EU States Expected to Harmonize Immigration Rules for Intracompany Transferees by 2016

European lawmakers are expected to adopt a directive that will harmonize immigration rules for intracompany transferees in most EU member states and facilitate the transfer of managers, specialists and graduate trainees both into and within the region. Once the directive is signed into law and enters into force – expected to occur in the coming weeks – EU member states will likely have until the end of 2016 to implement the directive into their domestic laws. Denmark, Ireland and the United Kingdom are not required to implement the directive.

Benefits of the New Permit 

Under the directive, EU states will create a new permit specifically annotated with “intra-corporate transferee” (ICT) status. 

ICT permits will be valid for a maximum stay of three years for managers and specialists and one year for graduate trainees. In addition to permitting work in the EU state that initially grants the permit, transferees will be permitted to work for entities of the same multinational company in other EU states for up to 90 days within a six month period. For these intra-EU work stays, member states may require, at a maximum, someone holding an ICT permit to submit a government notification prior to entry for employment in their territory. The ICT permit will be the first European work permit to allow work in multiple member states for up to 90 days within a six month period. For intra-EU work stays exceeding 90 days, member states may require a separate ICT permit application. 

ICT permit holders will be permitted to work at third-party client sites of the multinational host company. 

Accompanying family members of ICT permit holders will benefit from eased access to local labor markets and should equally benefit from the directive’s intra-EU mobility provisions. 

Requirements 

The directive will cover the temporary transfer of non-EU national managers, specialists and graduate trainees from an entity located outside the EU to an EU entity belonging to the same multinational group. The directive does not specify criteria for qualifying corporate relationships, but it contemplates a diverse range of possible business relationships. 

EU states will be permitted to set their own requirements for prior qualifying employment, provided that the requirement is within three to twelve months for managers and specialists and three to six months for graduate specialists. There will not be specific educational requirements for managers or specialists; graduate trainees will be required to hold a university degree. Applications for the permits will be exempt from labor market testing requirements. Transferees must earn a salary that is at least equal to that of local workers in comparable positions. 

The directive even foresees the possibility for member states to create expedited procedures. 

What This Means for Employers 

The directive should do much to facilitate the movement of key workers for multinational companies. The impact will likely vary across EU member states, because member states will have considerable latitude to determine how to incorporate the permits into their domestic immigration systems. The adoption of the directive may lead to minor procedural changes in some countries, while in others it could lead to a substantial overhaul of a country’s immigration system. 

How Fragomen Can Assist 

Fragomen was actively engaged in pre-vote talks related to the directive and will further inform clients of any impact on national regulations, procedures and policies. Fragomen will work with governments in member states to communicate client concerns about potential domestic reforms. 

This alert is for informational purposes only. If you have any questions, please do not hesitate to contact the global immigration professional with whom you work at Fragomen or send an email to [email protected]. 

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