HSM

HSM LAW

02/04/2025 | hsmoffice

Kerrie Cox Rejoins HSM Partnership, Bringing New Expertise

The HSM Group is pleased to announce that Kerrie Cox has rejoined HSM Chambers as a Partner to lead the firm’s Litigation and Insolvency practice. Kerrie practiced as a Barrister in the UK for over 12 years, before being admitted Read more +

17/03/2025 | hsmoffice

HSM Recognised as a Chamber Champion for 2024 Sponsorship

HSM is proud to be recognised again as a Chamber Champion Advocate at the Cayman Islands Chamber of Commerce Annual General Meeting on 12 March 2025 at Hotel Indigo Grand Cayman. For the fifth year in a row, HSM’s recognition Read more +

28/02/2025 | hsmoffice

UK Privy Council Considers a Declaration of Incompatibility Regarding the Cayman Islands’ Immigration Act

On 3 February 2025, the Privy Council in London considered a Declaration of Incompatibility made by the Cayman Islands Court of Appeal in respect to Section 37 (3) of the Immigration (Transition) Act (2021 Revision). This section of the Act Read more +

17/02/2025 | hsmoffice

Chambers and Partners Features HSM Group in Global Legal Guide 2025

The HSM Group is pleased to be featured by Chambers & Partners in their 2025 Global Legal Guide. Our Intellectual property practice, HSM IP, has once again been ranked as a top tier law firm in their Global (Caribbean-Wide) Intellectual Read more +

Cayman Islands Immigration Update - May 2024

The time to have status applications determined has dropped dramatically from nearly two years in March 2024 to now one year, although we have a few applications filed more than one year ago still outstanding.

Indian Nationals are now the third largest group of permit holders having just overtaken the UK Nationals. The two largest nationalities of permit holders are still Jamaican and Filipino.

Indians on the Move

As of 18 April 2024, there were 37,437 work permits in effect. That is an increase of 465 since 12 March 2024. There are now more work permits held by Indian Nationals than UK Nationals. As at 18 April 2024, the top five nationalities and the number of work permits they hold are:

  • Jamaican Nationals hold 15,519 work permits which is 41% of the total work permits held.
  • Filipino Nationals hold 6,323 work permits which is 16.8% of the total work permits held.
  • Indian Nationals hold 2,078 work permits which is 5.55% of the total work permits held.
  • UK Nationals hold 2,057 work permits which is 5.49% of the total work permits held.
  • Canadians hold 1,217 work permits which is 3.25% of the total work permits held.

It has long been expected that Indian Nationals would overtake UK Nationals and become the third largest work permit nationality in the Cayman Islands. However, their growth in permits might surprise some people. As of 30 September 2015, there were 893 work permits held by Indian Nationals (which was 4% of the total number of work permits) and 1,845 work permits held by UK Nationals (which was 8% of total work permits). In the period of less than 9 years while both total figures have increased, the proportion of work permits held by Indian Nationals has increased while the proportion of work permits held by UK Nationals has decreased.

With economic trends the way that they are, and the increasing economic power of Asia it is expected that the current trend is likely to continue.

Remember when applying for Permanent Residency your nationality affects the points you can claim. If your nationality holds over 10% of work permits held then no points (0) will be given; over 5%, five points will be given; and under 5%, ten points will be given.

Caymanian Status and Permanent Residency Board

Starting in March 2024, we have seen a dramatic increase in the Right to be Caymanian (“RTBC”) applications being determined. It seems that the Board are determined to clear the current back log and ensure that what had become potentially an unlawful situation will no longer exist and those who apply for the RTBC will now not have to wait, in some cases, close to 2 years for their applications to be determined.

In March 2024, 327 applications for the various types of RTBC were determined of which:

  • 98 applications based upon Naturalisation were concluded.
  • 21 applications based upon marriage were concluded.

In the first half of April 2024, 220 applications for the RTBC were determined of which 111 applications based upon the Naturalisation were concluded.

As at 18 April 2024, the two largest groups of outstanding RTBC applications are as follows:

  • 422 applications based upon Naturalisation.
  • 251 applications based upon marriage.

In total there are 867 applications outstanding relating to all the various different types of RTBC applications.

It is expected that if the Board keep up their current pace the back log will be reduced dramatically and those people waiting for RTBC’s to be concluded will not be waiting as long as they currently are.

By way of a comparison in March 2024, 18 people applied for the RTBC on the basis of Naturalisation and 10 people applied on the basis of marriage. Therefore, the Board’s actions in March can be seen as them getting impressively “ahead of the curve”.

This is a dramatic increase in the processing and concluding of these applications and would appear that it can only be down to the hard work and dedication of the Caymanian Status and Permanent Residency Board.

It also appears that the Administrators at Workforce Opportunities & Residency Cayman (“WORC”) are busy as well. In March 2024:

  • They concluded 61 applications for a Residency and Employment Rights Certificate (“RERC”) based upon marriage to a RERC holder or being the Dependant of a RERC holder.
  • They concluded 71 applications for a RERC based upon the Points system.
  • They concluded 48 applications for a RERC based upon marriage to a Caymanian.

What this means is that across the board we are seeing a decrease in the processing time for applications for RERCs and the RTBC. Our best guess today (based on the determination of applications filed by HSM and the above statistics) is that a status application will now take about one year to be determined. In February 2024 we had applications for status that had been waiting two years.

Legal Update

The unintended consequence of the number of RTBCs on the basis of Naturalisation being concluded has exposed an issue in the Law which HSM have raised in the past with the Department but which has not been dealt with. Those of you who have been granted the RTBC recently (congratulations!) will have noted that the Department are saying that you have 45 days to ensure that any individual who is a dependent of yours has made an appropriate immigration application going forward. Most notably this affects the Spouses of those who obtained the RTBC, if they hold a RERC on the basis of their marriage to a PR holder, or are a dependent of an individual who obtained the RTBC and the children of those individuals.

The Department’s position is this:

  • With the Primary RERC holder obtaining the RTBC, those people who held, a RERC on the basis of marriage or who were dependents of the primary RERC holder no longer have an immigration permission in the Cayman Islands.
  • The Department hold this position because they say that the Primary RERC holder who has obtained the RTBC no longer is a RERC holder and therefore any immigration status based upon them being a RERC holder is void.
  • The Department therefore provide 45 days for those individuals affected to apply for alternative immigration permissions which could include:
    • Applying for the RTBC on the basis of marriage.
    • Applying for the RTBC on the basis of naturalisation.
    • Applying for a RERC pursuant to Section 38 or 39 of the Immigration (Transition) Act (2022 Revision).

Sadly, because all of the above applications can take many months to conclude the exact legal position of those affected is unclear. This is especially true as the 45 day window which the Department have provided is not set out in Statute and appears to be a creation of an unpublished policy of the Department. Unlike those individuals who are awaiting a work permit renewal to be granted and therefore who are Working by Operation of Law (“WOL”) or those who are awaiting a PR application being granted and have either a PCW or a Section 66 (10) or (11) work permit, the people who are having to apply within these 45 day window have no clear immigration status as set out in Law.

A possible solution to this issue (absent of legislative change) would be for the Department to link applications made by family members and permit certain applications to be made ahead of time, but only if the Primary RERC holder has applied for the RTBC. One could envisage a situation where the primary RERC holder applies for the RTBC and at the same time, their Spouse who holds a RERC as the Spouse of a RERC holder, is permitted to provisionally apply for a RERC as the spouse of a Caymanian and the children be permitted to apply for the RTBC on the basis of entitlement, i.e. they have a Caymanian parent. In affect a “family application or applications”.

The secondary applications would obviously be dependent upon the primary application being granted and would only be considered at the point of time that the primary application was granted. However, by linking all applications together, the Department could consider all family applications at the same time not spread out over many meetings (and in some cases months) and those applications which should be granted are granted and those which are to be rejected are rejected. This would have the benefit that family members who will be granted their applications are not held in a legal limbo where their status is not clear and those whose applications are to be rejected can proceed with the relevant appeal process.

In the coming months, this is one of many suggestions HSM are planning to suggest to WORC in a way which we believe will make the system more efficient and user friendly.