Definitive Guide to Hiring in Dominica

Hiring in Dominica

Hiring employees compliantly in Dominica means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Dominica 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 Dominica; or

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

Labor Laws in Dominica

Employment laws in Dominica are uniquely suited to the country’s way of life, and crucial to understand if you want to employ local talent in this country. Get the details on Dominica employment laws and Dominica policies here.

Employee Probation Period

Annual Leave in Dominica

• The employee shall be eligible to qualify for annual vacation leave with pay after each complete calendar year of service. 
• Minimum leave entitlement in accordance with the Labor Standards Act shall be as follows:
  • under five years’ service - two (2) weeks;
  • five years and over - three (3) weeks.

Holidays in Dominica

Dominica celebrates eleven national public holidays as well as additional public holidays that vary by state:

Maternity Leave Dominica

• Female employees who have completed one-year of continuous service with the employer shall be granted maternity leave.
• Employees are entitled to 12 weeks of maternity leave (3 weeks of pre-natal leave and 9 weeks of post natal leave).

Paternity Leave Dominica

Working Hours in Dominica

• The employee will not be required to work more than forty normal hours per week.
• The employee shall not be required to work more than eight normal hours per day and shall be entitled to not less than half an hour off for lunch.

Overtime in Dominica

• Overtime at the rate of time and one half will be paid for work done in excess of the normal hours on a normal working day, and double time for work performed on public holidays.

Termination of Employment in Dominica

• The employer may terminate the employment of the employee without notice or payment of any severance payment or other terminal benefits where the employee has been guilty of serious misconduct affecting his employment.
• Where the employee is guilty of an offence in breach of his condition of employment or any misconduct that is not serious or a breach of any work rule governing his behavior or any misconduct such that the employer cannot reasonably be expected to continue to employ him if it is repeated, the employer may give the employee a written warning. 
• If the employee after being warned is guilty of the same or similar offence or misconduct in the following six months, the employer may terminate his employment.
• The employer may terminate the employment of the employee because the employee was redundant in accordance with the provisions of the Protection of Employment Act
• Where the employee intends to terminate his employment with the employer he may do so by giving the employer notice of the intended termination

Notice Period in Dominica

• Where the employee intends to terminate his employment with the employer he may do so by giving the employer notice of the intended termination not later than
  • one month before the date on which the termination is to have effect, where he is paid on a monthly basis or a basis of more than a month; and 
  • one week before the date on which the termination is to have effect, where he is paid on a basis less than a month.

Severance in Dominica

• The employer shall contribute to the redundancy fund (if any), in respect of the employee and shall make redundancy payments to the employee if entitled on dismissal on redundancy grounds.

Dominica Salary and Wages

13th/14th Month Salary in Dominica

• No
• There is no statutory requirement to pay the 13th or 14th month salary.
• Employees are entitled to standard holiday pay after one year of service.

• The employer must contribute to social security at a rate of 7.25% of an employee’s earnings, up to a ceiling of XCD 6,000 per month
• The employee generally contributes to social security at a rate of 6.25% of earning, up to a ceiling of XCD 6,000 per month

Immigration Dominica

• Visitors to Dominica normally do not require a visa unless they are nationals of the Dominican Republic or Haiti.
• Citizens of the following countries do not require a Dominica Visa
  • Antigua and Barbuda
  • Grenada
  • Saint Kitts and Nevis
  • Saint Lucia
  • Saint Vincent and the Grenadians

• Citizens of most of the other countries such as EU countries, Argentina, Australia, Bahamas, Bangladesh, Maldives, Pakistan etc. do not require a visa for 6 months.
• Non Nationals wishing to engage in work in Dominica must first obtain a work permit from the Labor Division. 
• A work permit automatically confers residency status if the term of employment lasts for more than six months. 
• All work permits are valid for one-year duration and can be renewed.
• Residency does not however, exempt expatriates from the stipulations of the Alien Landholders Act, which restricts land purchase for non-Dominican citizens.

Value Added Tax (VAT) in Dominica

• VAT applies on the sale of goods or the supply of services within Dominica, and on the import of goods into Dominica
• The standard rate is 15% and a reduced rate of 10% applies to hotel accommodations and dive activities
• Certain goods and services may be zero rate or exempt

Payments And Invoicing

• The tax year is the calendar year
• Individuals are required to file separately
• Joint filing is not permissible
• Tax returns must be filed by 31^st March following the tax year and the balance of tax is due upon the filing of the return
• A pay-as-you-earn (PAYE) system is used to deduct tax from the salaries of employees
• A late filing penalty of 5% of the tax due may apply
• The penalty for late filing is 10% of the outstanding tax
• Interest accrues at 1% thereof

Payroll Accrual in Dominica

Country Accruals Additional Information

Description

Payroll Accruals Additional Information

Accrued Benefits in Dominica

Why use Global Expansion to hire in Dominica

Establishing a branch office or subsidiary in Dominica 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 Dominica labor laws are complex.

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

Global Expansion makes it easy for you to expand into Dominica. 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 Dominica 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.