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What is the change? The Czech Consulate in New Delhi has introduced a new lottery appointment system for submission of employee card applications outside of governmental migration programs.

What does the change mean? Nationals of Bangladesh, Bhutan, India, the Maldives, Nepal, and Sri Lanka submitting applications must register for the lottery, which will open every three months, to request a submission appointment. The next lottery will most likely take place in March.

• Implementation: Immediate and ongoing. The date for the next lottery has not yet been announced. Appointment booking will most likely open again in March.
• Who is affected: Nationals of Bangladesh, Bhutan, India, the Maldives, Nepal, and Sri Lanka submitting employee card applications at the Czech Consulate in New Delhi.
• What to consider: If possible, employers should submit applications for employees to one of the governmental programs listed below to expedite processing.

Additional information: The new lottery appointment booking system, which launched in December 2019, limits the number of appointments available to submit employee card applications between January and March to 33. Only 100 appointments will be offered throughout the year. The fee for lottery inclusion is 3,100 Indian rupees and is non-refundable.

Because of the reduced number of appointments available, employers should submit applications for employees to one of the following government programs:

• Key and Scientific Personnel program (500 slots available, shared with Highly Qualified Workers program)
• Highly Qualified Workers program
• Qualified Workers program (600 slots available)

Employees included in one of these programs will be offered an appointment to submit an application for an employee card, EU Blue card or ICT card, without needing to go through the lottery.

Analysis & Comments: The next round of appointments should be announced on the website of the Czech Embassy in New Delhi in March. No more than 100 slots will be available through lottery in 2020. Employers should consider submitting government program applications since they will be processed with priority and applicants will not have to use the lottery system to obtain a submission appointment. Please contact your immigration provider for more information.

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. © 2020. For information, contact Deloitte Touche Tohmatsu Limited.

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What is the change? The Czech Republic has introduced quotas on submission of long-term business visa and employee card applications at selected consulates abroad.

What does the change mean? The change will limit the number of long-term business visa and employee card applications that can be filed at selected consulates abroad.

• Implementation date: September 2019.
• Visas/ documents affected: Long-term business visas and employee cards.
• Who is affected: Non-EU nationals (except family members of EU nationals) submitting applications for long-term business visas or employee cards at selected embassies and consulates abroad.
• Impact on business: Companies filing applications outside of the quota must wait until the consulate opens new dates for booking appointments.

Background: In July, the Czech Republic adopted legislation that modified immigration processing and introduced quotas for the number of applications received at Czech Consulates. The change was officially introduced in September after an inter-ministerial consultation period, and introduces quotas for both employee card and long-term business visa applications at each Czech Consulate:

Consulates not listed above are not under the quota system.

Analysis & Comments: The quotas are set up for the calendar year and are equally distributed each month over the year. Applicants cannot apply for visas or residency permits at consulates if quotas expire, limiting the number of visas and residency permits available for foreign nationals. However, other visa options may be available once consular quotas expire.

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.

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What is the change? The Czech Republic has signed legislation that will modify immigration processing and come into effect in August.

• Effective date: July 31.
• Documents impacted: Visas, residency permits, work permits.
• Who is impacted: Foreign nationals working and living in the Czech Republic, and their employers.

Key points:

• New residence permit. University students and researchers seeking employment after graduation or after completing research activities will now be eligible for a new type of residence permit. Graduates and scientific workers will have an option to apply for long-term residence permits for the purpose of seeking employment. The new type of residency permit may be valid for up to nine months with no extension option.
• EU/EEA and Swiss nationals. Temporary residency validity will change from an unlimited period to 10 years. This will affect all EU/EEA and Swiss nationals who are holders of temporary residence permits. Temporary residence permits issued before Jan. 1, 2010 will expire by Dec. 31, 2019. Therefore, it is recommended that those nationals apply for a permanent residence permit prior to December 31, 2019. In addition, permits issued after Jan. 1, 2010 will expire within 10 years from the time of their issuance. All EU/EEA and Swiss nationals who have been in the Czech Republic for more than five years are encouraged to apply for a permanent residence permit.
• Adaptation-integration course. Foreign nationals, if not subject to an exemption from this obligation, must complete the course during their first year of entering the Czech Republic, to take effect January 2021. The course is expected to last one day (eight hours).
• Quotas.  The amendment also introduces quotas for the number of applications received at embassies of the Czech Republic abroad. This regulation is expected to come into effect in September 2019 (an inter-ministerial consultation is currently ongoing). Thus, the government regulation will set the maximum number of applications for long-term visas for the purpose of business and employee cards, that can be filed at individual embassies.
• Labor market testing. The legislation reduces the labor market testing period from the current 30 days to as little as 10 days.
• Change of address. The residence card will no longer include the foreign national’s address; instead, the address will be marked in the passport. Therefore, residence card holders will no longer need to provide biometric data or obtain a new residence card after changing their address.
• Change of employer. Employee card holders will be able to change their employer after six months of residing in the Czech Republic (in specific cases, employees will be able to change their employer earlier than six months) with approval from the Ministry of Interior. Employees must announce the expected change at least 30 days prior to the end of their current employment and wait for the ministry’s approval.
• New government programs. The legislation introduces several new government immigration programs that are set to take effect in September.
  • Key and scientific personnel program. This program will replace the Fast Track and Welcome Package for investors. Previously, this program was only available for intracompany transfers and relocations. Per the amendments, it will be possible for new employees to use this program as well.
  • Highly qualified employees program. The Highly Qualified Employees program will be expanded to cover all nationalities. Previously, it only included Ukraine and India.
  • Qualified workers program. The qualified workers program will be extended to nationals of Belarus, Montenegro, India, Kazakhstan and Moldova. Previously, the program was limited to nationals of Mongolia, the Philippines, Serbia and Ukraine.

It is expected that more information regarding the government programs will be released closer to September.

Analysis & Comments: Employers and foreign nationals should familiarize themselves with the changes outlined above. Students graduating from Czech universities and research workers will benefit from the new residence permit type after the legislation comes into effect. Additionally, temporary residence permit cards for EU nationals will now expire 10 years after issuance, and EU nationals should either extend the permit or apply for permanent residence permits prior to the current permit’s expiration. The governmental projects, to take effect in September, will further clarify the conditions and criteria for obtaining work and residency authorization for specific job classifications and nationalities.

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.

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What is the update? The Czech government has adopted an act that will administer the status of U.K. nationals in the case of a no-deal Brexit.

• Effective date: Brexit day.
• Documents impacted: Visa and residence permit applications.
• Who is impacted: U.K. nationals.
• Impact on business: The announcement is positive news for companies, as it allows them to retain U.K. nationals currently living and working in the Czech Republic in the case of a no-deal Brexit.

Key points of the agreement:

• Phase-in period. The act sets a phase-in period until Dec. 31, 2020, during which U.K. nationals will retain the rights currently afforded to them as EU citizens, given that the U.K. reciprocates and offers the same for Czech citizens residing within the U.K. Current rights will be retained only for those U.K. nationals who either are temporary or permanent residence holders or for those who have applied for temporary or permanent residence prior to the Brexit day.
• Access to labor market. U.K. nationals currently residing in the Czech Republic will retain access to the labor market. U.K. nationals entering the Czech Republic during the phase-in period will be treated as third-country nationals and will need to obtain relevant work and residence permits. Temporary or permanent residence holders and applicants will keep their free access to the Czech labor market.
• Dependents. Under the act, dependents will also retain their status in the case of a no-deal Brexit, provided that they obtained the residence permit prior to the Brexit date. If they do not obtain dependent status prior to Brexit, they will need to apply for the relevant permit as for non-EU nationals during the phase-in-period period.
• After the phase-in-period. During the phase-in period, U.K. nationals will need to apply for a long-term residency permit (i.e., an employee card) to ensure they are able to stay in the country after the phase-in period. Other U.K. nationals will also be allowed to stay, but will have to apply for a correspondent residence permit (for study, business, family ties, etc.). Unlike other third-country nationals, U.K. nationals should be able to apply for residence from the Czech Republic.
• U.K. nationals on assignment. U.K. nationals on assignments, and not on a local (Czech) employment contract, may be restricted from work after the Brexit date and will need to apply for a separate work permit.

Analysis and Comments: The U.K. is set to leave the European Union and the U.K. Parliament has yet to pass a withdrawal agreement. Although the U.K. has postponed its exit from the EU, it is still possible that the U.K. will leave the EU without a deal. The Czech act provides some certainty to U.K. nationals, as they will retain their rights to reside and work in the Czech Republic until Dec. 31, 2020.

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.

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What is the change? A bill that is moving through the legislative process would amend the Act on the Residence of Foreign Nationals with several significant proposed changes for the employment of foreign nationals.

Key proposals:

• The bill would adopt the EU Students and Researchers Directive, which eases and unifies rules for the entry and mobility of non-EEA researchers and students.
• Annual quotas, divided equally per month, would be set for long-term residence visas of more than 90 days for business purposes and for employment cards. If the quota is reached at a given embassy for the month, applications would no longer be accepted. The quotas would not apply to intra-corporate transfer categories or EU Blue Card applications.
• Applicants for employee cards would be required to prove that they are working for the specified employer before they could collect their biometric employee card in the Czech Republic.
• Employee card holders would be required to report changes of employer, worksite or employment in another job position to the Ministry of the Interior (Department for Asylum and Migration Policy) within 30 days prior to the change and no sooner than six months after the decision to issue an employment card. This change would mean that  it would no longer be necessary to apply for the ministry to consent such changes.
• The employee card would no longer contain the employee’s current address. Foreign nationals would still be required to report address changes, but would not need to undergo biometric data procedures.
• Foreign companies assigning employees to work in the Czech Republic would be required to keep copies of documents, which must be translated into Czech, proving the employment relationship. Currently, this duty is the obligation of the receiving Czech company.
• Labor market testing for employee cards would be reduced to 10 days of advertising.
• Integration courses for foreign residents would be mandatory beginning in 2021 and would require a government fee.

Analysis & Comments: Employers and foreign visa and residence applicants should prepare for these potential changes. The bill was debated in the Lower Chamber in December and the various government agencies are currently developing opinions on the provisions related to foreign residents. The bill could change before it is adopted, but is expected to pass later this 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.

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What is the change? The Czech government has stopped issuing long-term residence permits and D visas to Vietnamese nationals.

What does the change mean? Vietnamese nationals will not be able to obtain long-term work visas or D visas until further notice.

• Implementation time frame: Immediate and ongoing.
• Visas/permits affected: Long-term residence permits and D visas. Applications from Vietnamese nationals for short-term visas, long-term D visas for family reunification and visas for study and scientific research are still being accepted.
• Who is affected: Vietnamese nationals seeking employment, long-term residency or a long-term stay in the Czech Republic.
• Business impact: The change may require Czech companies to adjust timelines and start dates if they intended to recruit or hire Vietnamese workers.

Background: The restrictions were put in place in July and remain in effect on an indefinite basis. Authorities have not provided information about why the restrictions were put in place or when they will be lifted.

BAL Analysis: BAL will continue to follow developments in the Czech Republic and will update clients on any significant changes.

This alert has been provided by the BAL Global Practice group and our network provider located in the Czech Republic. 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.

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What is the change? The Czech government has approved a measure that would require foreign residents to complete integration courses.

What does the change mean? If enacted as law by Parliament, foreigners seeking long-term residence permits for employment will be required to take coursework within one year of their arrival to help them integrate into Czech society.

• Implementation time frame: To be announced.
• Visas/permits affected: Long-term residence permits.
• Who is affected: Foreign employees seeking long-term residency in the Czech Republic.
• Business impact: The requirement would add another step in the process of applying for residency for expatriate workers.
• Next steps: The measure must be approved by Parliament before it is implemented. Additional details are expected in coming weeks.

Background: The measure seeks to amend the Law of Foreigners by adding integration requirements that are intended to encourage foreign workers to settle into Czech society more easily. The number of expatriate employees settling in the country has increased dramatically in the past four years.

BAL Analysis: Foreign workers intending to apply for long-term residency should prepare for the possibility of additional requirements regarding their knowledge of Czech culture and civil society.

This alert has been provided by the BAL Global Practice group and our network provider located in the Czech Republic. 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.

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What is the change? The Czech Republic’s monthly minimum wage has increased from 11,000 Czech korunas to 12,200 (about US$570).

What does the change mean? The minimum wage applies to all workers in the Czech Republic, including foreign workers. Employers should set their budgets accordingly.

• Implementation time frame: Jan. 1.
• Visas/permits affected: Work permits.
• Who is affected: Czech companies, including those employing foreign nationals.
• Business impact: Businesses may see a slight increase in labor costs because of the new minimum wage.

BAL Analysis: The 2018 monthly minimum wage of 12,200 Czech korunas represents an 11-percent increase over last year’s level. Employers should take the new wage minimums into account when planning their 2018 budgets.

This alert has been provided by the BAL Global Practice group and our network provider located in the Czech Republic. 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.

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What is the change? The Czech Republic is set to launch a comprehensive new immigration law.

What does the change mean? The law will take effect Aug 15 and will introduce new permit categories for intra-corporate transferees, foreign investors and seasonal workers. It will also clarify processes for some employee-card, permanent-residence and long-term visa applicants.

• Implementation time frame: The new legislation was published Monday and will come into force Aug. 15.
• Visas/permits affected: ICT permits, employee cards, investment-based visas, permanent-residence cards, temporary-residence and long-term visas, including a new long-term visa category for seasonal workers.
• Who is affected: Employers and foreign nationals applying for any of the permits or visas listed above.
• Impact on processing times: Authorities are currently experiencing processing delays. It is not expected that the new law will improve processing times, at least in the short-term.

Background: One of the purposes of the new law is to implement the EU’s Intra Corporate Transfer (ICT) Directive 2014/66/EU. However, it touches on a number of other areas as well. Among key changes, the Czech Republic will:

• Implement the EU’s ICT directive. ICT Cards will be made available to non-EU national managers, specialists and trainees who have been employed by an employer outside the Czech Republic for at least six months. Assignments cannot exceed three years for managers and specialists or one year for trainees. While officials are introducing ICT Cards in order to move into compliance with the EU directive, the Czech Republic’s existing ICT framework is, in many ways, more favorable to companies and ICTs. Processing times are faster under the existing program, there is no requirement that the ICT be employed by the employer for at least six months and assignments are not limited to three years. The impact of the implementation of this directive, therefore, is likely to be limited.
• Change the application process for foreign nationals who are board members or executive directors of a Czech company. In some cases, foreign nationals in these positions have applied for employee cards rather than long-term visas or residence permits in the business category. This is because the employee card process usually involves less scrutiny. Officials are aiming to close this loophole by requiring board members and executive directors to apply for long-term visas or residence permits when appropriate. Current employee card holders will not be affected, though extensions will not be allowed.
• Introduce investor visas. In order to be eligible for an investment card, executives must invest at least 75 million koruny (about US $3.4 million) and create at least 20 jobs. Multiple visas may be issued for the same investment project. However, while this option may contain some benefits, the complexity of the application makes an employee card a better option for qualifying managers.
• Make clarifications on the permanent residence process for non-EU nationals. The new law will specify that non-EU nationals who have been in the Czech Republic at the time they apply for permanent residence should be eligible for permanent residence. This means that applicants who lose their residence status while an application is pending will still be eligible, provided they had been in the country for five years as of the date of their application.
• Allow some first-time visa and residence card applications to be made in country. Currently, the Czech Republic requires first-time visa or residence card applicants to submit applications abroad at a Czech embassy or consulate. The law will change this in certain cases, however, and will allow some employers participating in special programs to submit applications in the Czech Republic on behalf of foreign employees.
• Allow for the outsourcing of long-term visa and residence permit applications. While this is already happening for short-term Schengen Visas, the law will make this option available for long-term visa and residence permit applications as well. This change is expected to improve processing times in countries where embassies and consulates see a high number of applications.
• Create a long-term visa permit for seasonal workers. This will allow workers to come to the Czech Republic for up to six months, but seasonal workers who want to change jobs will have to apply for an employment card or residence permit.

BAL Analysis: The benefits of the new ICT and investor categories may be limited because existing options might be preferential. Employers should take note of the changes and make sure that foreign nationals coming to the Czech Republic are applying for the right kind of permit and following proper procedures. Those with case-specific questions should contact BAL.

This alert has been provided by the BAL Global Practice group and our network provider located in the Czech Republic. 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.

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What is the change? The Czech Republic is moving toward adoption of an immigration law that will affect intra-corporate transfers (ICTs), employee card applicants, foreign investors, non-EU nationals applying for permanent residence and seasonal workers, among others.

What does the change mean? The law will introduce new permit categories for ICTs, foreign investors and seasonal workers, as well as clarify processes for some employee card, permanent residence and long-term visa applicants. The benefits of the new ICT and investor categories may be limited because existing options might be preferential. Employers should take note of the changes and make sure that foreign nationals coming to the Czech Republic are applying for the right kind of permit and following proper procedures.

• Implementation time frame: The Ministry of the Interior expects the law to take effect in June.
• Visas/permits affected: ICT permits, employee cards, investment-based residence cards, permanent residence, temporary residence and long-term visas, including a new long-term visa category for seasonal workers.
• Who is affected: Employers and foreign nationals applying for any of the permits or visas listed above.
• Impact on processing times: In some cases the changes will improve processing times, especially for employers participating in programs such as Fast-Track, Welcome Package or Project Ukraine and for long-term visa and residence permit applicants applying for visa or permits in countries with a high volume of applicants.
• Next steps: The law has passed a first reading in parliament and is in the process of being finalized.

Background: One of the key purposes for the legislation was to implement the EU’s Intra Corporate Transfer (ICT) Directive 2014/66/EU. However, it touches on a number of other areas as well. Among key changes:

• The Czech Republic will implement the EU’s ICT directive. ICT Cards will be made available to non-EU national managers, specialists and trainees who have been employed by an employer outside the Czech Republic for at least six months. Assignments cannot exceed three years for managers and specialists or one year for trainees. While officials are introducing ICT Cards in order to move into compliance with the EU directive, the Czech Republic’s existing ICT framework is, in many ways, more favorable to companies and ICTs. Processing times are faster under the existing program, there is no requirement that the ICT be employed by the employer for at least six months and assignments are not limited to three years. The impact of the implementation of this directive, therefore, is likely to be minimal.
• Change the application process for foreign nationals who are board members or executive directors of a Czech company. In some cases, foreign nationals in these positions have applied for employee cards rather than long-term visas or residence permits in the business category. This is because the employee card process usually involves less scrutiny. Officials are aiming to close this loophole by requiring board members and executive directors to apply for long-term visas or residence permits when appropriate. Current employee card holders will not be affected.
• “Investment cards” for qualifying company executives will be implemented. In order to be eligible for an investment card, executives must create new jobs for Czech nationals and significantly invest in the Czech economy. Details have not been finalized, but officials have discussed a threshold requirement of creating at least 20 new jobs and investing at least 10 million koruna (about US$390,000). While this option may contain some benefits, the complexity of the application (which could include significant supporting documentation requirements) may make an employee card a better option for qualifying managers.
• Officials will make clarifications on the permanent residence process for non-EU nationals. The legislation is expected to specify that non-EU nationals who have been in the Czech Republic at the time they apply for permanent residence should be eligible for permanent residence. This means that applicants who lose their residence status while an application is pending will still be eligible, provided they had been in the country for five years as of the date of their application.
• Some first-time visa and residence card applications will be able to be made in country. Currently, the Czech Republic requires first-time visa or residence card applicants to submit applications abroad at a Czech embassy or consulate. The law will change this, however, such that employers participating in programs such as Fast-Track, Welcome Package or Project Ukraine will be able to submit applications in the Czech Republic on behalf of foreign employees.
• The law will allow for the outsourcing of long-term visa and residence permit applications. While this is already happening for short-term Schengen Visas, the law will be amended make this option available for long-term visa and residence permit applications as well. This change is expected to improve processing times in countries where embassies and consulates see a high number of applications.
• Create a long-term visa permit for seasonal workers. This will allow workers to come to the Czech Republic for up to six months, but seasonal workers who want to change jobs will have to apply for an employment card or residence permit.

BAL Analysis: BAL will continue to follow the implementation of the law described above and will alert clients to any significant development, including any announcement on implementation dates.

This alert has been provided by the BAL Global Practice group and our network provider located in the Czech Republic. 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.