On 24 January 2024, the Danish Ministry of Immigration and Integration proposed an amendment to the Danish Immigration Act aimed at providing employers greater flexibility in hiring non-EU nationals. This legislative initiative reflects a significant shift in Denmark's approach to international employment, addressing longstanding challenges faced by Danish companies in engaging non-EU talent.
Danish Employment Landscape
Since 2017, Danish employers have navigated stringent requirements to pay non-EU employees through Danish bank accounts, complicating short-term and secondment employment arrangements. Initially, this banking requirement was limited to pay limit schemes and minimum salary levels but was expanded in 2021 to encompass full salaries and include positive list permits for stays exceeding 180 days. This expansion introduced significant administrative burdens for employers, particularly affecting those not fully relocating to Denmark or unwilling to undergo local registration processes. As a result, many companies reconsidered their plans for sending employees to Denmark, opting instead for local or EU workforce solutions or abandoning short-term projects entirely.
Impacts of the New Bill Proposal
The proposed bill seeks to alleviate these hurdles by exempting certified employers from the Danish bank account requirement for salaries under fast-track pay limit, researcher, education, and short-term permit schemes. Additionally, it extends the timeframe for non-certified employers to meet the full salary payment requirement in a Danish bank account to 180 days from the current 90 days. This adjustment is poised to benefit numerous employers by accommodating longer assignment requests without the need for full salary transfers to Danish accounts.
Certification under this scheme not only exempts employers from the bank account requirement but also facilitates faster processing of permit applications—reducing wait times from the average 30 days to just 5-10 days. Since its implementation in April 2015, the fast-track scheme has significantly eased the process for certified companies to employ highly qualified non-EU workers. In April 2023, the criteria for certification were simplified, lowering the threshold to just 10 permanent employees among other requirements, to encourage more Danish employers to apply. With certification valid for four years and extendable, the anticipated increase in applications for certification may lead to longer processing times, currently estimated at one month.
Next Steps
The bill proposal is under review until 6 February 2024, with a prospective implementation date of 1 July 2024 if passed. This amendment signifies a positive development in Danish immigration policy, potentially making Denmark a more attractive destination for international talent and helping fill critical labor gaps in the economy.
Pros:
Danish Employment Landscape
Since 2017, Danish employers have navigated stringent requirements to pay non-EU employees through Danish bank accounts, complicating short-term and secondment employment arrangements. Initially, this banking requirement was limited to pay limit schemes and minimum salary levels but was expanded in 2021 to encompass full salaries and include positive list permits for stays exceeding 180 days. This expansion introduced significant administrative burdens for employers, particularly affecting those not fully relocating to Denmark or unwilling to undergo local registration processes. As a result, many companies reconsidered their plans for sending employees to Denmark, opting instead for local or EU workforce solutions or abandoning short-term projects entirely.
Impacts of the New Bill Proposal
The proposed bill seeks to alleviate these hurdles by exempting certified employers from the Danish bank account requirement for salaries under fast-track pay limit, researcher, education, and short-term permit schemes. Additionally, it extends the timeframe for non-certified employers to meet the full salary payment requirement in a Danish bank account to 180 days from the current 90 days. This adjustment is poised to benefit numerous employers by accommodating longer assignment requests without the need for full salary transfers to Danish accounts.
Certification under this scheme not only exempts employers from the bank account requirement but also facilitates faster processing of permit applications—reducing wait times from the average 30 days to just 5-10 days. Since its implementation in April 2015, the fast-track scheme has significantly eased the process for certified companies to employ highly qualified non-EU workers. In April 2023, the criteria for certification were simplified, lowering the threshold to just 10 permanent employees among other requirements, to encourage more Danish employers to apply. With certification valid for four years and extendable, the anticipated increase in applications for certification may lead to longer processing times, currently estimated at one month.
Next Steps
The bill proposal is under review until 6 February 2024, with a prospective implementation date of 1 July 2024 if passed. This amendment signifies a positive development in Danish immigration policy, potentially making Denmark a more attractive destination for international talent and helping fill critical labor gaps in the economy.
Pros:
- Enhanced Flexibility for Employers: By relaxing banking requirements, the amendment facilitates the employment of non-EU talent, especially for short-term and project-based work.
- Strengthened Labor Market: The amendment aims to close labor gaps by making it easier to employ non-EU workers, thereby supporting sectors in need of specialized skills.
- Incentive for Employer Certification: Simplified requirements and the promise of expedited permit processing are likely to encourage more employers to seek certification, streamlining the immigration process for many.
- Positive Signal to International Talent: Easing employment restrictions sends a welcoming message to highly qualified non-EU professionals, potentially boosting Denmark's competitiveness in the global talent market.
- Administrative Burden for Certification: The increased interest in certification could stretch the resources of immigration authorities, leading to longer processing times for both certification and permit applications.
- Potential Oversight Challenges: With more companies exempt from the banking requirement, ensuring compliance with other aspects of employment law could become more complex.
- Risk of Market Saturation: An influx of certified employers might intensify competition for non-EU talent, raising concerns about labor market saturation and integration challenges for newcomers.
- Implementation and Transition Concerns: Employers and employees alike may face initial uncertainties and adjustment challenges as the new rules take effect, requiring clear guidance and support from authorities.
. But seriously, this is a smart move. It’s like Denmark is rolling out the red carpet for non-EU talent. Just hoping the implementation is as smooth as the proposal sounds. And curious to see how this will affect the local job scene and the expat community vibe.