No financial penalty can be imposed for illegal employment of foreigners in case of freedom of establishment within the EU. Jelle Kroes has won the first case ever in the Netherlands dealing about this question. In this particular case there was an establishment in Belgium, which was also owner of a greenhouse in the Netherland. The Romanian employees of the Belgium establishment were assembling, dismantling and cleaning the greenhouse. De Secretary of State imposed a penalty of EUR 40,000 because of working without a work permit. The work permit requirement is contrary to the principle of freedom of establishment, which require the elimination of all restrictions, and may only be justified where they serve overriding requirements relating to the public interest, are suitable for securing the attainment of the objective which they pursue and do not go beyond what is necessary in order to attain it. The High Administrative Court ruled that the Secretary of State of Social Affairs could not properly motivate why this requirement would be justified. The High Administrative Court ruled that the Labour Inspection unrightfully imposed the penalty of EUR 40,000.
See High Administrative Court ruling 6 May 2015, nr. 201401113/1/V6.