New requirement aims to make sure employers meet pay standards

IMPACT – MEDIUM

What is the change? Germany is requiring additional documentation during the work permit renewal process to ensure that employers are meeting salary requirements.

What does the change mean? Employers are now required to include copies of the employee’s first two and most recent two payslips in order to have renewals processed.

• Implementation time frame: Immediate and ongoing.
• Permits/visas affected: Extensions of work permits for categories that require approval from the Federal Employment Agency, including all ICT and International Staff Exchange categories and some local hire categories.
• Who is impacted: Employers applying to extend work authorization for non-EU employees.
• Business impact: Employers must be sure to include copies of the employee’s first two and most recent two payslips in order to avoid unnecessary delays in the renewal process.

Additional information: The change is the latest in Germany’s efforts to make sure employers are complying with pay requirements for non-EU employees. Last year, officials began requiring additional information during the renewal process, including detailed information about employee salaries and documentation that foreign employees are paid at least as much as their German counterparts. The move to request additional payslips is designed to ensure that employers comply with pay requirements for the full duration of the non-EU national’s employment. 

Analysis & Comments: Employers should be prepared to provide the additional payslips when renewing work permits for non-EU employees. Employers must also be sure they are in compliance with all applicable pay requirements immediately upon employing a non-EU national on a work permit and throughout the employee’s time working with their company.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.