The Department for Enterprise (DfE) has paused plans to reform the island’s work permit system.

The announcement, made today (Tuesday), comes amid concerns over a bid to temporarily suspend the requirements for permits for those hoping to move to the island for work.

The changes were due to be considered at November’s Tynwald but have now been dropped while the DfE hold further talks with business leaders and politicians.

Minister for Enterprise Tim Johnston said: ‘The department’s consultation and review into the work permit system has been based on the commitment in both the Island Plan and economic strategy, which make clear the intention to remove barriers to ensure that employers are able to fill key vacancies where they are not able to recruit locally.

‘I understand the topic of work permits is one which often polarises views, and can be conflated with other subjects such as broader immigration from outside the British Isles, and the right to live in the Isle of Man, both of which are defined elsewhere and outside the department’s responsibilities.

‘In light of the developing position, the department believes further discussions will be beneficial to give stakeholders the opportunity to further consider the options, as we seek to strike the right balance of improving and simplifying the system, providing additional certainty and clarity, whilst maintaining appropriate controls and improving information.’

The DfE says it brought forward plans to make changes to the work permit system following broad support for reforms during a public consultation on the matter earlier this year.

As well as temporarily suspending the requirement for work permits, the proposed reforms also included introducing a new simplified registration system.

In recent weeks, the DfE says it has received feedback from both political and industry representatives and has decided to seek out ‘further engagement with stakeholders’ before looking at the proposals again.

Mr Johnston added: ‘Since the work permit system was created some 60 years ago, there have been a number of adjustments, with the last reforms being implemented in 2018.

‘As with any policy or system, it is important that these are reviewed periodically to ensure they are still fit for purpose in an ever-evolving economic landscape.

‘Whilst the existing system as it stands works well for the majority of employers and applicants, with consistently more than 90% of applications approved within the same or next working day, and an overall approval rate of over 99.9% over the last five years, there remain a number of areas of concern for employers and employees, and it is clear there are still significant perception issues around the system for new residents and complexity for employers navigating multiple pathways.

‘Improving this, as well as simplifying the overall system with a single, all-encompassing portal and maintaining a registration process for all employers, regardless of the occupation or sector, and aligning the need for all non-Isle of Man workers, including those holding immigration visas, to be registered when moving to the island to take up employment remains the goal for the department.’