DOWNLOAD
Hiring in Turks and caicos islands
The Turks and Caicos Islands (are a British Overseas Territory in the Lucayan Archipelago of the Atlantic Ocean. Cockburn Town is the capital and Providenciales is the largest city. English is the official language and US Dollar is the official currency. Tourism, offshore financial services, and fishing dominate the economy. Its main trading partners are Japan, UK, Italy, US and Brazil. Global PEO or Employer of Record (EOR) play a pivotal role in providing companies with services related to hiring employees, and ensuring compliance with Turks and Caicos Islands’ legal and tax regulations. Labor Code stipulates that employees are entitled to 2 weeks of annual leave. There is no income tax, capital gains tax, property tax, inheritance tax, or corporation tax in the Turks and Caicos Islands. Global PEO’s or Employer of Record (EOR) facilitate companies by ensuring compliance with Turks and Caicos Islands’ Labor Code and tax laws.
statutory labor requirements
Probation Period
- Probationary period cannot exceed 6 months
Annual Leave
- Every employee shall be entitled to 2 weeks of paid annual leave for each completed year of employment
Public Holidays
- New Year's Day (1st January)
- Commonwealth Day (9th March)
- Good Friday (10th April)
- Easter Monday (13th April)
- National Heroes' Day (in Turks and Caicos Islands) (25th May)
- Queen's Birthday (15th June)
- Emancipation Day (of Turks and Caicos) (3rd August)
- National Youth Day (25th September)
- National Heritage Day (12th October)
- National Day of Thanksgiving (27th November)
- Christmas Day (25th December)
- Boxing Day (28th December)
Maternity Leave
- Female employees are entitled to a maternity leave of 14 weeks
Paternity Leave
- There is no paternity leave
Sick Leave
- An employee shall be entitled to sick leave with pay on work days, during which he/she is unable to perform work due to illness
- An employee shall receive pay for the first 12 days of sick leave during any period of 12 consecutive months
Work Hours
- An employee shall not be required by his employer to work in excess of 12 hours in a 24-hour period or to work in excess of 72 hours in any week
Overtime
- An employee is paid double the rate for overtime work on public holidays
- An employee is paid at the rate of 1 and a half for overtime work on any other day
Notice Period
- Where a valid reason for termination exists, a contract for an unspecified period of time, shall be terminated by the employer upon giving the following minimum periods of notice in writing
-
- One working day where the employee has been employed by the employer for less than one month
- Two weeks where the employee has been employed by the employer for one month or more, but less than a year
- One month where the employee has been employed by the employer for one year or more, but less than five years
- Two months where the employee has been employed by the employer for five years or more
Severance
- Where an employee who has been continuously employed for two years by the same or associated employer
-
- Is dismissed by his employer by reason of redundancy; or
- Is laid off or kept on short time
- Then, subject to the following provisions of the labor code, the employer shall be liable to pay him severance pay
- Severance pay shall be paid at the rate of two-week basic wage for each year of service, and pro-rate for each incomplete year
income tax
- There is no income tax, capital gains tax, property tax, inheritance tax, or corporation tax in the Turks and Caicos Islands.
immigration
- A work permit application should only be submitted if an employee/s is/are needed to perform a real job and all efforts to recruit a Turks and Caicos Islander has failed.
- Efforts must include newspaper advertisements and evidence of contact with the Employment Services Department to determine if there are persons who are job seekers whether registered with the Department or not, with the skills that you need.
- If the application is for a self-employed or freelancer’s work permit, there is no need for this requirement to be met.
- If a labor clearance is needed, the law now requires the following advertisement condition to be met.
- There are three types of work permit.
-
- Employed (Skilled and Unskilled)
- Self Employed
- Freelancer
- The following CERTIFIED documents MUST be supplied with each application, irrespective of the category.
- Nationals from some countries may be required to present ORIGINAL documents.
-
- Two photographs of the foreign worker and each person to be endorsed. Only ONE photograph must certified
- Certified copy of the foreign worker’s passport bio data page showing photograph and date and place of birth
- If on island, proof of legal entry and lawful stay in the Islands
- valid Police record
- Certificate of Good Health (please contact the Ministry of Health for further information)
- Confirmation of up to date NHIP and NIB contribution (if applying for renewal)
withholding tax
There is no withholding tax
termination
- An employer is entitled to dismiss summarily without notice or payment of any redundancy or severance payment or terminal benefits to an employee who is guilty of serious misconduct, based on the operational requirement of the enterprise, of such a nature that it would be unreasonable to require the employer to continue the employer relationship
- An employee is entitled to terminate the contract of employment without notice or with less notice than that to which the employer is entitled by any statutory provision or contractual term, where the employer’s conduct has made it unreasonable to expect the employee to continue the employment relationship
- Where a valid reason for termination exists, a contract for an unspecified period of time, shall be terminated by the employer upon giving the following minimum periods of notice in writing
-
- One working day where the employee has been employed by the employer for less than one month
- Two weeks where the employee has been employed by the employer for one month or more, but less than a year
- One month where the employee has been employed by the employer for one year or more, but less than five years
- Two months where the employee has been employed by the employer for five years or more
- Where an employee who has been continuously employed for two years by the same or associated employer
-
- Is dismissed by his employer by reason of redundancy; or
- Is laid off or kept on short time
- Then, subject to the following provisions of the labor code, the employer shall be liable to pay him severance pay
- Severance pay shall be paid at the rate of two-week basic wage for each year of service, and pro-rate for each incomplete year
statutory benefits
- 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
- Statutory benefits also include social security benefits
|
Statutory Benefits |
|
Probationary Period |
|
Annual Leave |
|
Public Holidays |
|
Maternity Leave |
|
Sick Leave |
|
Overtime Pay |
|
Notice Period |
|
Severance Pay |
|
Social Security Benefits |
employee accruals
| Christmas Bonus% |
0% |
| Christmas Bonus Over Vacations % |
0% |
| Severance per Year % |
Employees are entitled to 2 weeks of severance pay (3.84% of annual salary) |
| Vacations % | Employees are entitled to 2 weeks of annual leave (3.84% of annual salary) |
| Notice % |
Employees are entitled to 2 weeks of notice period (3.84% of annual salary) |
| Christmas Bonus Over Notifications% | 0% |
| Vacations Plus% |
0%
|
|
Total percentage of Salary (yearly)
|
The total employment accruals as a percentage of salary per anum are equal to 11.5%
|
employer accruals
Employer Accruals Additional information
| Employment Accruals | ||
| Annual Leave | Every employee shall be entitled to 2 weeks of paid annual leave for each completed year of employment | This equals 3.84% (2/52 weeks) of annual income |
| Maternity Leave | Female employees are entitled to a maternity leave of 14 weeks | This equals 26.9% (14/52 weeks) of annual income |
| Sick Leave | An employee shall be entitled to sick leave with pay on work days, during which he/she is unable to perform work due to illness. An employee shall receive pay for the first 12 days of sick leave during any period of 12 consecutive months |
This equals 3.28% (12/365 days) of annual income |
| Overtime | An employee is paid double the rate for overtime work on public holidays. An employee is paid at the rate of 1 and a half for overtime work on any other day |
Subjective |
| Severance | Severance pay shall be paid at the rate of two-week basic wage for each year of service, and pro-rate for each incomplete year | This equals 3.84% (2/52 weeks) of annual income |
| Social Security | Employers must contribute 4.6% | This equals 4.6% of annual income |
