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Barbados is a Caribbean Island of 166 square miles and a population of approximately 275,000. Notwithstanding the considerably high education level of its population, Parliament, by virtue of the Immigration Act Cap 190 recognises the necessity to recruit foreign personnel to assist in the Island's development. The necessity for specialised foreign labour has increased in the context of the island's burgeoning offshore industry which caters to the formation of a variety of offshore entities and trusts. One peculiar feature of the Barbados market is that entities engage in active business with a concomitant demand for the redeployment of certain skill and expertise from other parts of the world, including Canada, United States, and Europe, to facilitate the operation of these businesses. Immigration The Immigration Act (the Act) is the relevant governing law. Part III of the Act prohibits an individual who is not: i) a citizen
within the meaning of the Barbados Citizenship Act,
from "engaging in any occupation or accepting employment" in the Island without the necessary work permits of the Minister of Home Affairs. Nor can an employer offer employment to such an individual, unless a permit has been issued in respect of that particular foreign-based employee. The entitlement to work in Barbados without the necessity of applying for a work permit is reserved for these three categories of persons. Residence requirements Permanent resident status and immigrant status may be useful methods of entry into the Island to work. Such methods are, however, generally pursued by those seeking to create more permanent ties to the Island outside of work itself. Permanent resident status may be acquired upon application in the prescribed form by a permitted entrant who had previously been accorded the status of an immigrant by the Minister and has since resided in Barbados for a period of not less than 5 years or is the spouse of a person who is a citizen of Barbados whether by descent or birth. Immigrant status is more flexible and may be acquired by any interested person who satisfies the Minister that "by reason of his education, occupational qualifications, personal history, employment record, training, skills or other special qualifications has established himself successfully in Barbados in a profession, trade, business or agricultural enterprise" or by virtue of which is not only likely to excel in these areas but has sufficient means to maintain himself and his dependants in Barbados in the interim. Work permits The more usual course is to apply for a work permit. There are no limitations on the persons who may apply for a work permit, but it is understood that immigration policy requires persons offering some skill or expertise which supplements the domestic labour market. Application for a work permit must be in the prescribed Form C1. Where the application is for a period not exceeding 6 months, Form C3 is appropriate. In the case where the applicant has been offered a job, the prospective employer must, in addition to the forms furnished by the proposed employee, supply the Department with the appropriate information in Form C2. Formalities. The usual formalities of the age, sex, nationality and country of permanent residence of the applicant must be stated in Form C1. The applicant must also indicate his proposed address and where the applicant has been offered employment, the name and address of the prospective employer. Other pertinent information includes: the nature of the proposed occupation, the marital status of the applicant, and the identity of any dependants of the applicant who will be travelling with the applicant. An outline detailing the names and addresses of colleges, universities and educational institutions including trade and vocational institutions attended, the duration of the course of study, certificates and degrees received is also requested. Any additional qualifications, skills and proficiency in the use of tools, machines or other equipment, and a list of licenses relating to a profession, trade or other qualifications, should also be detailed. A brief outline of the applicant's employment history, within three years prior to the application, must be documented including the duties involved, the hours of work, and a list of tools, machines and other equipment utilized in that capacity. Where this brief employment history does not include an occupation relating to the proposed area of employment for which the permit is being sought, any previous employment in a related area should be documented. If any sums are to be repatriated to persons overseas these persons should be listed on the application. Less formal information is required in an application for a short-term work permit. The usual formalities regarding the date of birth, nationality and marital status are required. In addition, the details of any accompanying family members or dependants must be provided, along with academic history, work experience, the proposed date of entry into Barbados, and duration of stay. A resume outlining academic and work details is usually accepted as part of the Form. Documentation. Documents must be lodged in support of any information supplied in the application forms. Such documents include photographs of the applicant, one of which must be a certified true photograph of the applicant, a police certificate of character (or affidavit of character where the first is not possible) preferably from the foreign employee's country of residence, two written character references and, in the case of an application for an extension, a Tax Clearance Certificate from the Commissioner of Inland Revenue. Documentary evidence of the qualifications of the foreign employee is also required. As it is not always feasible to provide original documents, notarized copies are allowed. A photocopy may be provided with the original where the return of the original is urgently required. Documents which are not in the English language are to be translated. Translation services are offered locally and forwarded to the Immigration Department together with the certification of the Translator as to the accuracy of the translation and the competency of the translator. Affidavits or published materials are also acceptable evidence of the foreign employee's qualifications in the capacity deposed to. A medical certificate, preferably, though not exclusively, from a local medical practitioner, chest x-rays or results of chest x-rays if carried out locally, are also required. Fees payable. A fee of BDS$100 is payable at the time of application. A receipt, under hand of the Accountant-General, evidencing payment of the same may be submitted. Annual fees are also payable in respect of work permits. The annual fees vary according to the nature of employment involved. Where the work permit is for a period exceeding one year, the sum is multiplied accordingly and is payable in advance. Obligation of foreign employer. Where there has been an offer of employment to the foreign employee, the employer must also submit an application on his or her behalf. In addition to providing the name of the proposed employee, the employer must indicate the full name, telephone number, address or registered office and the address or location where the proposed foreign employee is expected to work. A brief description of the nature of the employer's business or activity, the capital formation of the company outlining its share capital, number of shares and the percentage of ownership held by citizens of Barbados, permanent residents, and other individuals is also required. If the applicant company is a subsidiary or affiliate of a foreign-based company, the name of the parent company should be indicated. Information relating to the conditions of work for the employee is also solicited on the form. These queries include: the number of employees performing the same work as the foreign employee, the number of employees working with the foreign employee, the date from which the employment is to start, whether the proposed position is seasonal, and the number of positions to be filled by foreign labour pursuant to the company's application. The job title must also be indicated as the Ministry is interested in verifying that the position in question is not unionized or the subject of an existing labour dispute. The proposed salary must be indicated, including any rates for overtime, commissions or otherwise, the job to be performed and the equipment to be utilised in the process. Further, the basic education, training and practical requirements for the position must be submitted in detail. The precise position of the foreign employee must be identified, including the supervisory position governing the proposed position of the foreign employee, the type and degree of any such supervision and, where the foreign employee holds a supervisory position, the number of persons to be supervised by the foreign employee. Government policy generally Government policy is to create a balance between the domestic labour market and the skill and assistance which may be acquired from foreign personnel. As such, prospective employers must verify that they would have employed a citizen of Barbados to fill the position if such an individual with the requisite qualifications were available. To satisfy this requirement, it is usual for the proposed employer to place an advertisement in one of the local newspapers searching for an individual from Barbados to fill the position. The proposed employer may also enquire of the public whether there is any substantiated reason for any objection to the employer's intentions to apply for a work permit for a foreign employee. This requirement does not apply to foreign personnel employed by offshore entities. It is usually advisable for prospective foreign personnel to obtain work permits. Although permanent resident status and immigrant status affords the opportunity for the foreign-based individual to work in the Island, this is useful for the person desiring a permanent connection to the Island only, since, in these cases, the individual is taxed similarly to the ordinary Barbadian citizen. Taxation as a non-resident under the Income Tax Act renders only that income derived from within Barbados subject to tax. If the foreign employee is to be employed by an international business company, advantage can be taken of the concessions available under section 12 of the International Business Companies Act. Section 12 provides that where an international business company requires "the services of a specially qualified person so as to carry out its business effectively from within Barbados", and these services are not obtainable outside Barbados without the grant of special tax concessions, the Minister may concede tax benefits to the employee. Such benefits may include: exemption from income tax in Barbados, payment of the salary in a foreign currency in a trust account exempting from taxation both the amount paid or the interest payable thereon, or payment in any other manner in another currency exempt from taxation. Conclusion Work permits are generally granted without much difficulty to foreign employees of offshore entities in recognition of the foreign interests involved in these enterprises. The island proudly boasts several such companies which accommodate the transfer of foreign personnel. Professional service providers are also available locally to facilitate the application processes. Yolande
Bannister, Q.C., is an English-trained barrister and international
lawyer. Formerly legal counsel to the Central Bank of Barbados, she
has been in the forefront of the development and marketing of Barbados
as an international financial centre. She is a member of the Barbados
tax treaty negotiating team and has participated in the negotiation of
a number of bi-lateral investment and tax treaties. Yolande is a
member of the Government-appointed International Financial Services
Advisory Committee, the International Fiscal Association, the International
Tax Planning Association and an associate member of the American Bar Association.
She regularly contributes to a number of international journals on taxation
and trusts.
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