Immigration Developments Impacting International and Local Businesses

Immigration Developments Impacting International and Local Businesses

About Fozeia Rana-FahyFozeia Rana-Fahy

Fozeia Rana-Fahy is a Director in the firm’s litigation practice group. Ms. Rana-Fahy practices in the areas of civil and commercial litigation and is an accredited mediator.

Fozeia Rana-Fahy’s full profile on mjm.bm.

There have been a number of developments in immigration laws and policies this year which have and will impact international and local businesses in Bermuda.

The Incentives for Job Makers Act 2011(59 KB PDF) came into force in 2012 which introduced changes to the Economic Development Act 1968 (“the EDA Act”) and the Bermuda Immigration and Protection Act 1956 (“the Immigration Act”). Essentially, under these amendments, a qualifying company is able to apply for section 3(B)(2) designation under the EDA Act. If granted such designation, the company is able to make application(s) under section 5 of the EDA Act whereby senior executives can obtain exemptions from work permit requirements as set out in the Immigration Act. Thereafter, if various requirements and qualifications are met by the company and senior executive, the senior executive can apply for a permanent residency certificate under the Immigration Act.

Based on feedback from international business and the local business community, the Government tabled the Incentives for Job Makers Act 2013 (107 KB PDF) at the end of this summer. This received assent on 15 October 2013 and is coming into force on 17 December 2013. This act has amended the requirements for qualification for “section 3(B)(2) designations under the EDA Act, exemption applications under section 5 of the EDA Act and the PRC applications under the Immigration Act, hopefully making it easier for international business to seek exemptions from work permit and immigration control. Guidance notes are likely to be issued at the commencement of the Incentives for Job Makers Act 2013.

The Bermuda Immigration and Protection Amendment (No. 2) Act 2013 (118 KB PDF) also received assent this October (expected to come into force in the new year) which empowers the Chief Immigration Offer to penalize employers and/or employees who are in violation of work permit legislation and policies.

The Department of Immigration also revamped its immigration policy (“the Policy”) in April this year. The Policy included clarification regarding a number of existing work permit applications and guidance regarding processing of those applications. Additionally, the Policy introduced two new permits of interest to the international business community, including the “Global Work Permit” and the “New Business Permit”. The Global Work Permit enables a company employed by a global company in another jurisdiction to transfer to the Bermuda office without the requirement to advertise the position. The New Business Permit allows an exempted company that is new to Bermuda to receive up to five work permits for overseas recruits for senior positions without the need to advertise first.

It is also expected that there will be further changes to the rules concerning landholding for exempted companies in the year.

MJM Limited will be producing detailed guidance regarding the impact of various legislative and policy changes in the new year.