New proposed law aims to strengthen conditions for international recruitment

The political agreement to strengthen international recruitment lapsed when a general election was called in October 2022. With the proposed law, the current government has chosen to make the agreement permanent.

BACKGROUND

According to the remarks in the proposed law, the measures should be seen in light of the current situation, where there is a shortage of labor in the Danish labor market. The proposed law aims to make it easier for Danish companies to recruit international candidates.

SPECIFIC CHANGES

The proposed law contains five specific measures:

• Introduction of a new supplementary income requirement
  Under the current income requirement, an employee must receive an annual salary of at least DKK 465,000 (in 2023). It is proposed that the existing requirement is supplemented by a new income requirement, where the income threshold is lowered to an annual salary of at least DKK 375,000.
  
  It will be a condition for using the new requirement that the unemployment rate at the time of application does not exceed a level determined by the Ministry of Immigration and Integration, and that the position has been advertised on Jobnet and the EURES portal for at least two weeks.
   
• Expansion of the fast track scheme
  To obtain certification under the fast track scheme, it is currently a requirement that the company has at least 20 full-time employees, which will be reduced to 10 full-time employees in the new proposed act, allowing more companies to access the fast track scheme. This will, among other things, give smaller and relatively new companies better opportunities to use the fast track scheme.
   
• Automatic job-seeking residence permit for certain foreign students
  Foreigners with a study residence permit in Denmark currently have the right to a six-month job-seeking residence permit after completing their studies with the aim of seeking employment in Denmark. A residence permit can be granted, upon application, to a foreigner who has completed a Danish bachelor's, professional bachelor's, master's or PhD degree no later than one year before the application (establishment card).
  
  With the proposed law, foreigners who have completed a Danish bachelor's, professional bachelor's, master's or PhD degree will have the right to an automatic job-seeking residence permit for three years. It will be possible to work throughout the job-seeking residence permit.
   
• Expansion of the positive list for people with a higher education
  The positive list for people with higher education will be expanded with more job titles and made more predictable. It is therefore proposed that professionally defined unemployment funds and regional labor market councils, as a supplement to the existing positive list, should be able to introduce additional job titles to the positive list. It is also proposed that positions can be removed from the list as early as two years after being added to make the positive list more predictable and give companies more time to recruit.
   
• Expansion of the Startup Denmark scheme
  Under current rules, a foreigner who intends to run a self-employed business and whose business plan has been positively assessed by an expert panel appointed by the Ministry of Business and Industry can, upon application, obtain a residence permit under the Startup Denmark scheme. A quota has been set, allowing a maximum of 75 applicants per year to be granted a residence permit.
  
  The proposal suggests expanding the scheme so that a foreign business owner who wishes to open a branch in Denmark of an existing company can apply for a residence permit under the scheme. Additionally, the proposal specifies that a foreigner who has already established a successful business in Denmark can apply for a residence permit through the scheme.

The proposal is scheduled to take effect on 1 April 2023.

The proposal was first discussed in the Folketing on 21 February 2023 and has been referred for committee review.

Read the proposal here.

LUND ELMER SANDAGERS COMMENTS

The rules in the immigration law can seem complicated and complex to many. However, the proposed changes to the law will make it easier for Danish companies to recruit the right international candidates.

Considering the shortage of labor in Denmark, we look forward to the rules being optimized with the new measures so that more Danish companies and foreign workers can benefit from using the schemes.

If you want specific advice on how you and your company can recruit international candidates, or if you have any questions on the topic, please contact one of our employment law specialists; partner Michael Møller Nielsen, assistant attorney Anna Lindencrone Lundin, or assistant attorney Mina Faiz.