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Cook Islands: Labour Regulation

BACK TO COOK ISLANDS INFORMATION: BUSINESS, TAXATION AND OFFSHORE

Cook Islands Regulatory Environment

Labour regulation in the Cook Islands is very light. Labour relations are regulated by the Industrial and Labour Ordinance 1964. Most pay bargaining is carried out directly between employers and employees. According to the Cook Islands Development Investment Board, there is a statutory minimum wage of NZD5 per hour, with the private sector generally paying above the minimum rate. The average weekly earnings of private sector employees range between NZD200 - NZD300.

In 2004, the Cabinet approved the establishment of a task force to study the issues relating to an increase in the minimum wage rate to NZD7 per hour. By late 2011, an increase in the minimum wage had not yet been decided.


Cook Islands Work Permits

The Entry, Residence and Departure Act 1977 states that anyone other than a Cook Islands citizen or permanent resident who wishes to live and work on the Islands must first obtain a work and residence permit. An application for a work and residence permit can now be made online.

Work permits have traditionally been issued quite freely except in certain activities which are reserved for Cook Islanders, including copra production, harvesting of reef and lagoon products, small retailing and garment manufacture.

A business or employer can apply for a work permit on behalf of an expatriate employee. As a rule, a permit is issued for a year, and is renewable on application by the employer. The work permit is tied to the applicant's employer and is not transferable to another employment.

In February 2008, the Entry, Residence and Departure Act was amended with regard to the granting of permanent residence .

Under the updated legislation, the granting of up to 650 PR certificates was permitted, 150 more than the previous limit of 500.

The amendment also required applicants not only to be of "good character" but to have a proven record of having made a "significant positive contribution to or investment in the Cook Islands in terms of skills, expertise, community work or financial investment."

There was also a new seperate category allowing unlimited number of PR certificates to be granted to those married to Cook Islanders or PRs, as long as they have been married for no less than five years.

 

BACK TO COOK ISLANDS INFORMATION: BUSINESS, TAXATION AND OFFSHORE





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