Employers must pay fees up-front for foreign engineers

IMPACT – MEDIUM

What is the change? As of 17 September, all employers intending to sponsor a foreign national in an engineering position will be required to pay fees to the Institution of Professional Engineers Papua New Guinea before applying for a work permit. 

What does the change mean? The change will have an impact on the processing of work permit applications for foreign national engineers and their employers.

• Implementation timeframe: Immediate.
• Visas/Permits affected: Work & Entry Permit.
• Impact on processing times: The change will impact the overall processing timeline as businesses will be required to complete IEPNG registration and ensure all fees are paid in full before applying for the Work & Entry Permit. This may cause delays in the application process if businesses delay payment of the IEPNG fees.
• Business impact: Businesses should factor the earlier mandatory payment of fees into their timelines.

Background: Under the new rule, employers sponsoring foreign engineers are now required to pay the IEPNG application fee, membership fee and registration fee in full before the work permit letter is issued by the Department of Labour and Industrial Relations. The membership fees must cover the full duration of the work permit. Businesses may seek a refund of the fees in cases where a foreign employee does not commence their employment in Papua New Guinea, or where an employee is terminated, is unable to work, or resigns.

BAL Analysis: To avoid delays, sponsoring employers will have to start the process earlier by completing their application and registration process with the IEPNG and paying all fees in full before applying for a foreign engineer’s work permit.

This alert has been provided by BAL Australia. For additional information, please contact australia@bal.com.

MARN: 9683856

Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.