Six-year limits on work permits have created a climate of "concern and fear" in Bermuda's business world, a top lawyer said yesterday.

Kelvin Hastings-Smith said businesses were being hampered in their ability to recruit - and workers were leaving the Island because of the 2007 cut-off date.

Mr. Hastings-Smith added it was "not a given" that chief executive officers and beneficial owners of companies would be considered key and allowed to stay on over the six-year limits.

And he said there had been problems emerging from his firm's clients with guest workers turning down job offers and others making career decisions to leave Bermuda due to the term limit on permits.

"The sole concern and fear has been there generally for about 18 months, but the closer we come to 2007 there has been greater response and activity," said Mr. Hastings-Smith.

Mr. Hastings-Smith has just published a guide for AS&K clients on how to deal with the policies. He said his comments come from "the experience and comments in the recruiting process" of his firm's clients.

His guide, he said, came straight from the policy put in place in 2000 by then Minister of Labour and Home Affairs Paula Cox who put a cap of six years on work permits, with extensions of three years for "key personnel".

The scheme was to have 2001 as the first year where the six-year period would start, with 2007 the end of the six-year term for permits.

There has been growing concern in the business community about the term limits which are seen as unworkable. The Bermuda Employers Council said it wanted the policy revoked and that companies were making plans to leave the Island because of the restrictions. Businessman Kit Astwood, head of the Economics Division of the Chamber of Commerce, called the measures pandering to the "political racists". The Association of International Bermuda Companies said it is a "critical" issue and more details on its implementation needed to be made clearer. The International Business Forum said it has been working with Government on the issue to try and work out details of the programme.

Mr. Hastings-Smith said there were many questions still unanswered by the policy - such as if beneficial owners of companies or chief executive officers are considered key or would be exempt from term limits.

"It is assumed that they are an exception," he said. "But it has not been stated. And given the comments coming from the department it is not a given that they will be exempted or who will be exempted."

He said that his company had not had any meetings with the Ministry, although they had requested them informally. But he said his firm was waiting until after July 24, at which point they would lobby on behalf of their clients. When asked if there were any legal grounds on which a company could sue over changes in work permits, he said he doubted this would be a viable proposition, although every case was different and would have to be looked at on its own merits.

"I would doubt there was a legal case. A work permit is not a guarantee..." he said.

He said that once applications started being sent in for key personnel, then he believed clearer guidelines would come out of this process.

"Proper guidelines need to be made for the policy," said Mr. Hastings-Smith, who said the uncertainty was fuelling assumption and speculation in the matter. "After the dust settles after July 24 it will be as well this is dealt with as quickly as possible to calm this uncertainty."

The official AS&K document is called "Bermuda: Key Personnel - Planning for the Future" and was published on July 4 and has Mr. Hastings-Smith as its author.

It states in its introduction: "It is easy to believe that six years is a long time, but those six years in2001 are now just four. Within a short while the impact of the immigration policy change of April 2001 will begin to have effect.

"Maybe your organisation is beginning to feel the effects now - overseas employees deciding that there is no long term future in Bermuda and either moving back to their home country now (or making plans to) or moving to a country with less stringent immigration policies. These effects affect Bermuda businesses. Either way, change will occur."