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IMPACT – MEDIUM
What is the change? The minimum salary for foreign nationals working in Denmark under the Pay Limit Scheme has increased to 426,985.06 kroner (about US$65,427) per year, or 35,583 kroner per month (exclusive of employer benefits). The government has also announced amendments to the Positive List and released new government fees for the year. Work permit application fees are now €405 for principle applicants and €202 for dependents.
Background: Non-EU/EEA foreign nationals requesting work authorization in Denmark must apply for and obtain a work and residence permit prior to entry. Several work and residence permit schemes are available to highly qualified applicants, including the Positive List, the Pay Limit Scheme, the Fast-track Scheme and the Corporate Scheme.
The Pay Limit Scheme is available to foreign nationals who have been offered a highly paid position that meets the gross salary threshold set annually by the Danish Agency of International Recruitment and Integration. The Positive List is published annually by the Danish government and includes professions in the teaching, engineering, medical and financial sectors. Highly qualified foreign nationals who have been offered a position in these professions may have an easier time obtaining work authorization. This year’s Positive List can be found here.
Analysis and Comments: Employers must meet the new threshold for Pay Limit Scheme applications. Extensions of existing work permits may continue to use salaries from the initial application. The new salary minimum will apply to applications submitted on or after Jan. 1 and represents a 2.2-percent increase over the 2018 minimum of 417,793.60 kroner per year.
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.
What is the change? The Chinese Embassy in Copenhagen has introduced a pilot program requiring that some visa applicants attend an in-person interview as part of the application process.
What does the change mean? About 10 to 20 percent of applicants will be selected randomly for interviews during the trial period. The pilot program will continue for a short time and could lead to a permanent requirement later.
BAL Analysis: The change follows similar requirements recently introduced by Chinese embassies in other locations, including interviews for Z work visa applicants in London and mandatory biometrics appointments in Sweden.
This alert has been provided by the BAL Global Practice group. 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.
What is the change? Danish authorities are requiring employers using the Pay-limit and Fast-track schemes to include a sworn declaration on payment of salary when submitting applications.
What does the change mean? Employers using the Pay-limit and Fast-track schemes are required to submit the declarations, which ask them to confirm that employees will be paid according to minimum salary standards and to check a box stating that salaries “up to and including the minimum amount” will be paid into a Danish bank account.
Background: The gross minimum salary for foreign workers under the Pay Limit or Fast-track schemes is currently 34,067 kroner (about US$5,220) per months (408,800 kroner per year). Under a law that took effect July 1, employer-paid housing, transportation or other employee benefits cannot be counted when calculating the base yearly minimum salary. The minimum gross salary must be paid into a Danish bank account, but any pay above the minimum may be paid into a foreign account. The new forms ask employers to confirm that minimum salary requirements will be met and that pay up to and including the salary minimum will be paid into a Danish account.
BAL Analysis: Employers should be sure to include the declarations when completing first-time applications submitted under the Pay-limit and Fast-track schemes. The declarations are only required in renewal applications for work permits initially granted under the new regulation, not those granted before July 1.
This alert has been provided by the BAL Global Practice group and our network provider located in Denmark. For additional information, please contact your BAL attorney.
What is the change? Municipal authorities in Denmark have tightened civil registration rules, particularly those related to providing marriage or birth certificates when completing civil registration (CPR registration).
What does the change mean? Foreign nationals should be prepared to provide the appropriate documentation – including apostilled or legalized marriage and birth certificates, if necessary – when applying for CPR registration.
Background: CPR registration requirements have traditionally varied from municipality to municipality, but authorities are growing stricter across Denmark in asking for apostilled or legalized marriage or birth certificates from certain applicants. In general, apostilled or legalized marriage or birth certificates may be required for certificates issued by non-EU countries. Apostillization or legalization is generally not required for certificates issued by EU countries, Australia, Canada, New Zealand, Turkey or the United States.
Generally, an assignee who is married in a country that is subject to greater scrutiny will be asked to provide apostilled or legalized marriage certificates if the assignee’s spouse is traveling to Denmark. Those with children who were born in a country that is subject to greater scrutiny should be prepared to provide apostilled or legalized birth certificates for their children. Assignees who are married but not traveling with their spouse will generally be permitted to provide a copy of their marriage certificate. Assignees who are single are not affected.
BAL Analysis: If an applicant does not have proper documentation, authorities will likely begin the CPR registration process and ask that the documentation be provided when available. Registration may be delayed in these cases. Those with case-specific questions about what documents they should be prepared to provide should contract BAL.
What is the change? The Danish Parliament has passed a law to change the way gross salaries are calculated under the Pay Limit and Fast-track schemes.
What does the change mean? Under the new law, employer-paid housing, transportation or other employee benefits cannot be counted when calculating the base yearly minimum of 34,067 kroner (about US$5,150) per month. Companies that use the Pay Limit or Fast-track schemes should take note of the change and plan their budgets accordingly.
Background: The gross minimum salary for foreign workers under the Pay Limit or Fast-track schemes is currently 34,067 kroner per months (408,800 kroner per year). Before the new law, companies could count accommodations and other allowances toward the salary minimums. A majority of Danish political parties proposed making the change earlier this year, and the law passed June 2. It takes effect July 1.
BAL Analysis: Employers should budget for the changes in base salaries for affected workers. The minimum gross salary must be paid into a Danish bank account, but any pay over and above the minimum may be paid into a foreign account. While benefits cannot be calculated toward the salary minimum, employers do have the option of paying their employees the minimum salary and requiring them to be responsible for their own housing, transportation and other costs previously paid by employers. Those who cannot meet salary minimums under the Pay Limit Scheme may want to consider the Positive-list Scheme as an alternative.
What is the change? Denmark has adopted stricter qualification criteria for foreign nationals seeking permanent residence permits.
What does the change mean? The new rules increase the minimum requirements to eight years of legal stay, regular full-time employment for 3 ½ of the previous four years, and not having received public benefits within the previous four years. Applicants may qualify for permanent residence after only four years of legal stay if they meet certain minimum salary, employment tenure and language skills requirements and pass a citizenry exam.
Background: Under the new rules, foreign nationals must meet all of the following rules to be eligible for permanent residence:
Individuals may apply for permanent residence after four years of legal stay if they meet all of the following:
BAL Analysis: Employers and individuals should be aware of the longer waiting period and stricter qualifying requirements to obtain permanent residence permits.
What is the change? Due to a heavy workload, authorities in Denmark are taking longer than usual to process residence and work permits for accompanying family members.
What does the change mean? Families should take note of the change when scheduling travel dates. While permits for accompanying family members are taking about 60 days, processing of permit applications for principal applicants is taking the standard 30 days.
BAL Analysis: Accompanying family members who do not yet have a permit can travel to Denmark and pick it up in-country when it is ready. Visa-waived nationals may remain in Denmark for up to 90 days in a 180-day period without a permit, while visa-required nationals must comply with the terms of their Schengen visa.
This alert has been provided by the BAL Global Practice group and our network partner in Denmark. For additional information, please contact your BAL attorney.
What is the change? Danish immigration authorities will now review certain contract clauses in employment contracts for foreign workers to make sure they conform to Danish regulations.
What does the change mean? The clauses that authorities will review include noncompete clauses, nonsolicitation clauses and combined noncompete/nonsolicitation clauses.
Background: Danish immigration authorities have indicated that in order to obtain work authorization for foreign workers, contracts containing the specified clauses must meet the following criteria under Danish law:
Noncompete clauses.
Nonsolicitation clauses.
Combined clauses.
BAL Analysis: Companies should review their employment contracts to make sure they are in compliance with the requirements before applying for work permits or other immigration benefits.
What is the change? A proposal by a majority of Danish political parties would change the way gross salaries are calculated under the Pay Limit Scheme to exclude employer-paid housing, cars or other employee benefits in the base yearly amount of 408,800 kroner (about US$58,150).
What does the change mean? The proposal has not passed, but companies that use the scheme should be aware of the proposal. Last year, a majority of the political parties were able to pass a measure that increased the minimum salaries for skilled foreign workers using the Pay Limit Scheme.
Background: The gross minimum salary for foreign workers under the Pay Limit Scheme was raised this year and is currently 408,800 kroner per year. Currently, the gross salary may include accommodations and other allowances but 51 percent of the salary must be paid in cash to employees.
The new proposal would exclude allowances such as housing, automobiles and other benefits in calculating the base salary.
BAL Analysis: If the measure becomes law, employers will need to budget for the changes in base salaries for Pay Limit Scheme workers.
What is the change? Denmark has implemented a requirement that work permit applicants must pre-book a biometrics appointment before appearing in-person at the Danish Agency for International Recruitment and Integration (SIRI) in Copenhagen. The requirement took effect Tuesday.
What does the change mean? Applicants should plan to book their appointments rather than walk in. The change will apply to all work permit schemes, including Fast-Track applicants.
BAL Analysis: Employees planning to start work in Denmark under any work permit scheme should book their appointments online as early as possible after their applications have been submitted in order to avoid delays in their start dates.