Definitive Guide to Hiring in Greenland

Hiring in Greenland

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

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

Labor Laws in Greenland

Employee Probation Period

• There is no general legislation regarding probationary periods in Greenland.
• It is possible to agree on a probationary period of 3 months during which both parties can terminate the agreement with 14 days’ notice.

Holidays in Greenland

Maternity Leave Greenland

• As a mother, you are entitled to maternity leave from two weeks before the expected time of birth and up to 15 weeks after the birth.
• If you give birth to twins, then – depending on your employment contract – it may be possible to have your maternity leave extended to 19 weeks after the birth.
• If you have a problematic pregnancy, or if your doctor assesses that your work may pose a risk to your health or that of your child, you will be able to commence your maternity leave earlier than two weeks before the birth.

Paternity Leave Greenland

• As a father, you are entitled to paternity leave for a period of three weeks within the first 15 weeks following the birth of the child, or within the first 19 weeks in the case of twins.

Sick Leave in Greenland

• In order to be entitled to receive unemployment benefit in Greenland in case of illness, you must:
  • Be at least 18 years of age, or have dependents
  • Be registered with the national population register in Greenland
  • Have worked for at least 182 hours as a paid employee in the course of the past 13 weeks.
• You can receive unemployment benefit for 13 weeks, paid from the third day of illness.
• If you are unemployed or laid off and already receive unemployment benefit, your unemployment benefit will continue without interruption once you have registered as ill.
• In some cases, you can receive unemployment benefit from the first day of illness.
• This applies if the sick leave is due to a work injury, or if you are registered sick for two weeks or longer.
• If you are often ill for short periods of time, or if you are on sick leave for longer than three weeks, the local municipality will decide whether you should be offered another form of assistance.

Work Hours in Greenland

• Normal work hours must not exceed 8 hours within a 24-hour period and 40 hours per week.

Overtime in Greenland

• Greenland has no general regulation regarding overtime.
• Many contracts state that the salary includes payment for overtime.
• All collective bargaining agreements have rules on overtime payment.

Termination of Employment in Greenland

• Notice periods of the employer will depend on the length of the employee’s continuous employment; the longer the employment, the longer the notice period
• The 6-month notice period is the maximum afforded by the Salaried Employees Act
• The employee may terminate the employment agreement with one month’s notice to the end of a month regardless of the length of the employment
• The employer is liable to pay compensations if he dismisses salaried employees who have been continuously employed for 12 years or more, regardless of the fairness of the dismissal.
• The amount of compensation depends on the length of the employment
• 12 years of employment entitles the employee to a compensation of 1 month’s salary
• 17 years will attract the maximum of 3 months’ salary

Notice Period in Greenland

• Notice periods of the employer will depend on the length of the employee’s continuous employment; the longer the employment, the longer the notice period
• Statutory notice period of the employer are as follows: -
  • If an employee has worked for 6 months, the notice period is 1 month
  • If an employee has worked for 6 months to 3 years, the notice period is 3 months
  • If an employee has worked for 3 to 6 years, the notice period is 4 months
  • If an employee has worked for 6 to 9 years, the notice period is 5 months
  • For an employment period that is greater than 9 years, the notice period is 6 months
• The 6-month notice period is the maximum afforded by the Salaried Employees Act
• The employee may terminate the employment agreement with one month’s notice to the end of a month regardless of the length of the employment

Severance in Greenland

• The employer is liable to pay compensations if he dismisses salaried employees who have been continuously employed for 12 years or more, regardless of the fairness of the dismissal.
• The amount of compensation depends on the length of the employment
  • 12 years of employment entitles the employee to a compensation of 1 month’s salary
  • 17 years will attract the maximum of 3 months’ salary

Greenland Salary and Wages

13th/14th-Month Salary in Greenland

• 13th-month pay is not mandatory in Greenland.

• The pension system in Greenland comprises three different types of pension:
  • Statutory pensions
  • Labor market pensions
  • Individual pensions
• Statutory pensions are pensions regulated by the public authorities, such as retirement pension and invalidity pension.
• There are no Greenlandic social security contributions for individuals (only for employers).
• The rate applicable to employers is 0.9 % on payroll.

Immigration Greenland

• Citizens from the Nordic countries, the European Union (EU) and European Economic Area (EEA) and Switzerland are entitled to live and work in Greenland.
• However, if you are an EU/EEA or Swiss citizen and intend to reside in Greenland for more than three months, you must apply for an EU residence document.
• Citizens from countries outside the Nordic region must have a work and residence permit in order to live and work in Greenland.
• Greenland is part of the Danish commonwealth, and enjoys a high degree of autonomy.
• The area of immigration has not been transferred to the government of Greenland, and so it is Denmark that decides who can enter and work in Greenland.
• Non-Nordic EU citizens and citizens of other countries around the world do not have free access to Greenland – they are so-called “third-country nationals”.
• If you are a citizen of a third country, then in addition to a possible municipal permit, you must also have a Danish work and residence permit, and possibly a visa to Greenland. You must apply to the Danish Immigration Service for a work and residence permit.
• The application procedure takes around three months, and if the answer is positive, you can be hired. You may not begin to work until you have obtained your work and residence permit.
• A work and residence permit takes the form of a letter or an identity card (a plastic card similar to a credit card).
• You must have the permit on you at all times.
• A work permit always applies to a specific job in a particular company, and for no longer than a year.
• If you wish to change your job or workplace, you must apply for a new permit before you can start work at the new job.
• Some of the main Danish work and residence permit schemes that individuals can apply under are as follows:
  • Pay Limit Scheme
  • Positive List
  • Fast Track Scheme
  • Startup Denmark

Value Added Tax (VAT) in Greenland

• Greenland is not a part of the VAT agreement of the EU, which is why a Greenlandic business or company is not required to register for the VAT when operating in Greenland.
• Sale to a citizen, business or company with residence in Greenland, should be considered as a sale out of the EU - it should be considered a sale with VAT exemption or with VAT refund.

Mandatory Benefits in Greenland

• These are mandatory benefits as prescribed by law
• These include annual leave, public holidays, maternity leave, sick leave, notice period, severance pay etc.
• Moreover, it also includes social security benefits pension fund, health insurance and unemployment benefits.

Payroll Accrual in Greenland

Country Accruals Additional Information

Description

There are no Greenlandic social security contributions for individuals (only for employers). The rate applicable to employers is 0.9 % on payroll.

Payroll Accruals Additional Information

Accrued Benefits in Greenland

Why use Global Expansion to hire in Greenland

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

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

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