It was one of the biggest news stories of the year 2011 when Premier McKeeva Bush announced in September that Cabinet would suspend the term-limit requirements of the Immigration Law for up to two years to allow for a comprehensive review of the policy.
Premier Bush said he had urged since the general elections in May 2009 a reform of the current “rollover system”, according to which foreign workers have to leave the Islands after seven years unless they qualify as a key employee.
“Many thought rolling over qualified and trained persons would create opportunities for Caymanians,” Mr. Bush said. “This has not happened. In fact, many of the persons that were rolled over took up positions in other competing jurisdictions. We need the right people to remain on Islands to ensure that our people have the ability to benefit from our own economy.”
Mr. Bush said a large number of individuals, possibly as many as 6,000 people, would reach their term limit within the next two years and referred to the effect this would have on the economy, which already sees about 2,200 empty rental apartments, as a result of people leaving the Islands in the wake of the recession since 2008.
The objective of the rollover suspension was to give a review committee consisting of members from the Chamber of Commerce, the financial services industry, the government’s Immigration Review Team and local stakeholders, representing a range of small businesses, 180 days to report to Cabinet how the current system could be improved.
In the interim, employers can apply to obtain Term Limit Exemption Permits for those workers, who have reached the end of the seven year term limit, to enable them to stay during the time of the review until, when potentially amended immigration regulations will take effect.
An analysis by law firm Appleby pointed out that the measures would not constitute a suspension of the rollover, stating that the time spent in Cayman on a Term Limit Exemption Permit would not count towards a permanent residence application. Those employees could therefore still be rolled over after the review and companies should continue to make applications for key employee status, where desired, the law firm advised.
The PPM opposition supported the idea of a review of the current regime, but criticised the suspension of the rollover. In June, Opposition Leader Alden McLaughlin said the People’s Progressive Movement executive wanted to see significant changes in the term-limit policy, citing the elimination of the key employee regulations and the potential for foreign workers to remain in Cayman for eight years, a period that would allow them to apply for permanent residence.
Following the announcement of the rollover review, however, he questioned the need to suspend the current regime, arguing that after the expiration of the two-year exemption period Cayman would open itself up to legal problems and uncertainty when trying to re-impose a new of modified rollover policy and legislation, essentially saying that the review could be done without a suspension.
Independent North Side MLA Ezzard Miller in turn doubted the validity of the assertion that the departure of a large number of people was imminent and would impact the economy. “Where are these big piles and thousands of people who are going to leave here and create a great vacuum in the economy in the next 18 months?” he asked.
Mr. Miller subsequently challenged the immigration amendments instituting the changes for the rollover suspension as violating the Cayman Islands Constitution. He stated that the premier was unable to present the ‘case of emergency’ necessary for an expedited passing of the amendments, but failed in his bid as the governor signed off the amendments to the Immigration Law in November 2011.
The changes to the Immigration Law also allow, for the first time, the introduction of a 10-year work permit for certain, as yet undefined, job categories and industries.
Holders of the 10-year work permit will be automatically allowed to apply for permanent residence, without having to apply for key employee status. Until last year 5-year work permits were the longest work permits available, even though they were rarely granted in practice.
In December, the government appointed Term Limit Review Committee called for public input and invited residents to express comments and concerns on the term limit policy with an end of the commentary period set for 31 December, 2011.
The Committee is expected to compile the data and submit its analysis to government by 18 March 2012 and Mr. Bush said he hopes government will have its recommendations in place by April 2012.
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