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Seasonal Workers and the Rural Economy (S.R.5/2022): response of the Minister for Home Affairs

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STATES OF JERSEY

SEASONAL WORKERS AND THE RURAL ECONOMY (S.R.5/2022): RESPONSE OF THE MINISTER FOR HOME AFFAIRS

Presented to the States on 6th May 2022 by the Minister for Home Affairs

STATES GREFFE

2022  S.R.5 Res.

SEASONAL WORKERS AND THE RURAL ECONOMY (S.R.5/2022): RESPONSE OF THE MINISTER FOR HOME AFFAIRS

Ministerial Response to:  S.R.5/2022 Ministerial Response required  6th May 2022

by:

Review title:  Seasonal Workers and the Rural Economy Scrutiny Panel:  Economic and International Affairs Scrutiny

Panel

INTRODUCTION

The impact of the UK's decision to leave the European Union (the EU) has been extensive and significant, not least in regard to the movement of people. As of the 1 January 2021, it is no longer possible for those with EU nationality to move to Jersey for the purposes of work or settlement without obtaining an immigration permission in advance. It is acknowledged that there have been significant consequences arising from this for Jersey businesses who have previously relied upon the ease of acquiring seasonal workers from Europe. This affects businesses across several sectors, including the hospitality sector, construction sector and the agricultural sector.

The Work Permit Policy was amended and published in January 2021 in response to the anticipated  need  for  a  much  greater  volume  of  workers  who  would  require  an immigration  permission  to  work  in  the  Island,  in  wider  range  of  vocations  than previously provided for. The amended WPP provided for both long term skilled routes, which were designed to potentially lead to settlement, and temporary routes which would provide a temporary labour source for the Island.

Temporary routes were made available initially to those working in the agriculture, fishing and hospitality industries. These routes enabled employees to work in Jersey in one of the specified industries for a limited period (9 months) which would have to be followed by a period of absence from the island.

The WPP provides that, where a role does not fall within the scope of the Policy, submissions can be made for the consideration of the Minister for Home Affairs for amendments or exceptions to the policy. The Policy is therefore evolving in line with such submissions. It is noted that since the introduction of the 9 month agricultural route neither  JCIS  nor  the  Minister  have  received  any  further  submission  from  Jersey Hospitality Association (JHA) or Jersey Royal.

It should also be noted that, at the time of the Panel's Review, the new Work Permit Policy has been in operation for less than two full years, and during only one summer season. It is considered that there is not yet sufficient experience of, or data about, the operation of the work permit policy in the post-Brexit and post-Covid climate to consider making fundamental changes at this point.

As a member of the Common Travel Area (CTA), Jersey has a responsibility to uphold an equally robust immigration control as the rest of the CTA. It should be noted in that context that Jersey's offering with regard to temporary work permit routes already goes beyond that which is offered by the United Kingdom. There is a very careful balance to be struck in this regard, Jersey must adhere to its responsibilities as a member of the CTA and seek to minimise deviation from the immigration policies of the UK, but equally it is acknowledged that the needs of the local labour market in Jersey do differ from the UK and our immigration policies must be responsive to this.

It is acknowledged that the impacts of Brexit, and the unprecedented global pandemic, as well as a changing economic context, have created significant challenges for the industry. However, it is not considered that the recommendations the Panel have made are the appropriate ways to address these issues at the present time.

FINDINGS

 

 

Findings

Comments

1

Work permits are a legal requirement for persons who do not have a right of abode in Jersey under the Immigration (Work Permit) (Jersey) Rules 1995 and the application must be made by the person wishing to employ the entrant.

Noted.

2

The Work Permit Policy sets out the rules to which employers must adhere when  employing  seasonal  and temporary  workers.   The  policy document  shows  the  main  routes  to employers  for  employing  migrant workers.

Noted.

3

The employer is also required to meet the  requirements  of  the  Control  of Housing and Work (Jersey) Law 2012 and  hold  the  requisite  registered  or licensed permission if the person does not hold Entitled or Entitled for Work status.

 

4

The Panel heard from employers that the  Jersey  Immigration  office  was considered  efficient,  helpful  and responsive.

Noted.

5

The Panel heard from key stakeholders that,  at  times,  delays  to  work  visas issued in the UK happened without any explanation. In addition, there was no direct contact for the Jersey employer to

Noted. UK employers equally have no means by which they can contact UK Visa & Immigration service to discuss the status of a visa.

 

 

Findings

Comments

 

contact the UK Immigration Service to discuss the status of visa applications.

 

6

Discussions  were  in  place  to  bring certain aspects of the visa processing service to Jersey. This was viewed as welcome news to the Panel as it could speed  up  and  streamline  part  of  the application process.

All working visas for those coming to Jersey are referred to JCIS from the UK already. However, before the end of 2022 this process will speed up as these referrals will happen much earlier in the UK's process.

7

The Panel calculates combined fees for each  employee  prior  to  commencing employment  could  be  in  excess  of £1900.

The employer pays fees to JCIS for a 9 month work permit of £115

The employee pays for a 9 month visa to the UK of £244

Social security card (if not already issued in a previous year) is £80

There may be travel costs but these are not fees charged by a government body, it is an employer's choice where they wish to source their labour from

8

There was no increase in the offset for accommodation  in  2022  despite  the minimum  wage  increasing  by  almost 11%. The figure remained at £91 per week despite the increase in salary

 

9

The Minister for Social Security did not ask the Employment Forum to consult on the levels of the minimum wage and offsets for 2022 and instead, carried out her  own  assessment.  This  was reportedly  due  to  the  Covid-19 pandemic  and  the  States  Assembly agreed  to  allow  the  Minister  to  use Covid-19  emergency  powers  to override  the  provisions  of  the Employment  Law,  which  ordinarily require the Forum to consult.

 

10

Both the Jersey Farmers' Union and the Jersey  Royal  Company  expressed disappointment  that  the  offset  in accommodation  had  not  increased  in line with the minimum wage in 2022 as it  had  done  year  on  year  since  the minimum wage was introduced.

 

 

 

Findings

Comments

11

The Panel was informed that, to make Jersey attractive to seasonal workers, certain facilities had to be offered in addition to subsidised accommodation, which included transport to and from work and use of the company vehicles.

 

12

The  Minister  for  Social  Security informed  the  Panel  that  she  had  no plans  in  the  final  months  of  this Government's term to alter the current offset rates; however, going forward, in the next few months the Employment Forum will be asked to consider the appropriate level of both the minimum wage and offset rates for 2023.

 

13

Anyone coming to work in Jersey is not entitled to social security benefits for the  first  6  months  of  employment. Seasonal workers who return year on year are not entitled to social security benefits  for  the  first  6  months  of employment  in  their  returning  year. Private  health  insurance  is  regularly taken out by the employer to cover this period at a cost of approximately £150 per person.

 

14

Currently, any new worker to the Island is not entitled to Health and Community Care costs for their first 6 months on the Island. The Panel is pleased to note that the  Minister  for  Health  and  Social Services is in the process of bringing revised  rules  forward  to  the  existing policy which will provide that returning workers may access free health care on their return to the Island if they had lived and worked in Jersey for at least six  months  continuously  during  the three  years  immediately  prior  to  the date of the required treatment.

 

RECOMMENDATIONS

 

 

Recommendations

To

Accept/ Reject

Comments

Target date of action/

completion

1

The  Minister  for  Home Affairs  should  instruct officers  to  urgently review the Work Permit Policy  document  to  set some  flexibility  within the  seasonal  and temporary  work  permit arrangements  to  align with the business need. It is acknowledged that this work  may  need  to  be revisited as and when the secondary legislation and regulations  for  the amended  Control  of Housing and Work Law are proposed by a future Council of Ministers.

MH A

Reject

This  recommendation  is  not  very specific.

The  Work  Permit  Policy  is  a  live document and constantly being reviewed following submissions from employers. However, since the introduction of the 9 month  agricultural  route  neither  JCIS nor  the  Minister  have  received  any further submission from JHA or Jersey Royal.

N/A

2

The  Minister  for  Home Affairs should establish a direct line of contact with the  UK  Immigration Services  to  ensure employers can receive an update  on  the  status  of delayed  visas.   The contact  should  be between  Jersey Immigration Officers and the  UK  Immigration Officers  only  and  not Jersey  employers.   This should  be  carried  out within  6  months  of presentation  of  this report.

MH A

Reject

JCIS already has access to UK visa data, however visa applications are made by the employee and data protection will only allow information to be provided to the applicant. There is no ability for UK Visa  &  Immigration  service  to  notify JCIS for any delayed visa applications. Equally UK employers do not receive information  concerning  the  status  of their employees' visa applications.

N/A

3

The  Minister  for  Home Affairs should ensure that provided  there  are  no changes to the application from  the  previous  year, the  work  permit  fee  of £115 be waived for each

MH A

Reject

As there is no reduced level of scrutiny or checks' conducted by JCIS on repeat work  permit  applications  there  is  no justification to reduce or remove the cost for  consecutive  work  permit applications.

N/A

 

 

Recommendations

To

Accept/ Reject

Comments

Target date of action/

completion

 

consecutively  returning employee  to  help  bring the costs of employment down. This  should  be implemented  within  6 months of presenting this report.

 

 

 

 

4

The  Minister  for  Social Security should increase the  offset  in accommodation  rates  in line  with  that  of  the minimum wage for 2022. This  would  align  with what  has  been implemented year on year in the past and should be applied without delay.

 

 

 

 

5

The  Minister  for  Social Security  should implement  a  system whereby  seasonal workers  who  return following  a  previous, consecutive  9-month contract  of  employment can freeze social security payments  for  the  3 months  they  are  off- island.   The  employee should  then  be  able  to unfreeze  these  on  their return the following year and  have  access  to  the social  security  system. This should be a legacy from  the  existing Minister to the incoming Minister  following  the end of this term of office.