New law removes hiring constraints

A bill easing restriction on the employment of non-resident workers in the Northern Marianas was signed into law yesterday, allowing employers to utilize their employees to perform work outside their job categories specified in the work contract.

The measure removes what lawmakers described as “unreasonable bureaucratic or regulatory obstacles” that impede the efficient use and employment of foreign labor.

Public Law 11-51 was put in place in response to clamor from the business community to permit the cross utilization of guest employees in view of difficulties confronting employers in acquiring the services of foreign workers because of the indefinite ban on hiring.

Businessmen are worried that stringent requirements in employing non-resident workers would affect their operations already hurting from the economic slump.

Acting Governor Jesus R. Sablan said in his transmittal letter to the Legislature approving the bill that the measure would eliminate the need to hire additional employees thus reducing the number of foreign workers in the commonwealth.

Under the legislation introduced by House Speaker Diego T. Benavente, “An employer may assign an employee to perform any services or labor outside the employee’s job classification, provided that such assignment is within the scope of the employer’s business, is not prohibited by statute, and is in the same occupational category,” without affecting the original employment contract.

The law also allowed the issuance of a 180-day special industry permit to non-resident individuals in the Northern Marianas provided that they meet the following requirements:

•a guest worker employed or will be employed by a foreign resident business who does not have a substantial physical presence in the CNMI and is not required to obtain a business license;

•the foreign resident business has a direct and legitimate business relationship with an established licensed and bonafide business activity in the island;

•the presence of the affected non-resident employee is absolutely necessary in carrying out the business objective of the foreign resident business; and

•the business relationship between the foreign resident business and the CNMI resident business would not be consummated without the presence of such guest worker.