IMPACT – MEDIUM

What is the change? Belgian immigration authorities have announced 2020 salary thresholds for high-skilled and executive work permit holders and for EU Blue Card holders in Brussels.

What does the change mean? Authorities in Brussels have announced the new thresholds, which will take effect for permits issued on or after Jan. 1:

  • Highly skilled foreign employees: €42,869 (increased from €41,739).
  • Foreign executives holding management positions: €71,521 (increased from €69,637).
  • EU Blue Card holders: €55,431 (increased from €53,971).
  • Single Permit for Highly Skilled Workers: €42,869 (increased from €41,739)
  • Single Permit for Executives: €71,521 (increased from €69,637)

Analysis & Comments: Salary thresholds in Belgium are indexed annually and are announced regionally. In Brussels, minimum salaries will increase in the coming year by over 2%. Companies should budget for the higher salary minimums.

Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.

IMPACT – MEDIUM

What is the update? The Federal Immigration Office in Belgium has announced a plan to reduce processing times of applications for single permits.

What does the update mean? A shift of responsibilities from the Federal Ministry to local communal authorities for part of the process should decrease processing times during the next few months. For the time being, an overall processing time of up to four months should still be expected. 

  • Implementation date: To be announced.
  • Visas/permits affected: Single work-and-residence permits.
  • Who is affected:  Foreign nationals applying for a single work-and-residence permit.
  • Current processing times:
    • Four to six weeks for regional authorities to make a decision on employment authorization.
    • Eight to 10 weeks for the federal immigration authorities to approve issuance of the visa.
  • What’s next: Employers should expect the process to be streamlined in the next few months and processing times to improve.

Background: In January, all three regions of Belgium introduced a single work-and-residence permit system under the European Union directive. The system unifies work-and-residence permit procedures for non-EU/EEA workers across the EU.

Under the new process, employers may submit a completed application with all supporting documentation to regional authorities, who issue a conditional work authorization. The file is then transferred to federal immigration authorities to determine entry eligibility and approve issuance of a visa by the appropriate Belgian consulate. The single permit is then issued by the commune to authorize both work and residence and will be valid for up to three years, depending on the employment contract or assignment letter.

Additional updates:

  • As of June, the Brussels region will also be able to grant a single permit for a period of three years if proper supporting documents are provided.
  • In the Walloon region, the single permit can only be issued for a maximum period of one year, for the time being.
  • It is expected that the ICT permit will be implemented in the Flemish and Brussels regions during the next few months.

Analysis & Comments: Employers need to take these increased processing times into account when planning new assignments and dealing with renewal applications. It is currently impossible to fast-track applications. 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.

IMPACT – HIGH

What is the Brexit news? The Belgian government has released draft legislation on how it would administer the status of U.K. citizens in Belgium in the event of a “no deal” Brexit.

Key points:

  • Transition period. If no deal is reached, Belgium would apply a transition period from March 30, 2019 to Dec. 31, 2020, during which U.K. citizens living in Belgium and their family members would be able to continue residing in Belgium based on their current status.
  • Work authorization. The legislation does not include specific provisions on work authorization, but it is anticipated that U.K. nationals would continue to have access to the Belgian labor market as EU nationals do during the transition period. Applications of U.K. nationals that are pending as of March 30 will fall under the scope of the transition.
  • New arrivals. Family members of U.K. citizens already in Belgium who arrive after March 29 would be given residency rights the same as qualifying EU nationals. U.K. nationals who apply for residence permits in Belgium after March 29 will be considered third-country nationals though it is likely that provisions will be introduced in the coming weeks to further clarify the process for U.K. nationals applying for residence permits during the transition period.

Background: The U.K. is set to leave the European Union on March 29, and although the U.K. and the EU have negotiated a draft withdrawal agreement, the U.K. Parliament has not approved it. In preparation for this scenario, EU member states are releasing plans on how they will address the end of EU free movement as applied to U.K. citizens.

Analysis & Comments: The government’s proposals provide some certainty to employers and U.K. citizens in BelgiumWhile some post-Brexit and post-transition procedures remain unclear, it is likely that U.K. citizen employees will be able to continue working and residing in Belgium based on their current status through at least 2020. According to the draft legislation, U.K. nationals who file residence permit applications in Belgium after March 29 will be considered third-country nationals; however, it is expected that additional post-transition procedures, which will likely be based on reciprocity with the U.K, will be introduced in the coming weeks.

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.

IMPACT – MEDIUM

What is the change? As of Jan. 1, all three regions of Belgium have introduced a single work-and-residence permit system under the European Union directive that unifies work and residence permit procedures for non-EU/EEA workers across the EU.

What does the change mean? Each region will have its own rules regulating the issuance of work and residence permits, and employers should prepare to follow different processes, eligibility criteria, documentary requirements, validity periods, quotas or other rules for each region. Employers will initially be required to submit a single application for both work authorization and residence to the applicable region, and thereafter both the regional and federal immigration authorities will process the application.

  • Implementation time frame: The single permit was introduced Jan. 1. A one-year transition period for those holding existing work permits under the current system will end Jan. 1, 2020.
  • Visas/permits affected: Single work-and-residence permits for non-EEA foreign nationals intending to work and live in Belgium for more than 90 days. Non-EEA nationals who intend to stay in Belgium for up to 90 days are not affected.
  • Business impact: Businesses should prepare for regional variations in the work-and-residence permit process. The introduction of an online application system should help streamline procedures in the long term.
  • Impact on processing: Permits must be processed within four months. It is expected that processing times will be similar to the current time frame of six to eight weeks, but during the first few months of implementation, processing times are expected to lengthen to around three to four months.

Background: Under the new process, employers will need to submit a completed application with all supporting documentation to regional authorities, who will issue a conditional work authorization. The file is then transferred to federal immigration authorities to determine entry eligibility and approve issuance of a visa by the appropriate Belgian consulate. The single permit is then issued by the commune to authorize both work and residence and will be valid for up to three years, depending onthe employment contract or assignment letter.

The 2011 EU single permit directive aimed to simplify the work and residence permit process for non-EU/EEA nationals by unifying it into a single application system with common rules across the EU. Belgium did not meet the Dec. 25, 2013 deadline for member states to implement the directive into national law.

Analysis & Comments: Employers may experience delays as Belgian regional and federal authorities transition to the single-permit system, and companies should also prepare to comply with the varying rules in each region. Employers are also reminded that the directive requires that non-EU workers be afforded the same rights and working conditions as nationals of the host country.

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.

IMPACT – MEDIUM

What is the change? A single work-and-residence permit system will be introduced in all three regions of Belgium on Jan. 1. The system will be in line with the EU single-permit directive that unifies work and residence permit procedures for non-EU/EEA workers across the EU.

What does the change mean? Employers should anticipate changes in the application process, such as a requirement that all application documents be completed at the initial stage when applications are submitted to regional authorities. In addition, each region will have authority to impose their own criteria and conditions based on the regional labor market and employers may need to comply with different eligibility rules, depending on where the employees will be located.

  • Implementation time frame: After the system is introduced Jan. 1, those holding existing work permits under the current system will have a one-year transition period ending Jan. 1, 2020.
  • Visas/permits affected: Single work-and-residence permits. The current work-permit system for non-EU/EEA nationals who intend to stay in Belgium for 90 days or less will not be affected.
  • Business impact: The application procedures will change and there may be regional variations to eligibility criteria. The introduction of an online application system should help streamline procedures in the long term.

Background: Under the new process, employers will be required to submit a completed application with all accompanying documentation to regional authorities, who will issue a conditional authorization to work. The file is then transferred to the Ministry of Internal Affairs, which will determine entry eligibility and approve issuance of a visa by the appropriate Belgian consulate. The single permit is then issued by the appropriate commune. The single permit will authorize both work and residence and will be valid for up to three years in accordance with the employment contract or assignment letter.

The EU single permit directive intends to simplify the work and residence permit process for non-EU/EEA nationals into a single application system and create common rules across the EU. Belgium did not meet the Dec. 25, 2013 deadline for member states to implement the directive into national law.

Analysis & Comments: Employers should anticipate changes to application procedures in January and possible delays during the transition to the new system as well as the potential for added complexities for companies that employ non-EU nationals in different regions of the country. Employers are also reminded that the directive requires that non-EU workers be afforded the same rights and working conditions as nationals of the host country.

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.

IMPACT – MEDIUM

What is the change? Belgian immigration authorities have announced 2019 salary thresholds for high-skilled or executive work permit holders and for EU Blue Card holders.

What does the change mean? Authorities in all three regions – Flanders, Wallonia and Brussels – have announced the new thresholds, which will take affect for permits issued on or after Jan. 1:

  • Highly skilled foreign employees: €41,739 (increased from €40,972).
  • Foreign executives holding management positions: €69,637 (increased from €68,356).
  • EU Blue Card holders: €53,971 (increased from €52,978).

Analysis & Comments: Salary thresholds in Belgium are indexed annually, and will increase in the coming year by almost 2 percent. Companies should budget for the higher salary minimums.

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.

IMPACT – MEDIUM

What is the change? The regional government of Flanders has drafted legislation that introduces its own work permit system for non-EEA nationals.

What does the change mean? The change breaks with previous practice in which Belgium’s three leading economic regions—Flanders, Brussels and Wallonia—adhered to uniform requirements on employing non-EEA workers.

Key provisions of the proposed regional Flemish work permits:

  • Work permits for certain categories of non-EEA workers would be issued for three years instead of the current one year.
  • A three-month extended work permit exemption would apply in specific cases.
  • The EU directive that requires a single application for both work permit and residence permit would be implemented.
  • The EU directive on posted workers that mandates equal pay for equal work in the same place would also be implemented.
  • The single salary threshold would be abolished and replaced with a reference list produced by the Flemish government on remuneration based on job functions.
  • Jobs for which local labor is in short supply would be subject to reduced work permit requirements. The Flemish government would produce a list of shortage occupations every two years.

Background: Regional authorities have in recent years sought to expand their authority over work permits for non-EEA workers to align immigration policies with their regional economic needs. A 2013 law shifted authority from the federal government to local regions to manage non-EEA nationals’ access to their regional labor markets and introduce their own work permit procedures.

Analysis & Comments: The proposal is undergoing review by the regional council and, if it is approved, employers can anticipate the Flemish work permit system taking effect as early as November. The introduction of a regional system with its own criteria and rules may complicate procedures for companies that assign non-EEA workers across the country’s various regions. The move toward a single work-and-residence permit and a longer three-year duration of work permits are welcome changes for companies in Flanders.

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.

IMPACT – MEDIUM

What is the change? Belgian authorities are finalizing legislation to introduce a single work and residence permit later this year.

What does the change mean? Applicants should anticipate delays in the coming months as federal immigration authorities assume new responsibilities for permit issuance. Currently, regional municipalities are responsible for processing residence permits.

  • Implementation time frame: Ongoing. The earliest possible date of implementation is October 2018.
  • Visas/permits affected: Work and residence permits for long-term (more than 90 days) assignments.
  • Who is affected: Non-EU nationals seeking to work and reside in Belgium.
  • Impact on processing times: The regime is intended to ease processing by simplifying procedures into a single application for both work and residency.
  • Business impact: While immigration services are currently experiencing delays, employers should be prepared for additional delays as authorities transition to the new system.
  • Next steps: Some legislation has already been voted on, but authorities have not released detailed information on procedures.

Background: An EU directive (Directive 2011/98/EU), issued on Dec. 13, 2011, required member states to adopt a single application procedure for a single permit authorizing non-EU nationals to reside and work, as well as a common set of rights for non-EU workers legally residing in a member state. The deadline for EU countries to make the change was Dec. 25, 2013, but Belgium has been slow to adopt legislation.

BAL Analysis: The single permit will only affect long-term assignments of more than 90 days. Employees on short-term employment of up to 90 days in Belgium will continue to use the dual system of applying for work permits and residence permits separately. Work permits under the current system will remain valid until their expiration date, and employees will only need to apply for the single permit when renewing their permits. BAL is following the legislation and will report developments as they become available. Meanwhile, employers and non-EU employees and assignees should anticipate delays in the coming months as the new system is rolled out.

This alert has been provided by the BAL Global Practice group and our network provider located in Belgium. For additional information, please contact your BAL attorney.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? Belgium is experiencing delays in work permit processing.

What does the change mean? Processing is taking six to eight weeks in Brussels, eight to 12 weeks in Flanders, and four to six weeks in Wallonia.

  • Implementation time frame: Ongoing.
  • Visas/permits affected: Work permits.
  • Who is affected: Employers and non-EU nationals applying for work permits in Belgium, regardless of the region. The delays are of particular concern to renewal applicants who may not be issued a new work permit before their initial work permit expires.
  • Impact on processing times: Processing times are significantly longer than the standard two to three weeks.
  • Business impact: Businesses may need to adjust timelines or start dates because of the delays.

Background: Officials have not provided much information about why work permit processing is so backed up, but it appears that the delays are due to a number of factors, including a new IT system, changes to internal procedures, short staffing and a backlog of applications left over from the winter holidays.

BAL Analysis: Applicants should anticipate that processing will take significantly longer than normal. The delays are of particular concern to renewal applicants, and those concerned that their work permit may expire before their new permit is issued should contact BAL.

This alert has been provided by the BAL Global Practice group and our network provider located in Belgium. For additional information, please contact your BAL attorney.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? Belgium has increased the mandatory fee for first-time residency applicants.

What does the change mean? Effective today, fees will increase to €350 (up from €215) for work permit holders and to €200 (up from €160) for their family members. EU and Swiss nationals and minor children are exempt.

  • Implementation time frame: March 1.
  • Who is affected: Work permit holders and their family members.

Background: Belgium introduced mandatory “contributions to cover the administrative costs” for some residence permit applications in 2015. The Belgian government announced the fee increases in February, but did not implement them immediately. The fee increases apply to non-EU nationals applying for residence for the first time, whether in Belgium or abroad.

BAL Analysis: Businesses should take note of the new fees and may need to adjust their budgets to account for the increased costs.

This alert has been provided by the BAL Global Practice group and our network provider located in Belgium. For additional information, please contact your BAL attorney.

Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.