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IMPACT – MEDIUM
What is the change? Five German states are allowing foreign workers to obtain family visas for their accompanying family members without prior approval by the Foreigners Office under certain conditions.
What does the change mean? The relaxation of the requirement helps speed the visa process for foreign employees planning to travel with family members, and is currently available in Baden-Württemberg, Berlin, Bremen, Hamburg and Lower Saxony. It may be expanded to all counties in the future.
Background: In 2013, Germany amended its residence regulations to remove the requirement that foreign professionals obtain pre-approval from the Foreigners Office before a German embassy or consulate approved entry visas. While this accelerated procedures for foreign employees, the process remained slow for employees planning to travel with their spouses or minor children, because family visas still needed to be approved by a Foreigners Office in Germany.
The rule applied by the five states remedies this situation.
BAL Analysis: The change simplifies procedures so that foreign employees need not be delayed if they wish to travel to Germany with their families. While the policy only applies to some states, there are plans to further amend German residence regulations to expand the rule country-wide. BAL is following this proposal and will update employers on further changes.
This alert has been provided by the BAL Global Practice group and our network provider located in Germany. For additional information, please contact your BAL attorney.
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.
IMPACT – HIGH
What is the change? The German government has clarified that foreign companies may use temporary pay raises when posting low-wage employees to Germany in order to comply with the country’s new €8.50-per-hour minimum-wage law.
What does the change mean? Companies considering posting low-wage employees to Germany now have a clear option for doing so while remaining in compliance with Germany’s wage requirements.
Background: Germany’s €8.50-per-hour minimum wage took effect Jan. 1. The law applies to anyone working in Germany, including foreign nationals.
The law has particular relevance to third-country nationals because their admittance depends on compliance with German labor laws. In the weeks following the implementation of the law, it remained unclear what forms of compensation would count toward satisfying the €8.50-per-hour requirement. In particular, it was not clear whether allowances paid to posted employees to supplement their base pay could be considered.
German authorities have now clarified that “additional allowance” (temporary pay raises) to bridge the gap between what an employee normally makes and Germany’s minimum wage can be counted toward the minimum-wage requirement. Payments such as Christmas bonuses and vacation pay can also be counted as long as these payments are included with the monthly salary on a pro-rata basis. Payments that cannot be counted include overtime pay; premiums for working Sundays, nights, or on public holidays; extra payments for outstanding results; or “dirt money” paid for working in dirty conditions.
Finally, it should be noted that Germany not only requires a wage of at least €8.50 per hour, but also requires that foreign nationals be paid on par with their German counterparts. The recent clarifications apply to the second requirement as well as the first.
BAL Analysis: Companies may now use temporary wage hikes to satisfy the minimum-wage requirement without violating Germany’s minimum-wage law. Employers should consider this option when determining whether to post employees to Germany for temporary work assignments.
What is the change? Students applying for internship work placement can now do so with a copy of their college or university enrollment certificate rather than the original.
What does the change mean? Students should keep their original certificates and submit copies.
Background: Foreign students applying for internships in Germany must show they are enrolled in a college or university by submitting a form called an enrollment certificate. Whereas applicants previously sent originals, they are now encouraged to keep their original certificates because they may be requested by German embassies or consulates in their home countries.
BAL Analysis: The change adds flexibility that makes the overall application process easier. Applicants for student internship work placement should send copies of enrolment certificates with their applications and retain originals in case they are requested by German embassies or consulates.
The U.S. and Germany have implemented mutual trusted-traveler programs, streamlining airport clearance for citizens of the two countries, U.S. Customs and Border Protection recently announced.
German citizens are eligible for the Global Entry program, which is available at 42 U.S. airports and 12 preclearance locations. U.S. citizens are eligible for Germany’s EasyPASS, an automated border control system for third-country nationals.
“Global Entry and the German EasyPASS program allow our officers to focus more on travelers we do not know while at the same time efficiently and securely facilitating low-risk travelers,” said R. Gil Kerlikowske, commissioner of U.S. Customs and Border Protection, in a prepared statement.
Global Entry participants are able to bypass normal customs declarations and proceed to Global Entry kiosks that are equipped to scan their passports, take fingerprints, and accept customs declarations electronically. Global Entry is available to U.S. citizens and permanent residents; nationals of Mexico; and citizens of Germany, The Netherlands, Panama, and South Korea. Canadian citizens can participate through membership in the NEXUS program.
In order to participate, German citizens are required to preregister with the German Federal Police at the Frankfurt Airport before submitting their applications via the Global Online Enrollment System. Applicants will not qualify if they provide false or incomplete applications, have been convicted of a crime or face criminal charges, have been found to violate any country’s customs or immigration laws, are the subject of an ongoing law enforcement investigation, are inadmissible to the U.S., or cannot establish “low-risk” status with Customs and Border Protection.
Global Entry is now available to all qualifying German citizens after a limited pilot program for a small number of Germans was launched in 2013.
U.S. citizens interested in participating in EasyPASS can do so by traveling to an enrollment center at the Frankfurt or Munich airports. In order to be eligible, U.S. citizens must have an electronic passport and be at least 18 years old.
For more information, visit the Customs and Border Protection’s websites on Global Entry or EasyPASS.
What is the change? Germany has announced annual adjustments to salary thresholds for EU Blue Card applicants representing a 1.7 percent increase over last year.
What does the change mean? Employers must meet the higher minimum salaries for EU Blue Card applicants beginning Jan. 1.
Background: The 2015 minimum gross annual compensation for EU Blue Card applicants will be €48,400, increased from €47,600 in 2014. In shortage occupations, the 2015 salary threshold will be €37,752, up from last year’s minimum of €37,128.
BAL Analysis: This is an annual indexing of salaries that employers should budget for. Employers who meet the thresholds do not need to obtain approval by the Federal Employment Agency. Applications in shortage occupations usually require approval, except when the foreign employee holds a German university degree.
What is the change? The Foreign Office in Munich is experiencing significant delays due to personnel issues.
What does the change mean? At the moment, applicants cannot get an appointment at the office until October 2014 at the earliest.
Background: The Munich city Foreign Office is one of the busiest immigration centers in Germany, so personnel disruptions there impact a large number of applicants for work permits and other immigration services. Similar problems in the past led to the creation of the Service Center for Foreign Professionals (SCIF) Department last year, staffed by 10 officers.
BAL Analysis: Employers should plan for delays and possible backlogs and make use of the alternatives, such as going to another jurisdiction or obtaining preapproval to increase the chances of getting service without an appointment in Munich.