Definitive Guide to Hiring in Guernsey

Hiring in Guernsey

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

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

Labor Laws in Guernsey

Employment laws in Guernsey 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 Guernsey employment laws and Guernsey policies here.

Employee Probation Period

• There is no statutory probationary period
• It is usually covered in the employment contract

Annual Leave in Guernsey

• There is no statutory entitlement to paid leave in Guernsey.

Holidays in Guernsey

• There is no legal requirement to give employees time off with pay, an enhanced rate of pay, or time off in lieu in respect of public holidays. 
• Any rights to paid time off for holidays and public holidays depend on the terms of the contract.

Maternity Leave Guernsey

• The Maternity Leave and Adoption Leave (Guernsey) Ordinance, 2016, in force from 1 April 2016, gives the following statutory rights to pregnant employees whose due date is 7 August 2016 or later: 
  
  • basic leave of 12 weeks 
  • an enhanced period of 26 weeks leave for employees who have worked continuously for the same employer for at least 15 months 
  • a period of two weeks’ compulsory statutory leave (which forms part of the basic maternity leave) 
  • the right to return to her original job or a suitable alternative 
  • up to ten days keeping in touch days 
  • the right to time off for ante-natal appointments during working hours

Maternity Support Leave

• Maternity support leave is a period of two weeks which is available to the partner of an employee who is entitled to basic maternity leave. 
• It starts on the day the child is born or on the discharge from hospital of mother or baby (or mother and baby). 
• To qualify, the partner must have 15 months’ continuous service at the beginning of the eleventh week before the employee’s due date. 
• ‘Partner’ is defined as the birth mother’s spouse or cohabiting partner unless she nominates another person in writing.

Sick Leave in Guernsey

• There is no statutory entitlement to sick leave or sick pay in Guernsey. 
• Any terms relating to sick pay should be clearly stated in the contract of employment. 
• These terms should clearly identify how much sick pay is provided and for how long.

Working Hours in Guernsey

• As there is no Guernsey law which states a maximum number of working hours or minimum rest breaks (paid or unpaid), it is important, for both employers and employees, that all terms and conditions relating to hours of work are clearly stated in writing.

Overtime in Guernsey

• The Conditions of Employment (Guernsey) Law, 1985 also requires that overtime rates (if applicable) are included in the written statement of employment (or contract of employment).
• Employers may also wish to consider whether time off in lieu (TOIL) as opposed to paid overtime, is a suitable alternative, as employees may have a preference for one or the other.

Termination of Employment in Guernsey

• • Standard dismissal of a full-time employee by the employer which can be with or without notice, oral or written.
  • Expiry of a fixed term contract.
  • Constructive dismissal where the employee terminates the employment contract, with or without notice, by reason of the employer's conduct.

• There are a number of reasons for an appropriate dismissal, including:
  
  • The employee's lack of capacity, either in terms of skills or qualifications (academic or technical) or in terms of health.
  • The employee's conduct.
  • Some other substantial reason, for example, a business reorganization.
  • Redundancy (in one of three forms: business, place of work and employee redundancy).

• Except for employees working on a fixed contract of employment, the minimum notice period to be given by an employer is, for the following periods of continuous employment:
  
  
  • A month or more but less than two years: at least one week's notice.
  • Two years or more but less than five years: at least two weeks' notice.
  • Five years or more: at least four weeks' notice.
• There is no legal requirement for employers to provide a severance payment to an employee who has been dismissed. 
• However, employers can contractually agree to this.

Notice Period in Guernsey

• Except for employees working on a fixed contract of employment, the minimum notice period to be given by an employer is, for the following periods of continuous employment:
• A month or more but less than two years: at least one week's notice.
• Two years or more but less than five years: at least two weeks' notice.
• Five years or more: at least four weeks' notice.

Guernsey Salary and Wages

13th / 14th Month Salary in Guernsey

• No
• There is no statutory requirement to pay the 13th and 14th month salary.
• There is no standard paid holiday entitlement, Guernsey follows the position of the United Kingdom.

• Both employers and employees are subject to social security based on employees’ gross earnings.
• Employees are subject to social security at a rate of 7% of their gross earnings
• Employers are subject to social security at a rate of 6.8% of gross earnings
• A self-employed individual is subject to social security at a rate of 11.6% of gross earnings

Immigration Guernsey

• The immigration rules require certain individuals to be granted a work permit in order to work in Guernsey. 
• However, permit-free workers (who do not require a work permit) include the following: 
  
  • A month or more but less than two years: at least one week's notice.
  • Nationals of member states of the European Economic Area (EEA) and Switzerland 
  • Nationals who have permanent settlement (for example, indefinite leave to remain in the Common Travel Area) Guernsey has strict rules on who can live and work in Guernsey. 
• In addition to the immigration requirements, a system of permits and certificates controls who can live and work in Guernsey 
• Individuals working in Guernsey or anyone over the age of 16 need to hold a certificate or permit showing that they have permission to live and work there.
• Transitional arrangements apply to those who were already in Guernsey under the previous housing control system when the new rules came into force.
• Employment permits (previously referred to as a “right to work”) are granted to individuals who possess essential skills and experience that cannot be found locally. 
• Most employment permits enable the holder to live and work in Guernsey for a fixed period of time but some people, because of their skills, are invited to live in Guernsey long enough for them and their immediate family to become permanent residents. 
• Employment permits are conditional on the holder undertaking a specific full-time job for a specific employer. 
• If this condition is broken, the permit becomes invalid. 
• The employer makes the application for an employment permit.

Value Added Tax (VAT) in Guernsey

• Guernsey does not operate a VAT or goods and services tax (GST).

Mandatory Benefits in Guernsey

• These are mandatory benefits as postulated by law
• These include maternity leave, maternity support leave
• Statutory benefits also include social security benefits

Payments And Invoicing

• All income is assessed on a current-year basis. 
• The tax year runs from 1 January to 31 December. 
• Income tax is levied by assessment based on the taxpayer’s tax return. 
• Tax is deducted from earned income of employed individuals during the year through the ETI scheme. 
• Employed individuals make payments on account during the year through the ETI scheme and a final balancing payment or repayment may be due following the assessment.
• All other taxpayers make two payments on account based on an estimated assessment issued generally around May of each year. 
• The two equal tax installments are due on 30 June and 31 December of the tax year. 
• A balancing payment or repayment is due following the issuance of a final assessment. 
• In general, a Guernsey resident making a payment of Guernsey income (excluding bank interest) to a person resident outside Guernsey is regarded as the agent of the nonresident. 
• The agent may be assessed instead of the nonresident and, consequently, the agent may withhold income tax at a rate of 20% from the payment and remit it to the tax authorities.
• However, this rule does not apply if the recipient is resident in Jersey or the United Kingdom, receives the payment as business income and does not have a permanent establishment in Guernsey.

Accrued Benefits in Guernsey

Why use Global Expansion to hire in Guernsey

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

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

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