AmCham objects to immigration law changes

Multinational and local companies that rely on highly skilled foreign workers are alarmed by a government proposal they say will cost them - both financially and in terms of time workers must spend going through the visa process.

The American Chamber of Commerce is leading its members in identifying points in the draft amendment to the Act on Residence of Aliens that are prohibitive to hiring and employing non-EU citizens, and intends to present their findings to Parliament. The Czech Republic faces a Dec. 24 deadline to harmonize its immigration policies with EU standards.

The changes, scheduled for a third reading in the Chamber of Deputies Nov. 5 and postponed until Nov. 9, would prohibit a representative from submitting and filing paperwork in lieu of the applicant, requiring employees to spend countless hours out of the office to fulfill the proposed requirement of submitting paperwork in person.

"I can hardly imagine a client would be able to wait without me in queue, possibly spending their two weeks of vacation at the Foreigners Police," said Miroslav Mejtský, an immigration specialist at Deloitte Czech Republic, at a Nov. 5 meeting at the American Chamber of Commerce.

Biometric data will also be required for a plastic ID card that would replace the in-passport visa stamp. The switch and its biometric component will cost additional fees, and the information will have to be collected at each renewal, although, as Mejtský noted, "fingerprints don't change very often."

The minimal insurance coverage for foreigners will rise from 30,000 euros ($42,000/737,100 Kč) to 60,000 euros. Currently, foreigners can only apply for visas with insurance companies that are registered in the Czech Republic, a change implemented Jan. 1, 2009. By March 1, those holding residency permits had to be insured by one of 21 companies approved by the Interior Ministry. The American Chamber will recommend the government amend this to allow workers to be insured by global companies based in regions outside the EU.

The act proposes a significant change in operations for processing foreigners by shifting the duties to the Interior Ministry offices, folding the Foreigners Police (FP) back into the regular police force, Mejtský said. The majority of FP officers would return to regular police work, while a minority of them would be transferred to work in the ministry's offices, which are significantly fewer than the FP's current network. The Interior Ministry has already taken a step in this direction, taking on the responsibility for permanent residency permits.

"They took on permanent residences two years ago, and they have some special offices related to this," Mejtský told The Prague Post. "But it's not sufficient for the amount of foreigners coming in with applications for long-term visas, EU permits and everything else."

Passing an amendment is a different matter than implementing it, however. Jan. 1, 2011, is the set date for disallowing intermediaries in the application process, but other aspects, including the biometric residency card, will not go into effect until April 1. Even then, the government has not made it clear how and by when it will require current foreign residents to exchange their passport visas for the plastic cards that contain biometric data. One possibility is that foreign residents would simply make the change when their current visas expire.

Foreigners from a list of 79 countries, set by the Foreign Affairs Ministry, are currently required to apply for visas from their home countries, or the countries in which they have permanent residency. As it stands, the amendment would require all non-EU citizens applying for long-term residency to file applications in their place of residence. Mejtský said the Foreign Affairs Ministry is expected to create another list, though it maybe a smaller one, of exceptions for this amendment.

The American Chamber and its members hope to present their thoughts on the amendment to the Senate before it votes on the amendment. From a business perspective, it's a step back that will worsen investors' perception of the business environment, participants said.

"It should be pointed out [to the government] that investors are watching this," said Petra Sumerauerová of Deloitte CR.

Claire Compton can be reached at
ccompton@praguepost.com