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Germany: New Immigration Bill Seeks to Attract Non-EU Skilled Workers

July 7, 2023

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  • GermanyGermany

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At a Glance

In an effort to compensate for the skilled labor shortage, the German Parliament has passed a new immigration bill that creates and expands immigration pathways for skilled workers from non-EU countries. Key changes include:

  • The creation of a points-based ‘Opportunity Card’, which offers a one-year (renewable) residence permit for the purpose of seeking employment in Germany to eligible applicants;
  • The relaxation of pathways for applicants with vocational experience, with reduced requirements regarding German language skills and recognition of educational qualifications;
  • The ability for foreign nationals to undertake any role for which they are qualified; as opposed to being restricted to roles specifically linked to their formal education experience;
  • The ability for information technology professionals with sufficient vocational experience to apply for an EU Blue Card, even if they lack formal education; and
  • The reduction of the period of required residence in Germany to qualify for permanent residence.

The bill’s regulations – which were originally expected to enter into force by March 2024 – are now coming into effect across November 2023, March 2024, and June 2024.

The situation

As expected, the German Parliament has passed a new immigration bill that will increase the pathways for skilled workers from non-EU countries to obtain work visas (including through lowering barriers to access for EU Blue Cards), and provide opportunities to reside in Germany for the purpose of seeking employment.

A closer look

Change Details Impact

Points-based Opportunity Card
Foreign nationals with vocational experience or university education who achieve at least six points according to a mixed criteria point system will be able to apply for a one-year (renewable) residence permit for the purpose of seeking employment in Germany.

  • The criteria are education qualifications, work experience, language skills, connection to Germany and age.
  • Opportunity Card holders will be able to work up to 20 hours a week while seeking full-time employment.
  • This points-based mechanism will be a new addition to Germany’s immigration framework.
  • This change is expected to come into effect in June 2024.
  • This would make it easier for skilled workers to travel to and reside in Germany while seeking employment.
  • This is indicative of a step away from employment-based visas globally as a way to improve skills shortages during this tight labor market.
 

Pathways for applicants with vocational experience (regardless of German-recognized education). Foreign nationals with at least two years of work experience, and with higher education degrees recognized in their home country, will be able to work in skilled positions even if their education degrees are not recognized in Germany.

This will not apply to regulated professions such as doctors, engineers, etc.

Applicants under this pathway will need to earn at least 45% of the annual income threshold (with an exception for employers under collective bargaining agreements that employ employees under such an agreement), which is currently EUR 40,770.

  • Applicants under this pathway will no longer need to prove German language skills whereas currently, language requirements were stricter. For instance, the information technology specialist work permit currently requires at least B1 skills in German under the Common European Framework of Reference for Languages.
  • As a rule, currently, applicants must obtain formal German recognition of their education degrees prior to commencing employment in Germany (for most work permit types).
  • The various components of this change will come into effect on November 18, 2023 and March 1, 2024.

 

  • This will make it easier for skilled workers to work in Germany and is expected to expand the pool of available skilled workers.
  • Many industries experiencing shortages are likely to benefit the most from these amendments, including information technology, nursing and teaching, among others.

No formal education link with role. Foreign skilled workers (except EU Blue Card applicants) will be able to perform any role for which they are qualified. The employer will have discretion to determine if an applicant is capable of performing the role.

  • Foreign nationals are currently restricted to roles specifically linked with their formal education experience.
  • This change is expected to come into effect on November 18, 2023.

 

  • This is expected to expand the pool of available skilled workers and is indicative of the skills-based (as opposed to education-based) immigration programs under development globally to tackle skills shortages.
  • This will also provide employers with greater flexibility regarding their allocation of human resources. For instance, instead of having to hire new staff with the relevant formal education experience, an employer could now shift an existing (suitably capable) foreign national to the new role.

EU Blue Card pathways for information technology professionals lacking formal education.
Foreign nationals who lack formal education but who have professional experience in the information technology sector will qualify for an EU Blue Card.

  • Information technology professionals will need to have at least three years of experience to qualify for the EU Blue Card.
  • Currently, these professionals must prove academic qualifications to obtain an EU Blue Card.
  • This change is expected to come into effect on November 18, 2023.

This will make it easier for foreign information technology professionals, who are lacking formal education but are otherwise in demand in the labor market, to work in Germany.

Shorter duration to acquire permanent residence.
Skilled workers will be able to acquire permanent residence after three years; while EU Blue Card holders will be able to acquire permanent residence after 27 months.

  • Currently, to be granted permanent residence, skilled workers must wait four years; while EU Blue Card holders must wait 33 months.
  • This change is expected to come into effect on March 1, 2024.
This will increase the likelihood of long-term retention of skilled workers in Germany.
Improved travel and work mobility for EU Blue Card holders within the European Union.
  • Holders of an EU Blue Card issued by another EU Member State will be able to enter Germany (or any other EU Member State) without a visa and can work there for 90 days within a rolling 180-day period, provided that this work/business activity has a direct link to the employee’s obligations according to the employment contract upon which the EU Blue Card was issued. Currently, this is not an option.
  • After residing for at least 12 months in an EU Member State under an EU Blue Card, the holder of the EU Blue Card will be able to apply for another EU Blue Card in Germany (or any other EU Member State) under much less restricted conditions (the bill does not specify the new conditions) than a regular EU Blue Card application. Currently, this is not an option.
  • This change is expected to come into effect on November 18, 2023.

By removing the obligation to arrange for a separate German work authorization, this development provides EU-based employers with greater flexibility regarding the deployment of staff to Germany.

Furthermore, by reducing the number of work authorizations being assessed at any one time, this development may ease the current workload faced by German immigration authorities, and therefore may reduce processing times. 

Background

  • Purpose of changes. Through attracting foreign talent via reducing immigration barriers for skilled workers (including through innovations such as the Opportunity Card), Germany is seeking to address a skilled labor shortage that is slowing economic growth. This is similar to many other countries globally, as the labor market is tight in many parts of the world due to demographic and other issues.
  • Four pillars of change. The highly-anticipated bill is based on four main pillars or concepts: the skilled labor pillar for foreign talents with a job offer and a recognized degree; the experience pillar for individuals with a job offer and professional experience, but without a degree recognized in Germany; the opportunities pillar, which is open for foreign talents without a job offer based on a points-based system; and the “best friends” category, which grants privileged access to Germany for nationals of certain countries. Though the original government proposal of the bill had intended to improve the digitization of immigration processes (including the expansion of the Consular Services Portal), such measures ultimately were not included in the bill as passed. Read more in this related Fragomen blog and policy paper.

Looking ahead

We will track the progress of the bill and report on related developments.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].

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