Isle Of Man Consults On Work Permit Issues

by Jason Gorringe, Tax-News.com, London

14 August 2007

Following the independent review of the Manx work permit system carried out by Nick Black, Chief Officer of the Isle of Man Office of Fair Trading, Minister for Trade & Industry, David Cretney announced on Friday that he is seeking views on key points raised during the work permit review, and would welcome written submissions from any interested parties.

The Minister explained that:

"The Review proposed a number of key points for consideration and the Department compiled a list of points in response. I wish to seek views on a small number of selected points which I believe need consultation in order for the Department to move forward and develop a successful policy. I would urge as many individuals, businesses and other interested parties as possible to complete the informal consultation and I would like to express my thanks in advance for this assistance."

The Minister is seeking views on the following points:

Amending the Control of Employment Act (CEA) Section 3a so that Work Permits issued to spouses are aligned to the validity of their partner’s permit.

This would be a problem where the primary permit holder possesses a 5 year permit, and the secondary permit (spouse), also valid for 5 years, is held for a lower skilled job. Should there be a downturn in the Island’s economy, there would be limited jobs available for Isle of Man workers, as they would be filled by work permit holders until their expiry which could be a number of years away.

This would be particularly felt in lower skilled occupations. Possible options for the Department are as follows:

1. Always align 3a permits
2. Never align 3a permits
3. Align to allow longer periods for selected sectors.

Amending the Act in respect of the exemption categories.

Rather than increasing the list of exempted employments, the Department should consider including in any amendment provision the ability to make short-term orders to exempt key employments

The Department is generally in agreement with this point, as it would allow it to be flexible in responding to changes in the economy. The current list of exempted occupations is as follows:

o Employment as the Chief Constable or a member of the Isle of Man Constabulary.
o Employment in the service of the Crown.
o Employment in a diplomatic or consular capacity.
o Employment as a Minister of Religion.
o Employment as a registered Dentist.
o Employment as a registered Doctor.
o Employment in a vessel or aircraft.
o Employment as a commercial traveller for a non-Island trader provided that it is for not more than 2 weeks at a time.
o Temporary employment for not more than 3 days. This is for a person who comes to the Island, carries out a specific job and goes away NOT to return. Someone who makes repeated short term visits to the Island requires a work permit. The 3 day exemption is not intended to cover a short term period while a work permit is applied for.
o Temporary employment for more than 3 days where the Department is satisfied that there is good reason to grant an exemption. For example, to persons directly involved with the TT races or other large and specialised events where it is obvious that there are no locals available.
o Self -employment of a purely cultural nature.

In addition special exemptions are made by Order to cover two situations:

o Persons in temporary employment mainly in relation to criminal investigation or similar, e.g. in connection with court proceedings.
o Non resident, non executive directors who visit the Island for not more than 3 days in any calendar month. The intention of this is that they can come to the Island to attend board meetings, for example.

Possible options for the Department are as follows:
1. Add new exemptions ( eg health or education professionals )
2. Retain the current exemptions
3. Suggest other exemptions.

Amending the 1993 Regulations so that the permits can be transferable between employers so long as the type of work remains the same as when the permit was granted.

This would allow free movement of workers between different employers within the same sector whether they are an Isle of Man Worker or work permit holder. However, it could be problematic as it does not allow for full consideration of Isle of Man Workers or unemployed persons with the necessary skills in the sector of that permit holder.

Possible options for the Department are as follows:
1. Always allow the permits to be transferable within the same sector
2. Never allow transferable permits
3. Allow transfers between selected sectors.

The merits of a system whereby workers could apply for a permit to work for a sector before applying for a given post in that sector.

This would enable non Isle of Man Workers to apply for a work permit in a specific sector which would speed up the recruitment process, and be beneficial to employers needing to recruit skilled workers for their businesses.

Again, this could cause problems with enforcement, and may also discourage the development of local workers as it would not give any advantage to Isle of Man workers.

Possible options for the Department are as follows:
1. Always allow permits to be granted in a sector before a vacancy is advertised
2. Never allow permits to be granted in a sector before a vacancy is advertised
3. Allow permits to be granted before a vacancy is advertised in selected sectors.

Responses to the issues outlined above must be received on or before 14th September 2007.

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