New Salary Check for Intracompany Transferee Permit Applications

The situation

The Spanish Large Companies Unit now checks whether foreign workers applying for Intracompany (ICT) Permits receive employment conditions and salary packages in line with collective bargaining agreements, local labor laws and local workers in similar job positions.

A closer look

• Salary check. The Large Companies Unit now checks whether each salary element meets the local standard. Foreign workers’ home base salary, salary on assignment and benefits and/or allowances both in money and in kind amounts are all separately reviewed. Previously, the salary package was reviewed as a whole, counting all amounts together.
• Process. The Large Companies Unit will primarily review information on employment conditions and the compensation package stated in the home employment contract and assignment letter.

Impact

Both home employers and host sponsoring companies may be required to include more supporting information in their ICT Permit applications than they had previously provided and may need to reorganize foreign workers’ compensation packages to meet local requirements, if the package did not already comply. Specifically, companies must clearly list individual elements of the compensation package in employment contracts and assignment letters. 

Background

Spanish authorities have increased their scrutiny of EU ICT Permit and national ICT Permit applications on several points in recent months, including higher salary thresholds and seniority and work experience.

The salaries listed in collective bargaining agreements are generally not high when compared with market salary rates for expert job roles. Authorities are more concerned with guaranteeing similar employment conditions for foreign and local workers in similar roles.

Looking ahead

Fragomen expects Spanish authorities to continue their strict approach to professional immigration.

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].