Instituted in 2004:
Under this policy, an ex-patriate can come to Cayman to work on a two year permit and have his permit renewed twice (two more two year permits). The third renewal would not be allowed simply because it would put the ex-patriate past the seven year limit. It doesn’t mean that a company cannot get out a work permit for another ex-patriate, just not for the same ex-patriate.
There is no doubt that the seven-year rollover immigration policy is the most unpopular policy that any Cayman Islands Government Administration has ever had to defend. From the Cayman Contractors Association, and the Cayman Islands Tourist Association to Human Resource professionals and businesses, from every sector in general, as well as from Caymanians this derided policy has been criticized every which way. However, is appears that this current administration is bent on keeping the policy in place even though reportedly even some of their most stalwart fans and party members are themselves critical of the implications of the policy on their own households and businesses.
Members and supporters of the People's Progressive Movement, (PPM) employ people in both business and in their homes. They send their children to school, they visit shops and they use the hospital and are therefore fully aware of the implications of this insidious section of the immigration law. The rollover policy will reduce the period work permit holders must leave for to six months. Currently the seven-year rollover immigration policy forces those who have already served seven years here on work permits to leave the Islands after their final permit has expired, for a period of no less than two years.
Reducing that period to six months will no doubt make a difference to one or two people, but for the majority, especially those working in the service sector across the board, including the lower income positions, such a figure is meaningless. If someone is forced to leave their home, be it for six months or two years, they must do exactly that and therefore need to establish a new home and above all take a new position somewhere else. Once an individual who has worked and created a life here for the last seven-years or more is forced to leave this home and take another job elsewhere, then it is logical they will seek to re-settle and establish a new home in the new jurisdiction in which they are employed. Under such circumstances all but the very rich will not be in a position after six months to simply return here at whim. But alas only to be rolled over again after another seven years of service. This is absurd.
Moreover, their previous employers here will not and cannot be in a position to hold open an important job for someone for six months, notwithstanding the fact the cost and trauma they will face in trying to recruit new staff. Once their employee is forced out then the employer must find a replacement for that trusted employee, as the business must go on. Furthermore, with increasing living costs here any individual rolled over from here that is fortunate to find work in another country is likely to stay, as the chances are very good that their new homeland will offer a more realistic standard of living.
The seven-year rollover immigration rule is a policy designed to placate the xenophobic and even racist sentiments of a small minority here.
IMPACT as of June 2007:
It could be argued that the replacement workers for those “rolled-over” will sooner or later take up any slack in the market, but the recruitment of such replacements is itself proving more problematic than might have been anticipated, for several different reasons.
First, the existence of the rollover itself mitigates against the recruitment of anyone other than strictly transient workers, generally at the lower end of the scale. Such people do not typically rent apartments just for themselves, they tend to share – in some cases as much as eight persons and more to a two-bedroom apartment, which in turn is going to reduce the effect of normal demand for rental properties.
Second, the cost of living here in the Cayman Islands is becoming far more of a factor in the decision-making process by a prospective employee and, unless and until salaries on offer fully reflect the expense of living here, recruitment is going to continue to be difficult, if not impossible.
In the meantime, apartment and commercial property owners are left with unrented inventory and, thus far, there seems to be little downward movement in rents. This may be because the properties in question were built with borrowed funds and the owners cannot afford to take lower rents and still be able to meet their mortgage obligations. It is, however, true to say that they will never be able to meet their commitments if no rents are coming in at all.
Whilst on the subject of mortgages, we understand that the collections departments of local banks are currently working overtime in chasing up and threatening borrowers in arrears of loan payments.
The fact that borrowers are having difficulty in keeping up with repayments may be because of a number of external factors such as high interest rates and the increased cost of living generally, but it could hardly have come at a worse time, when the economy is already labouring under the burden of widespread immigrant rollover, with replacement that is not keeping pace with the departures.
The sad thing is that many of these negative consequences were easily predictable and it is now too late to take any corrective action, even if the rollover were to be repealed tomorrow, that would produce any meaningful short-term relief.
STATEMENT FROM the Hon. D. Kurt Tibbetts:
"We are aware that the rollover rules introduced in 2004 need amendment - to reduce the uncertainty and confusion, and to ensure that our economy is not damaged. The application of the rules, especially with respect to "key employees" and the grant of Permanent Residence, will have to be carefully monitored with the same objectives in mind. It is absolutely essential to the interests of all Caymanians that our economy stays strong, especially the two pillar industries, financial services and tourism.
To Caymanians we say "fear not"; you will not lose control of your country; you will still have priority, though everyone, at school and in the workplace, should understand that achievement is not a birthright; it requires dedication and hard work. To businesses, including the financial services sector, we say "fear not"; we understand the need to keep the economy strong. Consultations with you will be ongoing and you will find this government and the policy machinery, accessible.
To those whose permits are not renewed, we regret the necessity of this and hope you understand the reason. You are aware, I am sure that work permits issued by any government in any country, are for a specific period with no guarantee or assurance of renewal."
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