Among the proposals from the inquiry, employers who do not uphold their agreements or issue fake contracts may face prison time.
“There is exploitation of the labor market and it is in fairly large quantities,” said Ingrid Utne, a government investigator.
Out of 753 denied applications for work permits in 2015, nearly half were due to poor working conditions. Over 100 additional applications were rejected because fake contracts were offered as an easier path into Sweden compared to seeking asylum.
Immigration and Justice Minister Morgan Johansson (S) welcomed the proposed changes.
“The problem is that if the employer does wrong, then the regulations introduced by the previous government mean that the employee takes all of the blow – the risk of their work permit being revoked and being forced to leave the country while the employer risks nothing,” he said.