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Hiring in Anguilla

Anguilla is a self-governing British overseas territory located in the Caribbean. The primary industries of Anguilla are tourism, offshore banking, captive insurance and fishing. Global PEO or Employer of Record (EOR) play a pivotal role in providing companies with services related to hiring employees, and ensuring compliance with Anguilla’s legal and tax regulations. Employment regulations including probation period, holidays and termination are stipulated in Anguilla’s Labor Code. This code postulates that an employee shall be entitled to at least 15 days paid annual holiday leave. As the official employer of record (EOR), Global PEO’s ensure that foreign companies operating in Anguilla are compliant with its Labor Code. Anguilla is essentially a tax haven as it is a zero tax jurisdiction. There is no income, capital gains, estate or other forms of direct taxation on individuals, regardless of residence status.

statutory labor requirements

Probation Period

  • It is not mandatory that an employer and employee agree that a new job must commence with a period of probation but where an employer and employee agree that there should be a period of probation then
  • for managers and executive staff that period must not exceed 6 months; and 
  • for all other staff that period must not exceed 3 months.

Annual Leave

  • An employee shall be entitled to at least 15 days paid annual holiday leave.

Public Holidays

  1. New Year's Day (1st January)
  2. James Ronald Webster's Birthday (2nd March)
  3. Good Friday (10th April)
  4. Easter Monday (13th April)
  5. labor Day (1st May)
  6. Anguilla Day (1st June)
  7. Queen's Birthday (8th June)
  8. Emancipation Day (of Anguilla) (3rd August)
  9. August Thursday
  10. National Heroes and Heroines Day (19th December)
  11. Christmas Day (25th December)

Maternity Leave

  • Subject to section 53, on the production of a certificate from a duly qualified medical practitioner stating the presumed date of confinement, a female employee who has
    • completed 12 months’ continuous employment shall be granted a period of maternity leave with pay by her employer; or 
    • been employed for less than 12 months shall be granted a period of maternity leave with pay by her employer but such leave shall be prorated.
  • The period of maternity leave shall not be less than 14 weeks of which not less than 6 weeks’ compulsory leave shall be taken after the date of confinement.

Paternity Leave

  • The father of the baby or the husband of the baby’s mother shall be granted paternity leave for such period as requested in the application but in any case not exceeding one month in any 12-month period beginning with the date of confinement and ending not later than 6 months from the birth of the child.

Sick Leave

  • An employee, other than a casual employee, who due to illness is unfit for work, shall be eligible for sick leave with pay on the basis of one day for every 22 days worked, provided that he has worked for his employer for at least 110 days. 
  • An employee, other than a casual employee, who due to illness is unfit for work, shall be eligible for sick leave with pay for up to 2 normal working weeks per year, provided that he has worked for the employer for more than 12 months.

Work Hours

  • The standard workday, exclusive of meals and other agreed intervals, shall be 8 hours and the standard workweek shall be 44 hours.

Overtime

  • Where an employee is employed for a period exceeding 44 hours in any one week, he shall be paid at the rate of 1½ times his basic hourly rate of pay for each hour employed in excess of 44 hours
  • Where such period exceeds 48 hours, he shall be paid at the rate of twice his basic hourly rate of pay for each hour employed in excess of 48 hours.

Notice Period

  • Where an employer or an employee wishes to terminate the contract of employment the requirements for notice to terminate shall be
  • for an employee paid at intervals of less than one month who has
    • less than one year’s service, one week
    • one year or over and less than 5 years’ service, 2 weeks, and 
    • 5 years’ service and over, 4 weeks;
  • for an employee paid at monthly intervals who has
    • less than one year’s service, one month, one year or over and under 5 years’ service,
    • 2 months, and 
    • 5 years’ service and over, 3 months; 
  • for an employee who is paid at monthly intervals and who is a supervisor, manager or where the employee concerned is at the professional, higher technical or managerial level, the period of notice shall not be less than 3 months irrespective of length of service.

Severance

  • Where an employee is terminated due to redundancy that employee shall be entitled to the following minimum redundancy payment
    • one week’s wage for each completed year of service up to the first 5 years; or
    • 2 weeks’ wages for each completed year of service in excess of 5 years.

income tax

  • Anguilla is a zero-tax jurisdiction
  • There is no income, capital gains, estate or other forms of direct taxation on individuals, regardless of residence status

deductible expenses

There are no deductible expenses as there is no income tax

immigration

  • Persons needing visas to enter Anguilla are expected to apply at the nearest British Embassy or High Commission Office prior to travel.
  • Visas are issued in Anguilla to non-Anguillian/Belongers who are working in Anguilla and would require a visa to re-enter when they travel.
  • There are four types of work permits
    • Self employed
    • Employee
    • Renewal and
    • Temporary
  • All vacancies must be advertised before an application can be submitted. 
  • Application forms and Medical reports are collected at the labor Department. 
  • Completed forms are returned to the Department and must be accompanied by:
    • Copy of the advertisement
    • A complete work permit application
    • Birth Certificate and Passport
    • Police record covering the last ten (10) years
    • Certified certificates as evidence of academic or professional qualifications
    • Recent medical examination report
    • Four (4) passport-sized photographs (identical)
    • Certificate from Social Security contributions stating that the employer is registered and/or his/her Social Security contributions are up to date.
    • Business License
    • Tax Clearance
  • Work Permits should not be granted for a continuous period of more than four (4) years except in cases where the skills of the person are considered to be critical to the development of Anguilla.

Type of Visa/Permit

Documentation

Validity

Eligibility

Work Permit

  • Copy of the advertisement
  • A complete work permit application
  • Birth Certificate and Passport
  • Police record covering the last ten (10) years
  • Certified certificates as evidence of academic or professional qualifications
  • Recent medical examination report
  • Four (4) passport-sized photographs (identical)
  • Certificate from Social Security contributions stating that the employer is registered and/or his/her Social Security contributions are up to date.
  • Business License
  • Tax Clearance

Maximum 4 years

  • Foreigners must apply for a work permit in order to legally work in Anguilla
  • All vacancies must be advertised before an application can be submitted. 

value added tax (vat)

  • Anguilla is a zero tax jurisdiction
  • There is no VAT or sales tax

withholding tax

There are no withholding taxes in Anguilla.

termination

An employer has the right to dismiss an employee if the employer is satisfied that the employee

    • engaged in repeated misconduct; 
    • committed misconduct of a serious nature; 
    • has demonstrated that he or she is not performing the work at the standard reasonably expected by the employer.
    • In addition to dismissal, the contract of employment may be terminated by
      • notice of termination; 
      • agreement or mutual consent; 
      • by the operation of law or supervening event; and 
      • redundancy.
  • Where an employer or an employee wishes to terminate the contract of employment the requirements for notice to terminate shall be
  • for an employee paid at intervals of less than one month who has
    • less than one year’s service, one week
    • one year or over and less than 5 years’ service, 2 weeks, and 
    • 5 years’ service and over, 4 weeks;
  • for an employee paid at monthly intervals who has
    • less than one year’s service, one month, one year or over and under 5 years’ service,
    • 2 months, and 
    • 5 years’ service and over, 3 months; 
  • for an employee who is paid at monthly intervals and who is a supervisor, manager or where the employee concerned is at the professional, higher technical or managerial level, the period of notice shall not be less than 3 months irrespective of length of service.
  • Where an employee is terminated due to redundancy that employee shall be entitled to the following minimum redundancy payment
  • one week’s wage for each completed year of service up to the first 5 years; or
  • 2 weeks’ wages for each completed year of service in excess of 5 years.

statutory benefits

  • These are mandatory benefits as postulated by law
  • These include probationary period, annual leave, public holidays, sick leave, maternity leave, paternity leave, overtime pay, notice period, and severance pay
  • Statutory benefits also include social security benefits

Statutory Benefits

Probationary Period

Annual Leave

Public Holidays

Maternity Leave

Paternity Leave

Sick Leave

Overtime Pay

Notice Period

Severance Pay

Social Security Benefits

payments and invoicing

There are no taxes; hence no payment and invoicing obligation

employee accruals

   
Christmas Bonus% 0%
Christmas Bonus Over Vacations % 0%
Severance per Year % Employees are entitled to one week’s wage for each completed year of service up to the first 5 years (1.92%)
Vacations % An employee shall be entitled to at least 15 days paid annual holiday leave (4.1% of annual salary)
Notice % Employees are entitled to 1 week of notice period after one year of service (1.92%)
Christmas Bonus Over Notifications% 0%
Vacations Plus% 5%
Total percentage of Salary (yearly) The total employment accruals as a percentage of salary per anum are equal to 7.94%

 

employer accruals

Employer Accruals Additional information

 

    Employment Accruals
Annual Leave An employee shall be entitled to at least 15 days of paid annual holiday leave. This equals 4.1% (15/365 days)
Maternity Leave  The period of maternity leave shall not be less than 14 weeks of which not less than 6 weeks’ compulsory leave shall be taken after the date of confinement. This equals 26.9% (14/52 weeks)
Paternity Leave The father of the baby or the husband of the baby’s mother shall be granted paternity leave for such period as requested in the application but in any case not exceeding one month in any 12-month period beginning with the date of confinement and ending not later than 6 months from the birth of the child. This equals 8.33% (1/12 months)
Sick Leave An employee, other than a casual employee, who due to illness is unfit for work, shall be eligible for sick leave with pay on the basis of one day for every 22 days worked, provided that he has worked for his employer for at least 110 days. This equals 4.38% (16/365 days)
Overtime Where an employee is employed for a period exceeding 44 hours in any one week, he shall be paid at the rate of 1½ times his basic hourly rate of pay for each hour employed in excess of 44 hours Subjective
Severance Where an employee is terminated due to redundancy that employee shall be entitled to the following minimum redundancy payment
• one week’s wage for each completed year of service up to the first 5 years; or
• 2 weeks’ wages for each completed year of service in excess of 5 years.
This equals 1.92% (1/52 weeks)
Social Security Both the employer and the employee contribute 5% of an employee’s earnings, up to XCD 7000 per month This equals 5% of annual income

 

 

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