Definitive Guide to Hiring in Trinidad‌ ‌and‌ ‌Tobago‌

Hiring in Trinidad‌ ‌and‌ ‌Tobago‌

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

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

Labor Laws in Trinidad‌ ‌and‌ ‌Tobago‌

Employee Probation Period

• There is no statutory probationary period
• It is determined by the terms of a labor contract

Annual Leave in Trinidad‌ ‌and‌ ‌Tobago‌

• There are no statutory leave provisions which apply to workers in general in Trinidad and Tobago.
• State employees have leave entitlements set out in legislation which deals with each Service.
• This includes paid vacation leave

Holidays in Trinidad‌ ‌and‌ ‌Tobago‌

Here is the full list of public holidays in Trinidad‌ ‌and‌ ‌Tobago‌:

Maternity Leave Trinidad‌ ‌and‌ ‌Tobago‌

• Female employees are entitled to thirteen (13) weeks maternity leave (six weeks prior to confinement, 7 weeks after) and one month's pay during such leave.
• An employee on maternity leave shall have the right to return to work.
• To qualify for maternity leave, employees must have worked for an employer for a period of no less than 12 months

Paternity Leave Trinidad‌ ‌and‌ ‌Tobago‌

• There is no paternity leave

Sick Leave in Trinidad‌ ‌and‌ ‌Tobago‌

• The International Labor Organization reports that under sick leave labor law in Trinidad and Tobago, sick leave for state employees is mandatory — typically 14 paid days per year.
• In the private sector, employees receive paid sick days at their employer’s discretion.
• Many private employers offer 14 days as well under their company’s sick leave policy.

Working Hours in Trinidad‌ ‌and‌ ‌Tobago‌

• For employees in general, other than shift workers, the normal hours of work are eight hours a day, usually from 8:00am to 4:00pm, five days a week.

Overtime in Trinidad‌ ‌and‌ ‌Tobago‌

• For the first four hours of overtime the worker shall receive one and one half times the hourly rate.
• For the next four hours, two times the hourly rate and thereafter three times the hourly rate.

Termination of Employment in Trinidad‌ ‌and‌ ‌Tobago‌

• Whether a contract of employment is for a fixed term or for an indefinite period it may be terminated by either the employer or the worker. 
• There is no legislation governing termination of contract in general in Trinidad and Tobago, and
• Common Law applies in the absence of termination provisions in a collective agreement. 
• There may be termination by performance, by expiry of a fixed term, by agreement of the parties or by breach. 
• An employer has the right to dismiss an employee for just cause. 
• The Common Law on summary and constructive dismissal also applies.

• Usually in collective agreements and individual contracts a requirement for notice of termination is stipulated. 
• For monthly paid employees this notice period is usually one month

• The Retrenchment and Severance Benefits Act was passed to provide severance payments for retrenched employees.
• A formula for the payment of severance is contained in the Act, with a stipulation that where more favorable benefits are provided by a collective agreement that applies to the retrenched worker, the collective agreement takes precedence over the Act.

Notice Period in Trinidad‌ ‌and‌ ‌Tobago‌

• Usually in collective agreements and individual contracts a requirement for notice of termination is stipulated.
• For monthly paid employees this notice period is usually one month.

Severance in Trinidad‌ ‌and‌ ‌Tobago‌

• The Retrenchment and Severance Benefits Act was passed to provide severance payments for retrenched employees.
• Under the Retrenchment and Severance Benefits Act, a retrenched employee is entitled to a minimum severance payment of:-
  • two weeks’ basic pay for each of their first four years of service
  • three weeks’ basic pay for each additional year of service after that
• A formula for the payment of severance is contained in the Act, with a stipulation that where more favorable benefits are provided by a collective agreement that applies to the retrenched worker, the collective agreement takes precedence over the Act.

Trinidad‌ ‌and‌ ‌Tobago‌ Salary and Wages

13 / 14th Month Salary in Trinidad‌ ‌and‌ ‌Tobago‌

• No
• There is no statutory requirement to pay the 13th or the 14th month salary.
• There is no statutory holiday entitlement and holidays are given to employees based on individual contracts.

• There is a social security tax, referred to as National Insurance, that is deducted at source at varying rates.
• The maximum rate is TTD 414.30 per week for monthly income over TTD 13,600, which is payable TTD 276.20 by the employer and TTD 138.10 by the employee.
• 70% of such contributions are deductible by a resident individual in arriving at taxable income.

Immigration Trinidad‌ ‌and‌ ‌Tobago‌

• Only Trinidad and Tobago nationals and residents have the right to enter the country freely.
• Nonresidents are subject to varying entry requirements, depending on whether a temporary visa or resident status is required. 
• General entry visas are not required for nationals of countries that are members of the following: 

• • CARICOM 
  • European Union (EU) 
  • British Commonwealth
• Trinidad and Tobago has a well-educated labor force with an adequate supply of skilled workers.
• Therefore, the government requires offering employment opportunities first to Trinidad and Tobago nationals and residents before nonresidents. 
• The Ministry of National Security requires specific and detailed information before granting foreign nationals work permits. 
• In practice, however, in highly technological industries, most foreign investors prefer to rely on expatriate personnel at the senior management level
• Broadly, individuals offered business offices or employment in Trinidad and Tobago who are not residents of countries that belong to the CARICOM, EU or the British Commonwealth must obtain both entry visas and work permits. 
• A foreign national interested in establishing a business in Trinidad and Tobago must apply for a work permit. 
• Foreign subsidiaries and branches may be headed by foreign nationals. 
• Foreign nationals intending to work in Trinidad and Tobago for less than 30 days do not require work permits. 
• This is a one-off exemption granted on the first entry. 
• The one-off exemption is not intended for individuals who intend to exercise employment in Trinidad and Tobago for greater than 30 days within a 12-month period.
• If persons are required to work for a period exceeding 30 days, the employers of such persons must apply to the Permanent Secretary at the Ministry of National Security for work permits.
• The employer must include a statement indicating the steps taken to recruit a citizen or resident of Trinidad and Tobago for the position in question. 
• The Ministry of National Security usually requires employers to advertise locally to secure the services of a Trinidad and Tobago national. 
• The employer must document the results by presenting the advertisements and responses to the Ministry of National Security together with the foreign national’s work permit application.

Value Added Tax (VAT) in Trinidad‌ ‌and‌ ‌Tobago‌

• VAT is applicable to a wide range of goods and services.
• The standard rate applicable to commercial supplies is 12.5%.

Mandatory Benefits in Trinidad‌ ‌and‌ ‌Tobago‌

• These are mandatory benefits as postulated by law
• These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, notice period, and severance pay
• Mandatory benefits also include social security benefits.

Payroll Accrual in Trinidad‌ ‌and‌ ‌Tobago‌

Country Accruals Additional Information

Description

There is a social security tax, referred to as National Insurance, that is deducted at source at varying rates. The maximum rate is TTD 414.30 per week for monthly income over TTD 13,600, which is payable TTD 276.20 by the employer and TTD 138.10 by the employee. 70% of such contributions are deductible by a resident individual in arriving at taxable income.

Payroll Accruals Additional Information

Accrued Benefits in Trinidad‌ ‌and‌ ‌Tobago‌

Why use Global Expansion to hire in Trinidad‌ ‌and‌ ‌Tobago‌

Establishing a branch office or subsidiary in Trinidad‌ ‌and‌ ‌Tobago‌ 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 Trinidad‌ ‌and‌ ‌Tobago‌ labor laws are complex.

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

Global Expansion makes it easy for you to expand into Trinidad‌ ‌and‌ ‌Tobago‌. 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 Trinidad‌ ‌and‌ ‌Tobago‌ 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.