruit or refer for a fee unauthorized
workers and established a two-pronged approach for helping to limit the
employment of unauthorized workers: (1) an employment verification process
through which employers verify newly hired employees' work eligibility and
(2) a sanctions program for fining employers who do not comply with the
act.

Under the employment verification process, employees and employers must
complete the Employment Eligibility Verification Form (Form I-9) to
certify that the employees are authorized to work in the United States.
Employers must request that newly hired employees present a document or
documents that confirm employees' identity and work eligibility.
Currently, there are 27 different documents that can be used to establish
work eligibility. On the Form I-9, employees must attest that they are
U.S. citizens, lawfully admitted permanent residents, or aliens authorized
to work in the United States. Employers must then certify that they have
reviewed the documents presented by their employees to establish identity
and work eligibility and that the documents appear genuine and relate to
the individual presenting them. In making their certifications, employers
are expected to judge whether the documents presented are obviously
counterfeit. Employers are deemed in compliance with IRCA if they have
followed the verification procedures, including instances when an
unauthorized alien may have presented fraudulent documents that appeared
genuine. We have previously reported that current weaknesses, such as
difficulty in detecting document and identity fraud and the large number
of acceptable documents for proving work eligibility, have undermined the
effectiveness of the employment verification process.24

Those employers who do not follow the verification process can be
sanctioned for knowingly hiring or continuing to employ unauthorized
workers, or for improperly completing the Form I-9. Employers who fail to
properly complete, retain, or present for inspection a Form I-9 may face
civil or administrative fines ranging from $110 to $1,100 for each
employee for whom the form was not properly completed, retained, or
presented.25 IIRIRA of 1996 limited employer liability for certain
technical violations of Form I-9 paperwork requirements. According to the
act, a person or entity is considered to have complied with the employment
verification process if the person or entity made a good faith attempt to
properly complete the Form I-9.26 Employers who knowingly hire or continue
to employ unauthorized aliens may be fined from $275 to $11,000 for each
employee, depending on whether the violation is a first or subsequent
offense. Employers who engage in a pattern or practice of knowingly hiring
or continuing to employ unauthorized workers are subject to criminal
penalties consisting of fines up to $3,000 per unauthorized employee and
up to 6 months' imprisonment. Efforts to enforce these sanctions are
referred to as worksite enforcement and are primarily the responsibility
of U.S. Immigration and Customs Enforcement (ICE) in DHS.

24 GAO, Immigration Enforcement: Weaknesses Hinder Employment Verification
and Worksite Enforcement Efforts, GAO-05-813 (Washington, D.C.: Aug. 31,
2005).

We reported in 2005 that worksite enforcement has been a relatively low
priority under both the U.S. Immigration and Naturalization Service
(INS)27 and ICE, and that since fiscal year 1999, INS and ICE have
dedicated a relatively small portion of overall agent resources to the
worksite enforcement program.28 Since September 11, 2001, INS and then ICE
focused worksite enforcement efforts mainly on detecting and removing
unauthorized workers from critical infrastructure sites, such as airports
and nuclear power plants, consistent with the DHS mission to combat
terrorism. Yet employers, particularly those not located at or near
critical infrastructure sites, who attempt to circumvent IRCA have faced
little likelihood that ICE would investigate them for knowingly hiring
unauthorized foreign workers. We reported that INS and ICE have faced
difficulties in setting and collecting fine amounts that meaningfully
deter employers from hiring unauthorized foreign workers and in detaining
unauthorized workers, though we noted that ICE has taken steps to address
these difficulties. In addition, in 2006 we reported that data on
individuals' earnings collected by various agencies, including the Social
Security Administration and the Internal Revenue Service, could help DHS
detect unauthorized work and enforce immigration laws.29 However, while
our prior work has highlighted the benefits of earnings information for
detecting unauthorized work, we noted that additional disclosure of
earnings information should be carefully weighed against the various
drawbacks-especially privacy considerations.

25 In 1999, the Department of Justice increased the amounts of the civil
penalties from those established in IRCA to the current levels to reflect
a 10 percent adjustment for inflation. 8 C.F.R. S: 274a.10(b). Under the
Federal Civil Monetary Penalties Inflation Adjustment Act of 1990, as
amended, federal agencies are to make regular adjustments for inflation of
civil monetary penalties that they are charged with enforcing. 28 U.S.C.
S:2641 note.

26 According to IIRIRA, a person or entity with certain Form I-9 paperwork
violations must be informed of the violation and provided with a period of
not less than 10 business days to correct the violations. If the person or
entity does not correct the violations within the specified time period,
the person or entity would not be considered to have made a good faith
attempt to comply with the Form I-9 requirement.

27 In March 2003, INS was merged into the Department of Homeland Security.
The service's immigration functions were divided between USCIS, ICE, and
U.S. Customs and Border Protection. ICE is responsible for managing and
implementing the worksite enforcement program.

28 GAO-05-813 .

               Countries' Programs for Admitting Foreign Workers

The countries in our review have programs designed to recruit foreign
workers to fill jobs that cannot be filled by native workers, and these
programs generally focus on recruiting high-skilled or seasonal foreign
workers. Some countries facilitate the recruitment of workers by using
bilateral agreements or third party entities. The countries we studied
determine and manage the number of foreign workers that can be admitted by
studying labor market conditions or by implementing a quota system. The
countries also have admission requirements that employers and potential
foreign workers are required to meet in order to participate in a foreign
worker program. The majority of foreign worker programs implemented in
countries we studied are temporary, and the countries use a variety of
mechanisms to encourage or enforce the return of temporary foreign workers
after expiration of work permits.

29 GAO, Immigration Enforcement: Benefits and Limitations to Using
Earnings Data to Identify Unauthorized Work, GAO-06-814R (Washington,
D.C.: July 11, 2006).

Countries Recruit Foreign Workers Based on Skill Level and Can Use Bilateral or
Other Agreements

  Countries Recruit Foreign Workers with Different Skill Levels but Generally
  Focus Recruitment on High-Skilled and Seasonal Workers

Foreign countries in our review have programs designed to fill
high-skilled, low-skilled, and seasonal jobs with foreign workers, but
countries vary in the ways they recruit foreign workers for these types of
positions. Countries such as Australia, Germany, and Belgium have programs
designed to actively recruit highly skilled workers.30 For example,
according to government officials, Australia offers numerous foreign
worker programs to recruit highly skilled foreign workers in specific
industry sectors that have experienced labor market shortages. The country
recruits high-skilled workers through, among other means, the use of
promotional campaigns within specific industrial sectors or foreign
countries to target foreign workers with specific business or trade skills
for positions in Australia, such as medical practitioners, visiting
academics, and business workers. In addition, Canadian officials stated
that about 55 percent of the temporary foreign workers admitted to Canada
in 2004 were employed in skilled occupations, such as professionals,
academics, and engineers. According to one expert, because the education
and training required to become high-skilled takes time to acquire, an
efficient way for a country to increase its numbers of high-skilled
workers is to recruit these workers from abroad. For example, during the
1990s, most industrial countries made it easier for foreign professionals
to enter and work temporarily or permanently in response to the economic
growth of that period.

While countries we studied, such as Canada, Australia, and Germany, have
programs designed to legally admit low-skilled foreign workers, they
generally do not focus their recruitment efforts on this type of worker.31
However, jobs in low-skilled sectors, such as manufacturing, construction,
and cleaning services, are also the sectors in which employers with large
numbers of unauthorized workers are typically found. Government officials
and experts told us that the high amount of illegal work in these sectors
can be an incentive for governments to develop programs designed to
legally admit low-skilled workers. In addition, countries' need for
foreign workers to fill low-skilled jobs is at least partially determined
by the economic situation of the countries. For example, experts from
Germany stated that the high unemployment rate in their country has
decreased the need for low-skilled foreign workers, and the German
government has taken steps to fill low-skilled job vacancies with
unemployed German citizens. In contrast, Canadian officials stated that
their country's need for temporary foreign workers, of which about 45
percent are low-skilled, has increased as the economy has strengthened.

30 See appendix II for more information on high-skilled worker programs in
the countries we studied.

31 See appendix II for more information on low-skilled worker programs in
the countries we studied.

While most of the countries in our review do not recruit significant
numbers of low-skilled foreign workers, government officials generally
told us they recruit foreign workers on a seasonal basis and have
implemented programs designed to fill those needs.32 For example, Germany
recruits seasonal workers by allowing employers to specify individual
foreign workers to fill positions or by allowing an employer to request
foreign workers through a local employment agency without specifying
particular workers. Seasonal work, while considered to be a type of
low-skilled employment, is generally regulated under specific programs
different from those regulating other types of foreign work because
seasonal work is of a defined amount of time. Seasonal work is generally
in the agricultural or tourism industries in which the length of such work
is defined by growing season and peak tourist season, respectively.
Foreign workers may therefore have the opportunity to participate in
seasonal programs on an annual basis. Government officials and experts
told us that this process of repeatedly participating in seasonal programs
provides an incentive for foreign workers to return to their home
countries at the end of the season because lapsing into illegal status by
overstaying their permits may jeopardize workers' ability to participate
in future programs. In addition, government officials and experts
suggested that employers benefit from seasonal worker programs under which
the same workers participate year after year because employers gain
benefits from their investments in the seasonal workers, such as in the
provision of training. However, experts also noted that seasonal workers
may be vulnerable to exploitation because they may not be fully aware of
their rights or may not report mistreatment if they fear doing so would
jeopardize their employment.33

32 See appendix II for more information on seasonal worker programs in the
countries we studied.

  Countries Can Use Bilateral Agreements or Third Party Entities to Recruit
  Foreign Workers

Some countries we studied use bilateral agreements to manage the flow of
workers between two countries or to manage foreign worker admissions in
specific labor sectors. For example, the Canadian government uses
bilateral agreements with Mexico and Jamaica to recruit and admit seasonal
foreign workers in the agricultural industry. Australia runs its Working
Holiday Maker Program through reciprocal bilateral agreements with other
countries. Under this program, Australia admits foreigners aged 18 to 30
from specific countries to enter Australia for up to 1 year for travel
around the country. During their time in the country, these individuals
can earn money by working for up to 6 months each with different
employers. An Australian government official stated that the working
holiday maker program has contributed to the Australian economy because it
allows employers to hire visiting foreigners to do short-term work that
the employers would likely not be able to obtain Australian workers to do.

Government officials and experts told us that both the receiving and
sending countries have incentives to enter into a bilateral agreement. The
agreements provide the receiving countries with mechanisms to help control
the flow of illegal migration from sending countries by, for example,
including provisions that require the sending countries to repatriate
citizens who are found to be in the receiving country illegally. In
addition, bilateral agreements allow receiving countries to recruit
foreign workers from specific sending countries or with specific skills or
other characteristics to fill jobs in certain sectors with labor
shortages. Bilateral agreements also may provide employers in the
receiving countries with some control over recruiting workers with
appropriate skills to fill job positions, allow employers to compare
foreign workers' education with the receiving country's standards, and
help ensure sending countries' assistance in repatriating workers after
work permits expire. In particular, some receiving countries have set up
offices in sending countries to recruit and provide training for workers
to be admitted. In other cases, companies themselves have become involved
in the recruiting process by sending personnel to countries to train and
recruit foreign workers. For example, in Spain, the autonomous community
of Madrid recently signed an agreement with Colombia that allows employers
to train and guarantee jobs to potential workers while they are still in
Colombia. France has bilateral agreements with Romania and other countries
that facilitate unauthorized immigrants' repatriation by stipulating that
deported foreign workers will not be able to secure a tourist visa
enabling them to return to France for at least a few months after
repatriation. Moreover, experts told us that receiving countries can use
bilateral agreements to help manage the flows of unauthorized immigrants
by providing financial assistance to the sending countries, helping to
improve financial conditions in the sending countries and thus reducing
immigrants' incentives to migrate illegally.

33 See, for example, Organization for Security and Co-operation in Europe,
International Organization for Migration and the International Labour
Office, Handbook on Establishing Effective Labour Migration Policies in
Countries of Origin and Destination (Geneva, Switzerland: 2006)

Likewise, sending countries have a variety of incentives for participating
in bilateral agreements to manage foreign worker flows. Sending countries'
economies benefit from the remittances that foreign workers send back to
the countries, and bilateral agreements provide sending countries with a
vehicle to negotiate appropriate wages, living conditions, and job
security for their citizens abroad. In addition, sending countries may
benefit economically and socially from the skills and experiences that
temporary foreign workers bring back to the countries by, for example,
encouraging small business and community development. Experts have
indicated that helping to improve financial conditions in the sending
countries reduces immigrants' incentives to migrate illegally.

Bilateral agreements also help sending countries ensure their workers'
rights, such as ensuring employers provide safe working conditions.
According to studies, the rights granted to foreign workers under
bilateral schemes vary by agreement and the terms and conditions
negotiated between the sending and receiving countries. Bilateral
agreements can ensure that workers admitted are entitled to the same
working conditions and wages as native workers, and some agreements also
specify whether and how foreign workers are able to collect social
insurance contributions made in receiving countries upon the workers'
return to their home countries. However, nongovernmental officials and
experts have stated that sending countries, in some cases, may be
reluctant to advocate for their workers' rights if the countries perceive
that doing so may hinder their participation in the bilateral agreements
and thus the flow of remittances.

In addition, countries use private sector entities, called third party
entities or operators, to recruit, select, or transport foreign workers
from sending to receiving countries. For example, the United Kingdom
allocates a defined number of work permits to several third party
operators, who then independently recruit workers from other countries to
work in the agricultural sector. Studies suggest that the use of third
party entities is a means to link employers in the receiving countries
with appropriate foreign workers. Government officials told us that the
use of third party entities requires the government to regulate these
groups to ensure they are complying with program requirements. For
example, researchers have stated that third party entities can exploit
foreign workers by soliciting money from foreign workers in exchange for
job placement.

Countries Control the Admissions of Foreign Workers by Limiting Their Numbers
and Setting Eligibility Requirements

  Countries Manage Foreign Worker Admissions Using Various Methods But May Find
  It Difficult to Effectively Respond to Changing Labor Market Needs

Most of the countries we studied assess the need for foreign workers by
studying the labor market and using the results to determine the number of
foreign workers to admit to work in specific sectors, but the countries
varied in the extent to which they have formalized processes to assess
labor market needs for foreign workers. The officials and experts with
whom we spoke told us that basing the number of allowable admissions of
foreign workers on the results of labor market determinations helps ensure
that the number of foreign workers legally admitted matches the actual
economic need for workers in specific industries. For example, Spain's
regional governments determine the need for foreign workers in different
labor sectors by discussing labor market needs with employer and worker
associations and submit the results to the national government, which then
uses the information to determine the number of foreign worker admissions
for each sector. Experts and officials told us that a process for
assessing labor market needs helps countries match the number of foreign
worker admissions to labor market needs for those workers. In addition,
many countries, including Argentina, the Netherlands, and Switzerland,
require a potential employer to prove that no native workers are available
to fill a job before the employer can apply to bring in a foreign worker.
Countries such as France and Canada require employers to advertise job
vacancies in local newspapers, trade publications, or an employment office
before the employers can seek foreign workers. However, officials and
experts told us that the burden on employers for completing this
requirement can encourage employers to circumvent the assessment process
and hire unauthorized foreign workers, resulting in the need for
enforcement tools to address unauthorized foreign workers' employment.

In addition to using labor market assessments to determine the need for
foreign workers, some countries we studied use quota systems to indicate
the number of legal foreign worker admissions. Quotas can be set at a
predetermined number or allow for some flexibility in the number of
foreign workers to admit based on labor market needs. Governments may set
quotas on an annual basis in consultation with relevant bodies such as
employers, trade unions, and local labor or employment offices to account
for labor market needs. Quotas can be set for each labor sector or
geographic region or by foreign workers' countries of origin. For example,
Switzerland has implemented a national quota for both temporary and
long-term workers that limits the number of foreign workers admitted to
Switzerland each year. The United Kingdom introduced a sector-based scheme
in 2003 that created a quota of 10,000 workers in the hospitality and
food-processing sectors and limited the annual number of foreign workers
admitted to the United Kingdom in those sectors, although the United
Kingdom is moving towards an employment-based immigration system based on
a general points scheme to admit foreign workers, as discussed below.
Additionally, in Austria, the government sets quotas of seasonal workers
by sector. In 2006, Austria set quotas of 7,500 for workers in the tourism
sector; 7,500 for workers in the agriculture or forestry sector; and 7,000
for seasonal harvesters.

However, it is difficult to implement a quota program that effectively
responds to changing labor market needs when the number of foreign worker
admissions has been set under a quota system. Government officials, labor
unions, and experts told us that quotas may not necessarily respond to
labor market needs, a situation that creates an incentive for employers to
hire unauthorized workers and necessitates enforcement efforts to control
the employment of unauthorized workers. Officials and experts also stated
that as a country's economy changes, the need for foreign workers may
shift from one employment sector to another.

Some countries, including Australia, Canada, New Zealand, and the United
Kingdom,34 have used points-based systems for managing immigration flows,
which allow countries to tailor their admission requirements for residence
or work permits to migrants who meet certain characteristics. In general,
under points-based systems, immigrants, such as temporary foreign workers,
obtain points based on various skills and characteristics, including
educational or professional experience and ability to speak a country's
native languages. These characteristics may be chosen based on a country's
perception of attributes that predict a migrant's potential to succeed in
the labor market. Immigrants whose point totals meet a minimum point
requirement can qualify for work permits and, in some cases, permanent
residence status. Under Australia's points-based system, immigrants can
earn points for such things as skill, age, English language ability,
specific work experience, an occupation in demand, a job offer, an
intention to reside in regional Australia, and spouses' skills. Under
Canada's system, points are assigned to applicants based on age,
education, work experience, intended occupation, and knowledge of Canadian
national languages, among other things. Experts have said that
points-based systems are advantageous because they are transparent to both
the migrant and employer about the requirements a migrant must meet in
order to qualify for entry to the country.

  Countries' Foreign Worker Programs Specify Employer and Worker Requirements
  for Participation

Countries we studied have foreign worker programs with requirements that
employers and potential foreign workers are required to meet in order for
the government to issue a work permit.35 Most countries require either the
worker or employer to pay a fee in order to be granted a work permit. For
example, Canada charges individual workers a C$150 (about $140) fee to
apply for a work permit. The United Kingdom charges employers a -L-153
(about $280) fee to apply for a work permit on behalf of each potential
foreign worker. Experts have suggested that requiring employers to pay a
fee for foreign workers' permits helps to ensure that employers hire only
those foreign workers for whom they truly have a need. However, government
officials and experts stated that the fee requirement may create an
incentive for workers to seek illegal employment and for employers to hire
unauthorized workers in order to avoid having to pay the fee. In other
cases, unscrupulous employers may illegally deduct the cost of the fees
from foreign workers' wages.

34 The United Kingdom implemented a pilot scheme in January 2002 called
the Highly Skilled Migrant Programme, which uses a points-based system to
select migrants. In March 2006, the United Kingdom government announced
that a points-based migration system will be introduced for managing labor
migration. See appendix X for more information.

35 See appendix II for more information on the specific work permit
requirements in the countries in our review.

Many countries' work permits also stipulate that foreign workers can only
be employed by the employer listed on the permit. Therefore, if foreign
workers would like to change jobs, the workers must reapply for a new
permit or work for an alternate employer illegally. While such a
requirement can help regulate foreign workers' employment, experts and
other nongovernmental officials told us that the requirement can also make
it difficult for foreign workers to escape unscrupulous employers who may
exploit the workers. In addition, the requirements of work permits granted
under foreign worker programs generally state whether family members may
accompany a foreign worker. For example, under Austria's seasonal worker
program, foreign workers are not permitted to bring their family members.
According to government officials, employer and employee groups, and
experts, temporary workers may be less likely to return to their home
countries if their family members are permitted to accompany them.

Countries' Foreign Worker Programs Are Generally Temporary but Vary in Their
Requirements for Return

Regardless of the skill level of the foreign worker, the majority of work
permits offered by the countries we studied are temporary, although the
permits vary in their requirement for the workers' return at the end of
the permit's duration. These permits generally expire after a set amount
of time-for the countries in our review from 3 months to 5 years after
issuance. However, not all temporary work permits require workers to
return home at the end of the permit. Some temporary work permits are
renewable and allow workers to renew the permit an unlimited number of
times. For example, the Spanish government offers foreign workers a 1-year
temporary permit that is renewable indefinitely, and participants in this
program have the option to apply for permanent residency after 5 years.
Nongovernmental officials and experts told us that an advantage of
renewable temporary work permits is that they provide a means for
employers to employ a legal workforce, help governments obtain financial
benefits from hiring legal foreign workers, and reduce employers'
incentives to hire unauthorized foreign workers.

Some countries' foreign worker programs offer temporary work permits that
require the foreign worker to leave the country when the permit expires,
but government officials and experts noted that it is difficult to ensure
that the workers return to their home countries. Government officials and
experts noted that temporary programs are most successful in ensuring
worker return when the work is of a short, defined duration, such as in
seasonal labor sectors. Workers may also be more willing to return to
their home countries if they have the opportunity to participate in future
programs. For example, Canadian officials and experts stated that
employers in Canada have an incentive to hire legal foreign seasonal
workers because they have assurance that the workers will be available to
work in subsequent years. In addition, the foreign workers have incentives
to return home because they do not want to jeopardize their status in the
program and, because the agricultural work is located in rural areas of
Canada, it can be difficult for the foreign workers to integrate into or
travel to more populated areas of the country.

Experts and government officials noted that because it is difficult to
successfully ensure foreign workers' return to their home countries, a
significant number of foreign workers overstay their work permits and
become unauthorized immigrants, contributing to countries' illegal
immigrant populations. The countries we studied use a variety of tools to
encourage or enforce foreign workers' return to their home countries when
their permits have expired (see table 2), and these tools are used in
conjunction with the countries' laws and policies that limit the
employment of unauthorized workers. For example, government officials
stated that hiring foreign workers who have an existing attachment to
their home countries may help ensure that workers return when their work
permits expire. According to government officials, under Spain's seasonal
agricultural worker program, the government recruits primarily married
women, because these workers may be more likely to return to their
countries in order to see their families. The United Kingdom's seasonal
worker program primarily recruits foreign students who are on vacation
from their schools, as these workers have an existing reason to return to
their home countries. In addition, countries may withhold foreign workers'
social insurance benefits or earnings, which workers can only collect upon
return to their home countries. Singapore requires employers of
non-Malaysian temporary foreign workers to post a bond of S$5,000 (about
$3,200) per worker, which is returned to the employer after the worker has
returned home.

Table 2: Examples of Tools to Encourage Foreign Worker Return, as Reported
by Government Officials and Experts

Tools to encourage                                                         
foreign worker return    Definition and use
Deportation or expulsion Unauthorized migrants are forcibly removed from   
                            the country.                                      
Collection of social     Workers can only collect pension or social        
insurance benefits       insurance benefits upon return to their home      
                            countries.                                        
Collection of withheld   Employers or governments withhold a portion of    
earnings                 foreign workers' earnings that workers can        
                            collect only upon return.                         
Bonds                    Employers or workers put up a monetary bond for   
                            work permits, which they can only collect upon    
                            workers' return.                                  
Proof of intent          Foreign workers must provide proof of their       
                            intent to return to their home countries before   
                            admission, such as by showing they have           
                            sufficient funds to purchase a return ticket.     
Reentry requirements     Countries grant reentry only if foreign workers   
                            return home upon expiration of the work permits.  
Recruit specific type of Countries recruit foreign workers who have an     
worker                   existing attachment to their home countries, such 
                            as married workers or students.                   
Admission of family      Family members may not be permitted to accompany  
members                  temporary foreign workers, making it more likely  
                            that the workers will return to their home        
                            countries. Countries may also subject family      
                            members to a waiting period, such as for 1 year,  
                            which effectively precludes them from             
                            reunification with shorter-term workers.          
Encouraging circular     Countries establish short-duration work permits   
migration                that are available annually. Foreign workers may  
                            be more willing to return to their home countries 
                            if they perceive that they will be able to return 
                            to the receiving country at a later date.         
                            Furthermore, allowing foreign workers to          
                            periodically return to their home countries helps 
                            workers maintain familial and other social        
                            networks in their home countries, helping to      
                            facilitate workers' return.                       
Facilitated reentry      Governments may require departing migrant workers 
                            to register their return with the government's    
                            consulate in the receiving country. In exchange,  
                            the migrant worker may gain facilitated reentry   
                            for employment purposes in the future.            
Sponsorship              Government may require employers and educational  
                            institutions to be approved to accept foreign     
                            workers or students and to receive a certificate  
                            of sponsorship, which requires, among other       
                            things, that they notify the government if the    
                            migrant is leaving their employment. Failure to   
                            do so results in removal of the government's      
                            approval for the employer or institution to       
                            accept foreign workers or students.               

Source: GAO analysis of country- and expert-reported data.

Some programs allow for permanent resident status after a certain period
of employment and residence, although countries' programs for foreign
workers generally do not allow for workers to become naturalized citizens.
Experts stated that granting permanent status can help ensure economic
growth and sustain social welfare contributions, as well as allow
employers to retain high-quality workers. Experts, government officials,
and nongovernmental officials stated that offering permanent status is
generally reserved for high-skilled foreign workers and therefore can be
used as a means to recruit and retain skilled foreign workers. For
example, Germany instituted a program for recruiting information
technology specialists in which foreign specialists could reside and work
in Germany for a 5-year period, after which they could apply for permanent
residency and bring in family members if the specialists met a minimum
salary requirement. In Switzerland, settlement permits can be granted to
individuals who have resided continuously in the country for 10 years;
foreigners from European Economic Area countries and the United States can
receive permits after 5 years of residence.

Some of the countries in our review have implemented measures to assist
with the integration of foreign workers and their families who are granted
long-term residency status and who may face difficulties in socially and
economically integrating into the countries. For example, immigration
experts in Germany stated that long term residents from Turkey may have
difficulty integrating into German society as, in general, neither they
nor their children could become German citizens. Germany has initiated
programs to help integrate new immigrants, such as requiring them to take
language and civics classes. France has also faced difficulties in
integrating immigrant populations, which, according to a government
official, have contributed to protests and civil unrest. The French
government has taken steps to help better integrate immigrants, such as
establishing a dialogue with immigrant organizations and providing
scholarships for immigrants. Other countries have also initiated programs
to help immigrants' integration, such as language and culture classes and
programs to assist immigrants in obtaining employment.

Additional Insights from Countries' Temporary Foreign Worker Programs

The countries whose temporary foreign worker programs we studied noted
that such programs have provided a variety of benefits to those countries
by, for example, helping countries fill labor market shortages in specific
sectors, such as in sectors where there are no native workers available or
willing to fill jobs. Temporary foreign worker programs have also provided
channels for legal immigration flows, which according to experts, may have
helped to reduce employers' demand for unauthorized foreign workers and
foreign workers' incentives to illegally migrate to receiving countries.
Yet, governmental and nongovernmental officials have noted challenges
faced by countries in implementing temporary foreign worker programs.
Experts have suggested that temporary foreign worker programs or other
initiatives that increase the number of foreign workers legally admitted
to countries do not help reduce illegal immigration flows but rather help
increase immigrant populations in receiving countries, which may encourage
further legal and illegal immigration flows. In addition, countries have
faced challenges in developing temporary foreign worker programs that
flexibly respond to changing labor market needs. Countries have also
experienced difficulties in enforcing requirements specified on work
permits, particularly in ensuring temporary foreign workers' return to
their home countries upon expiration of their work permits.

Countries Use Various Means to Limit Employment of Unauthorized Foreign Workers

The countries we studied generally require employers to report information
on workers' employment, such as workers' names and social insurance
numbers, to government agencies, and in some countries, employers are
required to review employees' work authorization documents. In taking
worksite enforcement actions against unscrupulous employers and
unauthorized foreign workers, including those who do not follow government
reporting and verification requirements, some countries focus enforcement
efforts on detecting and penalizing all illegal labor practices, while
others focus more specifically on the employment of unauthorized foreign
workers. As part of their worksite enforcement efforts, countries use a
variety of enforcement tools, which are generally focused more on
employers than on unauthorized foreign workers. To identify employers for
investigation, enforcement agencies in these countries obtain information
or leads from sources, such as the public and government databases, and
use this information to investigate worksites. According to government
officials and experts, the frequency and publicity of employer
investigations helps deter employers from hiring unauthorized foreign
workers, but countries have faced challenges in investigating and
sanctioning employers and unauthorized foreign workers. These officials
also stated that monetary fines penalize employers for hiring unauthorized
foreign workers and may help deter future unauthorized employment, but
others have noted that fines alone may not be effective in deterring
unauthorized foreign worker employment. In addition to monetary fines,
countries we studied use other means, such as seizure of employers'
assets, to penalize employers for hiring unauthorized foreign workers.

Countries Require Employers to Report or Verify Workers' Employment Information

In some countries we studied, the governments typically require employers
to report information on workers, including workers' names and social
insurance numbers, to government agencies when the workers are hired, and
the agencies maintain this information for collecting taxes and social
insurance contributions, administering social insurance benefits, and, in
some cases, conducting worksite enforcement actions. For example, in
France employers are required to submit a declaration of hire to the
social security administration. In Belgium, employers are required to
submit native workers' names and social insurance numbers to the
government's social insurance database. In Germany, employers are required
to report workers' employment information to the government for the
payment of taxes and social insurance contributions. In some of these
countries, employers are generally required to review noncitizens' work
authorization documents, such as work or residence permits, at the time of
hire because noncitizens typically do not have social insurance numbers to
report to government agencies. Employers can be subject to penalties if
they employ unauthorized foreign workers and failed to check those
workers' work authorization documents. Government officials and experts
have stated that requirements for employers to report workers' information
to government agencies help governments maintain records on individuals
for tax and social insurance purposes, and can help agencies detect
possible cases of illegal employment. However, officials and experts also
stated that document fraud may undermine countries' reporting requirements
and adversely affect governments' ability to hold employers liable for
hiring unauthorized foreign workers.

Some countries we studied require employers to review all workers' work
authorization documents. In the Netherlands, employers are required to
check workers' identity and work authorization documents, such as
passports, residence permits, or identity cards, before the workers start
their employment. Employers are required to maintain a copy of these
documents for at least 5 years after the workers cease their employment
with the employers. In the United Kingdom, employers are not required to
check workers' employment authorization documents, such as passports,
birth certificates, or work permits, but they cannot establish an
affirmative defense against a charge of hiring unauthorized foreign
workers unless they have reviewed workers' documents.36 While requirements
for employers to review workers' employment authorization documents may
help employers ensure that they hire only authorized workers, according to
governmental and nongovernmental officials, the vulnerability of
verification processes to document fraud has made it difficult for
employers to verify individuals' authorization to work. Officials told us
that unauthorized foreign workers have used false documents to illegally
obtain employment in their countries.

36 United Kingdom government guidance suggests that in reviewing work
authorization documents provided by workers, employers check documents'
photographs, dates of birth, expiration dates, and government endorsements
for their validity.

Some Countries Focus Enforcement Efforts on All Illegal Labor Practices, while
Others Focus More Specifically on the Employment of Unauthorized Foreign Workers

In some of the countries we studied, labor agencies are primarily
responsible for enforcing workplace laws and focus their enforcement
efforts broadly on identifying all types of illegal labor practices, of
which the employment of unauthorized foreign workers is part, including
employers' provision of substandard working conditions or failure to
appropriately pay minimum wages, taxes, or social insurance contributions
(see table 3). In Germany, for example, worksite inspectors can check
employers' records and practices to determine whether employers have paid
proper amounts of taxes and social insurance contributions for workers and
hired only authorized workers. Likewise, in Belgium, France, and
Switzerland, enforcement actions at worksites are coordinated among
multiple agencies and are focused on detecting illegal labor practices by
employers, though agencies focus on different elements of those practices.
These countries may have focused their enforcement on all illegal labor
practices for various reasons. For example, because employers' failure to
appropriately pay taxes or social insurance payments contribute to the
underground economy, enforcement agencies may focus on detecting all
illegal labor practices that are linked to the underground economy.
Furthermore, by targeting employers for failure to provide appropriate
wages and working conditions along with other illegal labor practices,
nongovernmental officials have stated that government agencies can improve
working conditions for all workers and thus help reduce employers'
incentives for employing unauthorized foreign workers.

In other countries we studied, particularly Australia and the United
Kingdom, the employment of unauthorized foreign workers is generally
considered less of a labor issue than it is in other countries we studied.
In these countries, immigration agencies are primarily responsible for
enforcing laws that prohibit the employment of unauthorized foreign
workers and more specifically focus enforcement efforts in that area than
similar agencies in other countries we studied. Other agencies in
Australia and the United Kingdom focus on enforcing labor standards, such
as ensuring provision of safe working conditions and appropriate payment
of wages, taxes, and social insurance contributions, and these agencies
often coordinate their enforcement efforts with the countries' immigration
enforcement agencies.

Table 3: Resources for Enforcement of Illegal Labor Practices as Reported
by Various Countries

             Primary                                                          
             enforcement  Enforcement        
Country   agency       resources          Enforcement responsibilities
Belgium   Labor agency Approximately      Investigations of employers'     
                          1,100 labor agency hiring of unauthorized foreign   
                          inspectors         workers for at least 3 days each 
                                             month.                           
Spain     Labor agency Approximately 800  Investigations of occupational   
                          inspectors and 850 health and safety conditions,    
                          deputy inspectors  payment of social insurance      
                          in the labor       contributions, and other labor   
                          ministry           issues, including the employment 
                                             of unauthorized foreign workers. 
Australia Immigration  Approximately      Activities related to            
             agency       4,000 immigration  nonhumanitarian entry and stay,  
                          agency staff       refugee and humanitarian entry   
                                             and stay, enforcement of         
                                             immigration law, and asylum      
                                             seeker management.               
Canada    Immigration  Approximately 350  Inland enforcement activities,   
             agency       to 400 immigration including employers' hiring of   
                          agency officers    unauthorized foreign workers.    
United    Immigration  Data not available Interior enforcement efforts,    
Kingdom   agency                          which are currently focused      
                                             primarily on the removal of      
                                             failed asylum seekers from the   
                                             United Kingdom.                  
Germany   Customs      Approximately      Investigations of employers'     
             authority in 7,000 staff in the payment of social insurance      
             the finance  finance ministry   contributions and employers'     
             ministry                        hiring of unauthorized foreign   
                                             workers.                         

Source: GAO analysis of country-reported data.

Regardless of the focus of enforcement agencies, nongovernmental officials
and experts have suggested that requiring employers to improve working
conditions for all workers may help deter employers from hiring
unauthorized foreign workers. In particular, they have suggested that
enforcement of laws that require employers to provide safe and equal
working conditions for all workers would help eliminate the advantage
employers may gain by hiring unauthorized foreign workers. They noted that
because employers often provide substandard wages and working conditions
for unauthorized foreign workers, it is less costly for employers to hire
unauthorized foreign workers than authorized workers. According to these
officials, requiring employers to provide the same standard wages and
working conditions to all workers, regardless of their work authorization
status, helps reduce employers' incentives to employ unauthorized foreign
workers.

Countries Use Various Tools to Limit Unauthorized Foreign Worker Employment, but
Face Difficulties in Enforcement Efforts

  Countries' Enforcement Efforts Are Employer-focused but Also Include
  Deportation of Unauthorized Immigrants

In some of the countries we studied, officials told us that enforcement
efforts at worksites are more focused on employers, but countries we
studied also implement enforcement actions to target unauthorized foreign
workers. Government officials in France and Spain noted that their
agencies focus worksite enforcement on investigating and penalizing
employers for illegal labor practices and place less emphasis on
penalizing unauthorized foreign workers. In particular, in countries such
as Spain and France, unauthorized foreign workers are viewed and treated
as victims. In France, government officials told us that unauthorized
workers have the same workplace rights as authorized workers and,
therefore, in some instances, can sue employers for back wages, payment of
social insurance contributions, or compensation for poor working
conditions. As a result, employers can be required to forfeit any profits
gained from employing unauthorized foreign workers, which can help deter
employers from employing such workers in the future.

Nevertheless, countries in our review also take enforcement actions
against unauthorized immigrants, including those detected at worksites.
Unauthorized immigrants can be deported and may also be prohibited from
reentry. Yet according to governmental and nongovernmental officials, it
can be difficult for countries to repatriate unauthorized immigrants to
their home countries, and countries may not be able to deport all
unauthorized immigrants they identify. In some cases, immigrants' home
countries may delay or deny issuing necessary travel documents for
unauthorized immigrants' readmission. These home countries may seek
benefits, such as visa facilitation or border control training, in return
for readmitting their citizens who worked illegally in the other
countries. Some countries we studied used tools, such as limiting numbers
of visas issued to individuals from sending countries, to encourage other
countries' readmission of unauthorized immigrants.

  Governments Receive Tips and Check Multiple Databases to Identify Employment
  of Unauthorized Foreign Workers

To help detect illegal labor practices by employers, government agencies
receive information and tips from different sources. These sources include
workers, other government agencies, and the public. In addition to these
sources, agencies in some countries share information across government
databases to help identify possible illegal labor practices. If
information in social insurance or tax databases does not match employers'
records, it may indicate that employers are engaged in illegal labor
activities, including the employment of unauthorized foreign workers. For
example, in France, government officials stated that when inspecting
worksites, labor inspectors may compare information reported by employers
to the French social security administration with information in
employers' records to determine whether employers have properly registered
their workers with the social security administration and whether workers
are authorized. In Spain, government agencies plan to use database
information collected under the country's 2005 regularization program to
target employers for inspection and to identify unauthorized foreign
workers. Government officials and experts told us that the sharing of
information across government agencies and databases can generate leads
for investigating employers for illegal labor practices. However, some
governmental and nongovernmental officials noted data protection and
privacy concerns with the use of tax and social insurance information in
identifying possible illegal labor practices among employers. In
Switzerland, for example, a nongovernmental official told us that data
protection laws prohibit Swiss labor inspectors from comparing social
insurance and work authorization records.

  Frequency and Publicity of Employer Inspections May Help Deter Unauthorized
  Foreign Worker Employment

In countries we studied, enforcement agencies conducted inspections or
investigations of employers to examine employers' compliance with laws
that prohibit various illegal labor practices, including the employment of
unauthorized foreign workers. According to governmental and
nongovernmental officials, the frequency and publicity of these employer
investigations help deter employers from hiring unauthorized foreign
workers. For example, nongovernmental agency officials noted that an
increased frequency of employer investigations helps deter employers from
hiring unauthorized workers. Immigration experts and governmental
officials also suggested that to help deter employers' hiring of
unauthorized foreign workers, government agencies should conduct frequent
inspections so as to increase employers' perception that they are likely
to be investigated, contributing to the deterrent effect of employer
investigations and monetary fines on employers' hiring of unauthorized
foreign workers. However, countries have faced challenges in conducting
employer investigations. For example, governmental and nongovernmental
officials told us that during investigations some employers may claim that
they did not knowingly hire unauthorized foreign workers because workers
presented false information at the time of hire. The ability of employers
to make such a claim creates difficulties for government agencies in
proving that employers knowingly hired those workers. Additionally,
nongovernmental officials and experts have noted the importance of
resources in conducting frequent employer investigations. For instance,
one expert told us that enforcement efforts do not deter the employment of
unauthorized foreign workers if countries do not provide sufficient
resources for enforcement actions so as to increase the likelihood that
employers will be investigated.

Furthermore, publicizing enforcement actions against employers helps to
deter employers' hiring of unauthorized foreign workers. For example,
government and nongovernmental officials noted that publicizing employer
investigations and sanctions can be an important deterrent to employers'
hiring of unauthorized foreign workers. Moreover, experts stated that
publicizing sanctions imposed on employers serves as a deterrent to
increase employers' perception that they have a significant chance of
being penalized for employing unauthorized foreign workers.

  Countries Use Monetary Fines to Penalize Employers' Use of Unauthorized
  Foreign Workers, but the Deterrent Effect of Fines Is Unknown

Most of the countries we studied use civil or criminal fines to penalize
and deter employers from hiring unauthorized workers. As shown in table 4,
the amounts of civil and criminal monetary fines reported by country
officials, as well as the conditions under which fines can be imposed,
vary across the countries we studied.

Table 4: Civil and Criminal Monetary Fine Amount Ranges for Hiring
Unauthorized Workers Reported by Various Countries

                  Civil monetary fine amount    Criminal monetary fine amount 
Country        range                         range                         
Australia      None                          Individuals and entities can  
                                                be fined up to A$10,000       
                                                (about $7,500) for aiding and 
                                                abetting the employment of    
                                                unauthorized foreign workers  
Belgium        Minimum €3,750 ($4,700)  Minimum €15,000          
                  per unauthorized worker for   ($18,800) per unauthorized    
                  workers without residence and worker for workers without    
                  work permits; minimum         residence and work permits;   
                  €375 ($470) per          minimum €1,700 ($2,100)  
                  unauthorized workers for      per unauthorized workers for  
                  workers without work permits  workers without work permits  
Canada         None                          Depending on the type of      
                                                conviction, maximum C$50,000  
                                                ($43,800) or maximum C$10,000 
                                                ($8,800)                      
France         €3,110 ($3,900) per      Maximum €15,000          
                  unauthorized worker           ($18,800) per offense         
Germany        €5 to €500,000      Fines imposed on a daily      
                  total ($6 to $628,800)        basis ranging from 5 to 360   
                                                days. Daily fine rates range  
                                                from €1 to €5,000   
                                                per day ($1 to $6,300)        
Spain          €6,000 to €60,000   None                          
                  ($7,500 to $75,500) per       
                  unauthorized worker           
Switzerland    None                          Maximum of SwF 5,000 ($4,000) 
                                                per unauthorized worker       
United Kingdom None                          Unlimited amount with         
                                                criminal conviction           

Source: GAO analysis of country-reported data.

Note: Amounts in U.S. dollars are rounded, based on the exchange rate from
July 25, 2006.

Government officials noted that employer monetary fines may help deter
employers' hiring of unauthorized foreign workers, but officials from
other countries suggested that the deterrent effect of current monetary
fine amounts in their countries is unclear. For example, nongovernmental
agency officials from France, Germany, and Spain noted that employer
monetary fines have helped to deter employers in those countries from
hiring unauthorized foreign workers. In 2005, Germany imposed about
€67 million (about $84.2 million) in civil fines, and France imposed
about €2.7 million (about $3.4 million) in civil fines. However,
other officials stated that fine amounts may be too low to provide a
meaningful deterrent. Governmental and nongovernmental officials noted
that employers often view monetary fines as the cost of doing business,
and therefore, monetary fines do not meaningfully deter employers from
hiring unauthorized workers. Officials suggested that it can be difficult
to set fine amounts that deter employers from hiring unauthorized foreign
workers but do not drive employers out of business or into the underground
economy.

In addition, in some countries we studied, agencies have experienced
difficulties in imposing fines on employers and in collecting fine amounts
from employers. For example, governmental and nongovernmental officials
told us that document fraud hinders the ability of enforcement agencies to
prove employers hired unauthorized foreign workers and to sanction them.
Officials also noted that enforcement agencies in some countries lack the
resources needed to effectively investigate and sanction employers,
affecting the frequency with which employers are fined for employing
unauthorized foreign workers. Moreover, Belgian government officials told
us that the government has difficulty collecting monetary fines from
employers because employers have declared bankruptcy or sold off company
assets to avoid paying the fine amounts. French and German officials
similarly told us that employers have declared bankruptcy to help avoid
paying fine amounts, and other government officials noted that, in many
cases, employers went out of business before the government collected fine
amounts. French officials also stated that the government plans to
primarily pursue civil, rather than criminal, penalties against employers,
as civil penalties can be imposed and collected more easily than criminal
penalties in that country.

Countries we studied have developed tools to help collect fine amounts
from employers. In Spain, for example, government officials stated that if
an employer decides to appeal the government's imposition of a monetary
fine, the employer is required to pay the fine amount to the government
prior to the appeal, and the government holds the fine amount in escrow.
One Spanish government official told us that as a result of this process,
the Spanish government collects payment on most of the fines imposed on
employers for hiring unauthorized foreign workers. In Switzerland,
government authorities may, in some cases, require employers to pay fine
amounts at the time of the worksite inspections. Additionally, some
countries, such as France and Belgium, have developed initiatives to
address the problems they have encountered when attempting to collect fine
amounts from subcontractors who may go out of business before paying fine
amounts. Under these initiatives, governments can hold main contractors
responsible for penalties assessed against their subcontractors for
employing unauthorized foreign workers.

  Some Countries Require Employers to Forfeit Benefits or Pay Various Costs for
  Hiring Unauthorized Foreign Workers

Some countries use other means in addition to monetary fines to penalize
employers for hiring unauthorized foreign workers, but may face
difficulties in applying the penalties. These penalties include
prohibiting employers from receipt of public contracts; requiring
employers to pay back wages, taxes, and social insurance contributions for
unauthorized foreign workers; closing businesses; seizing employers'
assets; requiring employers to pay costs for deporting unauthorized
foreign workers; and sentencing employers to prison terms. Some government
officials told us that by requiring employers to pay back wages, taxes,
and social insurance contributions for unauthorized foreign workers,
government agencies eliminate any profits employers gained as a result of
employing unauthorized workers. In addition, in France and Spain,
unauthorized foreign workers may denounce, or report, their employers to
government agencies if the employers are engaged in illegal labor
practices. In Spain, unauthorized foreign workers who denounce their
employers may be eligible to obtain legal status.

Additional Insights from Countries' Worksite Enforcement Efforts

The opportunity for employment is a strong motivator for migrants to
illegally enter a country and employers have a variety of incentives for
hiring unauthorized workers, including the employers' desire to lower
costs to be more competitive in the economy. For this reason, strong and
workable enforcement of labor and immigration laws is a critical part of
implementing a credible immigration system in any country. By preventing
unauthorized migrants from finding employment, governments may reduce the
motivation for migrants to illegally enter the country. The countries we
studied use different mechanisms and government agencies to enforce their
laws against employing unauthorized foreign workers, yet all countries
face challenges in implementing effective worksite enforcement policies.
These challenges include making decisions about how to leverage resources
to meet the goals of their worksite enforcement programs. Within that
framework, it is important for countries to determine how best to
coordinate the various government agencies and to allocate resources for
enforcing employment laws. While employer sanctions play an important role
in countries' worksite enforcement efforts, it can be difficult to set
penalties that are neither so low as to be considered simply the cost of
doing business by unscrupulous employers nor so punitive that they are
unlikely to be imposed for fear of bankrupting businesses, which may cause
native workers to lose their jobs. In addition, publicizing worksite
enforcement efforts can leverage enforcement resources by reinforcing with
employers the risk they take when they employ unauthorized workers.

              Countries' Experiences with Regularization Programs

Some countries we studied have implemented regularization programs that
provide eligible unauthorized immigrants with the opportunity to obtain
legal status on a temporary or permanent basis for various reasons, and
countries have established different eligibility requirements for program
participation. Employers and unauthorized foreign workers may have
incentives for participating in regularization programs, but may choose
not to participate because they gain benefits from unauthorized
employment. Governments in countries that have implemented regularization
programs reported benefits from these programs, such as collecting
increased tax and social insurance contributions, yet governments face a
variety of challenges in managing such programs. In addition, some experts
have suggested that regularization programs can create a magnet for future
illegal immigration flows, but others have stated that the impact of
regularization programs on unauthorized immigration and employment is
unclear.

Countries Have Implemented Regularization Programs for a Variety of Reasons

Countries we studied have implemented regularization programs for various
reasons, according to experts. Greece, Italy, France, and Spain have
implemented regularization programs to help reduce the amount of
employment that occurs in the underground economy by collecting tax and
social insurance contributions from unauthorized foreign workers who did
not previously pay their taxes or required contribution amounts. Moreover,
regularization programs in France have been intended to help facilitate
the social and economic integration of immigrants and their families.
Countries, including Greece, Italy, Spain, and Portugal, have also
implemented regularization programs to address perceived deficiencies of
previous regularization or other immigration policies, such as
unauthorized immigrant populations who failed to participate or who
subsequent to their regularization lapsed into an unauthorized status. In
addition, Italy, France, and the United Kingdom have initiated
regularization programs to allow family members to legally remain together
in a country or to meet humanitarian needs, such as those of asylum
seekers or individuals with health concerns.

Countries Require Unauthorized Immigrants to Meet Criteria for Participation in
Regularization Programs

Some countries we studied, including Italy, Greece, and Spain, have
implemented programs through which unauthorized immigrants could
regularize or change their status to gain temporary or permanent legal
residency, and in some countries, such as Greece and Argentina,
unauthorized immigrants could eventually apply for citizenship. Other
countries, including the United Kingdom, France, Belgium, and the
Netherlands, have implemented regularization efforts on a case-by-case
basis for humanitarian or family reunification purposes, for individuals
residing in the countries for long periods of time, or for immigrants
awaiting decisions on asylum claims. Only a limited number of immigrants
are typically eligible for participation in these programs. In the United
Kingdom, individuals who applied for asylum before October 2000 and had a
dependent residing with them in the country between October 2000 and
October 2003 could apply for legal status for themselves and their
dependents.37 Moreover, unauthorized immigrants residing in the United
Kingdom continuously for at least 14 years are eligible for permanent
residency. Beginning in 1998, France implemented a program through which
unauthorized immigrants resident in the country for at least 10 years
could apply for regularization.

Other regularization programs are designed to address countries' large
unauthorized immigrant populations by providing these immigrants with an
opportunity to obtain legal status, typically on a temporary basis.
Governments established eligibility criteria, such as employment or
residency requirements, that unauthorized immigrants were required to meet
to be eligible for participation in the programs. For example, under
Spain's 2005 regularization program, the Spanish government required
unauthorized immigrants to have job offers from employers in order to be
eligible for regularization. The government required employers to apply
for regularization on behalf of their unauthorized foreign workers and, in
doing so, demonstrate that the workers had been present in Spain for at
least 6 months and possessed a current contract for a job for a minimum
period of 6 months.38 Some unauthorized foreign workers, such as those who
worked in part-time jobs or for several employers, could directly apply to
the Spanish government for regularization without applying through their
employers. The Spanish government did not penalize employers or
unauthorized foreign workers who applied for regularization, and only
those unauthorized immigrants who met the residency and employment
criteria could apply for legal status. About 700,000 unauthorized foreign
workers applied and qualified for the regularization program out of an
estimated 800,000 workers projected to be eligible for program
participation.39

37 According to United Kingdom officials, individuals were eligible to
apply if their asylum application (1) had not yet been decided, (2) had
been refused and was subject to an appeal, (3) had been refused and there
was no further avenue of appeal but the applicant had not been removed, or
(4) had been refused but limited leave had been granted.

38 For work in the agricultural sector, illegal immigrants in Spain
required an offer for a job for a minimum period of 3 months to be
eligible for the change of status program.

39 The 700,000 unauthorized foreign workers who applied and qualified for
Spain's 2005 regularization program do not include the approximately
400,000 family members of those workers who qualified for regularization.

Similarly, other countries' regularization programs have required
applicants to meet residence or employment requirements. For example,
experts have reported that under Italy's 2002 regularization program,
unauthorized immigrants were required to provide proof of employment and
payment of 3 months' social insurance contributions in order to apply for
the program. Under Greece's 2001 program, unauthorized immigrants were
required to prove that they previously had legal residence status in
Greece and had continuously resided in the country since expiration of
their status or that they had lived in Greece for at least 1 year prior to
enactment of the program. Under France's 1981-1982 regularization program,
unauthorized immigrants were required to show that they had resided in
France prior to January 1982 and were currently employed or had a work
contract valid for at least 1 year. Table 5 provides information on
selected countries' regularization programs.

Table 5: Selected Countries' Regularization Programs

             Year of                             Type of            Estimated
             program                             status                number
Country   initiation Program requirements     granted         regularizeda
Argentina 2004       Applicants were required 2 year                11,300
                        to have resided and      residence     
                        worked in Argentina      permit        
                        since June 30, 2004.     renewable for 
                                                 2 additional  
                                                 years; after  
                                                 4 years,      
                                                 immigrants    
                                                 are eligible  
                                                 for permanent 
                                                 residence     
                                                 status        
Belgium   2000       Applicants were required Long-term            (52,000
                        to have been in Belgium  residence     applications)b
                        before October 1, 1999,  status        
                        and to have a pending                  
                        asylum petition; an                    
                        inability to return to                 
                        their home country for                 
                        humanitarian reasons;                  
                        serious illness; or                    
                        residence in the country               
                        for 6 years without                    
                        receiving an order to                  
                        leave in the past 5                    
                        years.                                 
Canada    1973       Applicants were required Long term             50,000
                        to have resided in       residence     
                        Canada before November   status        
                        1972 and show a stable                 
                        employment history and                 
                        family ties in Canada.                 
France    1997       Applications were for    Permanent             78,000
                        family reunification or  resident      
                        families in irregular    status        
                        situations.                            
             1981-1982  Applicants were required Permanent            121,000
                        to have resided in       residence     
                        France prior to January  status        
                        1982 and been employed                 
                        at the time of                         
                        application or had a                   
                        valid work contract for                
                        at least 1 year. The                   
                        program was expanded to                
                        include other types of                 
                        unauthorized immigrants.               
Greece    2001       Applicants were required 2 year              (351,000
                        to prove that they       renewable     applications)b
                        previously had legal     residence     
                        residence status in      permit; after 
                        Greece and had           10 years,     
                        continuously resided in  immigrants    
                        the country since        are eligible  
                        expiration of their      for permanent 
                        status or that they had  residence     
                        lived in Greece for at   status        
                        least 1 year prior to                  
                        enactment of the                       
                        program.                               
             1998       Applicants were required White card:         371,000c
                        to apply first for a     6-month       
                        "white card," under      residence     
                        which they received a    permit        
                        6-month residence permit               
                        before receiving a       Green card: 1 
                        "green card"             to 5-year     
                        application, which was a renewable     
                        renewable work and       work and      
                        residence permit for 1   residence     
                        to 5 years. For a green  permit        
                        card, applicants had to                
                        prove that were legally                
                        employed since January                 
                        1, 1998 at the minimum                 
                        wage.                                  
Italy     2002       Applicants were required 1-year              635,000d
                        to provide proof of      renewable     
                        employment and payment   permit        
                        of 3 months' social                    
                        insurance contributions.               
             1998       Applicants were required Temporary            217,000
                        to have resided in Italy permit        
                        prior to March 27, 1998                
                        and employers who paid                 
                        taxes on their wages.                  
             1995       Applicants were required 1- or 2-year         245,000
                        to have been residing in renewable     
                        Italy, were employed     residence     
                        during the past 6 months permit        
                        or had a job offer from                
                        an employer, and had                   
                        paid 3 months of social                
                        insurance contributions.               
             1990       Applicants were required 2-year               218,000
                        to have resided in Italy renewable     
                        prior to December 31,    residence     
                        1989.                    permit        
             1987       Applicants were required Temporary            119,000
                        to have an employer      work permit   
                        sponsor and to have been               
                        in Italy prior to                      
                        January 27, 1987.                      
New       2000       Applicants were required 2-year work            3,700
Zealand              to have been in New      permit after  
                        Zealand for 5 years or   which         
                        more; to have been a     individuals   
                        parent of a child born   are eligible  
                        in New Zealand; to have  for permanent 
                        been a partner of a New  residence     
                        Zealander for 1 year or                
                        more; or to have been                  
                        married to a New                       
                        Zealander.                             
Portugal  2001       Applicants were required 1-year permit       179,000e
                        to have been present in  renewable a   
                        the country and have a   maximum of 4  
                        work contract.           times; after  
                                                 5 years,      
                                                 individuals   
                                                 are eligible  
                                                 for permanent 
                                                 residence     
             1996       Applicants were required Temporary             22,000
                        to prove that they were  residence     
                        involved in a            permit        
                        professional activity,                 
                        had a basic ability to                 
                        speak Portuguese, had                  
                        housing, and had not                   
                        committed a crime.                     
                        Applicants from                        
                        Portuguese-speaking                    
                        countries could apply if               
                        they had been in the                   
                        country since December                 
                        31, 1995, and applicants               
                        from non-EU states could               
                        apply if they had been                 
                        in the country prior to                
                        March 25, 1995.                        
             1992       Applicants were required Temporary             39,000
                        to have been in Portugal residence and 
                        before April 15, 1992.   work permit   
Spain     2005       Applicants were required I-year               549,000
                        to have proof of         renewable     
                        registration with a      residence     
                        local municipality in    permit        
                        Spain before August 7,                 
                        2004; to have been in                  
                        the country at the time                
                        they applied; and to                   
                        have a work contract and               
                        a clean criminal record.               
                        Employers were required                
                        to demonstrate that they               
                        were enrolled in and                   
                        paying into social                     
                        security, had no history               
                        of breaking immigration                
                        laws in the previous 12                
                        months, and had not been               
                        sanctioned for violating               
                        the rights of workers or               
                        immigrants.                            
             2001       Applicants were required 1-year               235,000
                        to have resided in Spain renewable     
                        since January 23, 2001,  temporary     
                        and were employed or     residence     
                        were family members of a permit        
                        legal foreign worker or                
                        Spanish citizen.                       
             2000       Applicants were required 1-year               164,000
                        to have resided in Spain renewable     
                        prior to June 1, 1999;   temporary     
                        had either a work permit residence and 
                        or residence permit in   work permit   
                        the previous 3 years; or               
                        had applied for a work                 
                        or residence permit.                   
             1996       Applicants were required 5-year                21,000
                        to have worked in Spain  residence     
                        since January 1, 1996,   permit        
                        have a work or residence               
                        permit issued after May                
                        1986, or to be a member                
                        of the family of a                     
                        migrant living in Spain                
                        before January 1996.                   
             1991       Applicants were required 3-year               110,000
                        to have been in Spain    residence     
                        since May 15, 1991, or   permit        
                        were asylum seekers                    
                        whose applications were                
                        rejected or pending.                   
             1985       Applicants were required 1-year               (44,000
                        to have a job offer and  renewable     applications)b
                        to have been in Spain    residence     
                        prior to July 24, 1985.  permit        

Source: GAO analysis based on information reported by countries and
studies, particularly Amanda Levinson, The Regularization of Unauthorized
Migrants: Literature Survey and Country Case Studies, Centre on Migration,
Policy and Society (Oxford, United Kingdom: 2005). Data on the estimated
number of regularizations are from the OECD.

Note: In some countries, such as Argentina and Greece, immigrants whose
status was regularized can eventually apply for citizenship.

aUnder each program, individuals are regularized over different periods of
time.

bData on the estimated number regularized were not available.

cData refer to persons who were issued a white card.

dData refer to the number of permits issued at the beginning of 2004.

eData refer to the number of 1-year residence permits provided between
January 2001 and March 2003.

In addition, experts have suggested development and implementation of
earned regularization programs, which are generally characterized by
countries' use of a points system for determining whether to regularize an
unauthorized immigrant's status.40 Although experts differ on specific
requirements for earned regularization programs, in general, these
programs would link regularization to a temporary worker program and allow
unauthorized immigrants to apply for regularization only after meeting
specified criteria over a certain period of time. For example, migrants
residing illegally in a country would first be granted a temporary
residence and work permit for a certain amount of time, such as for 3
years, during which they would be required to collect credits or points to
eventually qualify for a permanent residence and work permit. The points
could be based on a variety of different criteria, like stable employment,
payment of taxes and social security contributions, legal presence of a
family member in the country, and documented language fluency.
Unauthorized migrants would be required to obtain a minimum number of
points during the length of their temporary permit in order to be eligible
to apply for permanent residency. Those migrants who failed to obtain the
required number of points could be required to return to their home
countries.

Experts have pointed out advantages to earned regularization programs.
They suggest that initially providing unauthorized foreign workers with
temporary legal status allows the largest possible number of unauthorized
immigrants to participate in the program and transfers work that
previously occurred in the underground economy into the formal economy.
Earned regularization programs also allow unauthorized foreign workers who
would like to work toward permanent residence status to do so based on
specific criteria for earning points. However, experts have also noted
drawbacks to earned regularization programs. For example, requiring
unauthorized foreign workers to earn the opportunity to apply for
permanent residence status may complicate these workers' ability to
economically and socially integrate into a country. Moreover, an earned
regularization program based on a points system could favor high-skilled
workers over low-skilled workers, making it difficult for low-skilled
workers to obtain permanent residence status.

40 See, for example, Demetrios Papademetriou, The "Regularization" Option
in Managing Illegal Migration More Effectively: A Comparative Perspective,
Migration Policy Institute  (Washington, D.C.: September 2005).

Employers and Unauthorized Foreign Workers Have Incentives to Participate in
Regularization Programs but Have Not Always Done So

According to officials and studies, employers and unauthorized foreign
workers have incentives to participate in regularization programs but have
not always participated for various reasons. For example, employers may
participate in programs by applying for regularization on behalf of their
workers so as to avoid possible civil, also called administrative, or
criminal penalties for employing unauthorized foreign workers after
implementation of the programs. In implementing regularization programs,
countries such as Spain and France have introduced new or strengthened
enforcement programs, including increased employer monetary penalties, for
employing unauthorized foreign workers. Experts have suggested that the
credible threat of enforcement helps create an incentive for employers, as
well as workers, to participate in regularization programs.

Unauthorized foreign workers may want to participate in regularization
programs to be better able to seek fair or higher wages and safe working
conditions from their employers, and regularization programs thus can help
to address any employer exploitation of unauthorized foreign workers. As a
result of regularization, formerly unauthorized foreign workers may also
be better able to compete for higher-paying jobs and obtain opportunities
for acquiring or enhancing their work skills. Regularization programs also
allow formerly unauthorized foreign workers to access social insurance
benefits. In addition, participation in regularization programs may help
formerly unauthorized foreign workers better integrate into a country by,
for instance, helping them to acquire education and language skills.
Participation in regularization programs may also provide formerly
unauthorized foreign workers with the opportunity to visit their home
countries.

Government officials and experts have noted that not all employers and
workers may choose to participate in regularization programs. For example,
unscrupulous employers may not help unauthorized foreign workers apply for
regularization programs because the employers gain benefits from employing
unauthorized foreign workers and do not fear the possibility of government
penalties. Employers can save money or gain greater profits by employing
unauthorized foreign workers and thus not paying taxes or social insurance
contributions or providing safe working conditions for those workers.
Employers who hire unauthorized foreign workers may have a competitive
advantage over other employers who hire only authorized workers and, as a
result, may be less willing to provide unauthorized foreign workers who
want to regularize their status with the documents needed to prove that
the workers meet program eligibility requirements. For example, studies
have reported that during France's 1981-1982 regularization program, some
employers were unwilling to provide unauthorized foreign workers with the
appropriate documentation, as initially required under the program, and in
some cases, employers fired unauthorized foreign workers who requested
their employers' assistance in applying for regularization. To address
this problem, the French government modified program requirements to allow
third parties to assist unauthorized foreign workers rather than relying
solely on employers to do so.

In addition, unauthorized foreign workers may not want to participate in
regularization programs for various reasons. For example, workers granted
temporary legal residency status under regularization programs may
deliberately allow their legal status to expire and revert to unauthorized
status in order to better obtain employment. Because employers can benefit
from employing unauthorized foreign workers, unscrupulous employers may
seek to fill jobs held by workers who obtained legal status with other
unauthorized foreign workers, hindering the ability of workers with new
legal status to compete with unauthorized foreign workers for jobs.
Therefore, government officials and experts have stated that it is
important to implement new or enhanced worksite enforcement efforts in
conjunction with a regularization program to maximize participation in the
program by employers and eligible immigrants and to help deter employers
from hiring unauthorized foreign workers in the future. Unauthorized
foreign workers may also choose not to participate in regularization
programs because they lack knowledge about program requirements and may
fear expulsion if they register for program participation. According to
government officials and experts, lack of information about regularization
program requirements may hinder unauthorized immigrants' participation in
such programs.

Governments Perceive Benefits from Regularization Programs but Face Difficulties
in Implementing Such Programs

According to officials and experts, countries' governments benefit from
regularization programs but may incur costs and face challenges in
implementing these programs. In particular, workers who resided and worked
illegally in a country likely did not pay taxes and social insurance
contributions to the government. However, after changing their status to
legal residency under regularization programs, governments could collect
taxes and social insurance contributions from formerly unauthorized
foreign workers by, for example, requiring workers to pay these
contributions prior to changing their status. As a result, formerly
unauthorized workers' employment is transferred from the underground
economy to the formal economy. Furthermore, governments can collect social
insurance contributions from these workers who previously accessed
benefits but did not contribute to the social insurance system. This
collection of social insurance contributions from a greater segment of
countries' populations may also help in the short term to address
demographic challenges faced by countries with aging, low-growth
populations and declining levels of social insurance contributions. In
Spain, for example, the government collected social insurance
contributions from previously unauthorized foreign workers by requiring
employers to pay 1 month's contributions for their workers. As of February
2006, officials from Spain reported that approximately 560,000 of the
nearly 700,000 individuals who applied for the regularization program had
paid the required social insurance contribution, and government officials
noted that as a result of the regularization program, the percentage of
individuals contributing to the social insurance system increased.

In addition, governments may gain information on and estimates of the size
of the unauthorized immigrant population in the country as a result of
implementing regularization programs. For example, officials and studies
reported that regularization programs may provide governments with data
that can help in estimating the number of unauthorized immigrants residing
in the country prior to program implementation. Regularization programs
may also provide governments with information about the demographics of
migrants, which could assist countries in developing policies to manage
future migrant flows and employment. In addition, regularization programs
may help countries better understand and regulate their underground
economies by providing them with information on unauthorized immigrants'
labor market participation.

Yet governments may incur costs and face challenges in implementing
regularization programs, according to officials and experts. For example,
while in many of the countries we studied unauthorized immigrants can
receive some social insurance benefits, particularly health and
unemployment insurance, these immigrants generally cannot access other
benefits, such as retirement benefits. After unauthorized immigrants'
status is regularized, these immigrants can fully access social insurance
benefits, and though they also contribute to the social insurance system,
it is uncertain whether immigrants' contributions are greater than the
benefits they draw. In addition, according to studies, some unauthorized
foreign workers may qualify for regularization but continue to work in the
underground economy after gaining legal status.41 In such cases, the
formerly unauthorized foreign workers could continue to receive some
social insurance benefits available to all individuals residing in the
country regardless of their immigration status but may not be contributing
to the social insurance system. As a result, regularization programs may
not necessarily increase countries' tax and social insurance revenue over
time.

Governments also face difficulties in managing the application process for
regularization programs, particularly in reviewing large numbers of
applications and detecting fraud in the process. In Spain, nongovernmental
officials reported that in past regularization programs, large numbers of
applicants initially overwhelmed the application review process, resulting
in long lines of individuals waiting to apply and requiring the government
to modify application procedures. During the 2005 regularization program,
government officials told us that the Spanish government took steps, such
as developing an electronic database for processing applications, to
address some of the challenges experienced under prior regularization
programs. In Portugal, Italy, and Greece, studies have reported
significant delays in the application review process and a lack of
government oversight of the process. They also noted that unauthorized
immigrants have used fraudulent documents to apply for regularization.
During Canada's 1974 regularization program, the government provided
training to immigration agency staff for reviewing and processing
regularization applications, which helped limit some problems in the
application review process, according to studies.

Moreover, governmental and nongovernmental officials told us that
regularization programs may be particularly difficult to implement in
cases where the programs require immigrants to return to their home
countries before applying for the programs. For example, between 1993 and
2000, the Spanish government managed a program through which employers
could apply to hire unauthorized foreign workers residing in Spain, but
workers were required to return to their home countries to receive a legal
work permit. According to officials, the government granted exemptions to
this requirement for the majority of unauthorized workers because of low
participation in the program and limited government enforcement of the
return requirement. Because many unauthorized foreign workers developed
social and communal ties in the country, they did not want to leave Spain
to apply for regularization and chose rather to remain in the country in
an unauthorized status. According to some officials and experts, it is
important to implement enforcement efforts in conjunction with a
regularization program to help ensure that individuals comply with program
requirements and immigration law and to maximize participation in the
program.

41 See, for example, Aspasia Papadopoulou, Regularization Programmes: An
Effective Instrument of Migration Policy? Global Commission on
International Migration (Geneva, Switzerland: May 2005).

In addition, governments have faced difficulties when individuals granted
temporary legal status under regularization programs do not renew their
status or lapse into an unauthorized status, contributing to countries'
decisions to initiate other regularization programs in the future. For
example, under regularization programs in Spain, unauthorized foreign
workers were granted temporary legal residence and work status and were
required to periodically renew this status. However, officials and studies
noted that a significant number of workers initially granted legal status
under Spain's programs did not subsequently renew their status for various
reasons, such as unclear criteria for permit renewals or lack of knowledge
about renewal procedures, and lapsed into an unauthorized status.
Likewise, under other countries' regularization programs, such as Greece's
and Italy's programs, studies have suggested that large numbers of
immigrants initially granted temporary legal status did not renew their
legal status and reverted to an unauthorized status. According to experts,
countries have faced difficulties in determining the number of
unauthorized immigrants eligible for regularization who were granted legal
status under previous programs but had reverted to illegal status. Thus,
countries that have implemented multiple regularization programs that
provide immigrants with temporary legal status may repeatedly provide this
status to the same group of unauthorized immigrants. As a result, while
countries claimed that each large-scale regularization program would be
the last such program offered, these countries have repeatedly initiated
such programs not only to address new unauthorized immigrant inflows, but
also to reregularize previously authorized immigrants.

Furthermore, experts have noted that countries have experienced challenges
in developing and implementing policies to address the status of
unauthorized immigrants who were not eligible or did not complete
applications for the programs. For example, Spanish government officials
stated that not all unauthorized immigrants eligible for the 2005 program
completed the application process. The Spanish government estimated that
about 140,000 immigrants who initially registered for the program did not
pay the required 1-month social insurance contribution, and thus these
immigrants remained unauthorized. Studies have also noted that
unauthorized immigrants' difficulties in proving their eligibility, such
as providing documents that prove residency and employment status, may
undermine immigrants' ability to complete the application process.42
Additionally, experts have stated that countries such as Spain may face
challenges in implementing programs to address unauthorized immigrants who
do not gain legal residency status. Because not all unauthorized
immigrants are eligible for or participate in regularization programs, it
can be difficult for countries to develop policies to address remaining
unauthorized immigrant populations, such as determining whether to deport
these unauthorized immigrants or to provide them with other opportunities
to obtain legal status. According to experts, large-scale removals are
extremely expensive and require consideration of humanitarian factors,
such as impacts on families with members of mixed legal statuses.

Impact of Regularization Programs on Illegal Immigration and Employment Is
Unknown

Experts have noted that regularization programs may be viewed as a pull
factor in encouraging further illegal immigration. For example,
unauthorized immigrants may illegally enter or stay in a country that has
previously implemented regularization programs with the expectation that
the country will implement a similar program in the future. To guard
against such a perception, experts suggested that it is important for
countries that implement a regularization program to clearly indicate that
the program is a one time program by, for example, introducing new or
enhanced enforcement efforts in conjunction with a regularization program.

However, other experts have suggested that the extent to which
regularization programs affect additional illegal immigration flows and
employment is unclear. Countries generally have not evaluated the results
of regularization programs, including the extent to which such programs
encourage further illegal immigration, and as a result, the long-term
effects of these programs are not known. Moreover, a variety of factors
can affect illegal immigration and employment, making it difficult to
directly link regularization programs to increased illegal immigration
flows and employment. For example, because employers have economic
incentives to hire unauthorized foreign workers, employers may continue to
recruit and employ those workers instead of hiring legal workers, such as
those whose status has been regularized. In addition, the extent to which
countries enforce laws that prohibit unauthorized employment as part of
regularization programs varies and thus affects programs' outcomes
differently.

42 See, for example, Amanda Levinson, The Regularization of Unauthorized
Migrants: Literature Survey and Country Case Studies, Centre on Migration,
Policy and Society  (Oxford, United Kingdom: 2005).

Additional Insights from Countries' Regularization Programs

There are a number of difficult issues for countries contemplating a
regularization program to consider. For example, it is important for
countries to estimate the likely number of migrants that would be eligible
for regularization in order to effectively plan for the administrative
responsibilities that will be required for implementation. Countries we
studied have faced various administrative challenges in implementing their
regularization programs, and the largest of the programs in our study
regularized the status of approximately 635,000 immigrants. In addition,
it is critical for countries to evaluate the most appropriate legal status
to grant regularized immigrants-temporary, temporary yet renewable, or
permanent status-and to determine the extent to which regularized
immigrants granted temporary status renew their status or leave the
country upon expiration of their status. Furthermore, a committed effort
by countries to enforce laws that prohibit the employment of unauthorized
workers is a key element of a successful regularization program, as not
all unauthorized immigrants may qualify for the program and the
opportunity for employment may continue to motivate individuals to migrate
illegally. Regularized immigrants granted temporary legal status may also
subsequently lapse into an unauthorized state, which, in the absence of
effective worksite enforcement, may increase the likelihood that a country
undertakes future regularization programs.

                            Concluding Observations

Other countries' programs for admitting foreign workers, enforcing laws
that prohibit the employment of unauthorized foreign workers, and
regularizing the status of unauthorized immigrants are shaped by each
country's unique political, social, cultural, and economic
characteristics. Therefore, these programs may not be readily applicable
to the United States. However, other countries' experiences in developing
and implementing these programs are useful in identifying a range of
issues for consideration by any country contemplating reforms to its
immigration policy and can help highlight the potential advantages and
pitfalls associated with them.

Even with implementation of a range of foreign worker, enforcement, and
regularization programs, all countries, including the United States, face
challenges in fully eliminating all unauthorized immigration and
employment. Not all employers may want to comply with laws that prohibit
the employment of unauthorized workers, as it is often less costly for
employers to employ unauthorized, rather than authorized, workers.
Likewise, workers have economic incentives to illegally migrate to and
obtain employment in other countries, and even if given the opportunity to
gain legal status, they may perceive that there are benefits to remaining
in an unauthorized status. No one program or mechanism can fully address
the employment of unauthorized foreign workers. Therefore, efforts to
effectively address this problem may require development and
implementation of a strategic approach, including programs to assess labor
market needs for foreign workers and admit any needed workers, to reliably
verify the employment authorization status of workers, and to enforce laws
that prohibit the employment of unauthorized foreign workers.

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to the Secretary of Homeland Security, the Secretary of Labor, the
Secretary of State, the Director of the Office of Management and Budget,
and the appropriate congressional committees. We will also make copies
available to others upon request. In addition, the report will be
available at no charge on GAO's Web site at http://www.gao.gov.

If you or your staff have any questions regarding this report, please
contact me at (202) 512-8777 or [email protected]. Contact points for our
Offices of Congressional Relations and Public Affairs may be found on the
last page of this report. GAO staff who made major contributions to this
report are listed in appendix XIII.

Richard M. Stana Director, Homeland Security and Justice Issues

Appendix I: Scope and Methodology

To determine how countries' programs for foreign worker admissions,
enforcement of workplace laws, and regularization function, we interviewed
officials and obtained documents from 8 countries and sent questionnaires
to 13 other countries. We interviewed government officials during site
visits to the following countries: Belgium, Canada, France, Germany,
Spain, Switzerland, and the United Kingdom. We also interviewed officials
from, but did not visit, Australia. We selected these countries based on
the following criteria: net immigration rate; size of population;
membership in the Organisation for Economic Co-operation and Development
(OECD); classification by the World Bank as high income; range of
immigration policies; and geographic location. In these countries, we met
with officials from the labor ministries, interior ministries, finance
ministries, treasury departments, social security agencies, immigration
agencies, law enforcement agencies, and local government agencies. We also
sent questionnaires to government agencies in 13 countries. We selected
these 13 countries based on the following criteria: net immigration rate;
population; membership in the OECD or classification by the World Bank as
high income; and geographic location.

We analyzed information and documents, such as agency annual reports,
manuals, and briefing materials, from the 8 countries to determine the
characteristics, functions, resources, and outputs of the countries'
programs to admit foreign workers, enforce laws that prohibit the
employment of unauthorized foreign workers, and regularize unauthorized
immigrants. We also examined this information to determine government
officials' views on foreign worker programs, efforts to enforce laws that
prohibit the employment of unauthorized foreign workers, and
regularization efforts, including to identify the advantages and
disadvantages of these programs. We did not independently examine
countries' laws and regulations, but rather based characterizations of
countries' programs on information provided by countries as of July 2006.
In addition, we analyzed this information to determine the extent to which
countries' programs may provide insights or examples for development and
implementation of similar programs in the United States.

To develop the questionnaires, we analyzed reports and studies from the
International Labour Organization (ILO), the International Organization
for Migration (IOM), the OECD, and other organizations. We also spoke with
and examined reports from six experts. We received technical comments on
draft versions of the questionnaires from officials at the Department of
State and the ILO and from 2 experts. We also pretested the questionnaires
with officials from 4 countries. We made relevant changes to the
questionnaires based on the technical comments and pretests.

We sent the questionnaires to Department of State officials responsible
for each country. These officials then sent the questionnaires to U.S.
embassy officials in each country we surveyed. The embassy officials
provided the questionnaires to the appropriate foreign government agencies
and returned the agencies' questionnaire responses to us upon completion.
As of August 1, 2006, we received questionnaire responses from 6
countries-Argentina, Austria, the Netherlands, New Zealand, Portugal, and
Singapore. We encouraged countries to complete and return the
questionnaires by contacting Department of State desk officers and embassy
officials on multiple occasions and sending additional copies of
questionnaires when requested. We performed this work from October 2005
through August 2006.

Because our sample was not designed to be representative of a defined
universe of countries, questionnaire results cannot be generalized beyond
the countries we surveyed. Moreover, since our survey used a
nonprobability selection of countries, there are no sampling errors.
However, the practical difficulties of conducting any survey may introduce
errors, commonly referred to as nonsampling errors. For example,
measurement errors are introduced if difficulties exist in how a
particular question is interpreted or in the sources of information
available to respondents in answering a question. In addition, coding
errors may occur if mistakes are entered into a database. We took
extensive steps in the development of the questionnaires, the collection
of data, and the editing and analysis of data to minimize total survey
error. As noted above, to reduce measurement error and ensure questions
and response categories were interpreted in a consistent manner, we
pretested the questionnaires with several countries.

We analyzed data reported by countries during interviews and on the
questionnaires regarding the outputs and resources of their foreign worker
programs, worksite enforcement efforts, and regularization efforts. We
assessed the reliability of this data by reviewing the data for obvious
errors and inconsistencies and interviewing agency officials knowledgeable
about the data. If necessary, we contacted respondents and government
officials we had interviewed to clarify responses and, when documentation
about the data was provided, we reviewed it. We determined that the data
were sufficiently reliable for the purposes of our review. However, we
could not compare data on resources and outputs across the countries
because each country we reviewed collects and maintains information on
resources and outputs differently.

In addition to interviewing and surveying government officials, we
interviewed officials from ILO, IOM, OECD, the European Union (EU), the
United Nations High Commission for Refugees, the United Nations High
Commission for Human Rights, and the Intergovernmental Consultations on
Asylum, Refugee, and Migration Policies. We also interviewed officials
from 6 employer associations, 10 labor groups, and 1 advocacy group, as
well as 19 immigration experts, in Belgium, Canada, France, Germany,
Spain, Switzerland, the United Kingdom, and the United States (see app.
XII). We selected the experts based on the following criteria: type and
depth of experience, recognition in the professional community, relevance
of published work, employment history, and researchers' recommendations.
We also interviewed officials from the Department of Labor and the
Department of Homeland Security in the United States. We analyzed
information from these groups and experts to determine their views on the
advantages and disadvantages of countries' temporary foreign worker
programs, regularization efforts, and efforts to enforce laws that
prohibit the employment of unauthorized foreign workers.

We also examined reports from various nongovernmental agencies and
immigration experts. We analyzed reports from ILO, IOM, OECD, and the EU.
We also examined reports and studies from various research organization
and immigration experts, including reports from the Migration Policy
Institute; the Center on Migration, Policy and Society at Oxford
University; and the Center for Comparative Immigration Studies. We
selected these reports and studies based on their relevance to our review,
recognition in the professional community, and experts' recommendations.
We analyzed information in these reports and studies to identify the
advantages and disadvantages of countries' temporary foreign worker,
enforcement, and regularization programs.

We conducted our work from September 2005 through August 2006 in
accordance with generally accepted government auditing standards.

Appendix II: Information on Immigration-Related Programs in Selected
Countries

Table 6: Selected Information on Countries' Population Characteristics

                                                  Total migrant Net migration 
                               Total legal      population as a     rate (per 
                         Total     migrant  percentage of total         1,000 
Country          population  population           population      persons) 
Argentina      39.9 million 1.5 million            4 percent             1 
Australia      20.3 million 4.7 million           25 percent             5 
Austria         8.2 million     756,000            9 percent             1 
Belgium        10.4 million     880,000            9 percent             1 
Canada         33.1 million 5.8 million           19 percent             5 
France         60.9 million 6.3 million           11 percent             1 
Germany        82.4 million 7.3 million            9 percent             2 
Netherlands    16.5 million 1.6 million           10 percent             2 
New Zealand     4.1 million     850,000           23 percent             2 
Portugal       10.6 million     233,000            2 percent             1 
Singapore       4.5 million 1.4 million           34 percent            20 
Spain          40.4 million 1.3 million            3 percent             1 
Switzerland     7.5 million 1.8 million           25 percent             1 
United Kingdom 60.6 million   4 million            7 percent             2 

Source: Total population data are from the Central Intelligence Agency
World Factbook; other data are from the International Labour Organization.

Note: All data are estimated and numbers rounded. Total population data
are from 2006. Other data are from 2000.

Table 7: Selected Information on High-Skilled Temporary Foreign Worker
Programs

Country        Program characteristics                                     
Argentina         o  Employers can hire foreign workers only when they     
                     cannot find native workers for needed positions.         
                     o  Employers and foreign workers must pay a fee for work 
                     permits.                                                 
                     o  Workers can bring in family members.                  
                     o  Workers can work only for employers and in job        
                     positions specified on the permit.                       
                     o  Foreign workers are required to return to their home  
                     countries.                                               
                     o  Workers are required to return to their home          
                     countries before applying for a new permit.              
                     o  Employers are required to post a bond that is         
                     returned to them after workers' return to their home     
                     countries.                                               
                     o  Workers can apply for permanent residence status      
                     after a specified period of time in the country.         
Australia      Australia has numerous programs for admitting high-skilled  
                  workers, and each program has different requirements. In    
                  general,                                                    
                                                                              
                     o  Employers are required to pay a fee for work permits. 
                     o  Workers can bring in family members.                  
                     o  Workers can apply for permanent residence status and  
                     may be eligible for citizenship.                         
Austria           o  Employers and foreign workers must pay a fee for work 
                     permits.                                                 
                     o  Workers can bring in family members.                  
                     o  Workers can work only for employers and in job        
                     positions specified on the permit.                       
                     o  Foreign workers are required to return to their home  
                     countries, but can apply to extend their permits.        
                     o  Workers are required to return to their home          
                     countries before applying for a new permit.              
                     o  Austria admitted approximately 3,000 workers in 2005. 
Belgium           o  Belgium admits foreign workers under various types of 
                     permits-A, B, or C-with differing admission              
                     requirements.                                            
                     o  Under permit B, employers must show that there are no 
                     native or EU workers available for needed positions.     
Canada            o  Employers can hire foreign workers only when they     
                     cannot find native workers for needed positions.         
                     o  Foreign workers must pay a fee for work permits.      
                     o  Temporary foreign workers can be nominated by the     
                     provinces in which they work for permanent residence     
                     status.                                                  
France            o  Temporary work permits are issued for 1 year to       
                     foreigners who can prove family ties, scientists,        
                     artists, students, and visitors.                         
                     o  Permanent work permits are generally issued to        
                     employers who cannot find native workers to fill needed  
                     positions.                                               
Germany           o  Workers can work only for employers and in job        
                     positions specified on the permit.                       
                     o  Workers can be granted permanent residence.           
Netherlands       o  Workers can bring in family members.                  
                     o  Workers can apply for permanent residence status.     
                     o  The Netherlands admitted approximately 2,000 workers  
                     in 2005.                                                 
New Zealand       o  Employers can hire foreign workers only when they     
                     cannot find native workers for needed positions.         
                     o  Employers and foreign workers must pay a fee for work 
                     permits.                                                 
                     o  Foreign workers are required to return to their home  
                     countries.                                               
                     o  Workers can apply for permanent residence status.     
                     o  New Zealand admitted approximately 51,500 workers in  
                     2004-2005.                                               
Portugal          o  Employers can hire foreign workers only when they     
                     cannot find native workers for needed positions.         
                     o  Foreign workers must pay a fee for work permits.      
                     o  Workers can bring in family members.                  
Singapore         o  Employers must pay a fee for employment passes.       
                     o  Employment passes can be renewed.                     
                     o  Workers are required to return to their home          
                     countries.                                               
Spain             o  Employers must receive authorization from the         
                     government to employ unauthorized foreign workers.       
                     o  Foreign workers can apply for permanent residence     
                     status after a specified period of time.                 
Switzerland       o  Employers can hire foreign workers only when they     
                     cannot find native workers for needed positions.         
                     o  Employers must pay a fee for work permits.            
                     o  Workers can work only for employers and in job        
                     positions specified on the permit.                       
                     o  Foreign workers are required to return to their home  
                     countries.                                               
                     o  Switzerland admitted approximately 7,000 workers from 
                     November 2004 through October 2005.                      
United Kingdom    o  Foreign workers are not required to have a job offer  
                     before entering the United Kingdom.                      
                     o  The United Kingdom admitted approximately 7,000       
                     workers in 2005.                                         

Source: GAO analysis of country-reported data.

Note: For more detailed information on programs in Australia, Belgium,
Canada, France, Germany, Spain, Switzerland, and the United Kingdom, see
appendixes III through X.

Table 8: Selected Information on Low-Skilled Temporary Foreign Worker
Programs

Country        Program characteristics                                     
Argentina         o  Employers must show that there are no native workers  
                     available for needed positions.                          
                     o  Employers and foreign workers must pay a fee for work 
                     permits.                                                 
                     o  Workers can bring in family members.                  
                     o  Workers can work only for employers and in job        
                     positions specified on the permit.                       
                     o  Workers must provide proof of intent to return.       
                     o  Workers must return to their home countries before    
                     applying for a new permit.                               
                     o  Employers are required to post a bond that is         
                     returned to them after workers' return to their home     
                     country.                                                 
Australia         o  Under Australia's Working Holiday visas, foreigners   
                     can enter Australia for up to 1 year for travel and are  
                     able to supplement their travel funds through incidental 
                     employment.                                              
Austria           o  None reported                                         
Belgium           o  Belgium admits foreign workers under various types of 
                     permits-A, B, or C-with differing admission              
                     requirements.                                            
                     o  Under permit B, employers must show that there are no 
                     native workers available for needed positions.           
                     o  Belgium admitted approximately 4,300 workers in 2004. 
Canada            o  Employers must show that there are no native workers  
                     available for needed positions.                          
                     o  Foreign workers must pay a fee for work permits.      
                     o  Temporary foreign workers can be nominated by the     
                     provinces in which they work for permanent residence     
                     status.                                                  
France            o  None reported                                         
Germany           o  Germany admitted approximately 44,000 workers in 2003 
                     under bilateral agreements.                              
Netherlands       o  None reported                                         
New Zealand       o  None reported                                         
Portugal          o  None reported                                         
Singapore         o  Employers must pay a fee for work permits.            
                     o  Workers can work only for employers and in job        
                     positions specified on the permit.                       
                     o  Foreign workers are required to return to their home  
                     countries.                                               
                     o  Workers can apply for permanent residence status      
                     after a specified period of time in the country.         
                     o  Employers are required to post a bond that is         
                     returned to them after workers' return.                  
                     o  Workers must return to their home countries before    
                     applying for a new permit                                
Spain             o  Employers must receive authorization from the         
                     government to employ foreign workers.                    
                     o  Foreign workers can apply for permanent residence     
                     status after a specified period of time.                 
Switzerland       o  None reported                                         
United Kingdom    o  Employers in the food processing sector only can      
                     apply to bring in foreign workers.                       
                     o  Workers are required to return to their home          
                     countries, but can apply for another temporary permit if 
                     they resided in their home countries for at least 2      
                     months after expiration of the initial permit.           
                     o  The United Kingdom admitted approximately 17,000      
                     Sector-Based Scheme workers in 2005.                     

Source: GAO analysis of country-reported data.

Note: Austria, France, the Netherlands, New Zealand, and Portugal did not
report specific foreign worker programs for admitting low-skilled workers.
For more detailed information on programs in Australia, Belgium, Canada,
France, Germany, Spain, Switzerland, and the United Kingdom, see
appendixes III through X.

Table 9: Selected Information on Seasonal Temporary Foreign Worker
Programs

Country        Program characteristics                                     
Argentina         o  Employers can hire foreign workers only when they     
                     cannot find native workers for needed positions.         
                     o  Employers and foreign workers must pay a fee for work 
                     permits.                                                 
                     o  Workers can bring in family members.                  
                     o  Workers can work only for employers and in job        
                     positions specified on the permit.                       
                     o  Workers must provide proof of intent to return.       
                     o  Workers must return to their home countries before    
                     applying for a new permit.                               
                     o  Employers post a bond that is returned to them after  
                     workers' return.                                         
Australia         o  Under Australia's Working Holiday visas, foreigners   
                     can enter Australia for up to 1 year for travel and are  
                     able to supplement their travel funds through incidental 
                     employment.                                              
Austria           o  Seasonal workers can be admitted in the following     
                     sectors: tourism, agriculture and forestry, and harvest. 
                     o  Employers can hire foreign workers only when they     
                     cannot find native workers for needed positions.         
                     o  Employers must pay a fee for work permits.            
                     o  Workers can work only for employers and in job        
                     positions specified on the permit.                       
                     o  Workers must return to their home countries before    
                     applying for a new permit.                               
                     o  Austria set quotas for admissions in the following    
                     sectors in 2006: tourism-7,500; agriculture and          
                     forestry-7,500; and harvest-7,000.                       
Belgium           o  Employers can hire foreign workers only when they     
                     cannot find native workers for needed positions.         
                     o  Workers can work only for employers and in job        
                     positions specified on the permit, depending on the type 
                     of permit.                                               
Canada            o  Seasonal foreign workers admitted from Mexico,        
                     Jamaica, Barbados, Trinidad and Tobago, and the          
                     Organization of Eastern Caribbean States.                
                     o  Workers can work only for employers and in job        
                     positions specified on the permit.                       
                     o  Foreign workers are required to return to their home  
                     countries; permits are valid for a maximum of 8 months.  
France            o  Seasonal foreign workers admitted from Tunisia,       
                     Morocco, and Poland.                                     
                     o  Foreign workers from Tunisia and Morocco are required 
                     to sign an agreement to return to their home countries   
                     and appear at a French mission in their home country to  
                     document their return.                                   
Germany           o  Employers must pay a fee for work permits.            
                     o  Workers can work only for employers and in job        
                     positions specified on the permit.                       
                     o  Germany admitted approximately 330,000 workers in     
                     2005.                                                    
Netherlands       o  Employers can hire foreign workers only when they     
                     cannot find native workers for needed positions.         
                     o  Employers must pay a fee for work permits.            
                     o  Workers can work only for employers and in job        
                     positions specified on the permit.                       
                     o  Workers must return to their home countries before    
                     applying for a new permit.                               
                     o  The Netherlands admitted approximately 23,000 workers 
                     in 2005.                                                 
New Zealand       o  The program is a pilot for seasonal workers in the    
                     horticulture and viticulture industries and only in      
                     regions where the Ministry of Social Development         
                     declared a shortage of workers.                          
                     o  Eligibility for program participation was generally   
                     limited to foreign nationals in the country on the date  
                     the program was announced.                               
                     o  Employers can hire foreign workers only when they     
                     cannot find native workers for needed positions.         
                     o  Foreign workers must pay a fee for work permits.      
                     o  Workers can bring in family members.                  
                     o  Foreign workers can apply for permanent residence     
                     status after a certain period of time in the country.    
                     o  Workers must provide proof of intent to return to     
                     their home countries.                                    
                     o  New Zealand admitted approximately 2,000 workers      
                     between December 2005 and May 2006                       
                     o  A quota of 4,000 was set for the pilot program period 
                     from November 2005 through September 2006.               
Portugal          o  None reported                                         
Singapore         o  None reported                                         
Spain             o  Foreign workers can apply for permanent residence     
                     status after participating in the program for 3 years.   
                     o  Spain admits approximately 20,000 to 30,000 workers   
                     each year.                                               
Switzerland       o  None reported                                         
United Kingdom    o  Employers can apply to bring in foreign students only 
                     as seasonal agricultural workers.                        
                     o  Workers are placed with employers by private sector   
                     entities.                                                
                     o  The United Kingdom set a quota for the program of     
                     16,250 in 2006.                                          

Source: GAO analysis of country-reported data.

Note: Portugal, Singapore, and Switzerland did not report specific foreign
worker programs for admitting seasonal foreign workers. For more detailed
information on programs in Australia, Belgium, Canada, France, Germany,
Spain, Switzerland, and the United Kingdom, see appendixes III through X.

Table 10: Selected Information on Employment Eligibility Verification
Processes

Country        Employment verification process characteristics             
Argentina         o  Employees are required to present documentation that  
                     proves their identity and work eligibility.              
                     o  Employers are required to revew documentation         
                     presented by employees and to report employees'          
                     information to government agencies.                      
                     o  Identity documents:                                   
                                                                              
                             o  Valid passport                                
                             o  Identity card issued by the Argentine Federal 
                             Police                                           
                             o  National identity document, or                
                             o  Certificate of citizenship issued by the      
                             consulate of the worker's country                
                                                                              
                     o  Immigration status documents:                         
                                                                              
                             o  Certificate of permanent residence            
                             o  Certificate of temporary residence            
                             o  Certificate of extension of residence         
Australia         o  Employers are encouraged, but not required to, check  
                     job applicants' work eligibility documents.              
                     o  Work authorization documents:                         
                                                                              
                             o  Australian birth certificate                  
                             o  Australian citizenship certificate            
                             o  Australian passport                           
                             o  Evidence of permanent resident status         
                             o  Visa with entitlement to work                 
Austria           o  Employees are required to present documentation that  
                     proves their identity and work eligibility.              
                     o  Employers are required to review documentation        
                     presented by employees and to report employees'          
                     information to government agencies.                      
                     o  Work authorization documents:                         
                                                                              
                             o  High-skilled worker permit                    
                             o  Work permit                                   
                             o  Exemption certification                       
                             o  Proof of establishment                        
                             o  Confirmation of fee/receipt                   
                             o  Establishment or residence permit for certain 
                             categories of foreigners                         
                             o  Passport or identity cards for European Union 
                             nationals                                        
Belgium           o  Employers are required to report information on new   
                     employees to the social security administration.         
                     o  Employers are required to check the residence and     
                     work permits of foreign workers.                         
Canada            o  Employers are encouraged to check employees' work     
                     authorization documents.                                 
France            o  Employers are required to check the work              
                     authorization status of foreign workers.                 
                     o  Employers are required to file a declaration of hire  
                     with the social security administration for each worker, 
                     regardless of the worker's nationality.                  
Germany           o  Employers are required to check the work              
                     authorization status of foreign workers.                 
                     o  Employers are required to report native workers'      
                     information for social insurance payment purposes.       
Netherlands       o  Employees are required to present documentation that  
                     proves their identity and work eligibility.              
                     o  Employers are required to review documentation        
                     presented by employees and to report employees'          
                     information to government agencies.                      
                     o  Identity documents:                                   
                                                                              
                             o  Passport                                      
                             o  European identity card                        
                             o  Refugee passport                              
                             o  Aliens passport                               
                             o  Residence permit                              
                                                                              
                     o  Immigration status documents:                         
                                                                              
                             o  Passport                                      
                             o  European identity card                        
                             o  Non-European Union citizens must also show a  
                             residence permit or a certificate in their       
                             passport issued by the Dutch immigration service 
New Zealand       o  Employees are required to present documentation that  
                     proves their identity and work eligibility.              
                     o  Work authorization documents:                         
                                                                              
                             o  Foreign passport with valid New Zealand work  
                             or residence permit                              
                             o  Proof of New Zealand citizenship              
                             o  New Zealand passport                          
                             o  Inland revenue tax number                     
Portugal          o  Employees are required to present documentation that  
                     proves their identity and work eligibility.              
                     o  Employers are required to report employees'           
                     information to government agencies.                      
                     o  Work authorization documents:                         
                                                                              
                             o  Authorization of residence, permission to     
                             stay                                             
                             o  Work visa                                     
                             o  Study visa with work authorization            
                             o  Temporary study permission with work          
                             authorization                                    
Singapore         o  Employees are required to present documentation that  
                     proves their identity and work eligibility.              
                     o  Employers are required to review documentation        
                     presented by employees and to report employees'          
                     information to government agencies.                      
                     o  Work authorization documents:                         
                                                                              
                             o  Passport                                      
                             o  Work permit or employment pass endorsed by    
                             the Ministry of Manpower                         
Spain             o  Employers are required to check employees' identity   
                     and work authorization documents at the time of hire and 
                     to report this information to the government.            
Switzerland       o  Foreign workers are required to register with their   
                     local commune within 8 days of entering the country.     
                     o  Employers are required to report information on their 
                     employees to the local employment office and             
                     unemployment insurance office at the time of hire.       
United Kingdom    o  Employers can establish a defense against conviction  
                     for employing an illegal worker by checking and copying  
                     certain original documents presented by potential new    
                     employees from one of two lists.                         
                     o  Examples of List 1 documents:                         
                                                                              
                             o  United Kingdom passport                       
                             o  European Economic Area or Swiss passport or   
                             national identity card                           
                             o  Residence permit                              
                                                                              
                     o  Examples of List 2 documents:                         
                                                                              
                             o  National insurance number document            
                             o  Birth certificate                             
                             o  Certificate of naturalization                 
                             o  Work permit                                   

Source: GAO analysis of country-reported data.

Note: For more detailed information on programs in Australia, Belgium,
Canada, France, Germany, Spain, Switzerland, and the United Kingdom, see
appendixes III through X.

Table 11: Selected Information on Worksite Enforcement Efforts

            Employer         Employer                                                               
            administrative   criminal                            Number of                          
            or civil         monetary                            worksite          Penalties for    
            monetary         penalties and   Other employer      enforcement       unauthorized
Country     penalties        prison terms    penalties           actions           foreign workers
Argentina      o  Maximum of    o  1 to 10      o  Employer can     o  Not         Unauthorized     
               50 times the     years in        be required to      available      foreign workers  
               minimum wage     prison          pay                                can be subject   
                                                investigation or                   to:              
                                                court costs and                                     
                                                unpaid taxes and                      o             
                                                social insurance                      deportation,  
                                                contributions on                      o             
                                                unauthorized                          prohibition   
                                                foreign workers.                      on reentry to 
                                                o  Employers'                         the country,  
                                                assets are                            and           
                                                subject to                            o             
                                                seizure.                              ineligibility 
                                                o  Employers'                         for temporary 
                                                worksites are                         foreign       
                                                subject to                            worker        
                                                closure.                              programs.     
                                                o  Employer can                    
                                                be prohibited                      
                                                from receipt of                    
                                                government                         
                                                contracts.                         
Australia      o  None          o               o  None reported    o  Identified  Unauthorized     
                                Individuals                         about 23,000   foreign workers  
                                and entities                        visa overstays can be subject   
                                can be fined                        in 2004-2005   to:              
                                up to                                                               
                                A$10,000                                              o  detention, 
                                (about                                                o             
                                $7,500) for                                           deportation,  
                                aiding and                                            and           
                                abetting the                                          o             
                                employment                                            requirements  
                                of                                                    to pay        
                                unauthorized                                          detention     
                                foreign                                               costs.        
                                workers.                                           
Austria        o                o  Maximum 2 Employers can be       o  Initiated   Unauthorized     
               €1,000      years in     subject to:            about 18,000   foreign workers  
               to               prison                              investigations can be subject   
               €50,000                     o  prohibition      in 2005        to:              
               (about $1,300                    on receiving        o  Issued                       
               to $62,900),                     work permits,       civil fines       o             
               depending on                     o  seizure of       totaling          deportation,  
               the number of                    trade license,      €17          o             
               unauthorized                     and                 million (about    prohibition   
               foreign                          o  prohibition      $21.4 million)    on reentry to 
               workers                          on receipt of       in 2005           the country,  
               employed and                     government          o  Collected      o             
               the number of                    contracts.          an estimated      ineligibility 
               offenses                         o  Employers can    €8           for temporary 
                                                be required to      million (about    foreign       
                                                pay costs for       $10.1 million)    worker        
                                                o  deporting        in civil fines    programs, and 
                                                unauthorized        in 2005           o  payment of 
                                                foreign workers,                      costs for     
                                                o  investigation                      deportation.  
                                                or court costs,                    
                                                and                                
                                                o  unpaid taxes                    
                                                or social                          
                                                insurance                          
                                                contributions.                     
                                                o  Employers'                      
                                                assets can be                      
                                                seized or their                    
                                                worksites                          
                                                closed.                            
Belgium        o  Minimum       o  Minimum      o  Employers who    o  Conducted   Unauthorized     
               €3,750      €15,000    do not properly     about 6,000    foreign workers  
               ($4,700) per     ($18,800)       report              employer       can be subject   
               unauthorized     per             employees'          investigations to:              
               worker for       unauthorized    information to      in 2004                         
               workers          worker for      the social          o  Filed          o  detention, 
               without          workers         security            approximately     and           
               residence and    without         administration      3,000 criminal    o             
               work permits     residence       can be              charges           deportation.  
               o  Minimum       and work        administratively    against        
               €375        permits         fined from          employers in   
               ($470) per       o  Minimum      €750 to        2004           
               unauthorized     €1,700     €3,750                        
               worker for       ($2,100) per    (about $940 to                     
               workers with     unauthorized    $4,700) and                        
               work permits     worker for      criminally fined                   
                                workers with    from €2,500                   
                                work permits    to €12,500                    
                                                (about $3,100 to                   
                                                $15,700) and/or                    
                                                receive prison                     
                                                sentences from 8                   
                                                days to 1 year.                    
Canada         o  None          o  Depending    o  None reported    o  Not         Unauthorized     
                                on the type                         available      workers can be   
                                of                                                 subject to:      
                                conviction,                                                         
                                maximum                                               o             
                                C$50,000                                              deportation   
                                ($43,800) or                                          and           
                                maximum                                               o  detention. 
                                C$10,000                                           
                                ($8,800)                                           
France         o                o  Maximum      o  None reported    o  Imposed     Unauthorized     
               €3,110      €15,000                        about          workers can be   
               ($3,900) per     ($18,800)                           €2.7      subject to:      
               unauthorized     per offense                         million (about                  
               worker           o  Employers                        $3.4 million)     o             
                                can be                              in civil fines    deportation   
                                sentenced to                        on employers      and           
                                a prison                            in 2005           o  detention. 
                                term of up                                         
                                to 6 years.                                        
Germany        o  €5 to    o  Fines     Employers can be       o  Initiated   Unauthorized     
               €500,000    imposed on a subject to:            about 78,000   workers can be   
               total ($6 to     daily basis                         employer       subject to:      
               $628,800)        ranging from    o  exclusion        investigations                  
                                5 to 360        from receipt of     in 2005           o             
                                days. Daily     public              o  Issued         deportation   
                                fine rates      contracts,          about €67    and           
                                range from      o  requirements     million (about    o             
                                €1 to      to pay              $84.2 million)    prohibition   
                                €5,000     unauthorized        in employer       on reentry to 
                                per day ($1     foreign workers'    civil fines       the country.  
                                to $6,300)      deportation                        
                                o  Prison       costs, and                         
                                terms of up     o  requirements                    
                                to 10 years     to pay back                        
                                                taxes and social                   
                                                insurance                          
                                                contributions                      
                                                not initially                      
                                                paid for                           
                                                unauthorized                       
                                                foreign workers.                   
Netherlands    o                o  Employers    o  Employers can    o  Initiated   Unauthorized     
               €4,000      can be          be required to      about 8,600    workers can be   
               to               penalized       pay unpaid tax      investigations subject to       
               €8,000      criminally      and social          in 2005        deportation.     
               (about $5,000    only after      security            o  Issued      
               to $10,100)      three           contributions.      about 2,200    
               per              convictions                         civil fines in 
               unauthorized     within a                            2005           
               worker           2-year                              o  Issued      
                                period.                             civil fine     
                                                                    amounts        
                                                                    totaling       
                                                                    between        
                                                                    €13       
                                                                    million and    
                                                                    €20       
                                                                    million (about 
                                                                    $16. 3 million 
                                                                    to $25.1       
                                                                    million) in    
                                                                    2005           
New Zealand    o  Civil         o  Criminal     o  None reported    o  Not         Unauthorized     
               monetary         monetary                            available      foreign workers  
               fines            fines                                              can be subject   
               (amounts not     (amounts not                                       to:              
               specified)       specified)                                                          
                                                                                      o             
                                                                                      deportation   
                                                                                      o             
                                                                                      prohibition   
                                                                                      on reentry,   
                                                                                      and           
                                                                                      o             
                                                                                      prohibition   
                                                                                      on            
                                                                                      participation 
                                                                                      in foreign    
                                                                                      worker        
                                                                                      programs.     
Portugal       o  Civil         o  Maximum 3    o  None reported    o  Not         Unauthorized     
               monetary         years in                            available      foreign workers  
               fines            prison                                             can be subject   
               (amounts not                                                        to:              
               specified)                                                                           
                                                                                      o  civil and  
                                                                                      criminal      
                                                                                      monetary      
                                                                                      fines ranging 
                                                                                      from €80 
                                                                                      to €700  
                                                                                      (about $100   
                                                                                      to $900),     
                                                                                      o  detention  
                                                                                      up to 48      
                                                                                      hours,        
                                                                                      o             
                                                                                      deportation,  
                                                                                      and           
                                                                                      o             
                                                                                      prohibition   
                                                                                      on reentry to 
                                                                                      the country   
                                                                                      for 5 years   
                                                                                      (for 1 year   
                                                                                      if person     
                                                                                      leaves        
                                                                                      voluntarily). 
Singapore      o  None          o  Criminal     o  Employers can    o  Not         Unauthorized     
                                fines           be required to      available      foreign workers  
                                equivalent      pay costs for                      can be subject   
                                to the value    deporting                          to:              
                                of an           unauthorized                                        
                                unauthorized    foreign workers.                      o  criminal   
                                foreign                                               fines up to   
                                worker's                                              S$5,000       
                                wages for                                             (about        
                                2-4 years                                             $3,100),      
                                o  Maximum 1                                          o  detention  
                                year in                                               for up to 1   
                                prison                                                year,         
                                o  Employers                                          o             
                                could be                                              deportation,  
                                subject to                                            o             
                                both of the                                           prohibition   
                                above                                                 on reentry to 
                                                                                      the country,  
                                                                                      and           
                                                                                      o             
                                                                                      ineligibility 
                                                                                      for temporary 
                                                                                      foreign       
                                                                                      worker        
                                                                                      programs.     
Spain          o                o  None         o  Not available    o  Not            o  None       
               €6,000      reported                            available         reported      
               to                                                                  
               €60,000                                                        
               ($7,500 to                                                          
               $75,500) per                                                        
               unauthorized                                                        
               worker                                                              
Switzerland    o  None          o  Maximum      o  Not available    o  Not         Unauthorized     
                                of SwF 5,000                        available      foreign workers  
                                ($4,000) per                                       can be subject   
                                unauthorized                                       to:              
                                worker                                                              
                                                                                      o  criminal   
                                                                                      fines up to   
                                                                                      SwF 10,000    
                                                                                      (about        
                                                                                      $8,000) and   
                                                                                      o  prison     
                                                                                      sentences up  
                                                                                      to 6 months.  
United         o  None          o  Unlimited    o  Employer can     o  Initiated   Unauthorized     
Kingdom                         amount with     be required to      about 2,900    workers can be   
                                criminal        pay court costs.    employer       subject to:      
                                conviction      o  Employer's       investigations                  
                                                assets are          in 2005           o             
                                                subject to          o  Had 8          deportation,  
                                                foreclosure or      employer          o  detention, 
                                                seizure.            criminal          o             
                                                                    prosecutions      prohibition   
                                                                    in 2004           on reentry to 
                                                                                      the country.  

Source: GAO analysis of country-reported data.

Note: Amounts in U.S. dollars are rounded, based on the exchange rate from
July 25, 2006. For more detailed information on programs in Australia,
Belgium, Canada, France, Germany, Spain, Switzerland, and the United
Kingdom, see appendixes III through X.

Appendix III: Information on Selected
Immigration-Related Programs in Australia

Foreign Worker Admissions

Immigrants can enter Australia for work purposes under various visa
programs, including programs for employer-sponsored migrant workers, state
or regional-sponsored workers, and skilled independent workers (e.g.,
foreign workers not sponsored by employers).1 Australia recruits
high-skilled workers through, among other things, the use of promotional
campaigns within specific industrial sectors or foreign countries to
target foreign workers with specific business or trade skills for
positions in the country. Information on some of Australia's primary
employment-based visa programs is provided below.

Employer-Sponsored Program

  Temporary Business-Standard Business Sponsorship

The Temporary Business-Standard Business Sponsorship is the most commonly
used program for employers to sponsor foreign workers to work in Australia
on a temporary basis. Employers pay a fee of A$270 (about $200) to apply
for status as a sponsor, a A$55 (about $40) to apply to nominate skilled
positions that they have been unable to fill, and a fee of A$185 (about
$140) for the foreign worker to apply for a visa. Minimum skill and salary
levels apply. Foreign workers who receive a visa under this program can
legally work in Australia for the employer who sponsored them for a period
of between 3 months and 4 years. These foreign workers can apply to bring
family members with them and have no restrictions on the number of times
they travel in and out of Australia.

Labor Agreements

Labor Agreements are formal arrangements between the Commonwealth
Government and an employer or industry peak body that enable employers to
recruit a number of workers from overseas in response to identified or
emerging labor market shortages. Employees may come to Australia on either
a temporary or a permanent basis. Advantages of Labour Agreements are that
an employer may negotiate the entry of a number of people to fill a group
of positions across a wide range of skilled occupations without having to
test the domestic labor market each time it wishes to recruit from
overseas, and visa applications for overseas recruits receive priority
processing. Agreements generally run for three years. They are negotiated
free of charge and there is no nomination fee for permanent positions.
Employers pay a A$55 (about $40) fee for each temporary nominated position
and a fee of A$185 (about $140) for issuing the visa to the foreign
worker. Foreign workers admitted under a temporary visa can work in
Australia for up to 4 years, bring family members, and travel in and out
of Australia without restriction. Foreign workers admitted under a
permanent visa can include family members in their visa applications.
Family members receive permanent residence status on arrival in Australia
and may be eligible for Australian citizenship after a qualifying period.

1Information presented in this appendix is based on data reported by
government officials; government documents, such as agency reports and
manuals; and nongovernmental reports and studies, such as those from the
International Labour Organization and the Organisation for Economic
Co-operation and Development. It is not based on an independent
examination of Australian laws and regulations. The appendix provides an
overview of selected immigration policies in Australia as of July 2006.

  Employer Nomination Scheme

The Employer Nomination Scheme allows Australian employers to sponsor
skilled migrants for a permanent visa to work in Australia. Nominations
are acceptable if they are for permanent full-time positions and the
occupation is listed on the Employer Nomination Scheme Occupation List.
Nominees can be located either inside or outside of Australia, but must
have the necessary skills and qualifications for the nominated positions.
For foreign workers residing outside Australia, the employer is required
to pay a A$350 (about $260) nomination fee and the nominee pays a A$1,340
(about $1,000) visa fee. For foreign workers residing in Australia,
employers are required to pay a A$350 (about $260) nomination fee and the
nominee pays a A$1,990 (about $1,500) visa fee. Foreign workers admitted
under this program can include family members in their visa applications,
and their family members can receive permanent residence status. In
addition, these foreign workers may be eligible for Australian citizenship
after a qualifying period.

Regional, State, or Territory Visa Programs

  Regional Sponsored Migration Scheme

The Regional Sponsored Migration Scheme is designed to help employers in
regional Australia fill skilled positions for which they are unable to
find local workers. Under this scheme, employers can nominate skilled
overseas workers who reside outside Australia or who reside in the country
as temporary residents. For skilled overseas workers residing outside
Australia, the employer is required to pay a A$1,340 (about $1,000) fee to
apply for a permanent visa, and for skilled overseas workers residing in
Australia, employers are required to pay a fee of A$1,990 (about $1,500)
to apply for a permanent visa. Skilled overseas workers admitted under
this program can include family members in their visa applications, and
their family members can receive permanent residence status. In addition,
these foreign workers may be eligible for Australian citizenship after a
qualifying period.

  Independent Regional Visa

This visa program allows skilled workers who are unable to meet the
criteria for a permanent visa the opportunity to eventually apply for
residence in Australia provided they are prepared to live for 2 years and
work at least 12 months in a regional or low population growth
metropolitan area in Australia. Successful applicants are initially
granted a 3-year visa to give them time to satisfy the residence and
employment criteria for a permanent visa. Applicants must have the skills
and qualifications that meet the Australian standard for an occupation on
the Skilled Occupation List2 and are one of the following:

           o  a person in Australia or outside Australia who is unable to
           meet the pass mark on the points test for a permanent Skilled -
           Independent visa, as discussed below, but who can meet the pass
           mark for this visa, which is slightly lower, or
           o  a person who has a Skilled-Independent visa application which
           has been held at the pass mark and been invited to apply for this
           visa, or
           o  a holder of a Working Holiday Maker visa who has been in
           Australia on that visa for at least 6 months, or
           o  a holder of an Occupational Trainee visa who has completed the
           period of training for which the visa was granted.

Applicants are required to pay a visa issuance fee of A$185 (about $140).
Under this visa, foreign workers are allowed to reside in Australia for up
to 3 years and must live and work in a regional or low-population growth
area of Australia. Accompanying family members can also work and study but
must do so in a rural or low-population growth area of Australia.

  State-Territory Nominated Independent Visa

Under this visa program, participating state or territory governments can
nominate skilled migration applicants who are interested in permanently
settling in states and territories where their skills are in demand. To
apply for this visa, applicants must nominate an occupation that is listed
on Australia's Skilled Occupation List and have their skills and
qualifications assessed by the relevant assessing authority. Each state or
territory government has its own skill shortage list and nominates
applicants with skills in demand in their particular state or territory.
Foreign workers are required to pay a fee of A$1,990 (about $1,500) for
issuance of a permanent visa. Foreign workers admitted under this program
can include family members, who can also receive permanent residence
status, and may be eligible for Australian citizenship after a qualifying
period.

2 Occupations on this list include, among others, managers (e.g., human
resources or laboratory managers), engineers, medical practitioners, and
teachers.

    Skill Matching Visa

The Skill Matching visa is designed to link skilled migrants who do not
meet the points requirement for the Skilled-Independent visa with
employers or state and territory governments by placing the potential
migrant's details on the Skill Matching Database. Applicants of the Skill
Matching Visa must be nominated by an employer or state/territory
government for permanent migration to Australia. Applicants nominated for
migration by a state or territory government for the Skill Matching visa
are required to pay a fee of A$1,940 (about $1,500) for issuance of a
permanent visa. Applicants nominated by an employer under
employer-sponsored migration are required to pay a fee of A$1,305 (about
$980) for issuance of a permanent visa. Foreign workers admitted under
this program can bring in family members, who can also receive permanent
residence status, and may be eligible for Australian citizenship after a
qualifying period.

Skill Matching Database

The Skill Matching Database contains the educational, employment, and work
details of applicants for the following programs: the Skill Matching visa,
the Skilled-Independent visa, the Skilled-Australian Sponsored visa, the
Skilled-Independent Overseas Student visa, and the Skilled-Australian
Sponsored Overseas Student visa. Applicants remain in the database for up
to 2 years, or until they migrate to Australia. The database provides the
opportunity for applicants to secure employment in Australia before they
migrate. The database is accessed by state and territory governments and
by employers who may then nominate an applicant for migration. The Skill
Matching database provides a means to match skilled migrants with
Australia's skill needs. Many applicants listed on the Skill Matching
Database do not require formal sponsorship by an employer or
state/territory government for their visa to be granted. Employers can
contact these applicants directly and negotiate and offer of employment
without involving the Australian Department of Immigration and
Multicultural Affairs. Employers also have the option to offer sponsorship
to all applicants on the database that have not had their visa granted or
been sponsored by a state/territory government. Employer sponsorship
expedites the visa application processing.

Professionals and Other Skilled Migrants Programs

Under these programs, foreign workers who are not sponsored by an employer
and who have skills in particular occupations required in Australia, can
apply to work in the country. Applicants must be over 18 and under 45
years of age, have English language skills, and have recent skilled work
experience. Applicants must also have skills and qualifications for an
occupation listed on Australia's Skilled Occupation List.

  Skilled-Independent Visa

Under this visa program, foreign workers can apply to work in Australia if
they are under 45 years of age, have good English language skills, and
skills and qualifications in an occupation required in Australia. The
Australian government selects applicants based on a points test. Each
occupation listed on the Skilled Occputation List is allocated a point
value for use in the assessment process. Applicants must obtain a minimum
amount of points to qualify for an independent visa to live and work in
Australia. Applicants earn points for such things as skill, age, English
language ability, specific work experience, an occupation in demand, a job
offer, an intention to reside in regional Australia, and spouses' skills.
Applicants pay a fee of A$1,990 (about $1,500) to apply for a permanent
visa. Foriegn workers admitted under this program can bring in family
members, and their family members can receive permanent residence status.
In addition, these foreign workers may be eligible for Australian
citizenship after a qualifying period.

Working Holiday Maker and Work and Holiday Visas

The Working Holiday Maker and the Work and Holiday Programs allow
foreigners aged 18-30 from specific countries to enter Australia for up to
1 year for travel around the country. Visa holders under these programs
are able to supplement their travel funds through incidental employment,
however, the holiday should be the main reason for visiting Australia.
During their time in the country, these individuals can earn money by
working for up to 6 months with each employer. Visa holders should holiday
for at least part of their stay rather than work for the full period of
their stay. Both visas allow a stay of up to 12 months, however, Working
Holiday Makers who have done 3 months' seasonal work in regional Australia
while on their first Working Holiday Maker visa are able to apply for a
second Working Holiday Maker visa. Work and Holiday visa holders are able
to apply for a subsequent Work and Holiday visa with no requirement to do
seasonal work. Visa holders under both programs are not permitted to bring
dependents with them. There are no restrictions on their ability to travel
in and out of Australia. There are additional requirements for Work and
Holiday visa applicants, such as they must provide a letter of support
from their government, hold a degree or diploma, and provide proof of
English proficiency. Working Holiday Maker visa applicants are required to
pay a visa application fee of A$185 (about $140); Work and Holiday visa
applicants are required to pay a visa application fee of A$175 (about
$130). Australia manages its Working Holiday Maker Programs through
reciprocal bilateral agreements with selected countries.

Employment Verification Process

In Australia, all employees must register with their local tax office and
obtain a tax file number, which is used by employers to report employees'
income tax information. The government encourages employers to verify job
applicants' eligibility to work, by checking the applicants' Australian
passport, birth certificate, or certificate of citizenship. However, there
is no requirement for employers to check or verify workers' identity or
immigration status. There are five types of documents that workers can
present as evidence of work eligibility:

           o  Australian birth certificate;
           o  Australian citizenship certificate;
           o  Australian passport;
           o  evidence of permanent resident status; and
           o  visa with entitlement to work.

The Australian Department of Immigration and Multicultural Affairs
provides various tools that employers can use to verify foreign workers'
authorization status. For example, the department provides a voluntary
Web-based service to employers, called Entitlement Verification Online,
through which employers can verify the identity and work eligibility of
their employees. When employers request a confirmation of an employee's
authorization to work through the Web-based service, the system checks the
employee's information against information maintained in Australia's
central visa database, which contains information on visa-holders' work
authorization status. System users are required to enter the employee's
date of birth, passport number, and country of origin. The system returns
a match when it matches an immigrant's visa with the foreign country
passport number of the immigrant in question. The system then provides the
user with a report on the conditions associated with the immigrant's visa,
including right to work. A match could indicate that the applicant has a
right to work, that the applicant is lawfully present but under a visa
condition that does not allow the individual to work, or that the
applicant is unlawfully present and thus unable to legally obtain
employment.

In addition to the Web-based service, the department provides a faxback
entitlements service to employers to help employers verify employee's work
authorization. Under this service, employers provide employees'
information, such as name, passport number, and nationality, to the
department. The department checks this information against information
maintained in its databases and confirms the individual's work
authorization status with the employers. In 2003-2004, employers made
about 36,000 information requests through the faxback service.

Enforcement of Laws That Prohibit Employment of Unauthorized Foreign
Workers

Australia's Department of Immigration and Multicultural Affairs is
responsible for enforcing the country's immigration laws, including laws
that prohibit the employment of unauthorized workers. The department has
about 4,000 staff responsible for enforcing laws related to
non-humanitarian entry and stay, refugee and humanitarian entry and stay,
enforcement of immigration law, and asylum seeker management.

Australia requires all individuals seeking to enter the country to possess
a valid visa. Individuals may be denied entry at an Australia port of
entry if they arrive without travel documents or a valid visa, or if they
present documentation that is false but which they used for check-in at
overseas airports. Individuals can also be denied entry if they hold valid
visas, but immigration inspectors determine that they are not likely to
abide by the visa conditions. Reasons for which immigration inspectors may
determine that individuals do not intend to abide by their visas include
that individuals are found to have an intention to seek employment which
is prohibited under their visas, information presented in support of their
visa applications is found to be false, and the reason the visa was issued
no longer exists (e.g., the visa was issued on the basis that the
visa-holder intended to travel to Australia for a specific event, but the
date of the event has passed). The majority of individuals denied
clearance at Australian ports of entry are returned within 72 hours.

Overstays are those non-citizens who do not depart by the expiration date
of their temporary visa and remain in Australia unlawfully. Twice each
year in June and December, Australia's Department of Immigration and
Multicultural Affairs prepares an estimate of unlawful noncitizens-visa
overstayers-in the country. A person who was unlawful for a period of time
but departed or was granted a further visa and became lawful again prior
to the estimate date is not included. At each estimate date, records are
collected for all people who arrived in Australia, who have an expired
visa, and whose records indicate they have not subsequently left
Australia. The data are then filtered through various departmental systems
to exclude persons who were actually lawful (for example, persons who have
been granted citizenship). The remaining records are then sampled to check
for any other lawful persons or persons who have actually left Australia
and have not been identified during the initial filtering. The statistical
corrections obtained through this process are then applied to the raw
data, and the adjusted data are used to prepare the estimates. In of June
2006, there were estimated to be about 46,400 visa overstayers in the
Australian community.

In 2005-2006, Australian compliance officers found about 10,500 visa
overstayers and persons who had otherwise violated their visa conditions
(e.g., violated no work right provisions). Persons found to have
overstayed or otherwise violated their visa conditions are typically
removed from the country or granted a bridging visa. Bridging visas allow
foreigners whose visas have expired and have requested permission to
extend their stay in Australia to remain in the country for a short,
specified period of time during which the individuals must make
arrangements to leave Australia or obtain a new visa authorizing them to
remain in the country. An example of a case in which Australia may issue a
bridging visa would be when a student accidentally overstays his or her
visa, self-reports this overstay, but needs to remain in Australia for a
few additional weeks to finish schoolwork and make arrangements to leave.

Those individuals who are detained for overstaying or violating their
visas are required to pay the costs for the time during which they were in
detention before they can receive a visa to return to Australia. Australia
maintains a list of individuals who were detained and have not yet repaid
the detention costs; immigration officers are not to issue visas to these
individuals to enter Australia until they paid their detention costs.

Australia does not currently have a system for sanctioning employers found
to have employed unauthorized foreign workers, although proposed
legislation for doing so is before the Australian Parliament. However, any
person or group that aids or abets unauthorized foreign workers in
Australia can be fined up to A$10,000 (about $7,500). In addition, the
Australian government can issue illegal worker warning notices to
employers or labor suppliers who have employed unauthorized workers or
referred unauthorized workers for employment. The warning notices alert
employers to the fact that they have employed unauthorized workers and
help to deter future breaches by advising employers of the possibility of
future prosecution. In 2005-2006, Australia issued over 1,050 warning
notices to employers and labor suppliers of unauthorized foreign workers.
In the same period, the Department of Immigration and Multicultural
Affairs located about 1,900 noncitizens who were found to be working
illegally.

Appendix IV: Information on Selected Immigration-Related Programs
in Belgium

Foreign Worker Admissions

After World War II, labor shortages in Belgium led the government to
conclude bilateral agreements to recruit foreign workers from countries
such as Italy, Spain, Greece, Morocco, Turkey, and other countries.1 The
1973 oil crisis led Belgium to enact legislation controlling the entry of
foreigners into the country to only allow people into the country with
qualifications that were not available through the local labor pool.

In order to be able to work in Belgium, foreign workers, other than those
from member states of the European Economic Area, generally are required
to have a valid work permit.2 These foreign workers also require a visa to
stay in Belgium for longer than 3 months.3 A foreigner entering Belgium
for work purposes requires the following documents: a passport or other
travel document that is valid for at least 1 year, a medical certificate
by a Belgian embassy-recognized physician, a recent certificate of good
conduct covering 5 years, and an employment authorization document. A
Belgium-based employer applies for the employment authorization on behalf
of the foreign worker and a visa is issued to the foreign worker together
with the work permit.

Foreign workers can legally work in Belgium under three types of permits:
A, B, and C. Work permit A covers all kinds of salaried employment in
Belgium and is valid indefinitely. Employers are not required to apply for
employment authorization for workers with work permit A. Rather, foreign
workers apply for work permit A on their own through their regional
employment office. Workers who are eligible for work permit A include
those with a valid work permit B who have worked in Belgium for more than
4 years and those who have resided legally in Belgium for an uninterrupted
period of at least 5 years.

A work permit B is valid for employment by only one employer and has a
maximum validity of 12 months, but can be renewed. A foreign worker is
eligible for a work permit B after an employer is issued an employment
authorization for the worker. Prior to obtaining work authorization for a
foreign worker, the employer must show that there are no workers available
in Belgium to fill the vacant position. The foreign worker can obtain the
work permit B from the local government office where the worker resides in
Belgium or, if the worker is not yet resident in Belgium, from the
worker's employer upon the start of employment. Employers can apply to
renew a work permit B for foreign workers 1 month before expiration of the
work permit. In 2004, more than 4,300 type A and B work permits were
issued to foreign workers.4

1 Information presented in this appendix is based on data reported by
government officials; government documents, such as agency reports and
manuals; and nongovernmental reports and studies, such as those from the
Organisation for Economic Co-operation and Development. It is not based on
an independent examination of Belgian laws and regulations. The appendix
provides an overview of selected immigration policies in Belgium as of
July 2006.

2 Member states of the European Union, Iceland, Liechtenstein, and Norway
comprise the European Economic Area.

3 Foreign nationals from Monaco and Switzerland also do not require a visa
to stay in Belgium longer than 3 months.

Under work permit C, foreigners already residing in Belgium for reasons
other than work can apply to receive work authorization. These types of
foreigners include asylum seekers, victims of trafficking, or a foreigner
living with, but not married to, a Belgian citizen. These foreigners can
apply for and receive a C permit, which allows them to work for any type
of employer, but before hiring them, the employer must check as to whether
the foreigners' residence permits are valid and must continue to check
residence permit validity. The permits are only valid for as long as the
individual's residence permit is valid.

Employment Verification and Registration Process

Employers are required to electronically report information on new
employees to the social security administration. This information includes
the employees' social security number and employment entry date. In
addition, employers are required to check the residence and work permits
of foreign workers to verify foreign workers' authorization to work in
Belgium.

Enforcement of Laws That Prohibit Employment of Unauthorized Foreign
Workers

In 2003, the Belgian government introduced a new institutional framework
for coordinating worksite enforcement efforts. The government introduced a
federal committee to coordinate efforts to combat illegal labor practices,
social fraud, and human trafficking. Each month, this committee plans
worksite enforcement actions all over the country targeted against
employers in specific industries, such as construction or restaurants, and
coordinates the activities of various enforcement agencies in Belgium,
including the Belgium labor inspectorate, police, and other government
agencies, in conducting the enforcement operations. These collective
enforcement actions generally occur over a 3-day period each month, and
the government allocates about 1,100 inspectors for the enforcement
actions, who also execute everyday individual actions against nondeclared
work or unauthorized workers. According to the Belgian government,
employers in the following sectors typically employ a significant number
of unauthorized foreign workers: lodging, food service, cleaning service,
farming, horticulture, textile, manufacturing, meatpacking, and
construction.

4 Organisation for Economic Co-operation and Development, International
Migration Outlook (Paris, France: 2006).

In Belgium, employers can be subject to civil and criminal penalties for
engaging in various illegal labor practices. Employers who do not properly
report employees' information to the social security administration can be
administratively fined from €750 to €3,750 (about $940 to
$4,700) per worker. Employers can also be subject to criminal fines
ranging from €2,500 to €12,500 (about $3,100 to $15,700) and/or
prison sentences ranging from 8 days to 1 year.

Employers can be subject to penalties for hiring unauthorized foreign
workers. The minimum civil fine for hiring workers without residence and
work permits is €3,750 (about $4,700) per worker, and the minimum
criminal fine is €15,000 (about $18,800) per worker. The minimum
civil fine for hiring foreign workers without work permits is €375
per worker (about $470), and the minimum criminal fine is €1,700
(about $2,100) per worker.

In 2004, Belgium conducted about 6,000 employer investigations and filed
approximately 3,000 criminal charges against employers for illegal labor
practices.

Subsidization of Legal Work

To help reduce undeclared work in the in-home cleaning sector, the Belgian
government has established a program to subsidize in-home cleaning work
completed by Belgian workers. Under this program, the federal government
subsidizes private households' use of Belgian cleaning persons who are
registered with the government. The program allows formerly unemployed
persons, such as former housewives, to register with a local agency.
Households pay the agency for work completed by the registered worker, and
the agency then pays the worker his or her wages, which are partially
subsidized by the government. Since the program was established in 2002,
approximately 25,000 cleaning persons have registered to participate in
the program.

Regularization Efforts

Belgium initiated a regularization program in 1973. Approximately 8,400
unauthorized immigrants applied for the program, and about 88 percent of
these applicants were granted a legal work permit. Subsequent to this
large-scale regularization program, Belgium regularized long-term resident
migrants and other unauthorized immigrants for humanitarian reasons on a
case-by-case basis.

In 2000, Belgium implemented a large-scale regularization program. In
order to be regularized, applicants had to have been in Belgium before
October 1, 1999, and had to fulfill one of the following conditions:

           o  asylum petition pending for a long period (4 years for
           individuals or 3 years for families with minor children) without
           having been informed about the decision of their case,
           o  inability to return to their country of origin for humanitarian
           reasons,
           o  serious illness, or
           o  residence in the country for 6 years without receiving an order
           to leave in the past 5 years.

The application process lasted 3 weeks, and approximately 52,000
individuals applied for regularization for themselves or their families.

Appendix V: Information on Selected Immigration-Related Programs in
Canada

Foreign Worker Admissions

Canada uses various foreign worker programs to manage the admission of
high-skilled, low-skilled, and seasonal foreign workers.1 Canada's
temporary foreign worker programs are driven by labor market needs, and
Canada does not use quotas to manage the number of temporary foreign
worker admissions. Canada charges individual workers a C$150 (about $130)
fee to apply for a work permit.

Canadian employers can choose to recruit and hire foreign workers from any
country. In doing so, employers submit an application for foreign workers
to Human Resources and Skills Development Canada (HRSDC). Employers who
apply to bring in foreign workers must prove to HRSDC that they made
reasonable efforts to fill their positions with native Canadian workers.
Reasonable efforts include running advertisements for the positions in
newspapers, magazines, and trade journals for several weeks. When HRSDC is
aware of a labor shortage in a particular industry, such as in the oil
industry in Alberta, HRSDC may impose less of a requirement for employers
to prove reasonable efforts to hire native workers, such as requiring
employers to run advertisements for positions for a shorter time period.

After receiving an employer's application, HRSDC conducts a labor market
assessment in which the agency considers the following factors: the
existence of ongoing labor disputes in the industry or with the specific
employer requesting the foreign workers; prevailing wages for the
positions that employers request foreign workers to fill; labor
conditions; benefits to the economy from the employment of foreign
workers; and the possible transfer of skills between foreign and native
workers. On the basis of consideration of these factors, HRSDC issues a
positive or negative labor market assessment for the admission of foreign
workers. A positive labor market assessment means that employers are
approved to recruit foreign workers, while a negative labor market
assessment means that employers are not approved for the recruitment of
foreign workers.

After HRSDC issues a positive opinion on a labor market assessment, data
on this positive opinion are entered into HRSDC's database. This database
shares information with Citizenship and Immigration Canada's (CIC)
database that CIC uses in Canadian missions in foreign countries. When
foreign workers who have been accepted into a temporary foreign worker
program visit the Canadian mission to obtain their work permits, CIC
agents access the CIC database to check on the results of HRSDC's labor
market assessment and issue work permits for foreign workers in cases of a
positive labor market assessment.

1 Information presented in this appendix is based on data reported by
government officials; government documents, such as agency reports and
manuals; and nongovernmental reports and studies, such as those from the
International Organization for Migration. It is not based on an
independent examination of Canadian laws and regulations. The appendix
provides an overview of selected immigration policies in Canada as of July
2006.

In 2004, HRSDC received requests from about 30,000 employers for
approximately 100,000 temporary foreign workers, for which HRSDC issued
about 91,000 positive labor market assessments. About 55 percent of the
temporary foreign workers admitted to Canada in 2004 were employed in
skilled occupations, such as professionals, academics, and engineers. The
other approximately 45 percent were employed in low-skilled occupations,
such as live-in caregivers, construction, and agriculture as part of
Canada's seasonal agricultural worker program.

Seasonal Agricultural Worker Program

Under the seasonal agricultural worker program, Canada admits workers from
other countries to fill needed jobs in agriculture for a maximum of 8
months. Canada's seasonal agricultural worker program is managed through
bilateral agreements with Mexico, Jamaica, Barbados, Trinidad and Tobago,
and the Organization of Eastern Caribbean States. The majority of seasonal
foreign workers come from Mexico and Jamaica and typically return to
Canada year after year through participation in the program.

Low Skilled Foreign Worker Pilot Program

In addition to the seasonal agricultural worker program, Canada admits
low-skilled workers for 12 months under a pilot project for hiring foreign
workers in occupations that require a high school diploma or limited
job-specific training. Under this pilot program, employers can apply for
foreign workers to fill jobs that require a high school diploma or a
maximum of 2 years of job-specific training, such as restaurant servers,
cleaners, retail salespersons, and heavy equipment operators.

Foreign Worker Change of Status

Among Canada's temporary foreign worker programs, the live-in caregiver
program is the only program that provides foreign workers with a method
for changing their status to permanent residency. If live-in caregivers
accumulate 2 years of experience in Canada within a 3-year time period,
they can apply for permanent residency.

Provinces can also nominate temporary foreign workers for permanent
residency status based on provincial labor market needs. The foreign
workers must receive a permanent job offer from an employer before a
province can nominate the workers for permanent immigration consideration.
According to Canadian government officials, provinces have nominated a few
hundred foreign workers for permanent immigration status.

Points-Based System

Canada uses a points-based system to evaluate foreign workers'
applications for permanent skilled immigration to Canada. Generally,
assessment of foreigners' applications to immigrate to Canada is based on
a system that assigns points for age, education, work experience, intended
employment, knowledge of Canadian languages, and adaptability. For details
on the points awarded on the basis of specific factors, see table 12.

Table 12: Canada Points-Based System

                                                             Number of points 
Factors for earning points                                         awarded 
Factor one: education                                           Maximum 25 
Master's degree or Ph.D. and at least 17 years of                       25 
full-time or full-time equivalent study.                 
Two or more university degrees at the bachelor's level                  22 
and at least 15 years of full-time or full-time          
equivalent study.                                        
A 3-year diploma, trade certificate or apprenticeship                   22 
and at least 15 years of full-time or full-time          
equivalent study.                                        
A university degree of 2 years or more at the bachelor's                20 
level and at least 14 years of full-time or full-time    
equivalent study.                                        
A 2-year diploma, trade certificate or apprenticeship                   20 
and at least 14 years of full-time or full-time          
equivalent study.                                        
A 1-year university degree at the bachelor's level and                  15 
at least 13 years of full-time or full-time equivalent   
study.                                                   
A 1-year diploma, trade certificate or apprenticeship                   15 
and at least 13 years of full-time or full-time          
equivalent study.                                        
A 1-year diploma, trade certificate or apprenticeship                   12 
and at least 12 years of full-time or full-time          
equivalent study.                                        
Completion of high school.                                               5 
Factor two: official languages                                  Maximum 24 
First official language                                  
High proficiency (per ability): first official language                  4 
Moderate proficiency (per ability): First official                       2 
language                                                 
Basic proficiency (per ability): First official language 1 to maximum of 2 
No proficiency: First official language                                  0 
Possible maximum (all 4 abilities): First official                      16 
language                                                 
High proficiency (per ability): Second official language                 2 
Moderate proficiency (per ability): Second official                      2 
language                                                 
Basic proficiency (per ability): Second official         1 to maximum of 2 
language                                                 
No proficiency: Second official language                                 0 
Possible maximum (all 4 abilities): Second official                      8 
language                                                 
Factor three: experience                                        Maximum 21 
1 year                                                                  15 
2 years                                                                 17 
3 years                                                                 19 
4 years                                                                 21 
Factor four: age                                                Maximum 10 
21 to 49 years at time of application                                   10 
Less 2 points for each year over 49 or under 21          
Factor five: arranged employment in Canada                      Maximum 10 
Permanent job offer that has been confirmed by HRSDC.                   10 
Issued after receipt of a confirmation of job offer from                10 
HRSDC; or                                                
A temporary work permit that was exempted from the                      10 
requirement of a confirmed job offer from HRSDC on the   
basis of an international agreement (e.g., North         
American Free Trade Agreement), a significant benefit to 
Canada (e.g., intracompany transfer) or public policy on 
Canada's academic or economic competitiveness (e.g.,     
postgraduate work).                                      
Factor six: adaptability                                        Maximum 10 
Spouse's or common-law partner's education                           3 - 5 
Minimum 1 year full-time authorized work in Canada                       5 
Minimum 2 years full-time authorized post-secondary                      5 
study in Canada                                          
Have received points under the Arranged Employment in                    5 
Canada factor                                            
Family relationship in Canada                                            5 
Total                                                          Maximum 100 
Current pass mark (as of July 2006)                                     67 

Source: Citizenship and Immigration Canada.

Individuals with a score that is the same or higher than the pass mark may
qualify to immigrate to Canada. Individuals with a score less than the
pass mark are unlikely to qualify to immigrate to Canada as a skilled
worker. In addition, applicants for skilled migration are required to meet
minimum work experience requirements according to the Canadian National
Occupation Classification, a system that describes the duties, skills,
aptitudes, and work settings typical of jobs in Canada. They are also
required to prove that they have the funds to support their family in
Canada, unless the applicants have prearranged employment in the country.

Enforcement of Laws that Prohibit Employment of Unauthorized Foreign
Workers

In Canada, employers who employ unauthorized foreign workers can be
subject to criminal penalties. These penalties include, depending on the
type of conviction, a maximum fine of C$50,000 (about $43,800) and/or a
maximum prison term of 2 years, or a maximum fine of C$10,000 (about
$8,800) or a maximum prison term of 6 months. According to Canadian
government officials, Canadian law does not clearly set forth any
administrative or civil penalties for employers who employ unauthorized
foreign workers. Unauthorized workers can be subject to detention and
deportation.

The Royal Canadian Mounted Police is primarily responsible for
investigating employers and issuing criminal sanctions against employers
for hiring unauthorized foreign workers, but this responsibility is being
transferred to the Canadian Border Services Agency. This agency has about
350 to 400 officers responsible for all of its inland enforcement
functions, including for investigating unauthorized workers.

Regularization Efforts

In 1973, Canada implemented a regularization program. Applicants were
required to have resided in the country before November 1972 and
demonstrate a stable employment history and family ties in Canada. About
50,000 individuals applied for the program, and approved applicants were
granted long-term residence status. The Canadian government provided
training to immigration agency staff for reviewing and processing
applications, which helped limit some problems in the application review
process.

Appendix VI: Information on Selected Immigration-Related Programs
in France

Foreign Worker Admissions

After World War II, the French government introduced measures to attract
foreign labor to regions and economic sectors with labor shortages.1 In
particular, France concluded bilateral agreements with numerous countries
for managing labor migration to France. The first such agreement was
signed with Italy in 1947 and was followed by agreements with Spain in
1956, Morocco in 1963, Portugal in 1964, and the former Yugoslavia in
1965. Other agreements were signed with Tunisia, Turkey, and Algeria,
among others. France also has bilateral agreements with Romania and other
countries to facilitate unauthorized immigrants' repatriation by
stipulating that deported foreign workers will not be able to secure a
tourist visa enabling them to return to France for at least a few months
after repatriation. In 1974, France instituted a ban on most forms of
immigration in response to the economic downturn of that period and
introduced employer sanctions to deter employers from hiring unauthorized
foreign workers.

All French work permit applications are processed by the local employment
office, or Direction Departmentale du Travail, de l'Emploi et de la
Formation Professionelle (DDTEFP). Temporary work permits can be issued to
foreigners invited to work, for a period initially not to exceed 1 year,
performing a job which is temporary in nature (e.g., trainees, researchers
and scientists, performers, workers assigned to a French subsidiary by a
foreign "parent" company). Employers are required to submit their request
for a temporary work permit to DDTEFP, which evaluates the current and
future job situation, the employers' compliance with labor regulations,
the terms and conditions of employment and remuneration, and provisions
for housing.

For permanent foreign workers, only those employers who cannot find
available, qualified workers within France may petition to bring in a
permanent worker who is not a European Union (EU) national. DDTEFP reviews
applications for permanent foreign workers on a case-by-case basis,
considering such factors as the job situation in the relevant professional
and geographic area, the applicable conditions for applying regulations
related to work, the conditions of employment and remuneration offered to
the foreign worker, the steps taken to ensure workers' housing, and the
technological and commercial interest of the request.

1 Information presented in this appendix is based on data reported by
government officials; government documents, such as agency reports and
manuals; and nongovernmental reports and studies, such as those from the
Organisation for Economic Co-operation and Development. It is not based on
an independent examination of French laws and regulations. The appendix
provides an overview of selected immigration policies in France as of July
2006.

French residence permits are valid for 10 years and allow a foreigner to
work in the country. To obtain a 10-year residence permit, foreigners must
have been living in France for 5 years and demonstrate that they are well
integrated into French society. Temporary permits are valid for 1 year and
are given to foreigners who can prove family ties, as well as to certain
types of workers, such as scientists, artists, and students, and to
visitors. The French government has also taken steps to help better
integrate immigrants, such as establishing a dialogue with immigrant
organizations and providing scholarships for immigrants.

In addition, French employers can apply to bring in foreign workers for
seasonal employment from countries with which France has entered into an
agreement-Tunisia, Morocco, and Poland. The maximum length of a seasonal
contract for seasonal work generally cannot exceed 6 out of 12 consecutive
months. For Moroccan and Tunisian seasonal workers, the term of the
employment agreement is set at a minimum of 4 months. Prior to receiving
an assignment, Moroccan and Tunisian seasonal workers sign a document at a
national agency for foreigners and immigration, or Agence Nationale de
l'Accueil des Etrangers et des Migrations (ANAEM), mission agreeing to
return to their countries upon expiration of their employment agreements
and to appear at the mission office in their home country to record their
return.

Employment Verification Process

All workers outside the EU or Switzerland must possess authorization to
work in France, and employers are required to check these workers' work
authorization status. Employers are required to photocopy non-EU workers'
work permits and maintain a copy of the permit in each worker's file.

Employers are also required to file a declaration of hire with the French
social security administration for each worker, regardless of the worker's
nationality. The declaration of hire contains the employee's name,
nationality, and date of hire. Employers file the declaration by fax or
registered mail or over the Internet.

Enforcement of Laws That Prohibit Employment of Unauthorized Foreign
Workers

In France, responsibility for enforcing laws that prohibit the employment
of unauthorized foreign workers is coordinated among multiple agencies.
French police, gendarmerie, labor, and customs officers are responsible
for worksite enforcement efforts and work together to conduct worksite
enforcement operations. When inspecting worksites, labor inspectors may
compare information reported by employers to the French social security
administration with information in employers' records to determine whether
employers have properly registered their workers with the social security
administration and whether workers are authorized.

At the local level, departmental boards to curb illegal employment,
referred to as CODELTIs, are responsible for coordinating worksite
enforcement efforts. These boards bring together relevant government
services and agencies, consular chambers, and other social partners, and
set guidelines for worksite enforcement actions. An operational committee
for curbing illegal employment, or Comite Operationnel de Lutte contre le
Travail Illegal (COLTI), is established from among the local boards'
members and is chaired by the chief prosecutor. At the national level, the
interministerial delegation for curbing illegal employment, or Delegation
Interministerielle `a la Lutte contre le Travail Illegal (DILTI),
coordinates worksite enforcement efforts.

In France, employers can be subject to civil and administrative penalties
for employing unauthorized foreign workers. Employers can be fined
administratively €3,110 ($3,900) per unauthorized worker and fined
criminally a maximum of €15,000 ($18,800) per offense. Employers can
also be sentenced to a maximum prison term of 5 years. In 2005, France
imposed about €2.7 million (about $3.4 million) in civil fines on
employers.

In addition to these fine amounts, the French government can require
employers to pay costs for deporting unauthorized foreign workers.
Moreover, the government can require employers to pay any previously
unpaid wages to unauthorized foreign workers, and unauthorized foreign
workers can sue employers for damages, such as for poor working conditions
or abuse.

Regularization Efforts

France has undertaken several regularization programs. In 1981-1982,
France undertook a large-scale regularization program under which
unauthorized immigrants residing in the country before January 1, 1982,
could apply for legal status. The French government approved about 121,000
individuals for regularization. The program was intended to reduce
employment in the underground economy and help integrate unauthorized
immigrants into the country. The French government modified program
requirements to allow third parties to assist unauthorized foreign workers
rather than relying solely on employers to do so as specified under
initial program requirements.

In 1997, France implemented a regularization program that provided the
opportunity to obtain legal status for unauthorized immigrants who had
continuously resided in the country for 7 years and had family ties in the
country or who had resided in the country for 5 years, had family ties,
and had documentation from an employer showing the employer's intention to
hire. About 78,000 applicants were granted residence and work permits, and
the majority of approved applications were based on family ties.

Additionally, in 1998 France instituted a program for regularizing the
status of unauthorized immigrants on a case-by-case basis. Under this
program, unauthorized immigrants who have resided in France for a
specified period of time can apply for regularization. The length of time
required to obtain residency is 3 years for families with children, 15
years for students, and 10 years for other applicants.

Appendix VII: Information on Selected Immigration-Related Programs
in Germany

Foreign Worker Admissions

German Guest Worker Programs

During the 1950s and 1960s, Germany established bilateral agreements with
various countries, including Italy, Spain, Greece, Turkey, and Morocco,
for the admission of guest workers.1 As a result, foreigners as a
percentage of the German labor force increased from about 1 percent in
1960 to about 12 percent in 1973. According to the German Interior
Ministry, the original intent of these guest worker admissions was to
limit the length of time foreign workers could stay in Germany. After the
allotted time had run out, the foreign workers were supposed to return to
their home countries to be replaced by new foreign workers. However, the
Interior Ministry reported that starting in the late 1960s, a growing
number of foreign workers stayed in Germany permanently. In 1973 Germany
issued a ban on the recruitment of foreign workers, and the Interior
Ministry noted that this ban may have acted as an incentive for temporary
foreign workers to stay in Germany permanently because it made it
impossible for workers to return to their home countries temporarily and
then come back to Germany to work.

Current Foreign Worker Programs

  High-Skilled Foreign Worker Admissions

Germany uses various foreign worker programs to admit high-skilled, low-
skilled, and seasonal foreign workers. Highly skilled workers, such as
senior academics, researchers, and top business managers, can obtain
authorization to work in Germany without a requirement for employers to
prove whether German workers are available to fill the positions. In
addition, these highly skilled workers may be granted permanent residence
upon arrival in Germany. Germany also admits skilled foreign workers in
other occupations, including scientists, foreign language teachers,
specialty chefs, chaplains, artists, models, professional athletes, and
trainers.

1 Information presented in this appendix is based on data reported by
government officials; government documents, such as agency reports and
manuals; and nongovernmental reports and studies. It is not based on an
independent examination of German laws and regulations. The appendix
provides an overview of selected immigration policies in Germany as of
July 2006.

In 2000, Germany instituted a program for recruiting information
technology specialists in which foreign specialists could reside and work
in Germany for a 5-year period, after which they could apply for permanent
residency and bring in family members if the specialists met a minimum
salary requirement.

  Seasonal Foreign Worker Admissions

Germany has a seasonal foreign worker program to recruit and admit foreign
workers on a temporary basis to fill jobs in the agriculture (e.g.,
farming, forestry, and food processing), hospitality (e.g., hotels and
catering), and carnival sectors. Seasonal work permits are issued for a
maximum of 4 months to workers in agriculture and hospitality and for a
maximum of 9 months to workers in the carnival sector. Under Germany's
seasonal worker program, foreign workers are required to return to their
home countries after expiration of their work permits. These workers are
also required to work only for the employers specified on their permits.

In 2005 Germany admitted about 330,000 seasonal foreign workers. For 2006,
the German government reduced the number of seasonal foreign worker
admissions to encourage the employment of unemployed German workers in the
agriculture and hospitality sectors. For 2006, the German government
guaranteed each employer in these sectors 80 percent of the number of work
permits for foreign workers received in 2005. Employers could receive an
additional 10 percent of the number of foreign worker permits received in
2005 after proving that no native German workers were available to fill
needed jobs. The German government intended that employers fill remaining
needed jobs with unemployed German workers.

Employers can recruit and apply for seasonal foreign workers in two ways:
(1) the employer identifies a specific foreign worker by name for his or
her vacant position; or (2) the employer requests a foreign worker to fill
a position through a local employment agency without specifying a
particular foreign worker. The employer may specify the country from which
he or she would like the foreign worker. Under this latter case, the local
employment agency submits the employer's application to the German Federal
Employment Agency. The Federal Employment Agency then works with its
counterpart in another country to identify a foreign worker from that
country for the position. The Federal Employment Agency sends a job
description from the employer to the other country, and the employment
agency in the other country suggests a few workers for the position to the
Federal Employment Agency. These suggestions are then sent from the
Federal Employment Agency to the employer, and the employer then decides
which worker he or she wants to fill the position. After the foreign
worker needed for a position is identified (either by the employer or the
Federal Employment Agency), the worker picks up a copy of the employment
contract at his or her country's employment agency. On average, it takes
about 6 weeks from the time that an employer submits an employment
contract to the local employment agency to the time that the employer
receives the foreign worker.

To obtain a work permit for a foreign worker, an employer must pay a
€60 (about $75) fee to the local employment agency and provide an
employment contract to the agency that guarantees the foreign worker will
have a position upon the worker's arrival in Germany. The employment
contract specifies housing conditions for workers, agreed-upon wages, and
any fees charged for food or housing. Employers usually pay or provide
transportation costs for foreign workers to get from their home countries
to the worksite.

The local employment agency conducts a labor market test to determine
whether there are German or European Union (EU) citizens who could fill
the position. If there are no available German or EU citizens for the
position, the position can be filled by a foreign worker. As part of the
labor market test, the local employment agency publishes the employer's
job description on its Web site and may check with the EU placement office
to determine whether there are EU citizens available for the position.

  Low-Skilled Foreign Worker Admissions

Germany has established bilateral agreements with countries to manage the
admission of temporary foreign workers from those countries into Germany.
These countries include Bulgaria, Croatia, Hungary, Latvia, Poland,
Romania, Slovakia, and Turkey, among others. In 2003, Germany admitted
approximately 44,000 foreign workers under these bilateral agreements.

Germany admits foreign workers under other types of programs. For example,
Germany annually admits between 3,000 and 6,000 young people from Central
and Eastern European countries for a maximum of 18 months under a worker
training program. Germany also admits foreigners to work as au pairs on
1-year permits.

  Integration Courses

In 2005, Germany established integration courses for foreigners admitted
to Germany. The courses are financed by the German federal government and
are available to all migrant groups. For some migrants, such as new
arrivals from non-EU countries who have limited German knowledge, the
courses are mandatory, and the German government can cut social benefits
to migrants who are required to participate in the courses but fail to do
so. The courses comprise 630 hours, of which 600 hours are basic language
training and 30 hours are an orientation to German history, culture, and
the political system.

Employment Verification and Registration Process

In Germany, foreign workers are required to present identity and work
eligibility documents, such as a passport or work permit to employers.
Employers are required to check these documents to verify foreign workers'
authorization to work in Germany. For native German workers, employers are
required to report workers' information to the German government for the
payment of taxes and social insurance contributions for the workers.

Enforcement of Laws That Prohibit Employment of Unauthorized Foreign
Workers

The Department for the Financial Investigation of Clandestine Labor of the
German Customs Authority is primarily responsible for enforcing laws that
prohibit illegal labor practices, including the employment of unauthorized
foreign workers in Germany. The department, which has about 7,000 staff
members, checks whether employers have paid appropriate taxes and social
insurance contributions on behalf of workers and have employed only
authorized workers. Employers in the following sectors in Germany have
traditionally employed a significant number of unauthorized foreign
workers: construction, transportation, cleaning services, hotel, and
restaurant businesses.

The Department for the Financial Investigation of Clandestine Labor of the
German Customs Authority conducts inspections and investigations of
worksites. During an inspection, customs officers check employment records
for compliance with labor and social laws as well as the law to combat
illegal labor practices. If suspicion arises during an inspection that the
employer is engaged in illegal employment activities, the customs officers
at the worksite can cease the inspection and initiate a criminal
investigation of the worksite. During an investigation, which usually
requires a warrant, customs officers interview workers and collect
evidence to determine whether the employer has engaged in any criminal or
minor violations of labor and social laws.

Employers can be subject to various administrative fines and criminal
penalties for engaging in illegal labor practices. Employers can be fined
for noncriminal violations of labor or social laws from €5 up to
€500,000 (about $6 to $628,800) total for employing unauthorized
foreign workers. Criminal fine amounts are imposed on a daily basis
ranging from a minimum of 5 days to a maximum of 360 days. German courts
determine the daily rate of fine amounts, taking into account the personal
and financial circumstances of each employer. In general, courts use the
average net income of the employer as a starting point for determining
fine amounts. The daily rate of fine amounts range from a minimum of
€1 to a maximum of €5,000 (about $1 to $6,300). The German
government can seize the assets of employers who do not pay the
appropriate amount for social security contributions, taxes, or wages.
Employers can be sentenced to a prison term of up to 10 years for
employing unauthorized foreign workers. In addition, employers who hire
unauthorized foreign workers can be excluded from public contracts, be
required to pay deportation costs for unauthorized foreign workers, and be
required to pay back taxes and social security contributions that were not
initially paid for the unauthorized foreign workers.

Unauthorized foreign workers identified in Germany can also be subject to
various penalties. For example, administrative fines ranging from €5
up to €5,000 (about $6 to $6,300) can be imposed on unauthorized
foreign workers. Unauthorized foreign workers can also be subject to
criminal penalties. Criminal fine amounts are imposed on a daily basis
ranging from a minimum of 5 days to a maximum of 360 days. The daily rate
of fine amounts range from a minimum of €1 to a maximum of
€5,000 (about $1 to $6,300). Additionally, unauthorized foreign
workers can be expelled from Germany and prohibited from reentering the
country. Table 13 provides data on the enforcement actions of the
Department for the Financial Investigation of Clandestine Labor for 2003
through 2005.

Table 13: Data on the Department for the Financial Investigation of
Clandestine Labor Enforcement Activities for 2003 through 2005

Enforcement output                      2003           2004           2005 
Number of employer                    33,000        105,000         78,000 
investigations                                              
initiated                                                   
Number of persons                     79,000        265,000        356,000 
checked during                                              
worksite                                                    
investigations                                              
Number of completed                    9,800         56,900         81,300 
pre-trial criminal                                          
investigations                                              
Number of completed                    1,200         49,900        53,9002 
investigations that                                         
resulted in                                                 
administrative                                              
offenses                                                    
Total amount of         €5 million($6.3       €33       €67 
administrative fines                million)  million($41.5  million($84.2 
                                                      million)       million) 
Total value of         €34million($42.8       €43       €13 
assets confiscated                  million)  million($54.1  million($16.3 
for forfeiture                                     million)       million) 
Total financial                    €348      €476      €563 
damages detected     million($337.6 million) million($598.5 million($707.9 
through                                            million)       million) 
investigations                                              
Total amount of         € 4million($5.0        €9       €21 
criminal fines                      million)  million($11.3  million($26.4 
(including                                         million)       million) 
compensation) from                                          
verdicts and penalty                                        
orders                                                      
Total amount of                    300 years      470 years    1,000 years 
prison sentences                                            

Source: Department for the Financial Investigation of Clandestine Labor
data.

Note: Data have been rounded. Amounts in U.S. dollars are rounded, based
on the exchange rate from July 25, 2006.

Efforts to Streamline Employment Processes

The German government has streamlined the hiring process and tax and
social insurance payment procedures for certain types of jobs in Germany.
Called mini jobs, these jobs are one for which workers earn less than
€400 (about $500) per month. The goal of the mini jobs program is to
provide incentives to employers so that they employ workers legally and
pay taxes and social insurance contributions for those workers.

Appendix VIII: Information on Selected
Immigration-Related Programs in Spain

Foreign Worker Admissions

Spain has traditionally been a country of emigration rather than one of
immigration.1 Following World War II, many individuals left Spain to work
in other European countries, but by the 1980s, Spain had started
attracting increasing numbers of immigrants.

Spain is organized into 17 autonomous communities, each with its own laws
in addition to national level legislation, which has precedence. When
Spain joined the European Union (EU) on January 1, 1986, citizens of other
EU countries gained free access to the Spanish labor market and social
services. Citizens of the 10 newest EU member countries that joined on May
1, 2004, must meet specific requirements to work in Spain for longer than
180 days, including the following:

           o  the permit must be requested by the employer or company
           representative;
           o  the worker must not be in an illegal situation in Spain when
           applying for the permit;
           o  the permit will be restricted to a specific sector, work
           activity, and geographical area; and
           o  the permit is valid for 1 year and may be renewed.

The potential employer must receive authorization from the Spanish
government to employ a foreign worker before a work visa will be issued.
Prior to arrival, the foreign worker must obtain the residence and work
visa from the Spanish Consular Office in the worker's home country. The
initial residence permit has a validity of 1 month and may be renewed.
Permanent residence permits are issued to those who have lived in Spain
for at least 5 consecutive years with a temporary resident permit.

Spain also has 9-month seasonal work permits. Under this program,
20,000-30,000 foreign workers are admitted per year, primarily in
agriculture. Employers are required to provide housing and pay for travel
for the foreign workers. Once a foreign worker has participated in the
program for 3 years, participants are given preference to apply for a
permit leading to permanent residence.

1 Information presented in this appendix is based on data reported by
government officials; government documents, such as agency reports and
manuals; and nongovernmental reports and studies, such as those from the
International Labour Organization and the Organisation for Economic
Co-operation and Development. It is not based on an independent
examination of Spanish laws and regulations. The appendix provides an
overview of selected immigration policies in Spain as of July 2006.

Employment Verification and the Enforcement of Laws That Prohibit
Employment of Unauthorized Foreign Workers

Non-EU nationals who wish to live and work in Spain for more than 3 months
are required to register with a local police station and receive an Alien
Registration Card within 1 month of entering the country. To receive the
Alien Registration Card, a foreign national must show:

           o  proof of identity,
           o  receipt of fee payment, and
           o  the appropriate visa, obtained prior to arrival in Spain, if
           applicable.

Spain requires all inhabitants of a city or village to register by
enrolling in the Municipal Register, which lists all residents. Both
Spanish nationals and foreigners can register, irrespective of their legal
status. To register, a person must provide a home address, as well as
proof of residence, such as a tenancy agreement or gas, electricity, or
telephone bills. Foreigners from outside the EU who have no permanent
residence permit must renew their registration every 2 years.

Potential employees must present documents to employers to prove identity
and work authorization at the time of hire. Employers are required to
check the documents and report employee identity and work authorization
information to the Spanish government. Spain's labor and social security
inspectorate is responsible for investigating all potential worksite
violations at the national level, which may include employment of
unauthorized foreign workers, health and safety violations, and failure to
make social insurance contributions. The inspectorate currently employs
800 inspectors and 850 deputy inspectors. Half of the labor inspectors
work under the authority of the central government and are responsible for
offenses related to social contributions and work by foreigners. The
remaining inspectors work under the authority of the autonomous regions
and are responsible for occupational health and safety and labor
relations-related violations.

The inspectorate targets its worksite enforcement actions using
information generated from Spain's regularization effort and comparing
this information to the employer's hiring records submitted to the Spanish
government. For example, an employer who requested regularization for a
greater number of employees than were officially submitted by an employer
would likely face an inspection. This was made possible because the
database of regularization data was available to all the other agencies
with responsibility for controlling illegal work, including the labor and
social security inspectorate, as well as the tax collection agency and the
ministries of justice, interior and foreign affairs.

Spain sanctions employers for hiring unauthorized workers. If an
unauthorized worker remains illegally employed for at least 1 year, the
worker can denounce the employer and receive permanent resident status.

Employers can be fined administratively from €6,000 to €60,000
(about $7,500 to about $75,500) per unauthorized worker. After inspectors
uncover and record a violation, the process for assessing employer
sanctions goes through two phases: (1) an administrative phase, and, in
the case of employer appeals, (2) a court/judicial phase. An employer
wishing to appeal the case, it must first pay the sanction in escrow to
the central government's tax agency. The employer then pays interest on
the fine for the length of the appeal process. As a consequence of this
process, government officials estimate the Spanish government collects an
average of 80 percent of total sanctions imposed, but this varies among
autonomous communities.

Regularization Efforts

Spain implemented a regularization program in 1985. Applicants were
required to have an employment contract and to have been present in Spain
before July 24, 1985. About 44,000 unauthorized immigrants applied for
regularization. In 1991, the Spanish government held another
regularization program for workers who had resided in Spain prior to May
15, 1991, and to asylum seekers whose applications had been rejected or
were under review. About 110,000 individuals were regularized.

In 1996, Spain implemented another regularization program for unauthorized
immigrants. To be eligible, applicants needed to prove that they had been
employed (without a permit) since January 1, 1996; had a working or
residence permit issued after May 1986 (regardless of current employment
status); or were a family member of an applicant. The program regularized
about 21,000 unauthorized immigrants.

Spain implemented a fourth large-scale regularization program in 2000. To
apply for the program, unauthorized immigrants had to prove that they had
been in Spain before June 1, 1999, and had applied for or received a
residence or work permit at some point. About 164,000 unauthorized
immigrants were regularized under the 2000 program. Spain also implemented
a regularization program in 2001. The 2001 program targeted those who had
been in Spain since January 23, 2001, and were employed or were family
members of a foreign worker or Spanish citizen. The government issued
about 235,000 permits under this program.

Under the most recent regularization, in 2005, employers generally applied
for regularization on behalf of their unauthorized foreign workers.
Unauthorized foreign workers were required to provide proof of
registration with a local municipality in Spain before August 7, 2004, and
had to be in Spain at the time of application. They were also required to
have a work contract and a clean criminal record. In applying for their
workers, employers were required to demonstrate that they were enrolled in
and paying into the Spanish social insurance system, that they had no
history of breaking immigration laws in the previous 12 months, and that
they had not been sanctioned for violating the rights of workers or
immigrants. Employers were also required to provide unauthorized foreign
workers applying for regularization with a work contact for a minimum of 6
months for most workers, a minimum of 3 months for agricultural workers,
and a maximum of 12 months for construction and hotel workers. Work
permits granted under the regularization program were valid for 1 year and
are renewable indefinitely as long as the regularized immigrants maintain
their employment. Some unauthorized foreign workers, such as those in
part-time jobs or working for several employers, could directly apply to
the Spanish government for regularization without applying through their
employers. The Spanish government established a database for maintaining
information on regularization applicants. About 700,000 unauthorized
foreign workers applied and qualified for the regularization program out
of an estimated 800,000 workers projected to be eligible for program
participation. The 700,000 unauthorized foreign workers who applied and
qualified for the regularization program do not include the approximately
400,000 family members of those workers who qualified for regularization
with the workers. As of February 2006, approximately 560,000 workers had
paid the required social insurance contribution. In addition, Spain
introduced enhanced enforcement measures in conjunction with the
regularization program.

Appendix IX: Information on Selected Immigration-Related Programs
in Switzerland

Foreign Worker Admissions

In 1948, Switzerland was one of the first European countries actively to
recruit foreign workers by signing a bilateral agreement with Italy.1
Switzerland did not have public recruitment agencies for recruiting
foreign workers. Rather, recruitment was organized by Swiss employers
themselves. In 1963, Switzerland introduced a ceiling on the number of
foreign workers each employer could admit. In 1970, the Swiss government
introduced a global quota, which placed an upper limit on the number of
new foreigners allowed to enter the country.

Current access to the Swiss labor market differs according to whether or
not a worker is a European Union (EU) national. EU nationals have free
access to the Swiss labor market, as granted by an agreement between
Switzerland and the EU, and this agreement will be extended to the 10
newest members of the EU after a transitional period. Switzerland has
implemented a national quota for both temporary and long-term workers from
EU and non-EU countries, which limits the number of foreign workers
admitted to Switzerland each year. In 2005, Switzerland set quotas for EU
workers of 115,000 and 15,000 for short-term and long-term workers,
respectively, and set quotas for non-EU workers of 4,000 and 5,000 for
short-term and long-term workers, respectively. Quotas for nationals of
the old 15 EU-member states will be abolished as of June 1, 2007. In
recruiting and admitting foreign workers, priority is granted to workers
from EU member states, and there are restrictions on the admission of
non-EU workers except for specialists and skilled workers.

Any foreign national seeking admission to Switzerland for employment must
first obtain a work and residence permit from the cantonal authorities,
which is arranged by the prospective employer. Residence permits exceeding
4 months are, with some exceptions, subject to a quota set by the Swiss
Federal Council. Before granting a permit, the labor market authorities
consider the economic situation and the labor market in the country, as
well as other conditions governing paid work. For example, they must check
to see whether the pay and working conditions are consistent with those
prevailing locally in the industry concerned, and whether a resident
worker or a citizen from the EU is able and willing to fill the vacancy
under the same conditions. Exceptions may be made for an industry
experiencing labor shortages in both the Swiss and European labor markets.

1 Information presented in this appendix is based on data reported by
government officials; government documents, such as agency reports and
manuals; and nongovernmental reports and studies, such as those from the
International Labour Organization, the Organisation for Economic
Co-operation and Development, and the Law Library of Congress. It is not
based on an independent examination of Swiss laws and regulations. The
appendix provides an overview of selected immigration policies in
Switzerland as of July 2006.

There are currently four types of permits available to foreign workers.

           o  Cross-border commuter permits are for gainful employment of
           people resident in neighboring countries. These permits are not
           subjected to quota. They are valid for 1 year and are renewable.
           o  Short-term work and residence permits are granted to people
           from the EU who are offered employment of up to 364 days in the
           country; if their contract lasts longer than that they will be
           given a 5-year EU annual permit. Should a contract after 364 days
           be renewed for another year, for example, a new EU short-time
           permit will be issued. Non EU-nationals can obtain a short-time
           permit that is valid for up to 12 months but can be extended up to
           24 months only in specific instances.
           o  Annual residence permits are issued to EU nationals to live and
           work in Switzerland for 5 years. After that time, EU nationals can
           receive a residence permit. For non-EU nationals, there are two
           types of annual permits-one that is temporary and one that is
           indefinite. Authorities generally renew the temporary annual
           permits each year (subject to the employee still being employed),
           although a claim for renewal exists only in certain cases. Annual
           permits are subject to a quota only if, they are granted for the
           first time. Once foreigners have obtained an annual permit of
           either type, they are considered to be part of the domestic labor
           market.
           o  Settlement permits are granted to people who have resided in
           Switzerland without interruption for 5 years for residents of
           European Economic Area (EEA) countries and the United States and
           for 10 years to all other nationals.

Once a year, the Swiss government sets a quota for the following year. The
quota is set by taking account of past experiences and the current
economic and labor market situation. Part of the yearly quota for each
labor sector category remains with the federal government, though the bulk
is at the discretion of the cantons. The quota for each canton is
determined by a complex system, taking into account the population,
industrial structure, and gross domestic product per capita. As a rule,
the federal quota is mainly complementary to that of the cantons, for
example, in cases where the interests of several cantons are affected,
such as the opening of a new large-scale factory.

A new Foreigners Law passed the Swiss Parliament and will be voted upon by
the Swiss population in September 2006. The present system for the
admission to the Swiss labor market for non-EU nationals will be largely
the same under the new law, but would provide foreign workers from non-EU
countries with more rights after entry. The draft law also envisages
allowing family reunification for temporary residents, which is not
possible under the current system. To obtain an annual permit,
consideration will be given to applicants' characteristics that will help
them integrate into the Swiss labor market: qualification, occupational
adaptability, knowledge of languages, and age. How these criteria are
interpreted and weighted, is likely to remain within the discretion of the
cantonal authorities under the new law. However this will not affect
qualified workers from outside the EU who enter the Swiss labor market for
the first time since their qualification guarantees for sufficient
integration. After 5 years, permit-holders have a legal claim to an
extension, provided they have not committed any serious crimes and are not
dependent on welfare services. After an additional 5 years, foreigners may
claim a settlement permit, but not citizenship, which requires a minimum
of 12 years residence in Switzerland.

Employment Verification and Registration Process

Foreign workers have 8 days after entering Switzerland in which to
register with the authorities in their local commune. The commune then
sends registration papers to the competent cantonal authority, which
processes the application and issues the appropriate residence permit.
Workers must show the following documents in order to register:

           o  a valid identity card,
           o  a certificate from a health insurance provider to prove that
           the worker is a member of a recognized health insurance scheme,
           o  a passport photograph,
           o  a registry office documents (e.g., family record book, marriage
           certificate, birth certificates of minor children), and
           o  an employment contract or confirmation of enrollment at a
           university.

For foreign workers from non-EU countries, employers are required to
obtain confirmation about workers' work permits, which are issued through
the cantonal authorities after confirmation by the federal authority.
After arriving in Switzerland, foreign workers contact their local commune
to obtain their permits.

Enforcement of Laws That Prohibit Employment of Unauthorized Foreign
Workers

Cantons in Switzerland are primarily responsible for enforcement of Swiss
immigration law.2 Among other things, the cantons are responsible for
deporting unauthorized immigrants and investigating cases of illegal
residency and labor. The cantons' police forces, immigration authorities,
and labor authorities carry out these functions, and these bodies
coordinate with one another, with the agencies of the other cantons, and
with the federal authorities.

Under current Swiss law, unauthorized immigrants can face criminal
sanctions of up to 6 months imprisonment or a fine of up to SwF 10,000
(about $8,000). In addition, the current law imposes sanctions on those
who facilitate illegal immigration on a commercial scale or as a member of
a criminal organization that engages in human trafficking. Such
individuals are punishable with up to 3 years' imprisonment, a fine of up
to SwF 100,000 (about $79,800), or both.

Under the proposed immigration reform legislation, the penalty for illegal
entry and presence would be increased to a maximum of 1 year imprisonment
or a fine of up to SwF 20,000 (about $16,000) for intentionally committed
offenses, and a fine for negligent conduct. The proposed act would also
provide more severe penalties for anyone engaged in human trafficking,
either individually or in a group-up to 5 years imprisonment or a fine of
up to SwF 500,000 (about $399,000).

Under current Swiss law, employers of unauthorized foreign workers are
subject to a fine of up to SwF 5,000 (about $4,000) per intentionally
employed unauthorized worker, in addition to a possible conviction for
aiding and abetting illegal immigration. A fine of up to SwF 3,000 (about
$2,400) is can be imposed for negligent conduct. However, Swiss courts
have discretion to lower or raise these fines for. The Swiss government
can, in some cases, require employers to pay fine amounts at the time of
the worksite inspections. In 2003, the Swiss government issued 412 civil
or administrative fines and 42 criminal fines against employers for
employing unauthorized workers. Under the proposed act, employers who
employ persons who do not have visas that entitle them to work can face
penalties of up to 1 year imprisonment (3 years imprisonment in aggravated
cases) and a fine of up to SwF 500,000 (about $399,000).

2 Subsequent information on Swiss enforcement efforts is based on
information provided in the Law Library of Congress, Immigration Law
Sanctions and Enforcement in Selected Foreign Countries (Washington, D.C.:
April 2006).

In addition to violating immigration laws, employers who employ
unauthorized immigrants as well as the unauthorized immigrants who work
for them are likely to commit criminal violations of the social security
law by not reporting employment and by not submitting contributions.
Repeat offenders among employers may be barred from government contracts
for 5 years and any subsidies that they receive may also be forfeited. The
cantons that impose these measures are required to publish lists of
sanctioned employers.

Appendix X: Information on Selected Immigration-Related
Programs in the United Kingdom

Foreign Worker Admissions

The United Kingdom has various programs for admitting foreign workers.1
These programs include the Highly Skilled Migrant Programme, the Seasonal
Agricultural Workers Scheme, the Sector-Based Scheme, and the Working
Holidaymakers Scheme. However, the United Kingdom government generally
plans to phase out these programs as it implements a points-based
immigration system announced in March 2006. The United Kingdom charges
employers a -L-153 (about $280) fee to apply for a work permit on behalf
of each potential foreign worker.

Highly Skilled Migrant Programme

Under the Highly Skilled Migrant Programme, skilled migrants can be
admitted to the United Kingdom for employment or self-employment. The
program does not require migrants to have a preexisting job offer before
entering the United Kingdom. Highly skilled migrants are initially granted
a 24-month permit for working in the United Kingdom. Near the end of the
24-month period, highly skilled migrants can apply to extend their permit.
In 2005, the United Kingdom admitted about 7,000 migrants under its Highly
Skilled Migrant Programme.

Seasonal Agricultural Workers Scheme (SAWS)

Under the Seasonal Agricultural Workers Scheme, foreign workers'
participation is limited to foreign students. These foreign workers are
granted a maximum 6-month permit to work in the United Kingdom. These
foreign workers are required to return to their home countries after
expiration of their work permits and are not allowed to bring dependents
with them to the United Kingdom. In 2006, the United Kingdom set a quota
of 16,250 foreign workers for admission under the SAWS.

To recruit foreign workers for the program, the United Kingdom government
contracts with third party entities (the SAWS operators). The government
allocates a certain number of work permits to each operator, based on bids
for work permits that the operators submit annually to the United Kingdom
government. The operators recruit workers from other countries to fill the
number of work permits issued to them and then place the workers with
farms in the United Kingdom. The United Kingdom recruits foreign students
who are on vacation from their schools for seasonal agricultural work
because these workers have an existing reason to return to their home
countries.

1 Information presented in this appendix is based on data reported by
government officials; government documents, such as agency reports and
manuals; and nongovernmental reports and studies, such as those from the
Organisation for Economic Co-operation and Development. It is not based on
an independent examination of United Kingdom laws and regulations. The
appendix provides an overview of selected immigration policies in the
United Kingdom as of July 2006.

Sector-Based Scheme

The United Kingdom introduced its Sector-Based Scheme in 2003 to address
labor market shortages in the hospitality and food-processing sectors,
although in 2005 the United Kingdom ended the program for the hospitality
sector. In 2003, the United Kingdom government set a quota of 10,000
foreign workers to be admitted for each sector, according to government
officials. In 2004-2005, the United Kingdom approved about 12,300 foreign
worker admissions under the Sector-Based Scheme.

Under the Sector-Based Scheme, employers in the United Kingdom recruit
foreign workers to fill job vacancies. Work permits issued under the
program are valid for a maximum of 12 months, but if foreign workers
return to and reside in their home countries for at least 2 months after
expiration of the initial permit, the workers can apply for another
12-month permit under the Sector-Based Scheme. Foreign workers admitted to
the United Kingdom under the Sector-Based Scheme are not allowed to bring
dependents with them.

Working Holidaymakers Scheme

The Working Holidaymakers Scheme enables British Commonwealth2 nationals
aged 17 to 30 to come to the United Kingdom for 2 years for a working
holiday. The nationals are permitted to work to supplement their funds
while in the United Kingdom, but must be able to support themselves
without relying on welfare benefits. Working holidaymakers may work only
for 12 months in total during their stay in the United Kingdom, and the 12
months work may be spread over the 2-year period of stay, or taken in one
block. In 2005, the United Kingdom admitted about 62,000 foreigners under
its Working Holidaymakers Scheme.

2 The current members of the Commonwealth are Antigua and Barbuda,
Australia, the Bahamas, Bangladesh, Barbados, Belize, Botswana, Brunei,
Canada, Cameroon, Cyprus, Dominica, Fiji, the Gambia, Ghana, Grenada,
Guyana, India, Jamaica, Kenya, Kiribati, Lesotho, Malawi, Malaysia,
Maldives, Malta, Mauritius, Mozambique, Namibia, Nauru, New Zealand,
Nigeria, Pakistan, Papua New Guinea, Saint Christopher and Nevis, Saint
Lucia, Saint Vincent and the Grenadines, Seychelles, Sierra Leone,
Singapore, Solomon Islands, South Africa, Sri Lanka, Swaziland, Tanzania,
Tonga, Trinidad and Tobago, Tuvalu, Uganda, Vanuatu, Western Samoa,
Zambia, and Zimbabwe.

Points-Based System

In March 2006, the United Kingdom announced that a points-based system
will be introduced for managing labor migration that will largely
eliminate its other labor immigration schemes.3 The new point-based system
will use a 5-tier framework.

           o  Tier 1: highly skilled individuals
           o  Tier 2: skilled workers with a job offer to fill gaps in the
           labor force
           o  Tier 3: limited numbers of low-skilled workers needed to fill
           specific temporary labor shortages
           o  Tier 4: students
           o  Tier 5: youth and temporary workers allowed to work in the
           United Kingdom for a limited period of time to satisfy primarily
           noneconomic objectives

Tier 1 is designed to bring into the United Kingdom those migrants with
the very highest skills. These migrants do not need a job offer and will
have unrestricted access to the labor market. A migrant who enters under
Tier 1 will not need a sponsor under the new system. Tier 1 will replace
the current Highly Skilled Migrant Programme, which already takes a
points-based approach to assessing which migrants are granted entry to the
United Kingdom. Under the points-based system, migrants seeking to enter
the United Kingdom under Tier 1 will need to accumulate 75 points to be
considered for admission. Table 14 provides information on the points
system for Tier 1.

3 Subsequent information on the United Kingdom's points-based system is
based on information provided in Home Office, A Points-Based System:
Making Migration Work for Britain (United Kingdom: 2006).

Table 14: Tier 1 Points-Based System

Qualifications/education                                    Points   
Bachelors degree                                          30         
Mater's degree                                            35         
Doctorate                                                 50         
Previous Earnings                                         
-L-16,000--L-18,000                                       15         
-L-18,000--L-20,000                                       10         
-L-20,000--L-23,000                                       15         
-L-23,000--L-26,000                                       20         
-L-26,000--L-29,000                                       25         
-L-29,000--L-32,000                                       30         
-L-32,000--L-35,000                                       35         
-L-35,000--L-40,000                                       40         
Greater than -L-40,000                                    45         
Previous earnings or qualifications were gained in the UK 15 (bonus) 
Age                                                       
30 or 31                                                  15         
28 or 29                                                  10         
27 or under                                               20         

Source: United Kingdom Home Office

Tier 2 is for those skilled workers who have received a job offer from a
United Kingdom employer. Applicants will need to have a job offer from an
employer who is registered with the Home Office on a list of approved
sponsors. In addition, the job will either need to be in an occupation
that has been identified as one with a shortage by the United Kingdom
government or will need to have accumulated a minimum of 50 points on the
points test to demonstrate that the applicant is not displacing a worker
in the domestic United Kingdom and European Union (EU) labor market (see
table 15). In these cases, the migrant will need to meet additional skills
and salary requirements. Employers who wish to bring migrants in under
Tier 2 will act as their sponsor and issue certificates of sponsorship
that will include the job title and salary. The certificate of sponsorship
will act as an assurance from the sponsor that the migrant intends and is
able to do the job, that the salary is appropriate to the United Kingdom
(i.e., the sponsor is not just trying to obtain cheap labor), that the job
is at a specified skill level, and that the job has been advertised in the
United Kingdom. For jobs not identified as ones with a shortage, points
will be used to ensure that applicants have the appropriate combination of
skills and prospective salary. Workers in Tier 2 will be able to change
employers within the United Kingdom but will be reassessed against the
points test and will be required to have a certificate of sponsorship from
the new employer. Tier 2 provides foreign workers with a route to
permanent settlement. Foreign workers who reside in the United Kingdom for
a minimum of 5 years can qualify to apply for permanent residence. The
initial grant of permanent status will be linked to the length of the
contract up to a maximum period. Tier 2 migrants will be able to bring in
dependants and to switch into Tier 1 if they meet the points requirements
for Tier 1.

Table 15: Tier 2 Points-Based System

Qualifications/education                                            Points 
National Vocational Qualification level 3                                5 
Bachelor's degree                                                       10 
Master's degree                                                         10 
Doctorate                                                               15 
Prospective earnings                                                
-L-15,000--L-18,000                                                      5 
-L-18,000--L-19,500                                                     10 
-L-19,500--L-21,000                                                     15 
Greater than -L-21,000                                                  20 
Other                                                               
Job offer in shortage occupation                                        50 
Job offer passes resident labor market test                             30 
Intracompany transfer with 6 months' previous employment with an        50 
employer in a skilled job and a salary appropriate to the United    
Kingdom                                                             

Source: United Kingdom Home Office.

The United Kingdom government plans to establish a scheme under Tier 3
only in cases where there is an identified temporary labor market shortage
that cannot be filled by workers in the United Kingdom or EU. Foreign
workers would be admitted for a maximum of 12 months, would be prohibited
from bringing their family members, and would be prohibited from switching
to another tier under the points-based system. The United Kingdom has
proposed to set up a quota-based low-skilled foreign worker scheme for
countries with which the United Kingdom has arrangements for ensuring the
return of temporary foreign workers to their home countries. The United
Kingdom is considering options such as compulsory remittances, requiring
open return tickets for foreign workers, and capturing biometric data on
foreign workers to ensure their return. These schemes would be run by a
contracted operator.

Under Tier 4, which would apply to foreign students seeking the
opportunity to study in the United Kingdom, each student, before making an
application, will be able to self-assess against a set of published
criteria to see whether he or she will have sufficient points to be
granted leave to enter or remain in the United Kingdom. These criteria
will include a valid certificate of sponsorship from an educational
institution at which the student has been offered-and accepted-a place in
a course of study.

Tier 5 would apply to youth exchanges and other temporary foreign workers
seeking employment in the United Kingdom. Under Tier 5 for youth
exchanges, participating countries will need to agree to the terms of the
scheme, including the existence of an effective return arrangement, an
acceptance that the foreign government will act as the sponsor, and
country limits set according to immigration risk. The scheme will allow
nationals aged 18 to 30, from participating countries, to come to the
United Kingdom for up to 24 months, after which time they will have to
leave the United Kingdom. In order not to undermine the rationale of the
scheme, which is principally about people coming to the country for a
holiday and doing incidental work to support themselves and not an avenue
for economic migration, participants will generally be restricted to
working for a maximum of 12 months out the total of 24 (as with the
current Working Holidaymaker Scheme). Participants will not be allowed to
be self-employed or play professional sports. In addition, those entering
under the scheme will not be able to bring dependants and will be unable
to switch to any other tier. These restrictions underline the temporary
nature of the route.

Temporary workers under Tier 5 are individuals who come to work in the
United Kingdom for a limited period of time whom might not qualify under
Tier 2, but who the United Kingdom wants to allow into the United Kingdom
for cultural, charitable, religious or international development reasons
or to satisfy the country's obligations under certain international
treaties. Part of Tier 5 rationalizes a large number of existing routes
into five sub-categories that will each have its own distinctive
attributes and sponsorship arrangements: creative and sporting, voluntary,
religious, exchange, and international agreement. In keeping with the
temporary nature of the tier, the maximum period of leave that could be
granted will be 24 months (12 months in some cases) and switching into
other tiers will not be permitted. Dependents will be allowed but will be
entitled to work only if the principal is granted more than 12 months'
leave.

Employment Verification Process

It is a criminal offense for employers to employ someone subject to
immigration control who has no right to work in the United Kingdom or no
right to do the work being offered. Employers can establish an affirmative
defense against conviction for employing an unauthorized worker by
checking and copying certain original documents presented by potential new
employees. As shown in table 16, potential new employees can demonstrate
their work authorization by providing one document from List 1 or two
documents from the combinations in List 2.

Table 16: Lists of Documents that Potential Employees Can Present to Show
Work Authorization

List 1                                          List 2
                               First combination         Second combination   
A United Kingdom passport   A document issued by a    A work permit or     
describing the holder as a  previous employer, Inland other approval to    
British citizen or as a     Revenue, the Department   take employment      
citizen of the United       for Work and Pensions,    issued by Work       
Kingdom and Colonies and    Jobcentre Plus, the       Permits UK, and:     
having the right of abode   Employment Service, the   
in the United Kingdom.      Training and Employment   
                               Agency (Northern Ireland) 
                               or the Northern Ireland   
                               Social Security Agency    
                               which contains the        
                               National Insurance number 
                               of the person named in    
                               the document, and:        
A passport containing a     A birth certificate       A passport or other  
certificate of entitlement  issued in the United      travel document      
issued by, or on behalf of  Kingdom which specifies   endorsed to show     
the Government of the       the names of the holder's that the holder has  
United Kingdom, certifying  parents; or               current leave to     
that the holder has the                               enter or remain in   
right of abode in the                                 the United Kingdom   
United Kingdom.                                       and is permitted to  
                                                         take the work permit 
                                                         employment in        
                                                         question; or         
A passport or national      A birth certificate       A letter issued by   
identity card, issued by a  issued in the Channel     the Home Office to   
State which is party to the Islands, the Isle of Man, the holder           
European Economic Area      or Ireland; or            confirming the same. 
Agreement, or any other                               
agreement forming part of                             
the Communities Treaties                              
which confers rights of                               
entry to or residence in                              
the United Kingdom, which                             
describes the holder as a                             
national of a state which                             
is a party to that                                    
agreement.                                            
A United Kingdom Residence  A certificate of          
Permit issued to a national registration or           
of a State which is a party naturalization as a       
to the European Economic    British Citizen; or       
Area Agreement, or any                                
other agreement forming                               
part of the Communities                               
Treaties which confirms                               
that the holder has rights                            
of entry to or residence in                           
the United Kingdom                                    
A passport or other travel  A letter issued by the    
document, or a residence    Home Office, to the       
permit issued by the Home   holder, which indicates   
Office which is endorsed to that the person named in  
show that the holder has a  it has been granted       
current right of residence  indefinite leave to enter 
in the United Kingdom as    or remain in the United   
the family member of a      Kingdom; or               
named national of a State                             
which is a party to the                               
European Economic Area                                
Agreement, or any other                               
agreement forming part of                             
the Communities Treaties                              
which confers rights of                               
entry to or residence in                              
the United Kingdom, and who                           
is resident in the United                             
Kingdom                                               
A passport or other travel  An Immigration Status     
document endorsed to show   Document issued by the    
that the holder is exempt   Home Office to the        
from immigration control,   holder, endorsed with a   
has indefinite leave to     United Kingdom Residence  
enter or to remain in the   Permit, which indicates   
United Kingdom, or has no   that the holder has been  
time limit on their stay    granted indefinite leave  
                               to enter or remain in the 
                               United Kingdom; or        
A passport or other travel  A letter issued by the    
document endorsed to show   Home Office, to the       
that the holder has current holder, which indicates   
leave to enter, or remain   that the person named in  
in, the United Kingdom and  it has subsisting leave   
is permitted to take the    to enter or remain in the 
employment in question,     United Kingdom and is     
provided that it does not   entitled to take the      
require the issue of a work employment in question in 
permit                      the United Kingdom; or    
A registration card which   An Immigration Status     
indicates that the holder   Document issued by the    
is entitled to take         Home Office to the holder 
employment in the United    endorsed with a UK        
Kingdom                     Residence Permit, which   
                               indicates that the holder 
                               has been granted limited  
                               leave to enter or remain  
                               in the United Kingdom and 
                               is entitled to take to    
                               employment in question in 
                               the United Kingdom.       

Source: United Kingdom Home Office.

In checking and copying the original documents presented by potential
employees, employers are required to check any photographs to ensure that
they are consistent with the appearance of the potential employee, the
dates of birth listed on the documents to ensure that they are consistent
with the appearance of the potential employee, the expiration dates of
employees' documents, and any United Kingdom government stamps or
endorsements to verify that the potential employee is able to do the type
of work being offered.

Enforcement of Laws That Prohibit Employment of Unauthorized Foreign
Workers

In the United Kingdom, the Immigration and Nationality Directorate within
the Home Office is primarily responsible for enforcing laws that prohibit
the employment of unauthorized foreign workers. The Home Office reported
initiating about 2,900 investigations of illegal work practices in 2005
and about 1,600 investigations in 2004. Table 17 provides data on the
number of prosecutions against employers for each year from 2000 through
2004.

Table 17: Number of Employer Criminal Prosecutions for Each Year from 2000
through 2004

                         2000 2001 2002 2003 2004 
Criminal prosecutions    4    1    1    1    8 

Source: United Kingdom Home Office.

In 2003, the United Kingdom Home Office detected about 1,800 unauthorized
workers at worksites and in 2004, about 3,300 unauthorized workers.
Enforcement staff are primarily focused on the removal of failed asylum
seekers from the United Kingdom.

Regularization Efforts

The United Kingdom has not implemented any large-scale regularization
programs for foreigners working illegally in the country. However, in
cases where individuals have resided unlawfully in the United Kingdom for
a continuous period of 14 years or more, the individuals can apply to
remain in the country legally on a permanent basis. In addition, in 2003
the United Kingdom initiated a program under which individuals who applied
for asylum before October 2000 and had a dependent residing with them in
the country between October 2000 and October 2003 could apply for legal
status for themselves and their dependents.

Appendix XI: Foreign Country
Questionnaires

Appendix XII: Acknowledgement of Government and Other Entities' Assistance

We would like to acknowledge the time and effort made by government
agencies and other groups and individuals who provided information by
responding to questionnaires and who talked with us during site visits. We
would like to thank governmental and nongovernmental entities and
individuals in the following countries:

Argentina
Australia
Austria
Belgium
Canada
France
Germany
the Netherlands
New Zealand
Portugal
Singapore
Spain
Switzerland
United Kingdom
United
States

We would also like to thank representatives from the following
intergovernmental organizations:

European Union
International Labour Organization
International
Organization for Migration
Organisation for Economic Co-operation and
Development
United Nations High Commissioner for Human Rights
United Nations High Commissioner for Refugees
Intergovernmental Consultations on Asylum, Refugee, and Migration Policies

In addition, we would like to thank the following experts:

Bridget Anderson, Senior Researcher and Research Program Head, Centre on
Migration, Policy and Society, Oxford University
Joaquin Arango, Professor, Instituto Universitario Ortega y Gasset
Tanya Basok, Director, Centre for Studies in Social Justice,
University of Windsor
Holger Bonin, Senior Research Associate, Institute for the Study of Labor
Amelie Constant, Senior Research Associate and Deputy Program Director for
Migration, Institute for the Study of Labor
Christian Dustmann, Professor, Department of Economics, University College
London
Andrew Geddes, Professor, University of Sheffield Holger Hinte, Expert on
German Migration Politics, co-author of several migration studies,
Institute for the Study of Labor
B. Lindsay Lowell, Director of Policy Studies, Institute for the Study of
International Migration, Georgetown University
Susan Martin, Donald G. Herzberg Chair in International Migration and
Director, Institute for the Study of International Migration, Georgetown
University
Doris Meissner, Senior Fellow, Migration Policy Institute
Mark J. Miller, Emma Smith Morris Professor of Political Science and
International Relations, University of Delaware
John Salt, Department of Geography, University College London
Martin Ruhs, Senior Researcher, Centre on Migration, Policy and Society,
Oxford University
Andrew Schoenholtz, Deputy Director, Institute for the Study of International
Migration, Georgetown University
Sam Scott, Geography Lecturer, University of Sheffield
Claude-Valentin Marie, Vice-president de la Haute Autorite de
Lutte contre les Discriminations et pour l'Egalite
Catherine Wihtol de Wenden, Director of Research, Centre national de la
recherche scientifique/Centre d'etudes et de recherches internationals, Institut
d'Etudes Politiques de Paris
Klaus F. Zimmermann, President, German Institute for Economic Research and
Director of the Institute for the Study of Labor

Appendix XIII: GAO Contact and Staff Acknowledgments

GAO Contact

Richard M. Stana (202) 512-8777

Staff Acknowledgments

In addition to the contact named above, Frances Cook, Michelle Cooper,
Katherine Davis, Rebecca Gambler, Alison Martin, Amanda Miller, Jason
Pogacnik, and Robert E. White made key contributions to this report.

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Highlights of GAO-06-1055 , a report to the Chairman, Committee on the
Judiciary, House of Representatives

September 2006

FOREIGN WORKERS

Information on Selected Countries' Experiences

The opportunity for employment is an important magnet attracting
immigrants, including unauthorized immigrants, to countries. The policies
and practices used by other countries to manage foreign workers, including
actions to limit illegal immigration and to reduce the employment of
unauthorized foreign workers, have been shaped by country-specific
economic, demographic, and political factors. Immigration reform is a
matter of continuing debate in the United States. This report examines
selected countries' (1) programs for admitting foreign workers; (2)
efforts to limit the employment of unauthorized foreign workers; and (3)
programs for providing unauthorized immigrants with an opportunity to
obtain legal status, referred to as regularization. To address these
objectives, we examined reports from foreign countries, intergovernmental
organizations, and research organizations. We also interviewed government
officials and experts from 8 countries-Australia, Belgium, Canada, France,
Germany, Spain, Switzerland, and the United Kingdom-and surveyed 6 other
countries. We selected these countries based on their net immigration
rate, population size, membership in the Organisation for Economic
Co-operation and Development or World Bank classification as high income,
range of immigration policies, and geographic location.

The countries GAO studied have programs for admitting foreign workers,
most of which are focused on recruiting high-skilled or seasonal foreign
workers. To recruit foreign workers, some countries use bilateral
agreements with other countries. For example, Canada uses bilateral
agreements with Mexico and several Caribbean nations to recruit seasonal
agricultural workers. Some countries manage foreign worker admissions by
various means, such as quotas or points-based systems. However, officials
stated that it is difficult to implement a system that responds to
changing labor market needs and does not create incentives for employers
to hire unauthorized foreign workers. Some countries regulate foreign
worker admissions by specifying requirements for participation in a
foreign worker program, such as work permit fees. Moreover, foreign worker
programs differ in their requirements for workers to return home. Some
temporary programs require workers to return upon expiration of work
permits, while others allow foreign workers to renew their permits and
apply for permanent resident status.

The countries GAO studied use a variety of efforts in enforcing laws
designed to limit the employment of unauthorized foreign workers. In some
of these countries, employers are required to report workers' information
to government agencies or to verify workers' authorization status. Among
these countries, the employment of unauthorized foreign workers is largely
considered one of several illegal labor practices, including failure to
pay taxes or social insurance contributions, and government agencies
generally focus their enforcement efforts and investigate employers to
detect all such practices. Government officials and experts have noted
that conducting frequent employer investigations and publicizing those
investigations helps deter employers' hiring of unauthorized foreign
workers. Countries can penalize unscrupulous employers for employing
unauthorized foreign workers, including imposing monetary fines on
employers. However, countries have faced difficulties, such as the
prevalence of document fraud, in penalizing employers.

Some countries have implemented large-scale regularization programs that
allow unauthorized immigrants to apply for legal status on either a
temporary or a permanent basis. Countries have implemented regularization
programs for different reasons, such as to help reduce the size of the
underground economy or to facilitate immigrant integration, and
governments believe they derive some benefits from implementing these
programs, such as increased collection of tax and social insurance
contributions. Under these programs, countries require illegal immigrants
to meet specified eligibility requirements, such as residency and work
requirements, before applying for or receiving legal status. Employers and
unauthorized foreign workers have incentives to participate in
regularization programs but may not want to because, for example, some
employers can save money by employing unauthorized foreign workers from
whom they do not pay taxes or social insurance contributions. However,
countries have faced difficulties in implementing these programs, such as
in ensuring timely review of applications. Moreover, some experts have
reported that regularization programs may attract further illegal
immigration,while others have concluded that programs' effect on illegal
immigration is unclear.
*** End of document. ***