Migration policy - political responsibility (P.168-2005) – amendment

STATES OF JERSEY

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MIGRATION POLICY: POLITICAL RESPONSIBILITY (P.168/2005) – AMENDMENT

Lodged au Greffe on 13th September 2005 by the Deputy of St. Ouen

STATES GREFFE

MIGRATION POLICY: POLITICAL RESPONSIBILITY (P.168/2005) – AMENDMENT ____________

For the words "Policy and Resources" where they appear for the second time substitute the word "Housing" and for the word "Chief" substitute the word "Housing".

DEPUTY OF ST. OUEN

REPORT

The migration policy has been designed as a mechanism to balance economic growth with the demands of the Island's infrastructure especially housing. This is to be achieved by monitoring and regulating the factors that govern immigration within the context of the overall population.

It is recognised that population growth does place increased demands on the infrastructure, especially accommodation. It is therefore imperative that due importance is placed on housing and the overall requirements of the residential population as well as that of business. This has up to now been the remit of the Housing Committee working closely with a number of other departments. It is worth noting that the initial phase of the development of the Migration policy will be operated within the current laws. There is also an opportunity to address a range of inequities which exist due to the lack of synergy between the current Regulation of Undertakings Law and Housing controls. It is proposed to integrate housing consent and the administration of the Regulation of Undertakings and Development Law. In practice this will mean both departments operating from a single office, known as the Population office. This should not only improve efficiency but also reduce bureaucracy creating a one-stop shop. The physical creation of the integrated office is, as Policy and Resources quite rightly point out in their report, a managerial task; however it is also far more than that. The Population office will become the one corporate point of contact for all of the Island's residential population. Furthermore it will be responsible for implementing migration and population policies approved by the States. The aim is to enable employment and accommodation management systems to be brought together. To achieve this there would continue to be a close collaboration between officers of both the Housing and Economic Development Departments. Work is already being carried out to locate officers responsible for the Regulation of Undertakings Law in the Housing Department's building to improve information flow and general administration efficiency. Furthermore it will allow both departments to deliver the new migration mechanisms. However there is also a further objective, that of promoting greater social inclusion in our society. Concerns were raised that migration proposals were focused on economic issues rather than social policy objectives including social housing needs. To allay these concerns we must ensure the relevant checks and balances are put in place.

The States recognised this concern when it adopted the amendment of Deputy Geoff Southern which proposed that political responsibility for the population office should not lie with the Economic Development Committee or the future Minister of Economic Development.

It was recognised that some form of security needed to be provided to ensure a balance between economic growth and the needs of our residential population. Underlying the main objectives of the Migration Policy is the need to create greater equity and social inclusion within our society for all residents.

This is supported by the States Strategic plan which includes the aim to enable a good standard of secure and affordable accommodation for all.

This security is for the most part provided by the Housing committee supported by the 1949 Housing Law and later with the 1970 Housing Regulations. These laws were specifically brought in to strengthen the law following an influx of people in the late sixties.

It therefore follows that with the opportunities presented by the new Migration policy to address many of the inequities that currently exist that Housing retains overall political responsibility in this area. Furthermore with the opportunity to combine the existing RUDL and Housing control in one office it will allow the Housing Committee/Minister to be more effective in delivering other objectives such as balancing the demand for and supply of accommodation. I acknowledge that the Migration Policy encompasses far more than just housing issues. Existing departmental links with the Housing Committee will need to be maintained and strengthened. These include Employment and Social Security, Environment, Health and Social Services Departments as well as Policy and Resources and Education, Sport and Culture.

It is true that the States charged Policy and Resources in consultation with other Committees to bring forward detailed proposals on a migration policy and supporting regulatory systems; however I believe it was never intended that they should become involved in the day-to-day management of the Population Office. Furthermore, the initial work involves the harmonisation of the criteria for employment with that of accommodation. This will ultimately lead to accommodation being linked to access to employment. To achieve this, Housing control must become an accommodation monitoring and regulating system linked to employment status.

The Policy and Resources Committee remit is to be responsible for establishing and coordinating strategic policies and objectives. This is an overseeing role of all policies rather than day-to-day responsibility. This role will be soon be fulfilled by the Chief Minister and the Council of Ministers, of which the Housing Minister will be a part, with scrutiny also playing a part in this process. It is this forum that will ultimately develop the corporate responsibility for the overall policy.

Day-to-day responsibility as now however must rest with the 2  Committees involved, i.e. Housing and Economic Development. It therefore follows that, as the States having determined that political responsibility should not lie with Economic Development for the Population Office, the logical conclusion is that Housing should accept the political responsibility.

Finally it should be noted that as with all policy proposals further detailed operational arrangements will need to be determined including the decision processes by which the policy will be implemented. Political responsibility for the population office is only one of many decisions. A step-by-step approach will ensure all arrangements are introduced in a transparent manner. The process will include consultation at all stages allowing the States to consider each policy proposal on and individual basis. This will ensure that all parties are included in the development of the Migration policy.

There are no additional financial and manpower implications arising from this proposition.

APPENDIX

EXTRACT FROM P.25/2005

(MIGRATION: MONITORING AND REGULATION: SECTION 5)

5. M  ig ration proposals S u m m  ary

T h e  k ey proposals are to –

1. i n te grate the policy for housing consent, monitoring employment and regulation of undertakings and development to simplify and streamline theprocessesinvolved;
2. h a v e onlythree categories of registration –

• t h o s e who are entitled, comprising persons who qualify as local (a-h) under the Housing (General Provisions) (Jersey) Regulations 1970, as amended;

• th o s e  who  become licensed,  either  through  gaining  a

licensed job, including persons who are currently described as (j) category, or (k) category under the 1970 Regulations; and

• t h o s e who are registered-only, equivalent to persons who currently do not qualify under the 1970 Regulations;

w i th  aligned  criteria  for  access  to  both  employment  and

accommodation;

3. l i n k access toaccommodationtoemployment for those who are described as licensed andregistered-onlyin (2) above;
4. c r e ate a register ofthe Island population in the three categories: entitled, licensedorregistered-only;
5. m  o nitor migration and regulate the factors that govern migration through a system of job licensing foremployersand overall control of employment;
6. d e s ignate a single office by July 2005,working with the Housing, Economic  Development, Employment and  Social Security  and Environment and PublicServicesCommittees, to amalgamate the functions  of housing  consent, Regulation of Undertakings and Developmentand Social Security registration;
7. t o c hargethe Policy and ResourcesCommittee, in consultation with the  Economic Development, Housing, Home Affairs  and EmploymentandSocial Security Committees, to bring forward the necessary legal and other measures to give effect totheabove for consideration by the States.

In o u tline, the mechanisms will be as follows –

• A l l residents  (but  not  tourists)  must  be  registered  in  order  to  gain  access  to  employment,

accommodation and some public sector services.

• A ll accommodation will remain classified as controlled, i.e. restricted for purchase or lease by eligible persons, or uncontrolled, i.e. lodgings and staff accommodation, and certain loophole' properties – e.g. inherited property.

• A ll e mployers will be allocated (as part of a regular business planning process) a total manpower quota – consisting of a maximum number of registered-only (equivalent to non-residentially qualified) and licensed (equivalent to (j) category) posts[1], and the total balance made up of entitled employees.

• A l l new residents, after becoming registered, will be able to take up a limited range of employment and can access uncontrolled accommodation – either lodgings or staff accommodation.

• A n y person will be eligible to apply for a job that has been allocated a licence and, on gaining such a job, will be registered as licensed' and shall be able to rent accommodation in the controlled sector.

• A ll p eople who would currently be classified as local (a)-(h) under the Housing Regulations, will be registered as entitled' – and eligible to be appointed to any job and to rent or purchase any property in Jersey.

• It is intended that, as economic circumstances and the availability of housing permit, more licences would be allocated to enable more existing residents to have better access to a range of accommodation.

• I t i s intended, over a number of years, to reduce the period for residential qualification from 15 years towards a policy that all residents will become entitled after 10 year'sresidence.

• T h e States will manage inward migration through regulating overall employment.

• A s i ngle office will amalgamate some of the Housing, Regulation of Undertakings (RUDL) and Social Security registration functions.

• T h e single office, together with the Housing, Economic Development and Environment and Public Services Committees, will seek to balance housing demand and the supply of accommodation.

T h e se proposals are generally similar to those put forward in the consultation paper, although some details

have been revised as necessary in the light of the consultation feedback.

1. I n tegrate the systemsforhousingconsent,monitoringemploymentandregulationofundertakings and developmentto simplify andstreamlinetheprocesses involved

It i s p roposed that, in principle, that there should be greater consistency and alignment between the current

Housing legislation and Regulation of Undertakings and Development Law (RUDL). This would enable increased clarity for the public, and less bureaucracy (for example, standardizing the existing definitions of locally qualified', i.e. currently 5 years' residence for employment/15 years for housing). There is logic in suggesting that an entitlement to employment should go hand-in-hand with access to controlled accommodation.

It i s p roposed that both the Housing consent functions and RUDL will be harmonized and integrated into a

simplified single process, based on a common set of criteria, administered by one office.

C o n s ideration has been given to whether the existing controls could be dismantled entirely and replaced

with  another  system.  It  is  concluded  that  in  the  short  term the  development  of  migration  monitoring  and

regulation systems should be carried out within the existing legal framework. However, in the longer term, it would be better to incorporate the present effective housing and employment controls within a new single system.

T h e n eed to retain some security for the resident population against an open and free market outweighs the

perceived advantages of doing away with controls at this time. However, the housing controls should move towards becoming an accommodation monitoring and regulating system focused on the overall numbers and categories of accommodation, rather than directly regulating individual property transactions. In this way it is intended to remove much of the on-going regulation that currently applies, especially to those who are entitled' residents.

F le x i bility over a period of time could enable the criteria for persons to become entitled' and licensed' to

be modified as the States may decide. This maintains the opportunity for the States to address some of the inequities  of  the existing  systems  and  to  effectively manage migration in future,  depending on  the changing social and economic pressures and demands on the Island's resources.

S te p s will also be taken to reduce the administrative burden on businesses by amalgamating into a single

process the periodic reporting required on employment, i.e. the RUDL manpower returns and Social Security employer's returns.

2. H  ave only three categories of registration –

• t h o s e who are entitled, comprising persons who qualify as local (a)-(h) under the Housing (General Provisions) (Jersey) Regulations 1970, as amended;

• t h o s e who become licensed, either through gaining a licensed job, including persons who are currently described as (j) category, or (k) category under the 1970 Regulations; and

• t h o s e who are registered-only, equivalent to those who currently do not qualify under the 1970 Regulations;

w i th aligned criteria for access to both employment and accommodation.

In s t e ad of the existing 14 Housing categories, it is proposed that a person would be registered within one

of only 3 categories:entitled', licensed' or registered-only'.

T h e c ategory will be determined by a person's birth in Jersey or close family connection with the Island,

and period of residence, employment status or other criteria (as explained below), which will then enable them to access certain accommodation and public sector services.

T h o s e who are born in Jersey or have a close family connection with the Island, i.e. generally parents or

children, would become entitled after 10 years' residence (which need not be continuous). An entitled person would be eligible to take up any employment within the Island and would have access to all accommodation.

T h e m ost significant change considered, apart from the categories themselves, is the possibility of a person

who is initially registered-only' to gain employment in the licensed' category on the basis of appropriate qualifications or experience. This would not depend on the person's period of residence in Jersey (i.e. not as the current 5-year rule' applies under RUDL).

T h e n umber of individuals who would immediately fall into each category can be estimated from the 2001

census data (see Appendix 4). However, the aim is that over a period of time, as circumstances permit, a number of people would in future move from the registered-only' category into the licensed' group.

T h e q uestion of (k)  category housing licences is the subject of a separate review. However, it is intended

that  these  proposals  for licensed' registration  should  include  appropriate  arrangements  for  wealthy immigrants in accordance with the existing States policy and economic objectives.

A t p r esent, a person may gain residential qualification' after 15  years' continuous residence in the Island.

It is hoped in future to gradually reduce this, over a period of years and subject to housing constraints, towards a policy that after 10  years' continuous residence, whether as registered-only' or licensed', a person would be able to re-register as entitled' and may occupy, purchase or lease any accommodation and gain any employment. However, to maintain a balance between the demand for and supply of accommodation, it is clear that it will not be possible to achieve this change immediately.

In s u mmary, the 3 categories could in future be defined as follows –

requirement. residence requirement to become Gradual reduction in residence entitled from 15  years to requirement to become entitled 10  years*.

from 15  years to 10  years*.  C h ild   of a registered-only

person – becomes entitled for housing purposes after

10  years.

*  It   is emphasized that the proposal to move towards a 10-years' continuous residence requirement to become entitled, for all licensed and registered-only people, cannot be achieved immediately and, as circumstances permit, would need to be introduced gradually over a number of years. An indication of the numbers involved is provided in Appendix  6.

T h e a bove classification would help in moving towards a fairer and more effective system for monitoring

and control of migration.

C h il d ren

It i s c onsidered equitable that a child, who is not Jersey-born, of a registered-only person should be treated

(in the same way as a Jersey-born child) as registered-only for accommodation purposes, until they have completed a total of 10  years' continuous residence and then may become individually entitled.

C h i ld ren of a licensed person would, while they remained living with their parent who is in licensed

employment,  be  treated  as  licensed  for  accommodation  purposes  until  they  could  become  licensed through their own employment, or entitled in their own right after 10  years' continuous residence.

F o r employment purposes, providing they become resident before the age of 21  years, a child of any

resident would be entitled to access any job (as soon as they are old enough to go into employment). This would avoid the situation, for example, where a child who comes to Jersey as a teenager with his/her parent(s) would be unable to take up all types or employment, unlike his/her peers.

S p o u ses and partners

A s p ouse or partner of an entitled or licensed person would be classified as entitled for employment

purposes, for the duration of the marriage or relationship. However, the Committee would have discretion to consider granting continuation of that classification in cases of hardship arising, for example, through marriage breakdown.

It s h o uld be noted that, for the purpose of the migration policy, it is proposed that any established partner

relationship would be treated as if it were a marriage relationship.

L o ss of entitlement gained through residence period

A t p r esent, the housing qualifications of Jersey-born persons with 10  years' residence are retained for life;

whilst housing qualifications gained by residence alone or through marriage may be lost after a period of absence  of  5  years.  If  current  policy  continued,  entitlement  gained  through  a  period  of  continuous residence (to be reduced from 15  years to 10  years over a period of time) would similarly be lost after a 5- year absence.

It is proposed that in future, residence entitlement gained by continuous residence might be lost after an

absence equal to the total period of residence – i.e. a minimum absence of 10  years would be permitted, but those who can demonstrate a longer period of residence, in total, would be permitted the longer period of absence before losing their residence entitlement.

3. L ink  access  to accommodation to  employment for  those who are described as licensed and

registered-only

A l l re sidential properties listed on the existing Island-wide land and property index would be classified as

one of only 2 main groups, either:

– u n controlled' accommodation,  i.e.  accommodation  that  all  residents  may  occupy  (typically, lodging houses and staff accommodation);

– c o ntrolled' accommodation, i.e.  all  other accommodation, that only an entitled  person may purchase in their own name; or a licensed person may lease or may occupy through company ownership.

T h e re would be no distinction in future, for example, between (a)-(h) or (a)-(j) housing. However, a sub-

category of controlled accommodation would remain applicable to first-time buyer properties.

A c c e ss to residential accommodation, and some public sector services, will be linked to an individual's

employment category. For example, a licensed person's lease on a controlled property should ordinarily only be for the duration of the employment contract.

It w  o uld be an offence for a person to occupy controlled accommodation to which they were not eligible.

However, as at present, discretion would exist in exceptional circumstances or hardship to grant an extension or period of grace to occupy such accommodation.

E n ti tl ed

T h e e ntitled category will encompass a wide range of persons currently given housing consent under the

existing Housing Law and Regulations, i.e. (a)-(h) categories. Entitled persons will be able to purchase a property in their own name.

L ic e n sed

T h e r ights of licensed individuals to occupy controlled accommodation would depend on employment in a

licensed' post.

A p e rson will, only for the duration of their employment contract in a licensed' post, be able to rent

accommodation that is not available to a registered-only person. Consideration will be given to the appropriate level of employment protection for licensed' employees, and the obligations of the employer regarding the employee's accommodation if a contract was terminated prematurely.

T h o s e who are licensed will be able to progress to purchase property in their own name after 10 years'

residence.

A li c ensed person should also be allowed to occupy and have a financial interest in a property owned by a

company,  either  through  their  employer  or  direct  beneficial  ownership[3],  although  their  occupation should be restricted to the period of their employment and they would have no right to own the property directly until they are entitled, after 10  years. Direct beneficial ownership has previously been available for senior appointments within the public sector, and it is now proposed that, subject to further legal opinion, it would be equitable for this to be extended to the private sector.

R e g is tered-only

T h o s e who have been registered for less than 10  years, and therefore not entitled, and those who are not

employed in a licensed' post, could occupy uncontrolled accommodation, for example lodging houses.

A f te r 10 years, a registered person will be able to progress to entitled status. This would make significant

progress  in  increasing  equity  and  alleviating  social  hardship  for  those  who  are  seeking  to  become

established in Jersey. However, the changes would need to be phased in over a period of years to take into

account the cost implications (for example, if some of the additional numbers who gained entitled status after 10  years would be eligible for rent subsidy).

T h e a bove criteria for access to accommodation linked to employment are illustrated on the next page.

Access to accommodation

Registered

person Ljoicbe?nsed Licensed person Entitled person

10 years residence ?

Occupy Rent No Purchase? uncontrolled

property

Landlord to verify

eligibility Yes (registration card)

Rent

Find property property

No

NOT first-time No

First-time buyer

buyer? property?

Conveyancer to

verify eligibility

(entitled) yes Yes

Occupier to

notify States Purchase office / register property new address

T ra n s itional arrangements

D u r i ng the transitional period, people currently in the Housing Regulations (a)-(h)  category would be

registered as entitled, and existing Housing (j)  category persons would be treated as licensed for the duration of their (j)  category employment. However, it is envisaged that, as soon as possible, the Housing categories would be simplified to the new registration categories.

A t p r esent the ordinary residence requirement for housing qualification' is 15  years; it is suggested that

over a number of years this could be gradually reduced to the same 10-year residence requirement for all. The effect of a reduction in the housing residence requirement on the potential demand for housing is illustrated in Appendix  6. However, not all those who would become eligible to purchase would do so, for personal financial reasons. Whilst this reduction could only be achieved over a time period, in the longer term it would ensure consistency with, for example, a current (j)  category employee.

4. C r eate a register oftheIslandpopulation in the 3  categories – entitled, licensed orregistered-only

• E v e r ybody (including dependants) who wishes to live or work in Jersey will become registered with the States.

• R e g i stration will be much more than a mechanism to count the population – it will be the gateway

into the labour market and the accommodation market in Jersey, giving the individual rights and access to certain public sector services in return for the responsibility of providing accurate information.

• R  e g istration will be worthwhile and valuable to the individual and therefore proof of identity would be a necessary part of the registration process.

• T h e States will provide each individual with unique evidence of registration which will have to be presented when accessing public services, employment opportunities and accommodation.

D e v e lopment of a register

L e g is lation would be necessary to define the circumstances and categories in which people should register,

to set out evidence for registration and the information that might be contained on a register. The basic concept would be for a once-only registration process with individual information being amended as necessary (e.g. marriage, address change etc). The link between the individual, the information and any evidence of registration would be a unique number.

U s i n g the unique number also allows for monitoring to take place through social security contribution

returns, which have the only link between individuals and their employers through this unique number. There is no other system that links employers to employees, and vice versa.

T h e unique registration number would also provide a link between the population register and other,

confidential, departmental databases to enable more streamlined and effective administration of information throughout the public sector whilst protecting the privacy of individuals.

T o m aintain an accurate register, it would be necessary to provide a facility to individuals, except those

who are classified as entitled, to notify the States whenever they changed jobs or residential accommodation, incorporate information derived from births, marriage and deaths registration and to up- date the register periodically by removing non-active records, i.e. those who had left the Island.

I t is likely that registration could provide wider benefits for residents, beyond the original purpose of

monitoring migration, including providing evidence of identity and streamlining the process for members of the public giving basic name and address information. For those who wish to, this could be helpful in interaction with States departments – for example, receiving health care, education or social security benefits, voting or paying income tax.

H o w  ever, it will be necessary to remove an individual's registration when there is good reason to believe

they are no longer resident in Jersey. Experience elsewhere indicates that systems are able to ensure the register could be maintained with a reasonably high level of accuracy.

M o n i toring employment

In s im ple terms, the registration system is reliant on employers being authorised through the Regulation of

Undertakings legislation and their manpower quota being defined both totally and into different employee/resident categories. Self-employed people would be similarly authorised.

In d i v iduals, both employed and non-employed, would need to register when they arrived in Jersey in order

to get a job or accommodation, but their employee categorisation would be determined by their employer, who would be required to inform the States. For example:

– a n i ndividual would first register before finding a job and have a unique number allocated prior to taking up employment. They could then remain registered-only or, if they were successful in gaining a licensed position, might become licensed through their employment and the employer would notify the States to amend their registration categorisation accordingly;

– o r th e employee categorisation would be determined by the employer before the individual comes to Jersey, prior to the start of any contract of employment. The employer would then need to notify the States to have the employee registered in the appropriate category.

O b v i ously, those people who are Jersey-born, have a close family connection or can demonstrate 10  years'

continuous residence would be categorised as entitled.

M o n i toring accommodation

T h e r egistration system would also use a classification of addresses to monitor occupation of property, for

example based on the existing Island-wide land and property database.

A c o mplete list of all addresses in Jersey is already available. Every address would need to be classified

(e.g.  controlled,  first-time  buyer)  and  so  allow  registration  information  about  categories  of employee/resident and accommodation to be collated against declared addresses.

A l l c hanges of accommodation would be notified to the States, and the property classification would then

be checked against registered status – i.e. registered-only, licensed or entitled – to verify eligibility to occupy the property. A lodger in a private home, however, would be eligible to stay at the property by evidence of an entitled or licensed person also in occupation at the same address.

S et t in g up the register

R e c o gnising the importance of the interaction between employer, employee and the States which is

uniquely captured in the Social Security contribution system, there is a potential to use existing systems in accordance with strict data protection requirements, suitably amended to monitor the labour market and therefore, in some part, population. A new social security system will be implemented in January 2005 which builds on the existing databases that hold employer and individual information separately but linked through a unique number.

P r e li minary investigations have shown that the requirements of the Regulation of Undertakings and

Developments Law are almost completely met by the information on Social Security employers. A few additional pieces of information added to the employer record and the individual record would allow employee  categorisation  to  be  monitored  through  contribution  returns.  A  review  of  the  process  of registration for both employers and individuals would be a worthwhile exercise to see if an existing system can be adapted to fit to the satisfaction of all parties, including Data Protection. A schematic of a potential registration and monitoring system is contained in Appendix 1.

M o r e efficient government

I t i s also envisaged that the register should be the single population index, with a facility for each

individual to notify the States when the details change – for example, so that relevant States departments will be aware when a person changes address. Address details would also link with the existing database of property (i.e. classified as controlled' property, or uncontrolled' registered lodging houses and staff accommodation) to ensure that a person is occupying accommodation that they are permitted to.

It i s e vident that there are significant data protection issues arising. The kind of contact information to be held would be: name, address, date and place of birth, gender, residence status and a unique reference number. Importantly, the register would only provide a core set of information, and it would not be possible for one States department to access the records held by another department unless this was

specifically authorised, or otherwise in accordance with Data Protection legislation.

It i s c onsidered, however, that this proposal will have enormous potential as a basis for sharing basic, non-

sensitive information, streamlining the administration of public services in Jersey and generating significant benefits and convenience for all the residents of the Island.

T h e Data Protection implications of these proposals require further detailed consideration, involving the

advice of the Jersey Data Protection Registrar. However, it has been agreed that the arrangements will be reviewed in collaboration with the Registrar to ensure they are fully compliant with the existing Data Protection principles and legislation, including relevant safeguards to prevent the misuse of information.

T h e s e population registration arrangements are similar to those being proposed in a number of other

jurisdictions, for example –

• t h e U nited Kingdom as part of the Citizen Information Project[4] led by the Office for National Statistics;

• t h e Government of Ireland in the Reach' project[5] to develop a strategy for the integration of public services and e-government;

• G u e rnsey, who have a working group looking at the possibility of a Central Citizen Database (CCDOG).

A l l t hese projects are dealing with similar issues relating to data protection and citizens' rights, whilst promoting improved information about the overall population and better access to public services.

5. M  onitormigrationand regulate the factors thatgovernmigrationthrough a systemof job licensing for employers and overallcontrolofemployment

T h e proposed system of job licensing is derived from the existing RUDL and Housing Law, but these

disconnected arrangements will be superseded by a more integrated approach, using the same criteria for both housing and employment purposes and administered by a single office.

A p o licy should be agreed on the allocation of licences that is consistent with the States strategic plan, the

economic growth strategy and the available residential accommodation. It is proposed that licences should normally only be allocated to employers who make a significant contribution to the Island, either socially or economically, and when there are insufficient entitled residents who are suitably qualified, experienced or skilled to fill the posts.

U n d e r the existing RUDL[6], overall employment within the Island will be controlled and, in agreement

with individual employers through 3-year business plans, an approved number of licences, registered-only and entitled employees will be allocated to each business. This involves considering individual undertakings' business objectives and reaching agreement on staffing establishments for a future period (generally 3 years) in accordance with States objectives.

T h e licence allocations and number of non-licensed employees would be adjusted by negotiation

depending on, for example, business development opportunities, the economy or housing supply.

A n a greed number of licences would be allocated to specific businesses (not individuals or specific jobs),

and must only be used by that business; they cannot be retained by an individual when that person leaves the job, and they cannot be traded between businesses. Any unused licences could be re-deployed by the business to another employee, or would be withdrawn and may be re-allocated to another business.

B u s in esses would have the freedom to make appropriate employment decisions about individuals within States policy and subject to appropriate employment protection for existing employees. It will be important that new employment protection legislation is in force, for example to ensure that employment

of an existing licensed' person could not be terminated unfairly prior to completion of the employment contract

[7]. An employee who has been employed in a job that has been allocated a licence would have a right to remain registered as licensed' for the duration of the contract.

It is believed these proposals will provide additional flexibility to operate without excessive government

interference, in an environment that is more attractive to businesses and fairer to employees, yet within strictly managed overall States manpower controls and population policies.

S ta t is tics gathered on the employment market will also assist by providing information on how many posts

are vacant, any particular skills needed in the short to medium term, and by using such information to shape future local training programmes and migration policy.

I t i s recognised that it is the employment market which has the greatest direct effect on inward (and

outward) migration and must remain at the forefront of the Island's attempts to monitor and, as necessary control, population.

T h e mechanisms for the Regulation of Undertakings and Development (Jersey) Law should cover all

businesses within the Island. Self-employed individuals would, as at present, seek consent to establish a new undertaking, and all new businesses will need to apply for a permit to commence trading.

I t i s proposed, in effect, to harmonise the Housing Regulations and the RUDL 5-year rule' which

currently allows all those who have been resident for over 5 years to take up any employment. In future, only those who are entitled, after 10 years' residence, will be allowed to take up all types of employment. Those who had been resident for less than 10 years will be permitted to take up a job available to those who are registered-only or seek a job that has been allocated a licence.

T h e transitional arrangements described below ensure that nobody who is currently employed would be

disadvantaged by this change.

M o n i toring

M o n itoring compliance will be achieved by quarterly employers' returns to the States, comprising an

amalgamation of the existing Social Security and RUDL returns. The regulatory impact of the reporting requirements is likely to be less than the existing returns, and by amalgamating the reporting and enabling electronic submissions, it is proposed to reduce the burden on businesses.

Im  p a ct on employment

T h e o verall effects of the proposals on the employment market are illustrated below.

Employ ment Em ployment m arket pool –

Resident population Entitled

employ ment

Unemployed Harmonise

and RUDL 5 year

school leavers / rule to 10 years

post further

education Licensed

employ ment

Additional Retirements Inw ard migrants licenses

issued and

Registered-only Outw ard

employ ment migration Seasonal

workers

Vacancies Economic grow th

T h e diagram represents the dynamic effects of the migration proposals on overall employment within

Jersey.  Recruitment  of  school  leavers  inputs  into  any  of  the  3  categories  of  employees  within  the employment pools – entitled employees, licensed employment and registered-only employment; inward migrants input into licensed employment or registered-only employment; whilst seasonal workers pass through the registered-only pool.

W o  rk ers leave all 3 employment pools by retirement or outward migration which, together with economic

growth,  will  create  vacancies  to  provide  employment  opportunities  for  existing  residents.  Where permitted under the business planning process, additional registered-only and licensed employment may be allocated where there is no existing local recruitment opportunity.

T h e p roposal to reduce the residence requirement to become entitled, from 15  years to 10  years, will no

increase the number of people eligible to take up any employment as these people could already be engaged under the current RUDL 5-year rule'.

T h e a llocation of additional licenses to businesses, in line with the Island's economic needs, will move a

number of individuals from registered-only employment into licensed employment, and so increase the number of employees in the licensed pool.

H o w  ever the effect of progressively harmonising the RUDL 5-year rule' with the 10-year entitlement

requirement  (as  discussed  below)  has  an  opposite  effect.  Over  a  period  of  years,  the  residence requirement for entitled employment would increase from 5  years to 10  years, which will reduce th number of employees eligible to take up any job.

T h i s reduction in the entitled employment pool will not affect eligibility for entitled accommodation

which will become harmonised at 10 years. T ra n s itional arrangements

H ar m onising the criteria for employment with those for accommodation, a person who is currently

permitted under the RUDL 5-year rule' to take up any employment after 5 years' residence, would in future be restricted to licensed or registered-only employment until they become entitled after 10 years.

H o w  ever, this change would be balanced by the greater flexibility available for any person, regardless of

their period of residence, to apply for a job that has been allocated a license.

In o r der to ensure nobody would be disadvantaged by this change, it would be necessary to freeze the 5-

year rule' so that a set date (5 years previous) would determine those who were entitled to access any employment. Thus, the residence period to access any employment would be increased over a period of 5 years, until this reached 10 years (the same as the entitled housing criterion). Thereafter, access to any employment would remain harmonised with the entitled housing category.

S o , for example, an existing resident person who has already been in Jersey for 5 years and has

employment in accordance with the RUDL 5-year rule' could remain eligible for any such employment, and could then become fully entitled after 10 years' residence. However, from a certain date, a person who had not been resident for 5 years would remain eligible only to seek licensed or registered-only employment, even when they subsequently gain 5-9 years' residence, until they become entitled after 10 years' residence.