By Hana Plsek, Associate, Collas Crill, Guernsey
Whilst 2016 saw a great deal of attention paid to global issues and how they will affect our island, in 2017 we will also need to look at changes closer to home. Some significant legal developments in Guernsey may have a major impact on our infrastructure and our workplaces.
One of the biggest changes will be the new Population Management (Guernsey) Law 2016 (PML) and the Open Market Housing Register (Guernsey) Law 2016, which are effective from 3 April 2017.
The PML was drafted with the States of Guernsey’s social, political and economic objectives in mind. With an ageing population and limited resources, current trends aren't sustainable. So what’s going to change?
Right to stay
Guernsey’s two-tier system will remain, but with some tweaks. The most significant will be clarity on the time period needed to obtain a right to remain on Guernsey. Having completed eight consecutive years of occupancy in a local market property, and upon expiry of a long-term employment permit, an individual can apply for an Established Resident Certificate, allowing them to reside in a local market property indefinitely without any employment-related restrictions.
However, the individual won’t have a right to remain indefinitely in Guernsey. Should they leave for a ‘recognised break in residence’ (that being defined as an amount of time equal to or longer than their last period of residence in Guernsey), their right to stay will cease. This increased certainty will no doubt provide a degree of comfort to many local employers.
Interestingly, the main source of controversy around the new law has stemmed from changes in the short-term employment permit. Previously, an individual was able to undertake work on a short-term basis for, say, a nine-month period, leave the island for three months and return again to undertake a further nine months. These individuals don’t accrue any rights to live on the island indefinitely as they must reside in Open Market accommodation.
Thus, there was no long-term population growth attributable to these workers, employers didn’t need to regularly train staff and the gap in the employment market was plugged.
New limits
Under the new regime, the maximum amount of time these individuals can stay is five years, with an application being required every year. In addition, any absence from the island could potentially count towards this five-year period if it isn’t a ‘recognised break in residence’ as defined above.
In theory then, in our example above, any nine-month period would require an absence of nine months, rather than the three-month absence, to ensure the period isn’t taken into account towards the maximum of five years.
Understandably, the hospitality and agricultural sectors, among others, are concerned. Finding new staff regularly isn’t cost-effective and the burden of the extra administration not helpful.
Thankfully, the Housing Department has recognised these concerns and is working with local businesses to ensure that any worries are dealt with swiftly and with the States of Guernsey’s overall strategy in mind.
In general, this new law provides an element of clarity that was previously lacking. However, misconceptions and misunderstandings have caused fear and upset among ex-pats and employers. Perhaps lessons can be learned in terms of education around new legislation.
Housing changes
Alongside this, we have the changes to the Open Market Housing Register that will also come into effect. Much like the PML, there are a number of misconceptions around houses in multiple occupancy, occupied by unrelated persons (HMOs) and what will happen to them.
Although the Housing Department has done a good job of informing the public in a variety of ways of what the changes will mean to each individual, the interplay with planning issues has been less well highlighted. Whilst housing and development and planning have different obligations under differing legislation, one thing is clear: as far as HMOs are concerned, a joined-up approach is required for the benefit of the end user.
It’s a shame that the powers that be have not, to date, clarified these points to the public as, for the man on the street, it would have simplified things considerably. It’s important that property owners fully understand the planning implications by taking advice now before properties are re-categorised in April.
One last big change of significance to HR departments will be the introduction of same-sex marriage. On 21 September 2016, a bill was approved by the States of Guernsey (now awaiting Royal Assent by the Privy Council). The first marriages are expected to take place this year.
Putting Guernsey in line with the likes of the UK and parts of America is another step in making sure our legislation reflects the modern world we live in.