Definitive Guide to Hiring in Antigua and Barbuda

Hiring in Antigua and Barbuda

Hiring employees compliantly in Antigua and Barbuda means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Antigua and Barbuda so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Antigua and Barbuda or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Labor Laws in Antigua and Barbuda

Employee Probation Period

• A new employee's probation period may not exceed 3 months in duration, unless there is provision for a greater period in a collective agreement between an employer and a registered trade union acting as sole bargaining agent for all employees in an appropriate bargaining unit.

Annual Leave in Antigua and Barbuda

• Each employee who has successfully passed his probationary period shall be entitled to, and each employer shall give him, vacation leave without loss of at least the basic wage, including the cash equivalent of payments in kind, he would have received had he not taken the leave, in an amount of at least one day per month of employment.

Holidays in Antigua and Barbuda

Maternity Leave in Antigua and Barbuda

• Maternity allowance is paid for a maximum of 13 weeks, commencing as early as 6 weeks before confinement or as late as the week of confinement.

Paternity Leave in Antigua and Barbuda

• There is no statutory paternity leave

Sick Leave in Antigua and Barbuda

• Each employee is entitled to leave on workdays, or parts thereof, during which he is ill or otherwise physically incapacitated for work
• Each employee, for at least the first twelve days of sick leave taken during any twelve consecutive months, calculated from the date of commencement of employment and any anniversary date thereof, shall be entitled to that basic wage, and the employer shall give him that basic wage, which he would have received had he worked on those days.

Working Hours in Antigua and Barbuda

• The law provides for a maximum 48-hour workweek, but most people work 40 hours on the average.

Overtime in Antigua and Barbuda

• Overtime is paid at 150% of the basic hourly wage.

Termination of Employment in Antigua and Barbuda

• With respect to a person who has been engaged for a specified term of employment of less than one week's duration, the employer need give no further notice of his intention to terminate said employment at the end of the specified term, unless the terms of his employment specify otherwise.
• In all other cases, the employer must give advance notice to the affected employee of an intention to terminate that person's employment, as follows
  • with respect to an employee within his probation period, an employer must give at least 24 hours’ advance notice of his intention to terminate said employee's employment
  • with respect to all other employees, the period of said advance notice shall be at least equivalent to the interval of time between the affected employee's paydays;
  • in no case need the period of said advance notice exceed 30 days unless an employment contract calls for a longer notice period.
• Severance pay shall consist of at least one day's pay, at the employee's latest basic wage, for each month or major fraction thereof of his term of employment with his employer and any predecessor employer.

Notice Period in Antigua and Barbuda

• With respect to a person who has been engaged for a specified term of employment of less than one week's duration, the employer need give no further notice of his intention to terminate said employment at the end of the specified term, unless the terms of his employment specify otherwise.
• In all other cases, the employer must give advance notice to the affected employee of an intention to terminate that person's employment, as follows
  • with respect to an employee within his probation period, an employer must give at least 24 hours’ advance notice of his intention to terminate said employee's employment
  • with respect to all other employees, the period of said advance notice shall be at least equivalent to the interval of time between the affected employee's paydays;
  • in no case need the period of said advance notice exceed 30 days unless an employment contract calls for a longer notice period.

Severance in Antigua and Barbuda

• Severance pay shall consist of at least one day's pay, at the employee's latest basic wage, for each month or major fraction thereof of his term of employment with his employer and any predecessor employer.

Antigua and Barbuda Salary and Wages

• At the end of each pay period, contributions must be deducted from employees’ wages/salaries.
• Effective 1st January 2021, contribution rate increased to 14% of insurable earnings for private sector workers; of which the employee pays 6% and the employer pays 8%.
• For public sector workers, the contribution rate was increased to 13% of insurable earnings; of which the employee pays 5% and the employer pays 8%
• The maximum annual insurable earnings is $78,000 ($6,500 per month; $3,000 per fortnight; or $1,500 per week)

Immigration Antigua and Barbuda

• The government encourages employers on Antigua and Barbuda to recruit workers from the local population.
• If an international worker is recruited, the employer must make an application for a work permit and pay a substantial, non-refundable fee.
• The prospective employee has to supply an identification, health and criminal record evidence, and must also provide substantial documentary proof that they followed the correct procedure.
• They must show evidence that they advertised and interviewed in the area, and that they had good reason not to select any of the local applicants who came forward.
• This means if the job you’re interested in is low skilled and doesn’t require specialist qualifications, your work permit is unlikely to be successful.
• Once you have lived in Antigua and Barbuda for at least four years, you can apply for residency.
• This allows you to remain in the country permanently along with any named dependents. You will also be free to accept employment with any employer for any job without having to obtain a work permit.
• If you have married an Antiguan citizen, you only have to wait one year before making your residency application.

Value Added Tax (VAT) in Antigua and Barbuda

• Taxable activities for purposes of the Antigua and Barbuda sales tax are sales of goods or supplies of services within Antigua and Barbuda and the import of goods
• The standard rate is 15%, with a reduced rate of 12.5% applying to hotels
• Certain goods and services may be zero rated or exempt

Mandatory Benefits in Antigua and Barbuda

• 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

Accrued Benefits in Antigua and Barbuda

Payroll Accrual in Antigua and Barbuda

Why use Global Expansion to hire in Antigua and Barbuda

Establishing a branch office or subsidiary in Antigua and Barbuda can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Antigua and Barbuda labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Antigua and Barbuda law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Antigua and Barbuda. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Antigua and Barbuda Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.