Navigating Long-Term Residence in Europe: Talent Retention Strategies for Employers

In recent years, it has become increasingly evident that businesses face significant difficulties in retaining their staff. Employers often find themselves grappling with the evolving needs and expectations of their employees.

To foster a more supportive environment, many companies have implemented various employee policies. These efforts primarily revolve around providing greater flexibility, transitioning to hybrid (home/office) work models, allowing remote work, or even adopting ‘work from anywhere’ policies.

However, it is essential to acknowledge the complexities and compliance risks associated with these approaches given the current lack of regulation in hybrid and remote work settings.

Employee retention and community belonging

Discussions with global mobility specialists and migrant populations in Europe evidence that a sense of belonging to a community and the potential for successful integration into host societies play crucial roles in retaining foreign employees.

Companies have implemented various strategies to support this, such as facilitating employee-driven initiatives like language classes, social integration programs and activity-focused groups. These efforts significantly enhance the overall employee experience and facilitate their assimilation into the host society.

However, a critical aspect of integration for each migrant worker involves ensuring they have access to the same rights as the local population. This necessitates obtaining the relevant residence permit. Recognising this, several companies have chosen to sponsor long-term residence permits for their staff. Some organisations even make this sponsorship contingent upon the employee remaining with the company for a specified number of years after obtaining the permit. This arrangement creates a triple-win situation for employees, employers and the host society.

Policy exploration

Businesses that currently do not offer such support to their employees can first explore with leadership the possibility of implementing such policies. Conducting a thorough cost/benefit analysis is essential in this process. A recommended initial action is to collaborate with the immigration provider to assess the employee population and determine the number of staff members who may already qualify for long-term residence permits based on the length of their residence.

Migrant workers typically become eligible for long-term residence in an EU country after residing there for five years. However, there are various exceptions to this rule. For example, certain permits, like the EU Blue Cards, may allow individuals to aggregate years of residence across multiple EU countries to meet the eligibility criteria for long-term residence, subject to specific conditions.

Moreover, some countries, such as Germany, have recently implemented accelerated pathways to long-term residence for EU Blue Card holders, requiring a shorter period of residence to qualify: 27 months with proof of A1 level German proficiency or 21 months with proof of B1 level German proficiency.

On the opposite end of the spectrum, certain residence permits do not count or count only partially toward long-term residence eligibility. For example, Belgium, Poland, Germany and the Netherlands count only half of the years spent based on student permits towards long-term residence. If an individual holds a student permit in France, the years spent in the country with this status will not count towards long-term residence at all.

Refugee permits or other beneficiaries of international protection usually do not enable their holder to qualify for long-term residence, irrespective of their validity length. An amendment to EU rules was aiming to change this.

However, negotiations on this law were cancelled in March 2024. It will be necessary to wait until the new legislature following the European Parliament elections in June 2024 to determine whether negotiations on this matter will resume.

As previously underlined, the length of stay is important, but the continuity of the residence is equally fundamental. Short-term absences are allowed – though it is recommended not to deregister from the local address – generally, absences longer than six consecutive months should be a red flag for those planning for long-term residence.

Beyond the length of residence, countries apply additional conditions to determine one’s eligibility for long-term residence. Most EU countries require a minimum level of B1 language proficiency. This is the case for instance for Austria, France and Poland. However, Spain does not have a language level requirement. Passing civic integration tests (language and/or culture tests) can also be a requirement. Dutch legislation requires applicants to pass both tests before they are granted a long-term residence permit.

Finally, those aspiring for long-term residence must generally be able to prove they have sufficient income to sustain themselves and family members (thresholds differ per country and family situation) and have a clear criminal record.  

Choosing a long-term residence permit in Europe

Many may not be aware that EU countries have several different types of long-term residence permits. Currently, seven million individuals hold national long-term residence permits, whereas only three million are EU long-term residence permit holders. Is it because national permits are more beneficial?

Not really, and certainly not for every individual. In many EU countries, there is little information about these various types of permits. Also, usually, administrations grant the permit they are mostly used to process. This does not mean they chose the most suitable permit for an individual. If one is eligible for several types of long-term residence permits, an analysis of each individual’s upcoming life plans and other factors is recommended.

The national and EU long-term permits differ for instance, in the length of allowed absences from the issuing country. For the EU long-term permit, we see that the allowed absence period is standardized in most of the EU Member States. A six-year absence is allowed from the country of issuance or no more than 12 consecutive months from the whole territory of the EU.

 For national permits, this differs from country to country, for example, the Netherlands allows only a maximum of six consecutive months of absence, or four consecutive months per calendar year taking the previous three years of residence into account.

Long-term residence planning

For those interested in providing additional support to employees—particularly VIPs—in strategic planning and ensuring future eligibility, it is important to recognise the significance of decisions made at the outset of the migration progress, including:

• Choice of EU country of destination
• Type of employment-based permit chosen (when one is eligible for several)
• Type of long-term residence permit desired
• Future mobility aspirations (inside or outside the EU)

Advisory briefings on long-term residence during the initial stages of the migration journey to Europe have proven to be highly beneficial for employees. From an employer’s standpoint, besides potentially increasing retention rates, obtaining long-term residence permits can lead to cost savings, as they typically have longer validity periods compared to employment-based permits.

Unlike regular local hire permits, which are often tied to the duration of the employment contract, long-term residence permits are typically issued for a minimum of five years. This alleviates concerns about strict renewal timelines for employers and ensures employees maintain their right to work and stay in the country without interruption.

Furthermore, given potential immigration facilitation within Europe, holders of long-term residence permits may be better suited for intra-EU assignments or roles spanning multiple jurisdictions.

From the employee’s perspective, the advantages are numerous. These include enhanced protection of residence rights, even in cases of unemployment.

On the one hand, the long-term residence permit can serve as a viable alternative to obtaining citizenship in the host country, particularly in situations where dual citizenship is not permitted by either the origin or host country, or when obtaining citizenship would have tax implications. On the other hand, it is worth noting that in many EU countries, such as Belgium, the Netherlands, Czechia and Poland, the long-term residence permit serves as a pathway to citizenship, fulfilling an aspiration for many migrant workers in Europe.

Need to know more?

Fragomen can support auditing your population, as well as guiding your current/future employees with their long-term residence plans in Europe. Please reach out to the Fragomen Consulting Europe team at [email protected] with any queries.

This blog was published on 19 April 2024, and due to the circumstances, there are frequent changes. To keep up to date with all the latest updates on global immigration, please subscribe to our alerts and follow us on LinkedIn, X, Facebook and Instagram.