Isle Of Man Relaxes Foreign Employment Restrictions

by Jason Gorringe, Tax-News.com, London

02 December 2009

The Isle of Man Department of Trade and Industry is to table in the island’s parliament - the Tynwald – legislation that will exempt certain work, generally of a temporary or intermittent nature, from work permit requirements.

According to the Ministry, the legislation is designed to reduce the administrative burden upon employers, while at the same time protecting the interests of Isle of Man workers.

Minister for Trade and Industry, David Cretney commented that:

“In line with the findings of Nick Black’s review that the work permit system should remain in force and operate effectively, my intent is to ensure the legislation continues to protect local people while at the same time ensuring it does not inhibit employers from setting up on the island or operating successfully here.”

“The Department studied comments received during consultation very carefully. I believe we have produced a balanced package of measures which should address some aspects of the work permit system which have restricted employers to little positive effect while at the same time retaining a high level of protection for Isle of Man workers.”

The order follows a consultation process which the Department initiated a year ago. Among the matters that were considered in the consultation document published at that time was which categories of workers would be exempt. The great majority of respondents indicated that they thought the present rules, which mean that any non-Isle of Man worker requires a permit if working on the island for more than three days in a lifetime, were overly restrictive.

The new order will exempt 13 separate categories of temporary and intermittent employment from the requirement for a work permit, subject to employees not working more than a prescribed number of days in a year on the island. The general exemption period will rise from three days in a lifetime to 10 days a year. However, the change will not be introduced in the construction industry to protect the local industry.

Under the proposed legislation, international firms will be able to bring in employees from group companies outside the island for up to 48 days, although the exemption excludes certain types of work which should be capable of being sourced locally.

This is in recognition of the international nature of sectors such as banking, manufacturing and shipping, where the employer expects to be able to rapidly and flexibly bring staff together for business meetings by bringing individuals to the Isle of Man intermittently, just as local workers will often travel to similar meetings in other jurisdictions.

Consultation comments noted that requiring work permits for such intermittent workers acted as a deterrent to some employers bringing certain jobs to the island; this change has therefore been proposed to remove this deterrent.

Three further categories of permanent employment which are not time-limited would also be exempted. This includes entrepreneurs who establish or relocate certain types of business on the island from elsewhere, thus creating jobs and aiding the Isle of Man economy.

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