Government is failing to implement European Residence Directive

There is a massive standstill in labor migration, which now even harbors (once again) explosive potential for European repercussions: The German Federal Government has simply missed the deadline for implementing a groundbreaking EU directive. This is an alarming signal for highly qualified foreign academics, expats, young professionals, and renowned employers. Instead of the promised reduction in bureaucracy, national legislators are blocking liberal rights that top European talent should have been granted long ago. As a specialized immigration law firm, we look behind the scenes of this legislative gridlock and explain what it means for your global mobility, international recruiting, and family reunification .

Why is the Single Permit Policy causing such massive controversy?

At the heart of this current failure lies the revision of the so-called European framework directive for combined residence and work permits ( Single Permit Directive ). The aim of this European regulation is to drastically accelerate the procedure for third-country nationals and guarantee a uniform set of rights. It is telling that we are now – almost a month after the official implementation deadline – still having to discuss the fact that EU law mandates far-reaching simplifications, none of which are actually being implemented in practice. There is currently no sign of the promised simplifications for labor migration in everyday German life . The legislature is failing to bring the administration onto a modern, pro-European course. Back in 2022, the German Bundestag's Research Service had already clearly outlined the specific need for adjustments to the Residence Act (AufenthG) in a detailed report . Germany's failure to let this deadline pass will likely lead to infringement proceedings by the European Commission in the near future.

Which new rights are blocked when changing employers?

One of the most progressive innovations of the directive concerns flexibility in the labor market . Article 11(2) of the directive establishes, as a fundamental European principle, a genuine right to change employers during the validity of a residence permit. While national legislators have the option, according to Article 11(3), to impose restrictions or notification requirements, the basic principle is: greater freedom for skilled workers .

Up to now, German immigration law has been extremely restrictive in this regard. Those who come to Germany with a residence permit for employment are often strictly bound to a specific company for the first few years. Changing jobs requires lengthy, bureaucratic application processes with the immigration authorities . As a law firm, we see daily how human resources departments in international recruiting become frustrated because highly qualified talent has to wait months for approval for a new position. The overlooked directive was intended to eliminate precisely this obstacle.

Why is the domestic application for residence permits being prevented?

For expats and students from Canada, the USA or Great Britain , another point of the directive is of enormous importance: Article 4(1) of the framework directive obliges member states to allow applications for a combined permit not only from abroad, but also explicitly from within the country , provided the person is legally resident there.

Currently, German law stipulates in Section 5 Paragraph 2 of the Residence Act (AufenthG) that the application must be submitted to the competent German mission abroad before entry into Germany. While nationals of certain privileged states already enjoy some concessions within Germany under the Residence Ordinance (AufenthV), a comprehensive and equal application process across the country – as demanded by the EU – requires a complete amendment to Section 5 of the Residence Act. The fact that this amendment has not yet been implemented significantly delays the smooth integration of young professionals and foreign graduates into the German labor market.

What about protection in case of unemployment?

An extremely critical issue that we as a law firm repeatedly encounter when advising clients is the existential fear of job loss. The revised directive creates a European safety net in this regard, specifically in Article 11, Paragraph 4: Foreign skilled workers are granted the right to remain legally in a member state for at least three months after becoming unemployed in order to look for a new job.

In Germany, job loss often leads to an existential crisis, as immigration authorities can retroactively limit the validity of residence permits . The three-month protection period is frequently ignored or, despite being legally enshrined, is not even known to the authorities. Due to delayed implementation, a clear legal framework for this three-month protection period in Section 4 of the Residence Act is still lacking, resulting in significant legal uncertainty for those affected and their families .

Conclusion

The botched implementation deadline for the European Residence Directive is a severe setback for the German economy and the country's attractiveness to global talent. Instead of reducing bureaucratic hurdles, German immigration law remains entrenched in rigid structures. Highly qualified professionals from around the world, as well as HR departments, must continue to grapple with the complicated, outdated regulations of the Residence Act, while European law should theoretically already be in effect. As your law firm, we will support you as a partner through this period of legal uncertainty, consistently utilizing existing loopholes with the authorities and helping you to successfully implement your migration projects despite the legislative gridlock in Berlin.