BVI Business Community Attacks New Labour Law

by Amanda Banks, Tax-News.com, London

25 October 2001

The British Virgin Islands government has released details of its new draft Labour Code Law, an amended main feature of which states that 'non-belonger' workers in the Islands will no longer be granted an initial work permit of more than five years.

The existing rules governing labour in the Islands have stood for at least 20 years and Labour Commissioner Wendell Potter has confirmed that the goal behind the legislation is to bring it into line with current modern-day standards and reflects the Labour Department's aim to strengthen the Department's operations and to be seen to be more involved in the labour industry and related issues. The draft Bill has taken several years to come to fruition.

Mr Potter told the Island Sun news service: 'We have begun to shift from a department whose primary activities are work permit processing and handling labour complaints. We've begun to move towards a more proactive leadership in areas of job placements and training.'

He continued: 'A work permit may be issued for a period up to one year at a time and be renewed or extended, but a new 5-year limit on work permits will come into effect. A 5-year limit means that an employee who has held work permits for a period of five years must leave the British Virgin Islands with his or her dependents and remain outside the territory for a period to be determined by the Governor-in-Council before that person can be considered for re-employment or new employment.'

The Labour Commissioner said that the work permit restrictions will allow businesses to play a more integral role in the recruiting and training of BV Islanders. The system would also be more flexible to ensure that the Islands can continue to attract skilled workers.

'It would be wrong indeed if term limits would lead us to lose these important workers, therefore provisions will be made to exempt positions and persons who have proven to be key to the success of the company,' he said, although business must state their case if they want the employee exempted. 'But only companies who are good corporate citizens would be considered,' he added.

Mr Potter also confirmed that counting towards the 5-year limit on work permits could date back one or two years or alternatively it may commence at once in the amendments are approved. He claimed: 'We believe that the time has come for us to put procedures in place that we are certain that the citizens of the country do not feel left out…that every effort is being made by…employers to attract and seek out belongers and train them.'

However not all have shared Mr Potter's views which have come up against some serious opposition from the business community in particular. After the draft Bill was released for public consultation, many businesses raised concerns that they may be made to employ workers simply because they are BV Islanders and are not sufficiently qualified.

They also asked who would be held accountable for severance pay if the 5-year restriction is imposed since around 80 per cent of permits are classed as renewals. Presently, the BVI government issues and renews up to 6,000 work permits each year, out of this total approximately 1,500 are new ones and 750 are 5-year renewals.

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