Industry leaders have welcomed plans to crack down on work permit abuses but said the immigration department must also speed up its services.

Jason Hayward, the Minister of Economy and Labour, announced a zero-tolerance approach to violations of its rules this week.

He said that existing regulations, such as stiff penalties for organisations that submit late work permit applications and the refusal of appeals submitted late, would be rigorously enforced.

Stephen Todd, the chairman of the Bermuda Hotel Association, told The Royal Gazette that his membership base “strictly adheres” to standing policies with respect to timely submissions — but delays still occurred after submission.

He added: “Although we have seen and benefited from some improvements in the work permit process, the inconsistency of timely processing remains.

“There continues to be a high reliance on employers having to provide hard-copy documents rather than being able to submit them electronically along the lines of the long-promised and eagerly awaited full automation of the work permit process.

“As an example, after confirmation of a given work permit approval by the Department of Immigration, there remain delays in the printing and availability of the work permit document itself, which adversely impacts both the employee and the employer.

“We are appreciative of the fact that the immigration board has helped to improve the overall approval process.

“However, it is the initial review and approval process at the operational end that must be streamlined and improved.”

Marico Thomas, the president of the Bermuda Chamber of Commerce, said the chamber was “fully supportive” of efforts to improve the immigration system and create greater accountability.

However, he added: “These goals must be balanced with fairness, operational reality and the critical need to attract and retain talent.

“Bermuda’s future depends on it.

“As we all know, Bermuda’s labour market is already under considerable pressure. I spoke with senior government officials who are indicating that unemployment in Bermuda is under 2 per cent, nearly all available workers are already employed, and talent is in short supply across the local, international business and government sectors. Even the Department of Immigration is likely experiencing staffing constraints, which can impact processing times.”

The 2023 Labour Force Survey Report showed that unemployment stood at 2.8 per cent in Bermuda. However, it also reported that the island’s youth unemployment rate, measured in the 16 to 24 age bracket, was 13.5 per cent.

Mr Thomas added: “We also note the minister’s own acknowledgement that Bermuda needs an additional 8,000 workers to sustain long-term growth, support pensions and healthcare systems, and strengthen the economy overall.

“This reality underscores the need for immigration policies that encourage compliance but also facilitate access to talent, support economic progress and respect human dignity.”

Both Mr Thomas and Mr Todd said the Government should act with caution on measures to bar guest workers from working in Bermuda owing to compliance violations that were the responsibility of their employers.

Mr Thomas said: “If the responsibility lies with the employer to submit a timely and accurate application, why should a guest worker bear the consequences of that failure? It’s a fair and pressing concern.

“The chamber strongly believes that guest workers who have acted in good faith should not be penalised for administrative errors or delays that are outside of their control.”

Mr Todd added: “It is punitive and irresponsible for the guest worker to be penalised for the failure of their employer to act on a timely basis on their behalf. The onus remains on the part of the employer to act responsibly at all times.”

Asked about guest workers whose employers were not abiding by the law, Mr Thomas said: “I would advise them to seek immediate clarification from their employer and request written confirmation of the application’s status.

“If doubt remains, they should reach out directly to the Department of Immigration or a trusted representative body for guidance.

“The chamber also supports the establishment of a formal communication or advisory mechanism for guest workers, giving them a neutral and informed place to turn when questions arise about their status or employer responsibilities.”

In the summer of 2023, the digitisation of the work-permit application process was hindered after a $112,000 system failed to operate.

Mr Todd said a digitised system should be made a priority.

“Significant advancement in developing and fully implementing a streamlined and automated solution to work permit processing is urgently required, that in turn eliminates, or at a bare minimum reduces, the current reliance of submitting hard copy documents that can be misplaced.

“This often results in the requirement for a re-submission of the application, which further delays the approval process.

“Ideally, with an increased level of automated submissions and appropriate staffing levels, we believe that the entire process should be completed within a maximum of four weeks, if not sooner.”

Last night, Mr Hayward clarified the rules.

“Regardless of who submits the application, the Act explicitly prohibits any person from engaging in gainful employment without having received the appropriate permission,” he said.

“As such, it is possible for a guest worker to be barred from working in Bermuda, even where the employer was responsible for submitting the application. The legal framework in this regard is unambiguous.

“The ministry encourages all guest workers to be aware of the expiry date of their work permit and to engage in open and transparent communication with their employers.”

Mr Hayward said penalties varied according to the nature of the offence and the duration of work outside of permission.

Barring people from work on the island was said to differ on a case-by-case basis, with those affected advised of the conditions for entry and re-employment in Bermuda.

Mr Hayward said the average turnaround time for processing a complete application was “deemed” to be 20 working days but was “usually closer to 30 working days”.

He said procedure was consistently reviewed to improve efficiency, and that employers were well aware of their obligations under the 2017 Work Permit Policy.

“Yet, too many continue to submit late applications and allow individuals to work unlawfully. This is not acceptable.”

He added: “A zero-tolerance policy is now in effect, and penalties will be applied without exception.”

Mr Hayward revealed that the department was working to digitise its services with the help of a “preferred vendor”, with a formal proposal for a document management identity system expected by June.

He added: “The initial phase of this effort will prioritise the digitalisation of work permit applications.”

Mr Hayward said cutting processing times to below three weeks depended on the digital system coming online.

“In the absence of that system, the target has not been achieved and specific figures are therefore not available at this time.”