IMPACT – MEDIUM 

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.

  • Implementation time frame:June 10.
  • Visas/permits affected:Work and residence permits under the Pay Limit scheme and Green Card scheme.
  • Who is affected:Companies using the schemes to employ non-EU workers in Denmark.
  • Business impact:The higher Pay Limit scheme minimum salaries will raise the costs of hiring workers under this route. The elimination of the Green Card scheme means that foreign nationals must be sponsored by an employer rather than qualifying for work and residence permits based solely on their qualifications.
  • Next steps:Employers should budget for the salary increases and adjust salaries accordingly.

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.

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 © 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 – MEDIUM

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.

  • Implementation time frame: The proposal has not been approved and is facing some government opposition. If it passes, it could take effect this summer or later.
  • Visas/permits affected: Pay Limit Scheme and Green Card Scheme.
  • Who is affected: Companies using the schemes to employ non-EU workers in Denmark.
  • Business impact: The increase in Pay Limit Scheme salaries would raise the costs of hiring workers under this route. The elimination of the Green Card Scheme would require foreign nationals to be sponsored by an employer rather than allowing them to obtain a work and residence permit solely based on their qualifications.
  • Next steps: BAL is following the proposed changes and will report on their progress.

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.

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 © 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 – MEDIUM

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.

  • Implementation timeframe: The reforms took effect Jan. 1.
  • Visas/permits affected: Establishment card, Greencard, Start-Up visas, Researchers permits.
  • Who is affected: Foreign graduate students, researchers, entrepreneurs and Greencard applicants.
  • Impact on processing times: These reforms primarily affect criteria, not processing times; however, foreign graduate students who qualify for the Establishment card are exempt from work permits for two years after graduating from a Danish institution.
  • Business impact: Companies hiring international graduate students and researchers and foreign workers with higher education levels will benefit from the changes.

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.

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 © 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? 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.

  • Implementation timeframe: The procedures took effect Jan. 1, and employers may now apply for pre-certification. Fast-track work permit applications will be accepted starting April 1.
  • Visas/permits affected: Work permits.
  • Who is affected: Employers with at least 20 full-time employees who rely on high-skilled foreign workers.
  • Impact on processing times: Processing will take 30 days, but foreign employees can start working as soon as a work permit application is filed.
  • Business impact: The scheme gives employers many benefits of streamlined procedures, but also subjects them to spot-checks for compliance.
  • Next steps: Employers who wish to take advantage of the fast-track procedures should contact a BAL representative to determine if they meet the certification criteria.

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:

  1. Foreign employees with a minimum annual salary of 375,000 Danish Krones under the Pay Limit Scheme.
  2. Foreign researchers (not including guest researchers or Ph.D. students).
  3. High-level educational employment (not including trainees).
  4. Short-term employment up to three months (salary and labor terms must meet Danish standards).

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.

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 © 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 – MEDIUM

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.

  • Implementation timeframe: The procedures are expected to be implementedin April 2015.
  • Visas/permits affected: Work permits for highly skilled workers.
  • Who is affected: Pre-approved companies employing highly skilled non-EU nationals.
  • Impact on processing times: Under the current bill, 30-day processing will continue; however, foreign employees will be able to start working as soon as their applications are filed.
  • Business impact: Streamlined processing will reduce delays and associated costs, facilitating the posting of foreign workers.
  • Next steps: Following the vote in Parliament, full details will be released in January.BAL is closely following developments and will update clients as soon as the fine points are clearer.

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.

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 © 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.