Definitive Guide to Hiring in Jersey

Hiring in Jersey

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

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

Labor Laws in Jersey

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

Employee Probation Period

• The probationary period is of 4 weeks

Annual Leave in Jersey

• An employee shall be entitled to a period of leave of 2 weeks or to such other period as may be specified in a relevant agreement, whichever shall be the longer

Holidays in Jersey

Maternity Leave Jersey

• All new parents will be entitled to 52 weeks of parental leave, including 6 weeks of paid leave, on the condition that a new parent informs their employer of their intention to take such leave 15 weeks before the expected week of childbirth.

Paternity Leave Jersey

• All new parents will be entitled to 52 weeks of parental leave, including 6 weeks of paid leave, on the condition that a new parent informs their employer of their intention to take such leave 15 weeks before the expected week of childbirth.

Sick Leave in Jersey

• The right of employees to take time off work or to receive pay for illness or injury is governed by contract. 
• There is no statutory right to time off due to sickness other than the general protection against unfair dismissal. Some employers provide a certain level of support.
• Short Term Incapacity Allowance (STIA) is a benefit which may be paid to you if you can’t work due to illness or injury.
• STIA can be paid for a minimum of two days and a maximum of 364 days.
• The first certificate in your claim can’t cover more than 28 days.
• Your doctor may give you further certificates for a maximum of 13 weeks at a time if it’s needed.

Working Hours in Jersey

• There are no limits on the number of hours’ employees can be contracted to work in one day (however employers should bear Health & Safety legislation, safe working practices and any industry specific legislation or guidance in mind).
• An employee shall be entitled to an uninterrupted rest period of not less than 24 hours in each 7-day period during which the employee works for his or her employer.

Overtime in Jersey

• Overtime is covered by employment contracts

Termination of Employment in Jersey

In determining whether the dismissal of an employee is fair or unfair the employer must show that the reason (or if more than one, the principal reason) for the dismissal is one that justifies the dismissal, namely:

• • Capability
  • Qualifications
  • Conduct.
  • Redundancy (which is defined).
  • Continuing the employment would be unlawful.
  • Some other substantial business reason which justifies the dismissal.

• Except where the employee is on a fixed-term contract of employment, and provided that the employee has worked for the employer for eight hours or more in any week, the minimum notice period to be given by the employer must be the following (for the following periods of continuous employment):
  
  
  • Less than two years: one week's notice.
  • More than two years but less than three years: two weeks' notice.
  • More than three years but less than four years: three weeks' notice.
  • More than four years but less than five years: four weeks' notice.
  • More than five years but less than six years: five weeks' notice.
  • More than six years but less than seven years: six weeks' notice.
  • More than seven years but less than eight years: seven weeks' notice.
  • More than eight years but less than nine years: eight weeks' notice.
  • More than nine years but less than ten years: nine weeks' notice.
  • More than ten years but less than 11 years: ten weeks' notice.
  • More than 11 years but less than 12 years: 11 weeks' notice.
  • More than 12 years: 12 weeks' notice.
• The contract of employment can provide for a longer period of notice but notice periods cannot be shorter than the minimum provided by the law. 
• The employee is always entitled to at least the statutory minimum notice period, whether or not it is provided in the contract of employment.
• If a dismissal is fair there will be no severance payment due to the employee unless the dismissal is for reason of redundancy
• If the dismissal was unfair the employee may be entitled to a compensatory award

• The monetary awards of the Jersey Employment Tribunal are limited to up to 26 weeks' pay for a finding of unfair dismissal (which accumulates on a sliding scale) namely:
  
  
  • Less than six months' service if automatically unfair or at the discretion of the tribunal: up to four weeks' pay.
  • Six to 12 months' continuous service: four weeks' pay.
  • Over 12 months' service but less than 24 months' service: eight weeks' pay.
  • Over 24 months' service but less than 36 months' service: 12 weeks' pay.
  • Over 36 months' service but less than 48 months' service: 16 weeks' pay.
  • Over 48 months' service but less than 60 months' service: 21 weeks' pay.
  • Over five years' service: 26 weeks' pay.

Notice Period in Jersey

• Except where the employee is on a fixed-term contract of employment, and provided that the employee has worked for the employer for eight hours or more in any week, the minimum notice period to be given by the employer must be the following (for the following periods of continuous employment):
  
  
  • Less than two years: one week's notice.
  • More than two years but less than three years: two weeks' notice.
  • More than three years but less than four years: three weeks' notice.
  • More than four years but less than five years: four weeks' notice.
  • More than five years but less than six years: five weeks' notice.
  • More than six years but less than seven years: six weeks' notice.
  • More than seven years but less than eight years: seven weeks' notice.
  • More than eight years but less than nine years: eight weeks' notice.
  • More than nine years but less than ten years: nine weeks' notice.
  • More than ten years but less than 11 years: ten weeks' notice.
  • More than 11 years but less than 12 years: 11 weeks' notice.
  • More than 12 years: 12 weeks' notice.
• The minimum period of notice to be given by an employee to an employer is:
  
  
  • 1 week’s notice if his or her period of continuous employment is more than 1 week but less than 26 weeks
  • 2 weeks’ notice if his or her period of continuous employment is 26 weeks or more but less than 5 years
  • 4 weeks’ notice if his or her period of continuous employment is 5 years or more
• The contract of employment can provide for a longer period of notice but notice periods cannot be shorter than the minimum provided by the law. 
• The employee is always entitled to at least the statutory minimum notice period, whether or not it is provided in the contract of employment.

Severance in Jersey

• If a dismissal is fair there will be no severance payment due to the employee unless the dismissal is for reason of redundancy
• If the dismissal was unfair the employee may be entitled to a compensatory award
• The monetary awards of the Jersey Employment Tribunal are limited to up to 26 weeks' pay for a finding of unfair dismissal (which accumulates on a sliding scale) namely:
• Less than six months' service if automatically unfair or at the discretion of the tribunal: up to four weeks' pay.
• Six to 12 months' continuous service: four weeks' pay.
• Over 12 months' service but less than 24 months' service: eight weeks' pay.
• Over 24 months' service but less than 36 months' service: 12 weeks' pay.
• Over 36 months' service but less than 48 months' service: 16 weeks' pay.
• Over 48 months' service but less than 60 months' service: 21 weeks' pay.
• Over five years' service: 26 weeks' pay.

Jersey Salary and Wages

13 / 14th Month Salary in Jersey

• No
• There is no statutory requirement to pay the 13th and the 14th month salary.
• Employees are entitled to standard two weeks holidays and bonuses are agreed at the employers discretion.

• Employees are subject to social security contributions at a rate of 6% on their gross earnings, up to the monthly standard earnings limit of GBP 5,060 for 2023
• The rate of employer contributions is 6.5%, up to the same earnings limit. 
• Employers also have to pay a 2.5% rate of social security on earnings above the monthly standard earnings limit, up to an upper earnings limit of GBP 23,072 for 2023
• Self-employed individuals are required to contribute at a rate of 12.5%, up to the standard earnings limit and also 2.5% on their earnings above this up to the upper earnings limit.

Immigration Jersey

• Non-European Economic Area (EEA) nationals wishing to work in Jersey must obtain work permits through their intended employers. 
• The Jersey Customs and Immigration Department issues permits to employers who demonstrate that they are unable to fill a vacancy locally, or to foreign persons who are free of permit restrictions. 
• A visa or entry certificate is also required and is available from the British high commission, embassy or consulate in the country where the person lives.
• Work permits may also be issued to people with specialist skills if their appointment is of particular benefit to the island or to foreign nationals who are free of work permit restrictions in the United Kingdom. 
• In addition, under the Control of Housing and Work (Jersey) Law 2012, an employer must apply for a license to engage any person who has not worked in Jersey for at least five years to fill a vacancy within an existing undertaking. 
• British subjects and nationals of the member states of the EEA, which includes the EU, do not require work permits (although employers on the island are required to obtain licenses to employ them) and, in the majority of cases, may enter and exit Jersey freely. 
• The Jersey visa requirements are the same as the UK visa requirements.
• Neither the points based system nor the highly skilled migrant programme have been adopted in Jersey. 
• Therefore, an employer will need to submit a work permit application on your behalf.

Value Added Tax (VAT) in Jersey

Payments And Invoicing

• The Jersey tax year is the calendar year.
• Tax returns are issued in January following the end of the tax year. 
• The filing deadline for these returns is the 31 May for paper filing and 31 July for electronic filing. 
• A penalty of GBP 300 is imposed on returns filed late. 
• Where a return remains outstanding after three months, a penalty of GBP 50 will be imposed every month the return remains outstanding, up to a maximum of nine months. 
• There is a joint tax return filing for married couples. 
• The income of a married woman, living with her husband, is deemed to be that of her husband.
• A married woman is treated as living with her husband unless there is a permanent separation.
• Jersey income tax is calculated and collected via an income tax assessment. 
• These are issued by the taxes office following the submission of the tax return form. 
• The tax payment deadline is 30 November. 
• Any tax unpaid at that date is subject to a surcharge of 10%. 
• New legislation introducing late payment interest is expected imminently, and we are awaiting its enactment to confirm what rate this will be at. 
• A payment on account for the next tax year is due the following 31 May. 
• This is based on the previous year's liability. 
• For a person with no employment earnings, the amount payable is 50% of the previous year's liability. 
• For a person whose earnings comprise 25% or less of their total income, the percentage is 40%.
• There is a withholding tax (WHT) scheme in place that applies to employees. 
• This is known as the Income Tax Instalment System (ITIS).

Payroll Accrual in Jersey

Country Accruals Additional Information

Description

Employees are subject to social security contributions at a rate of 6% on their gross earnings, up to the monthly standard earnings limit
of GBP 4,610 for 2021 (GBP 4,558 for 2020).
The rate of employer contributions is 6.5%, up to the same earnings limit. Employers also have to pay a 2.5% rate of social security on
earnings above the monthly standard earnings limit, up to an upper earnings limit of GBP 21,030 for 2021 (GBP 20,800 for 2020).
Self-employed individuals are required to contribute at a rate of 12.5%, up to the standard earnings limit and also 2.5% on their
earnings above this up to the upper earnings limit.

Payroll Accruals Additional Information

Accrued Benefits in Jersey

Why use Global Expansion to hire in Jersey

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

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

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