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IMPACT – MEDIUM
What is the change? Nigeria’s Immigration Amendment Act, passed last week, revises the legal structure for issuance of work permits and imposes steep monetary penalties on companies for non-compliance.
What does the change mean? Companies hiring foreign workers may benefit from clearer rules but also have greater responsibilities to comply with all rules regarding work permits, expatriate quotas, timely renewals and monthly reporting.
Background: The Immigration Amendment Act 2015 was signed into law May 25 by outgoing President Goodluck Jonathan. It codifies the legal authority of the Comptroller General of Immigration to issue work permits.
Under the act, companies are required to “show evidence of immigration responsibility or any other security on behalf of an expatriate employee before a resident permit is granted.” This provision puts the onus on employers to make sure their expatriate employees are in full compliance with the laws. While “any other security” is not defined, it is being interpreted to mean that Nigeria may require employers to pay a guarantee to sponsor some work or resident permits.
If convicted of immigration violations, a company and/or employee will be liable for fines. Here is a summary of penalties:
BAL Analysis: While the law does not significantly alter existing work permit procedures, it contains several important changes to the current regime, with a heavy focus on enforcement through corporate liability.
This alert has been provided by the BAL Global Practice group and our network provider located in Nigeria. For additional information, please contact your BAL attorney.
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.
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