IW and KOFA publish recommendation report on the Work and Stay Agency

The recruitment of highly qualified professionals from third countries such as the USA , Great Britain , or Canada rarely fails in German practice due to a lack of interest from applicants or a lack of willingness on the part of companies. It fails primarily due to bureaucratic inefficiencies, cumbersome administrative procedures, and a deep fragmentation of responsibilities across multiple levels. The current system urgently requires fundamental reform, as demonstrated by the latest report from the German Economic Institute (IW) and the Competence Center for Securing Skilled Workers (KOFA) on the initiative workshops for the planned Work and Stay Agency (WSA). The study paints a precise picture of the existing pain points and outlines a long-overdue realignment of the German immigration architecture. As a specialized law firm for visa and immigration law, we advise highly qualified academics, expats, and HR departments on these procedures on a daily basis. We see the recommendations as important steps toward greater legal certainty and efficiency, but we are also aware of the pitfalls that await those affected and companies in practical implementation.

Why does the current administrative practice in visa procedures lead to massive delays?

In our daily practice, we regularly see that applications fail not due to complex legal issues, but rather due to excessive documentation and irrelevant checks. Although the Residence Act (AufenthG) stipulates clearly structured criteria, foreign missions and immigration authorities increasingly tend to interpret discretionary powers extremely broadly and demand evidence that has little legal connection to the actual requirements for granting a residence permit. For applicants from third countries, this often means waiting months for documents that are substantively irrelevant. The IW/KOFA report addresses precisely this problem and calls for uniform standards for document requirements nationwide, as well as clearly defined checklists. The principle of proportionality and the Administrative Procedure Act already provide a legal framework: According to Section 24 of the Administrative Procedure Act, authorities are obligated to investigate the facts appropriately and expeditiously and may not extend investigations indefinitely. A strict limitation of the examination to the legally mandatory requirements pursuant to Section 18a or Section 18b of the Residence Act is the most effective lever against artificially inflated procedures.

Where do the biggest procedural delays occur during initial issuance and changes of authorities?

The most serious delays – often felt in practice as proverbial "black holes" – almost always occur during the initial initiation of an application process and in communication between authorities. As soon as information is transferred between different government agencies, the flow of information frequently breaks down completely. This happens, for example, when the embassy or consulate involves the Federal Employment Agency in the visa application process according to Section 39 of the Residence Act, or when the responsibility shifts from the embassy to the local immigration office . The report proposes the development of a central IT platform with a cross-agency case ID and automated interfaces to eliminate media breaks and information loss. Until these interfaces are technically implemented, applicants and employers must proactively structure the process from the outset to ensure legally sound documentation of any periods of inactivity on the part of the authorities.

What advantages will the planned work and stay agency offer employers and HR departments?

A key focus of the KOFA report is strengthening the procedural role of employers. Under current immigration law, the visa process is primarily considered a personal matter for the foreign employee, even though the company bears the economic risk and provides the essential documentation for employment. The report therefore recommends a multi-stage model: from expanded rights of access and participation to digital employer accounts and ultimately an independent right for employers to submit applications. A central digital platform for companies would finally eliminate the need for redundant multiple checks of the same company data for every new hire. Until these reforms take effect, we support HR departments in structuring powers of attorney and cooperation procedures in a legally sound manner, ensuring that companies remain fully capable of providing information and taking action vis-à-vis the authorities.

How can changes of purpose and salary audits be made practical?

Highly qualified young professionals, international students, and expats regularly encounter bureaucratic hurdles when changing their residency status or employer. The report rightly criticizes inflexible transitional regulations that force unnecessary intermediate steps, such as job searching under Section 20 of the German Residence Act (AufenthG), when transitioning from studies to employment. Furthermore, salary verification by the Federal Employment Agency often proves to be an obstacle when it rigidly relies on a "local custom," which disadvantages small and medium-sized enterprises (SMEs) compared to large corporations. Here, the report calls for a consistent focus on the company's standard salary within the framework of the review under Section 39 Paragraph 3 of the German Residence Act (AufenthG), as well as clear transitional regulations. A practical change of residency status must reflect the actual employment trajectories of international professionals without leading to interruptions in employment or lengthy review processes.

Conclusion

The report by the German Economic Institute (IW) and the Commission for Foreign Trade (KOFA) addresses the core problems of current skilled worker immigration law in Germany. The planned work-and-stay agency offers a tremendous opportunity to future-proof procedures through digitalization, transparency, and the procedural involvement of employers. Until these structures are established nationwide, in-depth knowledge of administrative practice and precise legal guidance remain crucial for successful and swift visa applications. We are experienced partners supporting skilled workers , employers, and HR specialists to effectively avoid bureaucratic delays and ensure applications are successful from the outset.

The report can be found here: https://table.media/assets/berlin/wsa_workshop.pdf

Many thanks to Dr. Sebastian Klaus for the very helpful tip about LinkedIn.