Definitive Guide to Hiring in Guyana

Hiring in Guyana

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

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

Labor Laws in Guyana

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

Employee Probation Period

Annual Leave in Guyana

• Annual leave for those employed on a weekly, fortnightly or monthly basis is equal to one day for every completed month of service
• Annual leave for daily paid employee is equal to one day for every twenty days worked 
• For hourly paid employees, annual leave is equal to one day for every one hundred and sixty hours worked.

Holidays in Guyana

Maternity Leave Guyana

• The National Insurance Act allows for thirteen weeks’ maternity leave, starting not earlier than six weeks before expected confinement. 
• In exceptional cases a further thirteen weeks is permitted. Maternity benefits paid is equivalent to 70% of the average insurable income.

Paternity Leave Guyana

Sick Leave in Guyana

• Sick leave is not an entitlement but employees are allowed both certified and uncertified sick leave. 
• Payment for sick leave is made by the National Insurance Scheme after the third day of illness.
• Most Collective Agreements require the employer to make up any shortfall.

Working Hours in Guyana

Overtime in Guyana

• For all hours worked in excess of the prescribed or agreed hours, payment shall be made at 1.5 times the basic hourly rate. 
• Employees working at work-sites deemed a factory shall be paid a premium for all hours worked on a Sunday or Public Holiday.

Termination of Employment in Guyana

A contract of employment for an unspecified period of time may at any time be terminated 

• by mutual consent of the parties
• on any ground of redundancy
• by either party 
  • for good or sufficient cause
  • by notice given to or served upon the other party
• The notice period is two weeks where the employee has been employed for less than one year and one month when employed for more than one year. 
• A notice of termination shall not be given by an employer during any period of an employee's absence on authorized leave.
• An employer is entitled to dismiss summarily without notice or payment of any severance or redundancy allowance or terminal benefit any employee who is guilty of serious misconduct.
• On termination of his employment, an employee who has completed one year or more of continuous employment with an employer shall be entitled to be paid by such employer a severance or redundancy allowance equivalent to 
  • one week’s, wages for such completed year of service for the first five years Including the entitlement year
  • two weeks’ wages for each completed year of services after the fifth year and up to the tenth year
  • three weeks’ wages for completed year of service in excess of ten years up to a maximum of fifty-two weeks

Notice Period in Guyana

• The notice period is two weeks where the employee has been employed for less than one year and one month when employed for more than one year. 
• A notice of termination shall not be given by an employer during any period of an employee's absence on authorized leave.

Severance in Guyana

• An employer is entitled to dismiss summarily without notice or payment of any severance or redundancy allowance or terminal benefit any employee who is guilty of serious misconduct.
• On termination of his employment, an employee who has completed one year or more of continuous employment with an employer shall be entitled to be paid by such employer a severance or redundancy allowance equivalent to 
  • one week’s, wages for such completed year of service for the first five years Including the entitlement year
  • two weeks’ wages for each completed year of services after the fifth year and up to the tenth year
  • three weeks’ wages for completed year of service in excess of ten years up to a maximum of fifty-two weeks.

Guyana Salary and Wages

13th/14th Month Salary in Guyana

• There is no statutory requirement to pay the 13th or 14th month salary.

• Contributions to the NIS must be made at the following rates on maximum monthly insurable earnings of GYD 280,000: 

• For employees: 5.6% 
• For employers: 8.4% 
• For self-employed persons: 12.5% (of their declared income up to GYD256,800)

Immigration Guyana

• In general, foreign nationals employed by companies in Guyana must obtain both entry visas (subject to certain exceptions mentioned above) and work permits.
• The Ministry of Presidency, Department of Citizenship and Immigration, requires specific and detailed information before granting work permits to foreign nationals. 
• The government requires that employment opportunities first be offered to Guyana nationals and residents before nonresidents. 
• In general, CARICOM (Caribbean community) nationals may be given up to six months for employment purposes on entry into Guyana. 
• If a CARICOM national has a Certificate of Recognition of Caribbean Community Skills 
• Qualification by virtue of being a university graduate or meeting other specific criteria, the person may enter Guyana for a period of six months or some other indefinite period and work in Guyana. 
• Similar rights are granted to the spouse and dependents of the CARICOM national. 
• Non-CARICOM nationals may be granted up to three months for employment purposes on entry into Guyana. 
• However, the Chief Immigration Officer may extend the initial period granted to two years.
• If a foreign national is entering Guyana for the purpose of employment, a landing permit/employment visa must be obtained prior to arrival in Guyana. 
• Subsequent to his or her arrival, a work permit must be obtained.
• The following documents with respect to the employee must be submitted to the Department of Citizenship and Immigration to facilitate the landing permit/employment visa and work permit application processes: 
  • Landing permit/visa application form 
  • Work permit application form 
  • Copy of the applicant’s entire passport, together with the sponsor’s, if applicable (the passport must be valid for at least six months) 
  • Two passport-size color photographs 
  • Police clearance 
  • Medical report 
  • Credentials for the applicant (for example, certificates of qualifications)
• Work permits are granted for a two-year period. 
• If a traveling individual requires a visa but is unable to apply at any of Guyana’s missions or consulates, visas may be issued on arrival in Guyana.

Value Added Tax (VAT) in Guyana

• Goods and services are subject to a 14% VAT
• Certain goods and services are exempt from VAT

Payments And Invoicing

Payroll Accrual in Guyana

Country Accruals Additional Information

Description

There is a requirement for compulsory participation under the National Insurance scheme. There is no exemption for the employee or the employer. Contributions at the following rates are compulsory and must be deducted by the employer and paid by the 15th day of the following month: Employee: 5.6% of insurable earnings. Employer: 8.4% of insurable earnings. The insurable earnings ceiling is GYD280,000 per month

Payroll Accruals Additional Information

Accrued Benefits in Guyana

Why use Global Expansion to hire in Guyana

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

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

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