The Investigative Service of the Netherlands Labour Authority arrested 2 suspects today on suspicion of human trafficking (labour exploitation) and migrant smuggling. Both suspects own 8 restaurants belonging to 3 international Indian restaurant chains. These restaurants are located in cities including Utrecht, Amsterdam, The Hague, Hoofddorp and Hilversum. In addition to the arrests immovable property, bank accounts, data carriers and administrative records were seized.
The arrests were made during an international operation coordinated from the Netherlands and spanning several European countries; the Labour Authority collaborated with police and labour authorities from Belgium, Germany, Luxembourg, and Switzerland, with support from Europol.
Discovery of abuse
Inspectors of the Netherlands Labour Authority discovered serious abuses, raising suspicions of organized human trafficking (labour exploitation) and migrant smuggling—primarily involving Indian nationals—within the restaurant chains in question. Subsequently, the Netherlands Labour Authority launched a criminal investigation under the authority of the National Office for Serious Fraud, Environmental Crime and Asset Confiscation.
Work permits
It is suspected that the suspects made large-scale misuse of the former Asian Catering Scheme. Under that scheme, companies could relatively easily bring specialized Asian chefs to the Netherlands. The investigation revealed that more than 70 combined work and residence permits (GVVA) were issued in response to the application submitted by the 3 Indian restaurant chains.
No cooks, but dishwashers or cleaners
The conditions of the GVVA are assumed to have been breached in dozens of cases. For example, some of the people who came to the Netherlands were not deployed as specialist cooks, but as dishwashers, cleaners, waiting staff or as restaurant managers. They did not receive the wage they should have received according to the IND application. It is presumed that the employees worked far more than the permitted 38 hours per week, often 60 to 80 hours per week, spread across 6 or 7 days. They did not receive any additional salary at all for the hours in excess of the permitted 38 hours. The investigation carried out by the Investigative Service showed that this occurred on a regular basis. As a result, the suspects are believed to have acquired over 4 million euros in unlawfully acquired gains.
Deliberate breach of the law
The investigation focuses inter alia on the question whether the suspects breached the permit conditions deliberately. They allegedly already knew at the time the various applications were submitted that one or more conditions would not be met. Deliberate failure to comply with the conditions meant that the employees were residing unlawfully in the Netherlands and were not permitted to work here. The suspicion is that the suspects are guilty of people smuggling and employing illegal foreign nationals.
Labour exploitation
There is also a suspicion of labour exploitation. The employees were recruited, housed and employed by the suspects. The employees had to perform heavy physical labour and work long days and supposedly received little pay. There are also indications of the use of what are known as ‘bond’ or penalty contracts in case of early departure, pressure on the family in their homeland and the threat of violence.
Joint inspection
Today, simultaneous inspections were carried out at all restaurants of these chains in the Netherlands and in other European countries. The inspections took place within the context of the Empact Action Day Labour Exploitation, which is an annual action week during which the European investigative services and labour authorities target labour exploitation. A total of 19 inspections were performed, 8 of them in the Netherlands. Various national and international organisations are collaborating in this fight against organised crime.
It is not uncommon for inspectors to pass on information to colleagues within the Investigative Service for further criminal investigation. Conversely, the inspection team may follow up on information provided by the Investigative Service. This particular investigation may yet result in further arrests.