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IMPACT – MEDIUM
What is the change? The salary threshold for EU Blue Card holders will increase on Jan. 1, 2020.
What does the change mean? The minimum gross annual salary for non-shortage occupations will increase to €55,200 (from €53,600). For shortage occupations (which are mostly in the information technology field), the minimum salary will increase to €43,056 (from €41,808).
Background: Salary thresholds for EU Blue Cards in Germany are based on the assessment ceiling of the German pension scheme. These figures increase every year and were recently announced for 2020.
Analysis & Comments: The 2020 salary minimums represent a 3% increase over the current thresholds. German employers should take note of the change and adjust their budgets if necessary.
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.
What is the change? The German government has announced that a new skilled immigration law will take effect March 1, 2020.
What does the change mean? The law will provide expanded opportunities for skilled non-EU nationals to work or look for a job in Germany. It will also create a fast-track application process for skilled workers and broaden employer notification requirements in some cases.
Additional information: The law will:
Analysis & Comments: The law will open up work opportunities in Germany for skilled non-EU workers and could lead to a faster application process. The law will also increase notification requirements for employers, but, overall, will help employers meet workforce demands. More detailed information is expected closer to the March 1 implementation date.
What does the change mean? The law will provide expanded opportunities for skilled non-EU nationals to work or search for work in Germany. It will also create a fast-track application process for skilled workers and broaden employer notification requirements in some cases.
What is the change? Germany’s Federal Employment Agency (Bundesagentur für Arbeit) has waived preapproval requirements for internships of up to 90 days in a 12-month period.
What does the change mean? While non-EU nationals applying for internships will no longer be required to complete the preapproval process for internships of less than 90 days, they will still be required to meet the legal requirements of the training-intern category.
Analysis & Comments: Businesses planning to hire non-EU students for an internship in Germany should check to make sure that the students meet the legal requirements for the internship category. Once eligibility is confirmed, German embassies and consulates can provide relevant information on obtaining a Training-Internship Visa, if required. Visa-waived nationals can complete internships based on their passport without obtaining a visa, but must make sure they meet the established requirements and carry all relevant documents when traveling to Germany. They must also track their time in the Schengen Area because their time working in internships counts toward the maximum of 90 days within a 180-day period for visa-waived nationals.
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? 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.
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.
What is the change? Consular services at the U.S. Embassy in Berlin have been suspended until further notice.
What does the change mean? A message from the U.S. Embassy says that consular services have been suspended because of “unforeseen construction issues.” Those with urgent travel needs may reschedule appointments at the U.S. Consulate in Frankfurt or Munich.
BAL Analysis: The suspension of services could delay processing, particularly if the closure is prolonged. U.S. citizens may obtain information about consular services in Frankfurt or Munich here.
This alert has been provided by the BAL U.S. Practice group. For additional information, please contact berryapplemanleiden@bal.com.
Copyright © 2019 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? Germany will soon begin requesting more detailed information from companies about the salaries they pay foreign workers during the work authorization extension process.
What does the change mean? Beginning Jan. 1, companies seeking to extend work authorization for non-EU/EEA nationals will be required to provide information showing they are not behind on tax or social security payments and that they have not had any recent bankruptcies and are not in danger of falling into bankruptcy. They will also be required to provide detailed information about employee salaries, including whether foreign employees are paid at least as much as their German counterparts. Officials began requesting this information for first-time work authorization requests earlier this year and will now extend the requirements to extension applications as well.
Additional information: Earlier this year, Germany’s Federal Employment Agency updated its application forms for pre-work approval for first-time applicants, requiring employers to provide more detailed information, including information about their company’s tax, social security and bankruptcy history. The new forms also require companies to provide detailed salary information including (1) the employee’s monthly salary based on an employment contract or collective bargaining agreement, (2) salaries of German employees with comparable positions and (3) the number of paid holidays an employee will be offered. The new forms will be required for work authorization extension applications, as well as first-time applications (as previously required), beginning Jan. 1.
Analysis & Comments: Employers should take note of the change and leave extra time to gather the required information when seeking to extend work authorization for a non-EU/EEA employee and possibly add this information to existing contract and assignment letter templates. Employers may also wish to review their salary levels to make sure they are in compliance with the requirements, including the requirement that foreign workers be paid at least as much as their German counterparts.
What is the change? Germany will raise the 2019 minimum salary for EU Blue Card holders.
What does the change mean? The threshold will be increased to €53,600 per year, or €4,466.67 per month, for the 2019 calendar year. In occupations deemed to have local labor shortages, the minimum will be €41,808 per year, or €3,484 per month.
Background: The salary thresholds are indexed annually and adjusted according to § 19 of the Residence Act. The current gross minimum is €52,000 per year and €40,560 for shortage occupations.
For non-shortage occupations, employers who meet the minimum income level are not required to obtain approval of the Federal Employment Agency for issuance of EU Blue Cards. In shortage occupations, Blue Card applicants usually require agency approval, except when the foreign employee holds a German university degree. Shortage occupations include information and communications specialists, engineers, medical doctors and mathematicians. EU Blue Cards are only available to foreign nationals with a local contract to work in Germany and who hold a degree from a German university or an accredited foreign equivalent.
Analysis & Comments: German employers should budget for the new minimum salaries, which represent a 3-percent increase over the current thresholds.
What is the change? Germany’s coalition government has issued a seven-page proposal on revising the country’s immigration system to better attract high-skilled professionals from outside of Europe.
What does the change mean? Although the changes are unlikely to be enacted until next year or later—and could change during the legislative process—the proposals seek to ease procedures for recognizing foreign professional qualifications, relax labor market testing requirements especially in targeted industries, increase German language development, and improve visa and immigration procedures.
Background: The proposal finds common ground on immigration policy toward high-skilled workers outside of Europe. Immigration has been a divisive issue among the parties that make up the fragile coalition government of Angela Merkel’s center-right Christian Democratic Union (CDU) with the Christian Social Union (CSU) and the center-left Social Democratic Party (SPD).
The proposals are intended to provide a legal framework for easing regulations to attract high-skilled immigration to fill labor shortages needed to strengthen the economy, especially in targeted industries where labor is in high demand.
The key business immigration measures are summarized as follows:
Analysis & Comments: If enacted, the proposals represent positive developments for companies needing to recruit international talent to fill job vacancies amid labor and skills shortages.
What is the change? Germany is preparing to increase its minimum wage from the current €8.84 per hour to €9.19 per hour.
What does the change mean? The minimum wage applies to all workers in Germany, including foreign workers, though EU Blue Card holders are subject to higher wage minimums. Employers should set their budgets accordingly.
Background: Germany first instituted a minimum wage law in 2015 and increased the wage last year from €8.50 per hour to the current €8.84. The wage commission recommended the increase after taking a number of factors into account, including the average wage increase for workers in Germany. Besides recommending that the minimum wage increase to €9.19 per hour next year, the commission also called for increasing it to €9.35 in 2020.
BAL Analysis: The proposed salary minimum would represent an increase of about €0.35 per hour that employers should factor in when planning their 2019 budgets.
This alert has been provided by the BAL Global Practice group. 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.