Opinion: The good, the bad and the absurd: Immigration reform under the microscope

Nick Joseph

The Ministry of Border Control and Labour has released the Immigration (Transition) Discussion White Paper for public consultation.

The document includes draft amendments to the existing Immigration (Transition) Act and provides insight into the government’s intentions as to immigration reform.

Some of the proposals appear good. Some are clever. Some are bad. Some absurd. Arguably, that is to be expected and is the very reason ideas are put forward for consultation and discussion.

And we have an election in three months. Ah, democracy…

As it stands, some key elements of the proposals for discussion include:

1. Renaming the legislation The Caymanian Protection Act.
2. Increasing term limits to 10 years from the current nine.
3. Increasing earliest eligibility to apply for permanent residency under the points system from eight years to nine.
4. Creating formal categories of Caymanian (including elevating everyone granted status before 2015 or subsequently granted status on grounds of ‘descent’, to being a ‘native Caymanian’).
5. Making the path to status through PR and naturalisation 20 years (up from 15).
6. Leaving the path to status through marriage to a Caymanian at seven years.
7. Curtailing Residency and Employment Rights Certificates as the spouse of a Caymanian to seven years (renewable). Currently there is no expiration.
8. Curtailing RERCs as the spouse of a PR holder to 10 years (renewable). Currently there is no expiration.
9. Introducing a Certificate for Farmers (valid in two five-year instalments). This proposed ‘simplification and modernisation’ of our law spans more than three pages of the draft legislation for discussion. It effectively extends the term limit of any farm worker to 20 years.
10. Re-introducing newspaper advertising for work-permit applications.
11. Prohibiting work-permit holders from changing their employers (requiring them to leave the Islands for 12 months before returning to work in the service of a new employer).

There are some concerns as to the viability of some of these proposals. Whilst it appears to be the intention of government to increase the protection of Caymanians (and these Islands), parts of the proposed approach, sometimes for the most technical of reasons, may in fact have the opposite effect.

Rather than strengthening term limits, the proposed Legislation extends them and creates further exemptions.

Perhaps most startling is not any particular language in the proposals, but rather, the absence of language. There continues to be no obvious attempt to apply the legislation to the civil service. This has consequences – including a near inevitability of large numbers of people continuing to develop rights to remain in Cayman forever, without any formal, independent vetting. Every child born in Cayman, who is still here on their 10^th birthday, is automatically able to claim a right to remain here forever. This is the case, whether or not they (or their parents) meet any criteria set by the Cayman Islands government.

Anchor babies?

Good luck with that one! Perhaps we should in fact be renaming the legislation The Expatriate Civil Servant (and Extended Family) Exemption Act?

Issues as to Schrödinger’s Caymanians (and Schrödinger’s residents) appear to remain unresolved. Loopholes in the term-limit regime remain open. The effect and impact of the British Nationality Act (which determines who can have and hold a British Overseas Territories (Cayman) passport) appears to be being misunderstood and/or overlooked.

The proposals, as written, will seemingly continue to create Caymanians with nominal vetting, who are ineligible to hold Cayman passports, while at the same time, lead to large numbers of Cayman passport holders who must wait a decade, from when they get their Cayman passport, before they are even eligible to apply to become Caymanian by grant.

We also appear to have missed an opportunity (again) to truly modernise and simplify our legislation. We appear to be hitching trailers to our horse-drawn wagon, when what today’s Cayman really needs is a vehicle more akin to a Tesla.

Understanding the impacts of what is proposed is impossible without seeing and understanding any associated directions, regulations and fees – including any proposed changes to the long-defective permanent residency points system.

The horse is tired, and she does not appear to have been consulted on her ability to pull a greater load.

Meanwhile, the ‘old nag’ is doing her best. As at 18 Dec. 2024, there were 37,802 people in these Islands on work permits (1,536 in government service). The results of a freedom of information request evidences that in 2024:

• 763 non-Caymanians were granted the right to be Caymanian based on naturalisation.
• 335 non-Caymanians became Caymanian based on marriage to a Caymanian.
• 60 non-Caymanians became Caymanian based on being the child or grandchild of a Caymanian born in the Islands.
• 11 non-Caymanians became Caymanian based on being the surviving spouse of a deceased Caymanian.
• 398 non-Caymanian children became ‘Caymanian by entitlement’ (proposed to become known as ‘Caymanian by dependency’).

In total, 1,567 expatriates became Caymanian last year, not including people granted status by Cabinet grant. More than four a day. These new Caymanians (and their spouses) will enjoy the benefits of their status, including exemptions from all work-permit fees. I have warned of this inevitability for years and am far from certain that this has been fully factored into government’s budget.

Some perspective?

In 2024, 518 more adults became Caymanian than there are people registered to vote across our Sister Islands which, at 1 Jan. 2025, have 1,049 people recorded on the electoral roll.

In addition, 174 young adults who had been Caymanian by entitlement continued their status into adulthood, and another 1,769 Caymanians were provided with formal acknowledgment of their right to be Caymanian.

People applying for the right to be Caymanian will usually have been granted permanent residency in some form or other (whether as a spouse of a Caymanian, or permanent resident or in their own right).  In that regard, we can confirm that last year:

• 649 expatriates were granted PR on the basis of marriage to a Caymanian.
• 411 expatriates were granted PR on the basis of the points system.
• 194 expatriates were granted PR (in their own right) on the basis of being a dependant of a permanent resident.
• In total, 1,254 foreign nationals (not counting dependant children and dependant non-working spouses) were granted PR last year.

The number of permanent residents formally granted PR has accordingly been growing at a rate of around 105 each month. This is without taking account the many expatriate children (often of civil servants) who are automatically gaining PR with no immigration applications (or permissions) required, but, rather, by simply turning 10 years old and being registered by entitlement under the British Nationality Act – a UK statute.

Much discussion is needed.  And the band plays on…

Attorney Nick Joseph is is the founder of immigration consultancy ResideCayman.