Cayman Islands: Labour Regulation

Cayman Islands Regulatory Environment

Labour regulation in the Cayman Islands is very light. Most pay bargaining is carried out directly between employers and employees.

Cayman Islands Work Permits

In January 2007, amendments revising the Cayman Islands Immigration Law (2006 Revision) came into force. The Law contains a number of changes to the Immigration Law, 2003, including work-permit term limits, permanent residency, a new category of 'key employees' and the ability of the Chief Immigration Officer to grant Caymanian Status to certain categories of applicants. The new law sought to clarify the work permit rules after years of frequent change to the rules, resulting in confusion for employers and backlogs in the processing of work permit applications.

Foreigners without Caymanian status seeking employment must apply for a work permit from the Immigration Department. Not all applications are successful. Work permits are generally valid for up to three years, or for up to five years in the case of domestics, teachers, doctors and ministers of religion. Five-year permits can also be granted to holders of certain positions that have been approved under a 'business staffing plan,' which the board now requires from firms employing 15 or more foreigners. Seven years is the maximum length of time a work permit holder can work continuously in the Cayman Islands, although, in certain in exceptional circumstances, a worker may be designated as an 'exempted employee' in a business staffing plan. Caymanian status is granted on a quota basis to citizens from the UK and British Dependent Territories, and certain other countries including the US, Eire, Australia and New Zealand.

Following hurricane Ivan, in October 2004 the Cayman government relaxed rules governing work permits to allow non-Caymanians between employment to remain in the country under the terms of the Emergency Powers Act. The Immigration (Amendment Bill) 2005 further loosened work permit rules for those already employed on the islands, but tightened up on the application process for other types of immigrant.

The Cayman Islands Work Permit Board said it would be adhering strictly to the law on term limits for work permit holders, and the Board Chairman David Ritch expressed concern about issues such as insufficient documentation and the geographic balance of the work force.

Mr Ritch noted that the Work Permit Board and Business Staffing Plan Board, and indeed the Immigration Department itself, are enforcing the term limits on work permits imposed by the Immigration Law, 2003. He urged employers and employees to take the time to educate themselves with regard to term limits so that difficult situations can be avoided.

• Have a net worth of at least KYD6m;
• Invest at least KYD2.4m in licensed businesses with workforces comprising of at least 50% Caymanians, that contribute towards the prosperity of the territory;
• Pass checks on business competence, show financial records of their businesses’ stability, and show they undertake a managerial role in their given area; and
• Possess a clean criminal record and be of sound health with adequate health insurance.