Making Corporate Immigration to Germany Legally Compliant: What Employers Need to Know

Against the backdrop of ongoing skills shortages, this has become an increasingly important area of compliance and workforce planning for employers.

In recent years, Germany’s skilled immigration framework has undergone several reforms aimed at simplifying procedures and increasing transparency. Nevertheless, the legal landscape remains complex. The relevant provisions are spread across various national laws and regulations, as well as European and international legal sources. In addition, the use of broadly defined legal concepts and administrative discretion can make the consistent application of the rules challenging. In practice, employers therefore operate within a multifaceted regulatory framework. Alongside the German Residence Act (Aufenthaltsgesetz) and the Employment Regulation (Beschäftigungsverordnung), they must also take account of European legislation, international agreements, and extensive administrative guidance. The key challenge lies in identifying the regulations applicable to each individual case and implementing them in a legally compliant manner.

In the following article, we examine the key immigration law requirements governing the employment of international skilled workers and outline the employer compliance obligations that must be observed to ensure legal certainty and regulatory compliance.

Where a residence permit is required for entry into and residence in Germany – generally first in the form of a visa and subsequently, where applicable, as a residence permit issued within Germany – the visa application process includes an assessment of the legal basis on which gainful employment may be undertaken. This assessment is carried out by the competent German mission abroad and, where necessary, in cooperation with other German authorities, such as the Federal Employment Agency (Bundesagentur für Arbeit) or local immigration authorities, pursuant to the German Residence Act (Aufenthaltsgesetz, AufenthG) and the Employment Regulation (Beschäftigungsverordnung, BeschV).

The applicable legal grounds for employment in Germany differ in particular depending on whether an employment relationship is to be established with an employer based in Germany or whether the work is to be performed in the context of a secondment by a foreign employer. In addition, certain residence permits, such as those issued for family reunification, as well as permanent residence titles including the Permanent Settlement Permit (Niederlassungserlaubnis) and the EU Long-Term Residence Permit (Erlaubnis zum Daueraufenthalt-EU), permit unrestricted gainful employment. These authorise both self-employed activities and dependent employment, irrespective of the employer’s place of establishment.

Key Residence Permits for Direct Employment in Germany

The following residence permits generally require a specific employment relationship with an employer established in Germany:

Skilled Workers with Academic Qualifications: EU Blue Card

The EU Blue Card is a key residence permit for highly qualified professionals, enabling skilled workers from non-EU countries to take up employment in Germany more easily. No labour market priority check is required. The issuance of an EU Blue Card is subject to compliance with statutory minimum salary thresholds. The salary thresholds are revised regularly and apply to the respective calendar year. Therefore, applicants should always check the current minimum salary requirements before submitting their application. Regardless of this, employment conditions, particularly working hours, must be comparable to those of equivalent German employees. For so-called shortage occupations, where there is a particularly high demand for qualified professionals in Germany, a lower salary threshold applies for obtaining an EU Blue Card. These occupations include, for example, doctors and engineers. Compliance with these requirements may be reviewed by the Federal Employment Agency (Bundesagentur für Arbeit).

The EU Blue Card offers several benefits for immigrants and their families. For example, applicants can plan their long-term future in Germany through an accelerated pathway to permanent residency: after 27 months of residence, they may obtain a permanent settlement permit, or after just 21 months if they can demonstrate sufficient German language skills.

Permit for Skilled Workers with Vocational or Academic Qualifications

Qualified skilled workers with a recognised vocational qualification or a recognised university degree may obtain a residence and work permit for Germany. This residence permit allows them to work in any occupation for which their qualification provides the necessary skills and expertise. As a general rule, applicants must have a specific job offer and demonstrate that their foreign vocational or academic qualification has been recognised in Germany or is equivalent to a German qualification. The salary must be in line with the employment conditions of comparable German employees; however, no fixed minimum salary threshold applies. A labour market priority check is generally not required.

For academically qualified professionals, this residence permit may serve as an alternative to the EU Blue Card where the relevant requirements for the latter are not met, for example with regard to the salary level or the connection between the applicant’s qualification and the intended employment. Skilled workers who have successfully completed a qualified vocational training programme or a degree course in Germany may also take up employment that is commensurate with their qualification upon completion of their studies or training.

Residence Permit for Individuals with Extensive Professional Experience

Individuals who do not meet the formal requirements of a skilled worker may nevertheless obtain a residence permit for the purpose of qualified employment if they can demonstrate relevant professional experience. The key requirements include, in particular, at least two years of relevant professional experience acquired within the preceding five years, a concrete job offer, and compliance with a prescribed minimum salary threshold. This residence permit offers employers an additional route for recruiting qualified international talent, particularly where candidates possess significant practical expertise but do not satisfy the traditional qualification requirements applicable to skilled workers. Special provisions with reduced eligibility requirements apply to employment in the information and communication technology (ICT) sector.

Residence Permit for Executives, Managers and Specialists

Executives, managers and individuals with particular company-specific specialist knowledge benefit from facilitated opportunities to take up employment in Germany. This category includes, in particular, individuals who perform significant managerial functions by virtue of their position or who possess specialist knowledge of particular importance to the employer. As a general rule, a specific offer of employment from a company in Germany is required.

Western Balkans Regulation

The Western Balkans Regulation (Westbalkanregelung) plays a particularly important role in the recruitment of international workers. It provides nationals of Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia with facilitated access to the German labour market. Unlike many other residence permits, approval by the Federal Employment Agency (Bundesagentur für Arbeit) may generally be granted for almost any type of employment without requiring the applicant to demonstrate a recognised skilled worker qualification. The principal requirements include a specific job offer from a German employer, employment conditions that are equivalent to those of comparable German employees, and entry into Germany on the appropriate visa. As the scheme is not limited to skilled workers and has since been established on a permanent basis, it constitutes an important instrument for employers seeking to address staffing shortages and meet their demand for both skilled and non-skilled labour.

Residence Permits in the Context of Secondments

These arrangements concern activities carried out in Germany without a traditional employment relationship with a German employer. They cover various scenarios, including intra-group transfers, employees working under contracts for work and services, and certain short-term assignments based on international agreements.

„Best Friends“-Permit

Nationals of Australia, Israel, Japan, Canada, South Korea, New Zealand, the United Kingdom, the United States, as well as certain other privileged countries such as Andorra, Monaco and San Marino, benefit from facilitated access to employment in Germany. Under this so-called “Best Friends” provision, approval may be granted for the pursuit of any employment, irrespective of the employee’s qualifications. Unlike many other immigration routes, neither a recognised professional qualification nor skilled worker status is required. Moreover, the provision applies not only to employment relationships with German employers but also to certain assignments to Germany. The key requirements include, in particular, employment conditions equivalent to those of comparable domestic employees and the approval of the Federal Employment Agency (Bundesagentur für Arbeit).

In addition, nationals of certain “Best Friends” countries, including Australia, Israel, Japan, Canada, New Zealand, the United Kingdom and the United States, may enter Germany without a visa and apply for the required residence permit within 90 days of arrival. Employers should note, however, that employment may generally not commence until the relevant residence permit has been issued. Given the sometimes lengthy processing times at local immigration authorities, applying for a visa in the country of origin may often be the more practical option.

ICT Card

The ICT Card facilitates the temporary intra-group transfer of managers, specialists and trainee employees from a company established outside the European Union to a German branch or group company. A key requirement is that the employment relationship with the sending entity outside Germany remains in place throughout the assignment and that the transfer takes place within the same corporate group. The ICT Card therefore serves as an important instrument for international personnel mobility and the implementation of cross-border business projects. It is intended exclusively for intra-company transfers and is not suitable for establishing a regular employment relationship with a German employer.

Contract Workers (Werkvertragsarbeitnehmer)

Contract workers are temporarily assigned to Germany by a foreign company for the purpose of performing work under a contract for work and services. The employment relationship remains with the foreign employer, and no employment relationship is established with the German client. Admission is based on bilateral agreements and may require the approval of the Federal Employment Agency (Bundesagentur für Arbeit), as well as compliance with the applicable immigration, employment and social security regulations. For companies, this framework provides an opportunity to deploy qualified workers on a project-specific basis for the performance of particular contracts in Germany. In practice, it is of particular importance in sectors such as construction, installation and industrial services.

Permanent Residence Titles with Unrestricted Access to the Labour Market

Settlement Permit (Niederlassungserlaubnis) / EU Long-Term Residence Permit (Erlaubnis zum Daueraufenthalt-EU)

The Permanent Settlement Permit (Niederlassungserlaubnis) and the EU Long-Term Residence Permit (Erlaubnis zum Daueraufenthalt-EU) are permanent residence titles that provide unrestricted access to the German labour market. Holders may engage in both dependent employment and self-employment. The principal distinction between the two lies in the fact that the EU Long-Term Residence Permit may, subject to certain conditions, facilitate mobility within the European Union, whereas the Settlement Permit is based exclusively on German law. From an employer’s perspective, neither residence title is generally associated with employment-related restrictions.

Employer Compliance Obligations When Employing Third-Country Nationals

In addition to selecting the appropriate residence permit, immigration compliance is becoming increasingly important for employers. When employing third-country nationals, companies are legally required to verify, both before and throughout the employment relationship, that the intended employment is authorised under the applicable immigration laws. The relevant employer obligations are expressly set out in German immigration law and require companies to continuously monitor whether the conditions permitting employment remain satisfied throughout the duration of the employment relationship.

Verification Requirements Prior to Commencement of Employment

Employers must verify, before employment begins, that the third-country national holds a valid residence permit authorising the intended employment. A copy of the residence permit and, where applicable, any additional employment-related documentation must be retained for the duration of the employment relationship. This serves as evidence of the employer’s compliance with its verification obligations in the event of an inspection by the competent authorities.

Ongoing Monitoring

Employer obligations do not end once employment has commenced. In particular, where residence permits are issued for a limited period, employers must monitor expiry dates and ensure that updated evidence of any extension or new residence permit is obtained in good time.

Compliance with Conditions and Restrictions

Where a residence permit contains restrictions, for example regarding the employer, the specific role or activity, or a required approval by the Federal Employment Agency (Bundesagentur für Arbeit), these conditions must be strictly observed. Significant changes to the employee’s duties or position may also necessitate a renewed immigration law assessment.

Notification and Cooperation Obligations

Employers are subject to various cooperation and information obligations vis-à-vis the competent authorities. These obligations arise in particular during official inspections and may also apply in cases involving certain changes to, or the premature termination of, the employment relationship.

Practical Note: Compliance with immigration law requirements should be regarded as an integral component of a company’s overall compliance management framework. In light of the increasing reliance on international talent, the implementation of a structured immigration compliance programme is becoming ever more important.

Conclusion

For employers, the recruitment of international talent not only represents an important opportunity to address skills shortages but also entails extensive compliance obligations. A key consideration is determining whether the relevant residence permit authorises the intended employment and whether any applicable restrictions are complied with. To mitigate legal risks and avoid potential sanctions, employers should implement clear processes for the verification, documentation and ongoing monitoring of residence permits. Immigration compliance is therefore not merely a legal obligation, but a critical success factor in the lawful recruitment and long-term employment of international skilled workers.