Definitive Guide to Hiring in Falkland Islands

Hiring in Falkland Islands

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

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

Labor Laws in Falkland Islands

Annual Leave in Falkland Islands

• For local candidates, annual leave entitlements are based on length of service starting at 22 days and rising to 30 days after five years.
• Overseas contractors get a generous entitlement of 30 days per year.

Holidays in Falkland Islands

Working Hours in Falkland Islands

• The fixed number of hours or normal working hours are determined by the terms of an employment contract

Falkland Islands Salary and Wages

• The Retirement Pension Scheme is a compulsory system of state (social security) pensions which provides a minimum level, or first tier, of income in retirement for contributions.
• Employees between the age of 17 and the Age of Retirement, resident of the Falkland Islands, and earning in excess of the weekly earnings limit (£290.40 per week for 2022, £309.20 per week for 2023) are liable to make weekly contributions to the scheme.
• The current contribution rate is £39.50 per week during 2022 (£40.60 during 2023).
• For those in employment 50% is paid by the employer and 50% by the employee by salary deduction.
• Self-employed individuals are liable for the full weekly contribution.
• The Falkland Islands Pension scheme, commonly known as FIPS is a defined contribution (money purchase) pension scheme.
• This means that the value of the pension you can expect to receive is directly linked to the amount you or your employer invests in the fund.
• The Falkland Islands Pensions Scheme is completely separate from the Retirement Pension Scheme and individuals can be a member of both schemes.
• Contributions may be paid into the scheme by either an employer, an employee or by both.
• Employer contributions on behalf of employees are paid in accordance with the employee's contract of employment.
• Employee contributions are deducted from an employee's earnings in accordance with the employee's contract of employment.
• An employee contribution must be the lower of 5% of their earnings or an amount equal to the employer contribution.

Immigration Falkland Islands

• Under the Falkland Islands visa regime certain nationals seeking to enter the Falklands as visitors or to take up temporary residency (including for employment purposes) must first obtain a visa.
• Unlike the UK and numerous other countries, a Falklands’ visa is not an entry clearance in itself but is a form of pre-assessment to establish whether an applicant’s intentions appear legitimate and they appear to be of good character.
• Work Permit
  • A work permit grants leave to the holder to enter, depart and reside in the Falklands during the period of its validity and to take employment with a specified employer or on one’s own account engage in any trade, business or vocation stated in the permit.
  • In order to obtain a work permit the holder must prove that they have accommodation within the islands.
  • Currently work permits can be issued for a maximum of four years, after which they must apply for an extension or a Permanent Residence Permit.
• Temporary Residence Permit
  • A residence permit grants the holder to enter, depart and reside in the Falklands during the period of its validity.
  • The holder of a residence permit and where applicable, any dependents included in the permit are entitled to apply for work permits if they wish to subsequently take up an employment opportunity.
  • If a ‘primary’ work permit is then applied for and granted to a residence permit holder, it has the effect of revoking their residence permit as the work permit will then take precedence.
  • A Temporary Residence Permit of up to 3 years can be obtained prior to arriving in the Falkland Islands, but a Work Permit will still be required before employment commences.
• A Permanent Residence Permit
  • A permanent residence permit grants indefinite leave to the holder to enter, depart and reside in the Falklands and to take any lawful employment of pursue and lawful business, trade, profession, or vocation in the Falklands without needing a work permit.
  • Where an application for a permanent residence permit is approved, any dependents included in the application of a principal applicant will also be granted a permanent residence permit in their own right.
  • The annual number of permanent residence permits that may be granted is controlled by a quota system.
  • The current quota is 44 persons per annum (as at 2018).

Value Added Tax (VAT) in Falkland Islands

• There is currently no VAT regime in the Falkland Islands

Mandatory Benefits in Falkland Islands

• These are mandatory benefits as postulated by Law
• These include annual leave, public holidays and social security benefits

Payroll Accrual in Falkland Islands

Payroll Accruals Additional Information

Accrued Benefits in Falkland Islands

Why use Global Expansion to hire in Falkland Islands

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

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

Global Expansion makes it easy for you to expand into Falkland Islands. 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 Falkland Islands 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.