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IMPACT – MEDIUM
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.
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.
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.
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.
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.