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IMPACT – LOW
What is the change? Authorities have adjusted the minimum salary for foreign nationals working in Denmark under the Pay Limit scheme.
What does the change mean? The new salary minimum will be 408,800 kroner (about US$58,780) per year, up from 408,000 kroner as was initially announced. The new salary minimum will apply to applications submitted on or after Feb. 1.
Background: Authorities announced a 2017 minimum salary of 408,000 kroner in December, but subsequently acknowledged that they made an error in calculating the salary minimum. While the increase to 408,800 kroner is small (about .2 percent), employers should take note of the change in order to avoid unnecessary delays in the application process.
BAL Analysis: Employers must meet the new threshold for new work permits under the Pay Limit scheme as of Feb. 1. Extensions of existing work permits may continue to use salaries from the initial application.
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.
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.
IMPACT – MEDIUM
What is the change? Beginning Feb. 7, foreign employees on work permits under the Fast-track Scheme must pre-book their biometrics appointments before appearing in-person at the Danish Agency for International Recruitment and Integration (SIRI) in Copenhagen. Beginning Jan. 13, appointments may be booked online.
What does the change mean? Applicants should plan to book their appointments rather than walk in. On Feb. 7, pre-booking of appointments becomes mandatory.
Background: Companies registered under the Fast-track Scheme may start employees almost immediately upon arrival after submitting biometrics at SIRI while their work permit is still pending.
BAL Analysis: Employees planning to start work in Denmark under the Fast-track Scheme should plan to book their appointments online as early as possible to avoid delays in their start dates.
When traveling to Denmark, your nationality and the types of activities you will conduct during your trip will determine whether you may travel lawfully as a business visitor or if you require work authorization. Please seek advice from your immigration counsel if you are uncertain about the specific types of activities that constitute business or work.
As a business visitor to Denmark, you may engage in the activities below. While this list is not exhaustive and other activities could qualify as business, you may:
Nationals of the European Union, the United States, and many other select countries are eligible for a visa waiver and are not required to obtain a visa in order to enter and conduct business activities in Denmark.
Denmark is a member of the Schengen Area, a free-travel zone comprised of 29 European countries. If your nationality is not eligible for a visa waiver in the Schengen Area, you will be required to obtain a Schengen Visa prior to travel. Visa-waivered nationals, as well as those who are required to obtain a visa, are authorized to travel to Denmark and throughout the Schengen Area. Please note that travelers may not spend more than 90 days within any 180-day period inside the Schengen Area.
What types of activities require work authorization?
The activities below, whether paid or unpaid, generally constitute work under Danish law. This list is not exhaustive, and many other professional activities are considered work in Denmark, even if conducted for a short duration.
In limited circumstances, foreign nationals may engage in certain short-term professional technical activities without obtaining work authorization as part of an after-sales agreement, although strict preconditions must be met. An individual assessment is required before deciding whether an exemption is applicable.
The requirements for work authorization depend on your qualifications, on the nature and duration of your work and on whether your employer has an entity in Denmark. Foreign nationals must obtain work authorization in the form of a Residence and Work Permit. There are several Residence and Work Permit schemes in Denmark, with the most common being:
Nationals from the European Union, the European Economic Area, and Switzerland are not required to obtain work authorization in order to work in Denmark. However, registrations or other formalities may be required prior to working or residing in Denmark.
The Trade and Cooperation Agreement (TCA), which governs post-Brexit relations between the EU and the United Kingdom, has altered immigration regulations in the affected countries. Please be sure to contact your immigration representative for full details regarding the TCA’s impact in Denmark.
Inevitably, the legal and strategic considerations impacting visa selection, as well as visa waiver and work authorization eligibility, entail the careful consideration of many factors. We recommend that you consult with your immigration counsel before taking any course of action.
What is the change? Denmark has passed a law that raises minimum salaries under the Pay Limit scheme for high-skilled foreign workers and abolishes the Green Card scheme.
What does the change mean? Beginning June 10, foreign employees applying for new work permits under the Pay Limit scheme must be paid 400,000 kroner (about US$61,000). The Green Card scheme will be eliminated as of June 10.
Background: The changes were proposed in April and passed Thursday. Beginning June 10, minimum salaries under the Pay Limit scheme will increase to 400,000 kroner per year (33,333 kroner per month), up from the current threshold of 375,000. The salary may include accommodations and other allowances, but 51 percent of the salary must be paid in cash to employees. The 400,000-kroner salary threshold will be adjusted annually for inflation.
Work permit extensions of current salaries may be approved even after June 10 if all employment terms are the same.
Also beginning June 10, the Green Card scheme will be eliminated due to ineffectiveness. However, existing Green Card holders may continue to apply for extensions even after June 10 and accompanying family members of Green Card holders may also continue to apply for residence permits.
BAL Analysis: The changes will impact corporate budgets for employers using the Pay Limit scheme to employ high-skilled non-EU employees in Denmark.
Copyright © 2016 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? Denmark’s political parties have proposed changes to immigration laws that would affect high-skilled foreign workers.
What does the change mean? Under the proposed changes, the annual minimum salary under the Pay Limit Scheme would be raised to 400,000 kroner (about US$61,000), an increase from the current 375,000 kroner. The Green Card scheme would also be eliminated due to ineffectiveness.
Background: The changes have been proposed by the Danish People’s Party, the Socialist People’s Party and the Socialist Democrats, who together constitute a large majority of the Danish Parliament.
Under the proposal, the gross minimum salary for highly qualified foreign employees in the Pay Limit Scheme would increase to 400,000 kroner per year, up from the current threshold of 375,000. The salary may include accommodations and other allowances, but 50 percent of the salary must be paid in cash to employees.
The other proposal is to eliminate the Green Card scheme, which allows highly qualified foreign nationals to apply for residence and work permits without employer sponsorship for the purpose of seeking employment in Denmark. The reasons for the proposed elimination is that green card holders have not been successful in finding employment in their sectors and instead have taken up low-skilled jobs.
BAL Analysis: The changes, if adopted, would impact corporate budgets for employers using the Pay Limit scheme to employ high-skilled non-EU employees in Denmark.
What is the change? Denmark has passed a reform bill intended to help employers attract and keep highly educated foreign graduates, researchers and highly educated foreign employees.
What does the change mean? Certain requirements have been eased for foreign graduates, entrepreneurs and researchers, and Greencard applicants will earn more points for educational achievements.
Background: The Danish Parliament passed a bill to reform international recruiting in December. In a previous alert, we reported the bill’s key feature: introduction of a fast-track work permit scheme.
The legislation introduces additional programs. The new Establishment card allows foreign graduates who earn a master’s or Ph.D. degree in Denmark to stay and work in the country for two years without having to apply for a work permit. The Start-Up program, a three-year pilot, will grant 50 permits per year to qualifying entrepreneurs. In other changes, the Greencard program will award more points to applicants with higher educational levels and will reform the points system to better serve labor demand, but Greencards will now be valid for two years instead of three and applicants cannot bring dependent family members.
The law also eases several rules for foreign researchers and their employers. Researchers and Ph.D. students are exempt from work permits for up to three months, researchers permits can be issued for part-time jobs and do not lapse if the researcher leaves the country for more than six months, and an employer will not have to apply for a new work permit if the researcher changes jobs within the organization. In addition, the minimum salary has been lowered for purposes of providing lower tax rates under the researchers tax scheme, thus enabling employers to include more foreign nationals in the special tax program.
BAL Analysis: The reforms significantly liberalize various work permit programs for highly educated researchers, international graduate students and start-ups.
IMPACT – HIGH
What is the change? As part of a reform of its foreign recruitment scheme, Denmark has implemented fast-track work permit procedures for employers who qualify.
What does the change mean? The fast-track program allows larger, low-risk employers to start foreign employees immediately without waiting for permit approval. The foreign employees can also work outside Denmark without the permit lapsing.
Background: The fast-track scheme, which is one of several reforms that took effect Jan. 1, is intended to make it easier for companies to recruit and employ high-skilled foreign labor.
To qualify for certification in the fast-track program, an employer must meet several criteria. The company must have at least 20 full-time employees, have a clean labor record, meet salary standards, and meet with the Danish Agency for Labour Market and Recruitment. The certification process takes 30 days and certification is valid for four years.
If certified, employers may use the fast-track program for foreign workers meeting one of the following criteria:
The main benefit of the fast-track service is that it provides foreign employees the option of starting work immediately after filing a work permit application. Under this option, the employees would enter Denmark on their own and appear at the Danish Agency for Labour Market and Recruitment to give their biometrics and go through a security and identity check. They can obtain a temporary work permit and start work immediately while their application for a combined work-and-residence permit is pending. Employees who do not need to start work right away or who want to wait for an approved permit can apply for the residence permit from their home countries. The approval process takes 30 days.
Generally, fast-track permits are valid for a renewable four-year period and do not lapse if the employee works outside Denmark. Short-stay permits are valid for up to three months within a one-year period.
Companies in the fast-track program are subject to periodic checks to make sure they are still following the conditions of certification. The Agency for Labour Market and Recruitment can revoke certification, and any company whose certification is revoked will be banned from fast-track permits for two years.
BAL Analysis: The program offers greater flexibility to employers who need to bring foreign employees to Denmark urgently and for foreign employees and assignees working in Denmark who must also work abroad without losing their Danish permit.
What is the change? The Danish Parliament has passed a bill that places approved companies on a fast track for work permits.
What does the change mean? The new procedures will allow pre-certified, registered companies to obtain expedited work permits for highly skilled employees.
Background: On Dec. 18, Parliament passed the reform measure (“Reform af international rekruttering”), which proposes to create a fast track for pre-approved employers applying for work permits for highly skilled foreign labor. Under the current version of the bill, companies that are pre-approved will be considered low-risk and therefore will be allowed to start foreign employees as soon as they file their applications. Full details – including eligibility criteria for companies to become pre-approved, documentary requirements and any new procedures – are expected to be unveiled next month.
BAL Analysis: While the specifics of the fast-track procedures are still unknown and a final bill may differ from the current version, an expedited work permit procedure is a welcome development that will improve conditions for companies that qualify.