Transitional Worker Classification Established in Northern Mariana Islands

U.S. Citizenship and Immigration Services (USCIS) has published a final rule establishing a Transitional Worker (CW) classification for workers in the Commonwealth of the Northern Mariana Islands (CNMI). The CW classification will allow CNMI employers to hire nonimmigrant workers who are otherwise ineligible to work. In Fiscal Year 2012 (October 1, 2011 to September 30, 2012), 22,416 CW visas will be available, and the number of available visas will decrease each year. The visa will not permit the holder to travel or work in any other part of the United States, except for nationals of the Philippines who may, via the Guam airport, travel between the CNMI and the Philippines.

As noted by USCIS in its announcement regarding the program, a foreign worker may be eligible for CW status if he or she is:

  • ineligible for a nonimmigrant or immigrant classification under the Immigration and Nationality Act;
  • entering or staying in the CNMI to work as a needed foreign national worker to supplement the resident workforce;
  • the beneficiary of a petition filed by a legitimate employer who is doing business in the CNMI;
  • not present in the United States, other than the CNMI;
  • lawfully present in the CNMI or, if not present, intending to enter the CNMI with a visa; and
  • admissible to the United States or is granted any necessary waiver of a ground of inadmissibility.

Moreover, an employer may be eligible to petition for a CW worker if it:

  • is conducting a legitimate business, as defined in the final rule;
  • has considered all available U.S. workers for the position;
  • offers terms and conditions of employment consistent with the nature of their business in the CNMI;
  • complies with federal and CNMI employment requirements;
  • files a Form I-129CW, Petition for CNMI-Only Nonimmigrant Transitional Worker, and a CW-1 Classification Supplement with USCIS; and
  • submits the appropriate filing fees.

The following fees apply to petitions for CW workers: $325 fee for Form I-129CW; $150 CNMI education funding fee per beneficiary per year; and $85 biometric fee if the worker is located in CNMI.

USCIS Delays Full Implementation of Updated Form I-129

United States Citizenship and Immigration Services (USCIS) announced that employers submitting petitions for visas will not be required, until February 20, 2011, to complete Part 6 of Form I-129 (Petition for a Nonimmigrant Worker). The updated Form I-129 replaced the previous version on December 23, 2010. According to Fox News, the delay in requiring employers to complete Part 6 was caused by confusion over recently implemented USCIS regulations that impose increased obligations under two older laws: The Export Administration Regulations (EAR) (15 C.F.R. Parts 770-774) and the International Traffic in Arms Regulations (ITAR) (22 C.F.R. Parts 120-130).

Prior to the November 2010 release of the updated Form I-129, which requires certification of compliance with EAR and ITAR, many employers may not have been familiar with these regulations. Part 6 of the revised Form I-129, titled “Certification Regarding the Release of Controlled Technology or Technical Data to Foreign Persons in the United States,” requires petitioners to certify that they reviewed EAR and ITAR and that the “technology or technical data the petitioner will release or otherwise provide access to the beneficiary [visa holder]” either does not require a license from the U.S. Departments of Commerce or State, or that access will be denied until the required license or other authorization to release is granted.

Technology and technical data that are controlled for release to foreign persons are contained on the EAR’s Commerce Control List (15 C.F.R. Part 774), which is overseen by the Commerce Department’s Bureau of Industry and Security. The ITAR’s U.S. Munitions List (22 C.F.R. Part 121) is overseen by the State Department’s Directorate of Defense Trade Controls.

United Arab Emirates: New Regulations Enable Skilled Foreign Workers to Change Jobs More Easily

Flag of the United Arab EmiratesBeginning January 1, 2011, skilled and professional foreign workers in the United Arab Emirates (UAE) will no longer need to obtain a no-objection certificate from their former employer in order to take a new position elsewhere, reports The National. Instead, the only requirement will be to obtain a visa stamp from the Ministry of Labour. The change is significant: previously, employers could refuse to issue a no-objection certificate, which forced workers to exit the UAE for six months before they could take a new position.

As for unskilled and semi-skilled workers, the employer’s consent is required for a worker to change jobs, but only during the first two years of employment. Also, the consent requirement is waived if the employer does not meet basic employment standards.

The new regulations, intended to improve the labor market and discourage wrongful employment practices, were welcomed by foreign workers. Unfortunately, because many workers access news in languages other than the official Arabic (e.g., Urdu, Hindi, Farsi), some misinterpreted the regulations and breached their contracts by resigning prematurely, according to Emirates 24/7 News. As a result, the Labour Minister clarified the new regulations as follows:

“Workers who are contracted on fixed-term contracts cannot breach the contract and resign on grounds that they have completed a period of two years. If those workers are called to cancel their labour cards they will be subjected to a one-year ban according to terms of the contract. But if the contract is of an indefinite duration, and two years have been completed with the sponsor, they have the right to change their job without objection.”

In order for a worker to move to another employer, the employment relationship must cease cordially, after having lasted at least two years. However, a worker may unilaterally obtain a new work permit without these conditions being met if: (1) the employer fails to honor its legal or contractual obligations, or (2) the employment ended without any fault on the worker’s part.

India: Although 1% Cap on Foreign Worker Visas Lifted, $25,000 Salary Requirement Remains

Flag of IndiaAs noted by Daily News & Analysis, although the Indian government has removed the 1% cap on foreign worker visas for infrastructure projects, the requirement that employment visa applicants draw a salary in excess of $25,000 USD remains (see Part B of FAQs Relating to Work Related Visas Issued by India (pdf)). However, the salary requirement does not apply to: ethnic cooks; language teachers (other than English language teachers)/translators; or consular staff working in India.

The Indian Consulates in the United States reportedly have not been recognizing the rescission of the 1% cap on foreign worker visas, which is causing challenges for U.S.-based companies.

The employment visa scheme in India been revised multiple times over the past year. In September 2009, the government issued guidelines (pdf) concerning employment and business visas. Because the initial guidelines created confusion, the Ministry of Home Affairs later released an FAQ explaining the differences between employment visas and business visas. Revised guidelines (pdf) were issued in December 2009; under the revisions, the 1% cap on foreign worker visas was to be effective only until June 2010. The 1% cap had an almost immediate negative effect, delaying numerous infrastructure projects. This prompted the government to contemplate whether specific project visas for infrastructure projects should be created; the government continues to debate the issue

India: Government Removes 1% Cap on Foreign Worker Visas for Infrastructure Projects

Flag of IndiaIndia has removed the 1% cap on visas for foreign nationals on project workforces, the Hindustan Times reports. The cap was introduced in order to cut back the large numbers of Chinese nationals working on infrastructure projects in India and to increase domestic employment. According to The Economic Times, the number of Chinese workers decreased after India streamlined its immigration processes by only issuing employment visas to skilled Chinese nationals, so the cap was no longer necessary.

New Border Security Law Sparks Diplomatic Talks and Offshoring Concerns

Passport StampComputerworld reports that the United States government is reviewing whether the recently-enacted border security law, funded through increased H-1B and L-1 visa application fees for certain foreign-owned companies, runs afoul of World Trade Organization rules, as the law’s opponents and India’s Commerce Secretary contend. However, the issue was only briefly addressed in a recent U.S. Department of State press briefing during which a spokesperson confirmed that discussions about the law were being held between U.S. and Indian officials. Some suggest that the law could increase Indian companies’ U.S. operating costs by $250 million per year.

In a separate article, Computerworld reports that the law has caused rare consensus among H-1B visa advocates and opponents. Individuals on both sides contend that the bill will not create IT jobs for Americans. They suggest that targeted companies—foreign entities operating in the U.S. whose workforce is 50% or more foreign—can easily shift operations to Canada or Latin America. Finally, there are concerns that the fees’ generated revenue is misdirected, and that the funds should be used to spur innovation in the U.S. technology industry rather than to increase law enforcement operations at the United States’ southwestern border.

Senate Approves $600M Border Protection Bill Financed by Increased Employment Visa Fees

During a special session held this morning, the Senate passed a $600 million spending bill (pdf) that will increase law enforcement presence at the United States’ southwestern border with Mexico and will finance additional aerial drones and construction of two operating bases. The Senate passed an identical bill (S. 3721) on August 5 before adjourning for recess, but for technical reasons the Senate needed to approve the version of the bill approved by the House of Representatives on August 10 before sending it to President Obama for signature.

The spending measure will be financed by increasing visa application fees on businesses with 50 or more employees in which more than 50% of the workforce holds an H-1B or L visa; specifically:

  • the L visa application fee will increase by $2,250; and
  • the H-1B visa application fee will increase by $2,000.

A major target of the increased fees are foreign-owned businesses whose workforces are largely comprised of foreign workers. Some contend these businesses are finessing regulations in a way that violates the spirit of U.S. immigration laws. Opponents of the bill include India’s high tech industry, which maintains a strong presence in the United States and benefits from both visa programs. As reported by the New York Times, industry representatives claim that the fee increases are being levied discriminatorily and violate international trade practices.

USCIS Continuing to Accept Fiscal Year 2011 H-1B Petitions

U.S. Citizenship and Immigration Services (USCIS) announced that it is continuing to accept H-1B nonimmigrant visa petitions for Fiscal Year 2011 (October 1, 2010 to September 30, 2011). The agency began accepting petitions on April 1, 2010, and after one week had received approximately 13,500 petitions subject to the general cap and 5,600 petitions subject to the advanced degree exception. It took approximately nine months for USCIS to receive enough applications to meet the FY 2010 cap, with the bulk of petitions being filed by the end of October 2009.

The H-1B program allows businesses to employ foreign workers in specialty occupations that require theoretical or technical expertise in specialized fields, e.g., science, engineering, computer programming. The program allows for 65,000 regular-cap visas, and an additional 20,000 visas for petitioners with advanced degrees (master’s degree or higher).

India: Government Continues to Ponder Project Visa

A “project visa” for foreign nationals working on joint ventures in India continues to be contemplated by the government, according to The Economic Times. The visa would be valid for the duration of a specific project and, possibly, divided into two categories: unskilled labor visas, and skilled labor visas.

India has struggled with employment-related immigration issues over the past several months. Previously, it tightened restrictions on foreign labor to increase employment opportunities for Indian nationals, putting a cap on how many visas would be issued to Chinese nationals working on projects in India. As a result, numerous projects fell behind schedule, particularly power plant construction.

DOL Adopts Final Rule on H-2A Temporary Agricultural Employment

The U.S. Department of Labor has published a final rule (pdf) in the Federal Register concerning temporary agricultural employment of foreign laborers under the H-2A visa program. The final rule:

  • amends regulations governing certification of temporary employment of nonimmigrant workers in temporary or seasonal agricultural employment;
  • amends regulations concerning the enforcement of the contractual obligations applicable to employers of such nonimmigrant workers; and
  • provides for enhanced enforcement under the H–2A program requirements to ensure that workers are appropriately protected when employers fail to meet their obligations under the program.

The H-2A temporary agricultural program permits agricultural employers anticipating a shortage of domestic workers to bring nonimmigrant foreign workers to the U.S. to perform agricultural labor or services of a temporary or seasonal nature. Foreign workers coming to, or already in the U.S., may qualify under the program. However, before an H-2A visa petition will be granted, the U.S. Department of Labor must certify that there is an insufficient number of qualified U.S. workers for the position and that the foreign worker’s employment will not adversely effect U.S. workers’ wages and working conditions.

This final rule is a product of the department's review of policy decisions underlying a previous revision of the H-2A regulations published in late 2008. It is intended to strengthen worker protections for both U.S. and foreign workers, increase workers’ wages, and provide greater access to the U.S. labor market. Additionally, it will create a national electronic job registry where job orders will be posted through half of the contract period.

The rule, which will take effect March 15, 2010, provides that American and foreign laborers working in identical occupations for the same employer be paid equally, regardless of their hire date. It also prohibits employers from shifting to employees the costs of recruitment, visa, and border-crossing fees, as well as other U.S. government-mandated fees.

India: Work Permit Rules May Be Relaxed

The Indian government may be relaxing the rules that prevent business visa holders from working in India, according to The Economic Times. For instance, the government is identifying activities within the IT industry for which companies may employ—for limited periods—foreign nationals who do not hold work permits. Although the IT industry, which pushed for relaxation of the rules, applauded the move, it continues to press India to discard rules that limit the number of business visas available and restrict allocation of employment visas to 1% of a project’s total number of workers.

The contested rules, which were only recently enacted, were intended to increase local employment. The government had discovered that numerous in-country projects were staffed by foreigners, particularly low-skilled workers. Since the rules took effect, the number of Chinese workers in India has decreased from 42,000 to 3,000.

Currently, with India’s foreign consulates lacking the discretion to issue additional visas, a company’s only avenue for employing foreign nationals beyond the prescribed limits is to petition the government and demonstrate the need for additional work visas.
 

Singapore: Immigration Reform Proposed to Promote Economic Growth

Government officials and local businesses are uncertain whether Singapore, which is one of the world’s fastest-growing economies, can maintain strong economic growth levels over the next decade. As reported by The Wall Street Journal, the export-heavy Asian country is trailing other regional competitors in productivity and has been negatively impacted by the global financial crisis as its primary consumers, the United States and Europe, struggle to fully recover.

An economic strategy committee composed of public and private sector representatives has proposed measures to decrease reliance on foreign labor, such as increasing the focus on research and development and tightening immigration rules. The proposal regarding immigration rules is controversial, given that many employers rely on foreign labor to contain costs. Although the proposals are non-binding, the government is expected to respond to the report in its 2010 budget statement, to be released on February 22.

UAE: Transition to Single Application for Visas, Labor and Identification Cards

Gulfnews.com reports that a single application form for United Arab Emirates residence visas, labor cards and identification cards will be available later this year. Instead of providing the same biographical data (e.g., name, nationality, marital status) on three separate applications, petitioners will complete one application and the information supplied will be used to process all three official documents. Approved applicants will then be issued an all-purpose identification card.

During the fourth quarter of 2010, residence visa information will be transferred to the identification card, and the transfer of labor card information will follow next. Upon complete incorporation, individuals will be able to present identification cards to enter the UAE and to verify their work authorization, thereby supplanting separate visa stamps and labor cards.

China: Government Officials Attempting to Curb Illegal Immigration in Guangdong Province

Global Times reports that government officials are working to combat illegal immigration in southern China’s Guangdong province, home to 57,800 permanent — and more than 1.14 million temporary — foreign residents. During the first half of 2009, almost one-third of foreigners visiting China entered or exited through the province.

Statistics indicate that almost 70% of foreigners employed or running businesses in Guangdong’s capital city, Guangzhou, do not possess legal permits. Moreover, local officials contend that there is a correlation between the rise in illegal immigration and increased criminal activity.

Guangdong officials are taking various steps to address the situation, such as intensifying efforts against foreigners’ illegal activities and setting up legal employment services for non-Chinese citizens. In 2010, a Law on Control of the Entry and Exit of Aliens will be submitted to the Standing Committee of the National People’s Congress.

Bills Would Reform the H-2B Visa Program

Two bills introduced in both the House and Senate last week would make significant changes to the H-2B guest worker program. Both the Increasing American Wages and Benefits Act of 2010 (S. 2910) introduced in the Senate, and the H-2B Program Reform Act of 2009 (H.R. 4381) introduced in the House of Representatives, would establish new procedural and monetary requirements for employers that seek to hire temporary foreign workers, as well as impose stiffer penalties for noncompliance with these new requirements. Continue reading about this development on Littler's Washington D.C. Employment Law Update blog.
 

Fiscal Year 2010 H-1B Cap Has Been Reached

U.S. Citizenship and Immigration Services (USCIS) has announced that, as of December 21, 2009, it has received sufficient petitions to reach the statutory cap for fiscal year 2010. Also, USCIS has received more than 20,000 H-1B petitions on behalf of applicants exempt from the cap under the advanced degree exemption. USCIS will apply a computer-generated random selection process to all petitions that are subject to the cap and were received on December 21, 2009. Employers should note that even those petitions that were filed before the cap closed may be returned by USCIS once the final cap count is completed.

New H-1B cap-subject petitions cannot be filed until April 1, 2010 for an October 1, 2010 start date. Employers should start assessing alternative visa options for affected foreign nationals right away.

In addition, employers who have hired graduates from U.S. schools should keep in mind that they may be able to take advantage of the “cap-gap” provision or STEM provision to continue the employment of those graduates in the absence of H-1B numbers.

Over 1,000 Businesses Face ICE Forensic Audits in December

The Contra Costa Times reports that this month over 1,000 businesses will face forensic audits conducted by United States Immigration and Customs Enforcement (ICE). Many businesses, e.g., those involved in the food supply chain, have been targeted because they are connected to public safety and to the United States’ “critical infrastructure.”

An audit involves ICE reviewing a company’s Form I-9s to verify employees’ identities and eligibility to work in the country. In 2008, fines increased by 25%, with the result that first-time offenders face penalties of between $375 to $3,200 for each unauthorized employee. In 2009, ICE has ordered companies to pay $800,000 in fines, more than four times the amount imposed in 2008.

Photo credit: Tom Ventura

United Kingdom: Critics Question IT Firms' Apparent Overuse of Tier 2 Intra-Company Transfers

The Daily Telegraph reports a significant increase in the number of foreign workers employed in the UK via intra company transfers under Tier 2 of the country’s points-based immigration system. In 2008, more than 48,000 intra-company transfer applications were filed; approximately 30,000 concerned foreign IT workers. In total, over 35,000 foreign IT workers entered the UK that year – three times the amount that entered during the height of the dot com boom in 2000.

The intra-company transfer scheme allows an employer to transfer to the UK its foreign-based staff who have at least six months’ knowledge-specific company experience. Unlike the points-based system’s other schemes, the employer is not required to first advertise the position to British workers. Transferred workers are permitted to work full-time in the UK for up to three years and may work up to 20 hours in supplementary employment in the same profession. After three years, these employees may apply for a two-year extension and, after five years in the UK, they may apply for permanent residency.

Critics warn that these intra-company transfers damage the UK’s economy and worsen the plight of British workers. Some contend that IT companies pay their foreign workers less than market wages.

Responding to these criticisms, the UK Border Agency stated that:

  • contrary to the allegations, employees must be paid the position’s going rate;
  • in early 2010, the requirements will be amended to require employees to have 12 months’ experience (instead of six months as at present) with their employer before they can be transferred to the UK; and
  • it is closing the category as a route to permanent settlement.

India: New Visa Proposed to Remedy Infrastructure Project Delays

The Times of India reports that India’s tightening of restrictions for Business Visas (BV) and Employment Visas (EV) for foreign workers has delayed completion of numerous infrastructure projects. To remedy the situation, the home ministry has proposed a Project Visa (PV) that will allow foreign nationals to work on specific projects, mainly infrastructure and those of strategic importance. Currently the proposal is being examined by a government committee.

Previously, unskilled and semi-skilled foreign workers primarily from China had entered India on BVs, which are intended for white-collar employees. After a clampdown on visa abuses, India instructed said BV holders to leave India, but stated that they could return if they converted their BVs to EVs by November 30, 2009. Although most of the affected workers have applied for the EV, approval and issuance will take time, thereby delaying projects further.

Report Finds Strong Immigrant Contribution to GDP

The Fiscal Policy Institute announced that its new report (pdf) found that in the United States’ 25 largest metropolitan areas, immigrants both documented and undocumented contribute to the economy in very close proportion to their share of the population. Foreign-born workers comprise approximately 20% of the U.S. population, and the study found that they are responsible for an equal percentage of economic output.

The report estimated immigrant share of GDP in metropolitan areas based on wage and salary earnings plus proprietors' income. The geographic area studied accounts for more than half of the U.S.’s gross domestic product and two-thirds of all immigrants. The report found that areas with the largest increase in immigrant share of the labor force experienced the fastest economic growth.

Photo credit: Man-ucommons

United Kingdom: Important Changes Regarding Biometric Travel Documents and Advertising Requirements for Tier 2 Job Openings

Starting November 30, 2009, the UK Border Agency will fingerprint all foreign nationals entering the country with biometric UK visas, entry clearances and identity cards. This initiative is aimed at improving security and securing UK ports-of-entry and borders. On arrival in the UK, border control will perform regular immigration checks on all foreign nationals seeking admission to the UK and then capture their fingerprints to verify that they match the fingerprints given when the foreign national started the process abroad. This added security measure by UK authorities will stop individuals from cheating the system by having someone else complete biometrics abroad so that possible bars to admission, such as a criminal conviction, are not picked up during the biometrics process.

Employers should also be aware of another UK immigration law development. As reported earlier on this blog, starting December 14, 2009, the resident labor market test for Tier 2 of the points-based system will be extended to four weeks for all jobs. This will replace the current requirement to advertise jobs for two weeks, or one week for jobs where the salary is £40,000 or more. Employers should understand that the increased recruitment period will delay Tier 2 applications by at least 2-3 weeks, and that any transfers to the UK under this program should be adjusted accordingly.

This entry was written by Ian Macdonald.

India: Recently Amended Visa Scheme Impacts Chinese Industrial Workers

According to The Economic Times, changes to India’s visa scheme for Chinese nationals has resulted in a substantial decrease in the number of Chinese workers—from 650 to 100—at a power plant project in Mundra. Because of visa issues, the project, which is owned and operated by a consortium of Chinese businesses and is supervised by Chinese contractors, has replaced Chinese workers with Indian workers. Similar staffing changes have occurred at power projects in Haryana and Uttar Pradesh.

Photo Credit: Bert Marshall

Bill Would Ban Use of Foreign Labor After Mass Layoffs

Senators Bernie Sanders (I-Vt.) and Charles Grassley (R-Iowa) have introduced legislation that would prevent large companies that conduct mass layoffs from hiring foreign labor through guest worker programs. The Employ America Act (S. 2804) (pdf) builds on similar prohibitions included in the American Recovery and Reinvestment Act (ARRA or “Economic Stimulus”), which prevents companies receiving funds through the Troubled Asset Relief Program (TARP) from replacing laid-off citizen workers with foreign labor. Continue reading about this development on Littler's Washington D.C. Employment Law Update blog.
 

India: Guidance on Visa Regimes May Create Major Change for Companies Doing Business in India

As reported recently on this blog, the Government of India's Ministry of Home Affairs has released guidance on permissible use of Business Visas and Employment Visas by foreign nationals visiting India. This development has significant implications for multinational corporations sending employees to India on short-term assignments. For an update regarding this uncertain legal development based on feedback from companies whose employees have been directly affected by this situation, continue reading Littler's ASAP "India Guidance on Its Visa Regimes May Create Major Change for Companies Doing Business in India," written by Ian Macdonald.

Thousands of H-1B Visas Available Despite Recent Increase in Demand

The Wall Street Journal reports that thousands of H-1B visas for fiscal year 2010 remain available. Unlike previous years, when the 65,000 visas available for the year were scooped up by employers within days, factors such as the sagging economy and government investigations into visa fraud have resulted in companies underutilizing the program. Not since 2003—when 323 days elapsed before all fiscal year 2004 H-1B visas were awarded—have visas remained available at such a late stage.

However, in an indication that employers are slowly moving out of the economic crisis, the United States Citizen and Immigration Service (USCIS) recently released updated numbers indicating that the demand for H-1B cap-subject petitions increased significantly during October 2009.

With respect to government investigations into visa fraud, the USCIS fraud unit is expected to conduct surprise inspections of up to 20,000 companies in the coming months. The inspections will focus on whether H-1B employees are performing their jobs in accordance with the visa’s specified terms. 

India: Ministry of Home Affairs Clarifies Distinction Between "Business Visas" and "Employment Visas"

India's Ministry of Home Affairs (MHA) has released an FAQ (pdf) to clarify the two types of visas available for work-related visits to India: business visas (“B” visas) and employment visas (“E” visas).

Business Visas

Examples of permissible reasons for granting a business visa include:

  • establishing an industrial or business venture;
  • exploring the possibility of setting up an industrial or business venture; or
  • purchasing or selling industrial products in India

"B” visas are valid for up to five years and permit multiple entries, although stay stipulations may be imposed for each visit. To qualify, applicants must:

  • hold a valid travel document and re-entry permit (if required by the issuing country);
  • submit proof of financial standing; and
  • submit proof of expertise in the field of intended business.

Employment Visas

Employment visas are granted to foreigners visiting India for employment purposes. An applicant must be a skilled and professional person who is being employed by a business in India at a senior level, in a skilled position (such as a technical expert, senior executive, or manager). Visas will not be granted for routine, ordinary or clerical positions, nor will they be granted if a large number of Indians qualify for the position.

Foreign nationals coming to India on an “E” visa may initially be permitted to stay for up to one year. An extension, if necessary, would need to be granted by MHA. If requesting more than one extension, the applicant needs clearance from a separate government entity.

To qualify for an “E” visa, applicants must:

  • possess a valid travel document and a re-entry permit (if required by the issuing country);
  • submit proof of employment by the business in India; and
  • submit proof of educational qualifications and professional expertise.

Photo credits: Neitram (India Gate); Vinish K Saini (Golden Temple); AreJay (Bangalore High Court)

Philippines: New Rules for Alien Employment Permits

The Philippines has revised its guidelines for issuing alien employment permits (AEP), reports the Oman Tribune. The new rules require foreign workers—and domestic and foreign employers looking to employ them—to obtain an AEP. Individuals and companies can face a fine of $200 for every year that a foreign worker is employed without an AEP.

Grounds for denying an AEP application include:

  • misrepresentation of facts in an application;
  • submission of falsified documents; and/or
  • an applicant’s derogatory record.

Moreover, AEPs could be suspended if:

  • the foreign worker’s continued stay damages an industry’s interests; or
  • the foreign worker is suspended by an employer or by court order. 

Photo credit: Zachary Harden

India: New Visa Proposed for Chinese Laborers

As reported by Business Standard, sources suggest that a new visa is being developed for Chinese nationals working on contract labor projects in India. The move comes in response to Indian laborers' concerns that many projects, particularly those financed and operated by Chinese companies, import Chinese labor instead of hiring locally, thereby negatively impacting the Indian workforce. Although details have yet to be released, the new visa would ostensibly set defined lengths of stay for Chinese laborers and only be issued for specific projects.

India: Proposed Legislation Would Simplify Emigration Process and Increase Protections for Workers Seeking Employment Abroad

Taj MahalThe Business Standard reports that India’s Parliament is expected to propose legislation that will increase criminal penalties for human smuggling in an effort to curb exploitation of Indian workers abroad by recruiting agencies and employers. The proposed legislation is also intended to make the emigration process simple and transparent. Under the new law, recruiting agencies will be required to register with the Emigration Management Authority (EMA), a new body that will replace the Protector General of Emigrants. Moreover, recruiting agencies will be subject to periodic performance reviews and rated by the government. In addition, foreign employers in certain countries favored by Indians seeking employment abroad will need to be accredited before they can hire Indian nationals.

Photo Credit: Dhirad

Foreign Teachers Fill Gaps in American Schools

An American Federation of Teachers (AFT) report (PDF) found that some U.S. school districts have looked overseas to staff positions in schools that they find difficult to fill. As reported by the New York Times, the AFT report, based on government data, estimated that 19,000 foreign teachers worked in the U.S. on temporary visas in 2007.

To secure positions, foreign teachers have used recruiting firms, sometimes paying recruiters between $5,000 and $8,000, in addition to other costs which they bear personally. Many are placed in inner-city or very rural schools to teach math, science and special education. According to the report, Maryland, New York, Georgia, Texas and California attract the highest number of foreign teacher visa applicants.

Although the AFT report was critical of districts recruiting foreign teachers, school administrators found that these individuals improved schools. Moreover, administrators noted that programs like Teach for America are providing an employee pool from which to draw qualified applicants to teach in needed schools, thereby reducing the need to employ foreign teachers.

Australia: Employers of Foreign Workers on Subclass 457 Visas Must Pay Market Wages

Australia has amended the requirements for its subclass 457 visa (Temporary Business – Long Stay) for the stated purpose of preventing exploitation of foreign workers and ensuring that they are not brought in to undercut national wages. Subclass 457 visas are the most commonly used visa for sponsoring foreign workers in Australia. The visas can be valid for a period between three months and four years.

Under the amended rules, employers sponsoring foreign employees on subclass 457 visas are required to pay the market rate for the position. Employers currently paying below the market salary rate to existing subclass 457 visa holders will have until January 1, 2010 to commence paying market rates.

Where an Australian national occupies a similar position, a foreign worker’s rate will be based on that employee’s salary, benefits, etc. Where no equivalent Australian employee exists, employers must review outside collective agreements, salaries, etc. to establish the market rate.

In addition, if an employee’s salary is $180,000 AUD ($155,275 USD) or more, the employer will be exempt from the market rate requirement. Also, subclass 457 visas will not be issued for positions with salaries below $45,220 AUD ($39,008 USD).

Previous significant changes to the 457 visa were made in April; specifically:

  • An increased English language requirement for trade occupations and chefs;
  • The introduction of formal skills assessments for all trade occupation applicants from countries that are not considered low-risk;
  • A requirement that employers attest to a strong record of, and commitment to, employing local labor and non-discriminatory employment practices;
  • The development of formal training benchmarks for sponsors; and
  • A requirement that labor agreements be in place for ASCO (Australian Standard Classification of Occupations) five to seven occupations.

Canada: Labor Market Opinions Only Valid for Six Months after Issuance

Human Resources and Skills Development Canada (HRSDC) announced that it will no longer issue labor market opinions (LMOs) without expiration dates. This ensures that current labor market conditions are accurately assessed upon issuance.

In May 2009, HRSDC mandated that LMOs submitted with work permit applications would only be valid for six months. LMOs submitted after the expiration date will not be considered and those applications will be returned as incomplete.

Live-in caregiver applications in Quebec are an exception. In these instances, applicants first apply for an LMO and then, upon receipt but before applying for a work permit, must apply for the certificat d’acceptation du Québec (CAQ). These LMOs will be valid for three months following a CAQ’s issuance.

The LMO expiration date is different from the LMO duration of employment or the work permit expiration period. The LMO expiration date determines whether an LMO is valid when the work permit application is submitted, whereas the LMO work duration represents the timeframe of work the employer had requested and which was approved by HRSDC. The duration of work permits remains at the discretion of Citizenship and Immigration Canada and Canada Border Services Agency. It should be noted that if an employer has specific timelines for a short employment opportunity, HRSDC/Service Canada may issue LMO confirmations that expire in under 6 months.

Report Finds Economic Crisis Has Impacted Global Migration

The Migration Policy Institute released a report suggesting that migration flows, particularly illegal immigration, have decreased during the global economic downturn. The recession has impacted economic migration to major immigrant-receiving regions like the U.S. and U.K. Would-be migrants stayed put, and migrants remained in their adopted countries rather than return home, despite high unemployment rates.

Other findings by the report include:

  • Remittances were generally down, although certain countries, like Bangladesh, saw an increase. Although this marginally impacted countries in which remittances account for only a minimal percentage of gross domestic product (GDP), countries that rely heavily on remittances were more seriously affected (e.g., remittances account for 0.2% of Turkey’s GDP but account for one third of Moldova’s GDP).
  • The recession has greatly affected migrants’ financial well-being.
  • Almost half of Eastern European immigrants who came to the U.K. in the middle of 2004 had returned home by the end of 2008.
  • The inflow of Mexican nationals into the United States decreased by more than two-thirds between March 2004 and March 2009.
  • Rates of unemployment for foreign-born workers in Spain rose to 28.4% during the first quarter of 2009, compared to 17.4% for native workers.

Seventh Circuit Upholds DOL Regulation of Labor Certificates

The United States Court of Appeals, Seventh Circuit, has upheld a United States Department of Labor (DOL) regulation amended to limit the validity of foreign worker labor certificates to 180 days after the regulation had taken effect and only if submitted with a visa petition within that time period. A group of businesses had challenged the regulation, arguing that: (1) the DOL exceeded its authority by creating a rule that regulates immigration, and (2) the regulation itself was unlawfully retroactive because it invalidated previously approved labor certificates that were “valid indefinitely.”

The Seventh Circuit held that the DOL had not exceeded its authority, noting that previous DOL policy was not entirely consistent with federal law requiring that labor certificates only be issued if the DOL could demonstrate that (1) there were insufficient numbers of qualified and available workers for the position and (2) the employment of foreign workers would not adversely impact U.S. workers. The amended regulation, however, fulfilled legislative intent by requiring determinations based on true labor market conditions as well as protecting the interests of U.S. workers.

The court further held that the regulation was not retroactive because it did not create new legal consequences for a past act. The court found that the mere act of applying for a labor certificate was not a final event triggering legal consequences. Moreover, the court reasoned that “indefinite” did not mean “permanent” because the duration was “not clearly fixed.” The court concluded that the DOL addressed the issue of “indefiniteness” by prescribing a validity period for labor certificates.

Kuwait: Policy Change Facilitates Foreign Worker Transfers, With Aim of Stopping Visa Trading

Arab Times reports that Kuwait will now allow foreign workers, after three consecutive years of employment with the same employer, to transfer their residence permits to another sponsor without approval of the current sponsor. However, this policy change does not apply to: 

  • foreign workers hired locally (who can transfer after one year); or
  • foreign workers hired for government projects (who can only transfer after five years – unless they hold a university degree in which case they can transfer after three years).

The policy change is an attempt by the Kuwaiti government to eliminate visa trading in the country. Kuwaiti legislators, concerned that companies were taking advantage of foreign workers, applauded the move.

Skilled Immigrants Leaving the United States in Record Numbers

 Increased unemployment, coupled with immigration restrictions and delays has resulted in many skilled foreign workers electing to leave the United States. A recent study found that of those surveyed, 72% of Chinese nationals and 56% of Indian nationals who emigrated to the United States and then returned home thought professional opportunities were better in their home country, even though wages might not necessarily compare. Researchers estimate that possibly 200,000 skilled Indian and Chinese workers will return home over the next five years, compared with approximately 100,000 over the past 20 years.
 

Obtaining permanent residency can be a long process because only 9,800 green cards per country are awarded annually. BusinessWeek reports that applications from Indian and Chinese nationals can take almost a decade and, while applicants wait, visa restrictions prohibit them from changing positions, companies, or starting their own business without obtaining a separate visa. Although the Obama administration has vowed to push for immigration reform, it remains uncertain how skilled immigrants will be affected.

Bangladeshi Laborers' Visa Costs in Libya Impacted by Illegal Manpower Brokers

Price gouging by illegal manpower brokers, mainly based in Malaysia, has increased immigration costs for Bangladeshi workers seeking employment in Libya. Brokers will purchase large quantities of Libyan work visas then sell them at inflated rates to workers and employment recruiters. Normally, workers’ migration costs average 100,000 to 120,000 Bangladeshi Taka (1,455 -1,746 USD). However, some workers complain of being charged twice that amount.

Recruiting agencies believe that if they could go directly to the government, visa costs would decline. Libya’s Expatriates’ Welfare and Oversees Employment Minister said workers’ failure to protest costs was an issue, but claimed no knowledge of increased costs. He stated he would monitor the situation for the next two months.

The Daily Star reports that these unregulated broker practices coupled with the economy’s decline has resulted in many foreign governments limiting Bangladeshi workers’ ability to obtain work. The first five months of 2008 saw 378,994 Bangladeshis seek employment overseas, while only 212,332 have done so this year.

Each day about 300 Bangladeshi workers leave for Libya, which recently began building infrastructure projects worth over $100 billion. Libya estimates the projects will employ around 200,000 workers in two years. Libya’s government has begun hiring Bangladeshi workers, and last December recruited 20,000 Bangladeshi workers.

Canada: Government Releases New Resource to Help Employers Hire Internationally Trained Workers

Canada’s Citizenship, Immigration and Multiculturalism Minister, Jason Kenney, has announced  the release of “The Employer’s Roadmap,” which helps guide employers in hiring, assimilating, and retaining internationally trained workers.

The Roadmap is a tool for employers, human resources professionals, recruiters and managers in small to medium-sized enterprises and covers topics such as:

  • the benefits of hiring internationally trained workers;
  • how to hire and recruit such workers;
  • how to assess qualifications; and
  • how to integrate and retain employees with different professional and cultural backgrounds into the workforce.

This resource is one of several measures that the Canadian government is taking to help newcomers quickly and successfully integrate into the Canadian labor market. Another measure is Canada’s Economic Action Plan, which includes an investment of $50 million (Canadian) to help develop a common approach to foreign credential recognition.

Migration Patterns Reversing During Economic Crisis

Current global migration patterns indicate that, due to rising unemployment rates and contracting economies in developed countries, fewer workers are migrating from poor to wealthier nations, and the flow of migrant workers returning to their home countries is increasing. As reported in The Wall Street Journal,  this is potentially the biggest reversal in migration flows since the Great Depression.

Statistics illustrating the reversal include:

  • Emigration from Mexico to the U.S. dropped 13% in the first quarter of 2009 compared to the first quarter of 2008. In the same period, more people returned to Mexico than left Mexico for the U.S., about 139,000 and 137,000, respectively.
  • In 2009, a projected 60,000 or more Indonesia citizens will return home from Malaysia, South Korea and other wealthy neighboring nations, as immigrant workers lose their jobs.
  • Tens of thousands of Indians are returning from Dubai as jobs there dwindle and work permits expire.
  • In the United Kingdom, the number of registered workers coming from new European Union member nations like Poland and the Czech Republic dropped 55% in the first quarter of 2009 compared to the same quarter a year earlier.

Bahrain: Employer Sponsorship System to End in August, Increasing Foreign Workers' Job Mobility

Beginning in early August, Bahrain will implement a new labor law that will end the employer sponsorship system and permit foreign workers to change jobs without their employer’s consent. As reported in The National, the law was adopted following three years of consideration and is the first of its kind in the Gulf region.

The law is designed help end to the practice of some Bahraini employers that sponsor several—and sometimes hundreds of—foreign workers and charge them a “visa fee” to work with another employer. The workers, mostly from the Indian subcontinent, are not allowed to change jobs without their sponsor’s permission. Once the law takes effect, an employer will be able to terminate an employee’s contract and deport him or her with one month’s notice, and an employee will be able to leave his or her job after giving three months’ notice to the employer.

The law also is intended to help decrease the number of foreigners entering Bahrain to work. Currently there are more than 500,000 expatriates in the country, which accounts for about half of Bahrain’s population. The government also is considering a cap on the number of foreigners who enter Bahrain and expects to resolve by the question by the end of 2009.
 

UAE: Proposal Would Extend Visas of Redundant Foreign Workers

The Minister of Labour for the United Arab Emirates has announced proposed legal revisions that would allow foreign workers who have lost their jobs to stay in the UAE for up to six months. Currently, expatriates need to leave the UAE within one month after their employment is terminated. As reported in The National, the proposed law would apply to workers of all nationalities and would extend their visas by between three and six months, depending on the worker’s job. Also, visa application fees would be reduced for companies that hire unemployed workers already in the UAE. The legislation is awaiting approval by the Cabinet and is expected to become law within two months.

Ireland: Changes Taking Effect in June Will Raise Bar for Foreigners Seeking Work Permits

The Irish government has announced the introduction of revised legislation for work permits, which will make it more difficult for foreign nationals to seek employment in Ireland. The changes, which were reported at irishtimes.com, will come into effect on June 1 and apply primarily to first-time entrants in the labor market.

The key provisions of the revised legislation are:

  • Permits will not be granted for jobs paying less than 30,000 Euros per year.
  • Permits will not be granted for a number of professions including domestic workers and HGV (heavy goods vehicle) drivers.
  • Stricter conditions for the renewal of permits—including higher fees—will apply.
  • Spouses and dependents of future work permit holders will need to apply for permits in their own right.

The green card list, which covers professions offering salaries between 30,000 and 59,999 Euros per year, also has been revised. As of June 1, a number of positions in the healthcare, financial services and marketing sector also will be ineligible for work permits.

In announcing the coming changes, Mary Coughlan, Ireland’s Minister for Enterprise, Trade & Employment, commented that the revised legislation was needed due to the changing realities of the Irish labor market. So far in 2009, Ireland has granted a total of 2,087 work permits to foreign nationals, compared to 23,722 for the same period two years ago.

Russia: Foreign Workers Face Increasing Difficulties in Obtaining and Renewing Authorization Documents

As reported by The Moscow News Weekly, over the past several months it has become more difficult for companies to hire and retain foreign employees in Russia. A major issue cited by various foreign business associations is that the enforcement of migration rules can be unpredictable. For example, the Federal Migration Service has become stricter in enforcing certain rules: Two years ago, diplomas attesting to the applicant's educational qualifications were required only for language teachers, but since October 2008, the rule is being enforced for all professions.

There also are concerns about the quota system for work permits and the bureaucratic obstacles that employers sometimes encounter with the system. One possible solution is to give certain white-collar employees from the European Union, the United States and Japan "green cards" that would exempt card holders from the quota system. The Federal Migration Service has drafted a bill along these lines that may be introduced in the Duma in July.

Another reason for the difficulties is the procedure by which representative offices hire foreign workers. A representative office is issued a permit by an accrediting body (such as the Chamber of Commerce and Industry or the State Registration Chamber) which states how many foreign employees the representative office may hire. Under this arrangement, foreign employees working for the representative office do not receive work permits, but rather an accreditation card from the accrediting body. Recently there have been reports of police officers questioning the validity of these accreditation cards during their routine document checks in the streets. The Japan Business Club and the Association of European Businesses have been advising their members to obtain work permits for accredited foreign employees working in representative offices.

United Arab Emirates: New Visa Regulations Taking Effect in July

Under new United Arab Emirates visa regulations effective at the end of July, jobseekers from India, Pakistan, Nepal, the Philippines and Bangladesh, who currently are not subject to visa fees, will have to pay a refundable deposit of Dh1,000 ($272) and secure health insurance while they look for work. One likely result of the new regulations, as reported at portstrategy.com, is a rush of would-be workers in the port of Dubai in the spring and early summer. Another probable consequence is that potential employers and recruitment agencies will need to search abroad to find workers in order to avoid a labor shortage. Anyone found working while on a visit visa can be fined more than Dh50,000 ($13,617) and banned from re-entering the UAE. Employers also will be subject to strict penalties for violations.

USCIS Explains New Requirements for TARP Recipients Hiring H-1B Workers

On Friday, the United States Citizenship and Immigration Services (USCIS) announced that employers receiving funds through the Troubled Asset Relief Program (TARP) or under section 13 of the Federal Reserve Act (covered funds) must meet additional requirements before hiring foreign nationals to work in the H-1B specialty occupation category. Continue reading on Littler's Washington DC Employment Law Update blog. 

Australia: Government Likely to Announce Significant Cuts to Immigration Intake

As reported in the Herald Sun, Immigration Minister Chris Evans stated that the global economic crisis is greatly reducing Australia’s need to import foreign workers. Less than 12 months ago Australia was struggling with a skills shortage, but now the country’s unemployment rate is on track to hit 7 % in 2010. A final decision on the 2008-09 immigration intake will be made by Cabinet ahead of the May Budget.

United Kingdom: Foreign Workers to Face Stricter Entry Requirements

The United Kingdom’s Home Secretary, Jacqui Smith, has announced three significant changes intended to support domestic workers and raise the bar for foreign workers wishing to enter the country. As of April 1, the UK government will:

  • strengthen the resident labor market test for tier two skilled jobs so that employers must advertise jobs to resident workers before bringing in a worker from outside Europe;
  • use each shortage occupation list to trigger skills reviews that focus on training resident workers for these occupations; and
  • tighten new criteria against which highly skilled migrants seeking entry to the United Kingdom are judged, by raising the educational qualifications and salary required for tier 1 (General) of the points-based system.

Home Secretary Smith said: 

“Just as in a growth period we needed migrants to support growth, it is right in a downturn to be more selective about the skill levels of those migrants, and to do more to put British workers first.”

Stimulus Bill Amendment Restricts TARP Recipients From Hiring H-1B Visa Holders

The Senate has approved a modified amendment to the massive stimulus bill (H.R. 1) that substantially limits employers that receive Troubled Asset Relief Program (TARP) funds from hiring employees who hold H-1B work visas. This amendment was sponsored by Senators Bernard Sanders (I-VT) and Charles Grassley (R-Iowa). Continue reading on Littler's Washington DC Employment Law Update blog.