Employers involved in such activities will mainly face financial penalties, such as refunding the social welfare system for lost revenue or be obliged to pay the immigrants, who are often exploited, a salary he would normally earn.

Should the illegal immigrant need to be expelled, the employer could be called on to pay the costs of sending the person home.

"We're not thinking of criminal sanctions, more of acting in a preventative way," one EU official explained, on condition of anonymity.

The measures would also oblige employers to regularly varify work permits of those who come from countries outside the EU, and update the authorities on the details.

"We are not aiming at immigrants, more at employers," the official said.

The European Commission considers that black market labour in the building, restaurant and textile sectors are a major attraction for people looking to make their home in the EU.

The draft legislation would have to be endorsed by the EU's member states.