The pension holiday commenced 1 April 2020 and will end on 30 September 2020 or such later date as may be appointed by Order made by the Cabinet.
Details
Employees and employers are not required to contribute to the pension fund of a pension plan on behalf of the employee during the pension holiday period. Self-employed persons are also not required to contribute to pension plans or retirement accounts during this period.
Employees, employers and self-employed persons may choose to make voluntary contributions to pension plans or retirement accounts during the pension holiday period.
All arrears due and payable prior to the pension holiday period shall continue to accrue in accordance with section 50 of the National Pensions Law during the pension holiday period.
Where the pension plan member is a public servant with pension contributions paid by a statutory authority or a government company, provisions relating to suspension of pension contributions shall not apply.
Background
The National Pensions (Amendment) Law, 2020 was passed in the Legislative Assembly on Thursday, 23 April 2020 and the provisions relating to suspension of pension contributions are deemed to have come into force on Wednesday, 1 April 2020.
This Law shall expire on 31 October 2020 or such later date as may be appointed by Order made by the Cabinet. Different dates may be appointed for different provisions of this Law and in relation to different matters.
Upon the expiration of this Law, the National Pensions Law (2012 Revision) shall have effect as though it had not been amended by this Law.
A pension plan member may withdraw funds from his or her account in a private pension plan subject to certain provisions.
The total amount that may be withdrawn depends on the balance in the account at the time of withdrawal and is capped at $10,000 plus up to 25% of the remaining balance.
Details
To qualify for this emergency withdrawal of pension funds, the member must either be presently in the Islands or have departed the jurisdiction on or after 1 February 2020.
In the case of a defined contribution pension plan, where a member’s balance in the member’s account does not exceed ten thousand dollars, the member may withdraw up to one hundred per cent of the balance. Where a member’s balance in the member’s account exceeds ten thousand dollars, the member may withdraw ten thousand dollars and up to twenty-five per cent of the remaining balance of the amount which exceeds ten thousand dollars.
Similarly, in the case of a defined benefit pension plan, where the commuted value of a member’s accrued benefits does not exceed ten thousand dollars, the member may withdraw up to one hundred per cent of the commuted value. Where the commuted value of a member’s accrued benefits exceeds ten thousand dollars, the member may withdraw ten thousand dollars and up to twenty-five per cent of the remaining commuted value which exceeds ten thousand dollars.
In both cases, the withdrawal is a single lump sum payment.
Members are not entitled to withdraw from their pension account if they (1) have claimed benefits under normal or early pension entitlement, or (2) are public servants with contributions paid by a statutory authority or a government company.
When completed, the Application Form to Access Emergency Withdrawal of Pensions Fund should be submitted to the member's pension plan administrator. Pension plan administrators must acknowledge receipt of applications within seven days and decide on applications within 14 days of acknowledgement. If approved, members can expect to get their payments by cheque or direct deposit within 45 days of submitting their applications.
If you have a complaint about the handling of your application, you may file an appeal with the Director of Labour and Pensions by email at DLP@gov.ky.
Background
The National Pensions (Amendment) Law, 2020 was passed in the Legislative Assembly on Thursday, 23 April 2020 and the provisions relating to emergency withdrawal of pension funds are came into force on Friday, 1 May 2020.
This Law shall expire on 31 October 2020 or such later date as may be appointed by Order made by the Cabinet. Different dates may be appointed for different provisions of this Law and in relation to different matters.
Upon the expiration of this Law, the National Pensions Law (2012 Revision) shall have effect as though it had not been amended by this Law.
If businesses are closed or operating under restrictions as a result of Regulations made under the Public Health Law, employers may use their discretion in offering pay during the period. However, outside of Public Holiday Pay and paid leave entitlements, the Labour Law does not require that employees be paid for time not worked. See also COVID-19 FAQs: Labour & Pensions.
Severance is to be paid to employees being laid off, unless the employees are to be brought back to work within 30 days (in most industries or fields) or 60 days if the temporary layoff is as a result of the COVID-19 virus. See also Severance Pay and Extension of Temporary Layoff Period.
Severance is to be paid to employees being laid off unless the employees are to be brought back to work within 30 days (in most industries or fields), or 60 days if the temporary layoff is as a result of the COVID-19 virus. See also Extension of Temporary Layoff Period.
Once 60 days have passed, for employees in these industries or fields the termination is no longer considered to be temporary and severance becomes payable.
In the construction and agriculture industries, severance is to be paid to employees being laid off unless the employees are to be brought back to work within six months. Once six months has passed, the termination is no longer considered to be temporary, and severance becomes payable.
Severance is calculated at one week’s wage for each completed year of employment. Employees being terminated by the employer are also required to be paid any earned wages, gratuities, commission, vacation, and notice pay.
The Department of Labour & Pensions would encourage employers to arrange for final payments owed to employees to be made upon termination. Employers should be mindful that they must remit employees’ wages within one month of the wages being earned to avoid incurring an offence. See also Department of Labour & Pensions and COVID-19 FAQs: Labour & Pensions.
To further alleviate financial pressure on employers and employees, Regulations have been made by Cabinet to extend the period of temporary layoff before which severance is payable by 30 days.
This extension will enable employers to continue to employ staff rather than terminate employment and result in persons losing their benefits under the Labour Law.
Details
Under the Labour Law, severance is payable to employees being laid off unless the employees are to be brought back to work within 30 days (in most industries or fields). See also Severance Pay.
This 30 day layoff period has been extended to 60 days if, as a result of the COVID-19 virus, an employer temporarily terminates the employment of any employee entitled to severance pay. Once 60 days has passed the termination is no longer considered to be temporary, and severance becomes payable. Read more in the Labour (Extension of Severance Pay Period) Regulations, 2020.
In the construction and agriculture industries, severance is to be paid to employees being laid off unless the employees are to be brought back to work within six months. Once six months has passed, the termination is no longer considered to be temporary, and severance becomes payable.
The Department of Labour & Pensions encourages employers and employees alike to follow the guidelines outlined by the Chief Medical Officer and the Public Health Department. All employers owe their staff a duty to protect their health and safety and should have plans in place to manage business continuity in the event of COVID-19 impacting their operation.
As part of this, employers should communicate with employees to assure them that the employer is monitoring the situation and taking steps to plan for disruption. The communication should also relay the current Government advice in relation to infection prevention.
While the Labour Law (2011 Revision) does not address this specific situation, it does establish the required minimum standards and allows employers to establish conditions of service more advantageous to any employee than the minimum employment standards established by this Law.
The Department of Labour & Pensions will make every effort to work with employers and employees during this time to ensure the proper observance of the Labour Law and its Regulations.
The Labour (Amendment) Law, 2020 was passed in the Legislative Assembly on Thursday, 23 April 2020 and came into effect on Tuesday, 28 April 2020. It provides for service of documents, information, particulars and other records by electronic means and gives the Cabinet the power to grant an extension of the period for compliance with, or an exemption from, any provision of the Labour Law or Regulations in the case of a disastrous event.
See also our Business Guidance page and COVID-19 FAQs: Labour & Pensions for more information for employers and employees, or visit www.dlp.gov.ky.
If expired work permits were not renewed by 30 June 2020, employees who continue to work will be in breach of the law and both the employer and employee will be liable to a fine of CI$5,000 or to imprisonment for one year or to both.
Individuals with work permit facilities that expired between 27 March 2020 and 30 June 2020 were allowed to continue working on the same terms and with the same employer if, as a result of the closure of WORC, the employer was unable to make an application for:
- the renewal of a work permit, or
- where the work permit was temporary, the grant of a work permit.
The worker shall be deemed not to have committed an offence under the Immigration (Transition) Law, 2018 (as amended) by continuing to work on the same terms and conditions of the expired work permit provided the employer or self-employed worker made an application for the renewal of the work permit or, in the case of a temporary work permit, an application for the grant of a work permit by 30 June 2020. The original deadline for employers of 31 May 2020 was extended following consultation with private sector stakeholders.
If the worker's employment with the employer ended on or before 30 June 2020 after the expiration of the work permit or temporary work permit without the work permit being renewed or granted, neither the employer nor the worker shall be deemed to be in contravention of the Immigration (Transition) Law if the worker continued to work on the same terms and conditions as those in the expired work permit in the period between the expiration and ending of the worker’s employment.
Where a worker’s final work permit of nine years expired on or after 27 March 2020, the worker is able to continue to work under their current conditions until 1 August 2020 or a later date determined by Cabinet. Employers are not required to complete an application or pay a fee to utilise this permission in law.
Employers wanting to apply for work permit renewals or grants should visit www.worc.ky for application forms and guidance on how to submit applications and pay fees electronically.
Employers must first advertise the position on JobsCayman for at least 14 days before any work permit renewal applications can be made. Where Caymanians have applied for the position and are not successful candidates, employers are required to supply names of all applicants, qualifications, working experience and background, inclusive of detailed reasoning for not employing the Caymanian. Guidance on how to use this site is available on www.worc.ky. For hands on assistance using the JobsCayman portal, email WORC@gov.ky or call 945-9672 or WhatsApp 925-7199 9am to 4pm, Monday to Friday. Read more.
These policies are provided for in the Immigration (Transition) (Amendment) Law, 2020 and Notice under section 6(2) the Immigration (Transition) (Amendment) Law, 2020.
See also COVID-19 FAQs: Workforce Opportunities & Residency.
An extension will be granted to temporary permits held by construction companies, small and micro businesses, domestic helpers and caregivers to reflect the time lost during the shelter in place order. This applies for permits that were valid as a of 27 March 2020.
For mote information, call 945-9672, email WORC@gov.ky or text Customer Care at 925-7199.
This extension is provided for pursuant to the Immigration (Transition) (Temporary Work Permits and Business Visitors' Permits) (Amendment) Regulations, 2020 and Notice under section 6(5) the Immigration (Transition) (Amendment) Law, 2020.
Non-Caymanians recruited by the Health Services Authority or by any private hospital to the posts of medical personnel are temporarily exempt from certain provisions of the Immigration (Transition) Law, 2018.
Read more in the Immigration (Transition) (Work Permit Exemptions) Regulations, 2020.
The Prevention, Control and Suppression of Covid-19 (Partial Lifting of Restrictions) (No.4) Regulations, 2020 and Prevention, Control and Suppression of Covid-19 (Partial Lifting of Restrictions) (Travel and Boating) (No.3) Regulations, 2020 came into effect on Tuesday, 25 August 2020. Certain businesses and operations are subject to ongoing restrictions. As examples, see the sections on this page setting out requirements for:
- Fishing & Boating
- Sports & Exercise
- Hookahs, Shisha Pipes & Water Pipes
- Scuba & Snorkelling Equipment
Businesses no longer require curfew exemptions or permission from the Competent Authority ("Curfew Time") in order to open. However, owners and operators must be aware of restrictions and requirements that continue to apply to their specific operations. For example, boat operators must restrict the number of passengers to no more than 250 people or the maximum capacity. Inside public places, masks or cloth face coverings may be worn but are not mandatory.
For more information, see our Business Guidance page.
Though it is not required in order to return to the physical workplace, COVID-19 screening is now available to anyone. Individuals may self-register for screening using the Health Services Authority's online calendar.
In the Cayman Islands restaurants and bars may offer indoor and outdoor services.
No business may refuse entry to persons wearing or not wearing a mask or face covering.
These restrictions and conditions are in place under the Prevention, Control and Suppression of Covid-19 (Partial Lifting of Restrictions) (No.4) Regulations, 2020 and came into effect on Tuesday, 25 August 2020.
Owners and operators are also reminded that restaurants and bars are only permitted to operate within the hours of operation permitted by the Liquor Licensing Law (2019 Revision), the Sunday Trading Law (2014 Revision) and the Trade and Business Licencing Law (2019 Revision).
Liquor Licensees
The Liquor Licensing Boards of the Cayman Islands advise licensees with a restaurant licence that they are not permitted to do deliveries with food. Liquor licence holders are further advised that deliveries are only permitted under certain categories of licences of the Liquor Licensing Law with approval of the Liquor Licensing Board.
Section 10(7) of the Liquor Licensing Law provides that, “A restaurant licence permits the disposal of intoxicating liquor to any person at a restaurant, or other premises affixed to the land, at which food is served for consumption on the premises”.
Those found in breach of the law will be liable on summary conviction to a fine of one thousand dollars and to imprisonment for one year.
Licence holders are also reminded to adhere to the opening hours which are outlined on the licence. Closing hours must comply with hard curfew hours.
Interested members of the public can email info@dci.gov.ky for information.
The Cayman Islands Centre for Business Development is providing support to small and medium-sized businesses across the Islands.
The services offered to the public will begin with a focus on business continuity training and coaching. Small and medium-sized enterprises with an urgent need for assistance with cash flow management, business impact analysis or those that need to redesign or re-think their business models are urged to contact the Centre.
Business coaching sessions will be a pre-requisite for accessing renegotiated loans. The plan of assistance will also include the infusion of capital into the sector over which the Centre will provide monitoring oversight.
As a result of current circumstances, staff members at the Centre will conduct meetings with clients by appointments, via telephone or virtually through video apps.
The Cayman Islands Centre for Business Development is located at Bay Town Plaza, 36 West Bay Road in Grand Cayman. Persons interested in making an appointment can call 244-8009 Monday to Friday, 8:30am to 5pm or email CICBD@gov.ky.
Payment of trade and business licensing application fees from 1 May to 31 July 2020 have been waived.
Late fees from 1 March to 31 July 2020 will also be waived for all applicants.
Read more in the Trade and Business Licensing (Temporary Reduction in Fee) Regulations, 2020.
Notaries are now able to notarise documents virtually using appropriate technologies in real time.
Read more in the Notaries Public (Virtual Conduct of Notarial Acts) Regulations, 2020. These Regulations shall cease to have effect on 17 April 2022 or at such other date that the Cabinet may appoint by Order.
To offset the potential loss of business for public transport providers, Government will provide a one-time stipend of $600 for anyone who operates a 15-seater bus, taxi, tour bus, or dual taxi-tour bus and water sports. This would be to cover the closure period where tourists are not permitted to land in the Cayman Islands. Others could be added to the groups receiving stipends in the coming days. See also Closure of Airports & Seaports.
The Ministry of District Administration, Tourism and Transport recognises the economic impact that the COVID-19 pandemic has had on the jurisdiction’s tourism industry. As such, all displaced Caymanian tourism employees were encouraged to register with the Ministry by filling out an online registration form by 11:59PM on Sunday, 7 June 2020.
This was an important step for the government to provide a much-needed economic stimulus for those in the tourism industry as the Cayman Islands continue to navigate through this period. The Ministry is committed to doing all it can to assist those in need and this information will help determine how best to help persons who have lost their jobs and thus their livelihood.
Between 21 May and 7 June 2020, approximately 2,700 displaced Caymanians tourism employees submitted applications for the $1,000 per month stipend for a three-month period.
On Friday, 17 July 2020, the Minister for Tourism announced that Government is opening a second registration period for displaced Caymanian tourism employees to receive further tourism stipends. Details will be provided at a later date.
The Ministry of Culture has authorised the award of a one-time grant of $1,000 to eligible entertainers and musicians who have experienced financial setbacks due to an inability to perform while Regulations under the Public Health Law to prevent, suppress and control COVID-19 are in effect.
On Friday, 12 June, the Minister for Culture provided an update that 149 completed applications had been approved for stipends. As of that date, 54 payments had been made, another 84 were in process and a final batch of 11 would be completed the following week. An additional 50 grants were pending applications from persons who had expressed an interest.
The Ministry of Culture will contact persons as payments are available.
The National Gallery of the Cayman Islands, in partnership with the Ministry of Culture and the private sector, is offering one-time Artist Grants of $1,000 per artist. 20 grants are available on a first come first served basis.
To qualify, artists should be reliant on their artwork as their primary source of income and experiencing significant loss of income due to the COVID-19 pandemic.
The deadline to apply is 24 July 2020 and the form must be fully completed and signed to qualify. Artists should contact the National Gallery for more information and to apply at administration@nationalgallery.org.ky.
