Job Makers Incentive Act To Come Into Effect

Madam President, I’m pleased to advise today that amendments the Bermuda Immigration and Protection Act 1956 and the Economic Development Act 1968 to modify the incentives offered to important businesses that are critical to the economy, which were first introduced by the Incentives for Job Makers Act 2011, will come into operation on Tuesday, 17th December, 2013.

Madam President, Honourable Senate colleagues will recall that the Job Makers Incentives Act was amended in 2013 to strengthen the incentives programme in an effort to retain jobs for Bermudians in Bermuda and make Bermuda a more attractive place to do business.

Madam President, with effect from 17 December, under the amended Incentives For Job Makers Act, a company can obtain concessions that include having their senior executives, who are responsible for the continued presence of jobs for Bermudians in Bermuda, exempt from needing a work permit.

Madam President, companies that make application must have a minimum of 10 Bermudian staff and may be eligible if they meet the following conditions:
(a) they have Bermudians at all levels, i.e. entry, middle and senior levels, of the company, subject to the availability of suitably qualified Bermudians;
(b) they have entry level positions held by Bermudians graduating from high school or college;
(c) they have programmes to develop and promote Bermudians; and
(d) they employ fair employment practices.

Madam President, in acknowledging that there is not a one size fits all model, the Economic Development Act further allows for discretion to provide smaller companies and newly incorporated companies that may not have as many staff but are still making a tangible and significant contribution to Bermuda to make application under the Incentives for Job Makers Act.

In this regard account can be taken of relevant factors such as:
(a) the size of the company;
(b) the significance of the company to the economy of Bermuda;
(c) the existing or likely economic situation in Bermuda;
(d) the protection of local interests; and
(e) generally, the interests of the community as a whole.

Madam President, senior executives will also become eligible to apply for a Permanent Resident Certificate. Eligibility for a PRC will commence immediately if the eligibility requirements are met. This means that any company that would have met the requirements for concessions, on or before 1st January 2002 and has obtained the designation, and any employee that would have met the requirements for exemption on or before 1st January 2002 may apply for a PRC immediately upon enactment.

Madam President, serving executives, that is, persons who have not yet met the eligibility requirements, can apply for a Permanent Resident’s Certificate at a later date, once they qualify.

Madam President, the number of executives that qualify for exemption will be determined based on the size of the company up to a maximum of five executives in any one company at any one time. To achieve the maximum of five qualifying executives, a company must have between thirteen and twenty five Bermudians on staff. Consideration may be given for additional exemptions for each additional twenty five Bermudian staff employed by the company.

Madam President, to be clear, only persons that are responsible for making decisions that are critical to the continuity of the company in Bermuda and the continued presence of jobs with the company, being held by Bermudians in Bermuda will be eligible for these concessions.

Madam President, the Government is pleased to bring the now strengthened Job Makers Incentives Amendment Act 2013 into operation on the Tuesday, 17th December, 2013 as a part of our ongoing activities to retain jobs in Bermuda for Bermudians and to make Bermuda a more attractive place to do business.

Thank you Madam President.

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