Employer of Record in Guernsey

Businesses can only operate smoothly in Guernsey if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Guernsey below, to avoid any compliance issues.

Employment Contract Requirements

Under the Conditions of Employment (Guernsey) Law 1985, it is mandatory for employers to provide employees with a written statement detailing the terms of their employment within four weeks of their commencement of work. This written statement must encompass the following information:

• Identity of both parties
• Job title
• Commencement date of employment (and expiry date of any fixed contract, if applicable)
• Hours of work
• Notice periods
• Maternity pay and leave
• Details of pay, including overtime, shift pay, and other benefits, along with payment schedule
• Entitlement to holidays and holiday pay, sickness and sick pay, and pension.

Onboarding Process

We can help you get a new employee started in Guernsey quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Guernsey

Guernsey does not have mandatory limits on working hours or rest breaks. Therefore, it's vital for both employers and employees to clearly document all terms and conditions regarding work hours in writing.

Overtime in Guernsey

Under Guernsey's Conditions of Employment Law, 1985, it is also necessary to include overtime rates (if applicable) in the written statement of employment or contract of employment.

Probation Period in Guernsey

Guernsey does not enforce a statutory probationary period; instead, it is typically addressed within the terms of the employment contract. These probationary periods generally span from three to six months, yet they may differ based on the employer's discretion and the specifics of the position.

Fiscal Year in Guernsey

1 April to 31 March is the 12-month accounting period that businesses in Guernsey use for financial and tax reporting purposes.

Payroll Cycle in Guernsey

The payroll cycle in Guernsey is usually monthly , with employees being paid as stipulated in employment contract.

Minimum Wage in Guernsey

The minimum wage for employees in Guernsey is typically 10.65 GBP per hour, amounting to ~372.75 GBP per month for a typical 35 hour work week.

Bonus Payments in Guernsey

In Guernsey, there is no requirement for employers to provide 13th or 14th cheques. It typically depends on the company's policies and practices, as well as any agreements negotiated between the employer and employees.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 6.9% on top of the employee salary in Guernsey.

Employee Payroll Tax Contributions

In Guernsey , the typical estimation for employee payroll contributions cost is around 7.2%.

Individual Income Tax Contributions

In Guernsey, income tax is applied at a flat rate for employees, regardless of income level.

Pension in Guernsey

In Guernsey, pensions primarily comprise of employer-sponsored occupational schemes and personal pensions established by individuals. Although a basic state pension is provided, numerous residents choose to supplement it with private pensions for a more secure retirement.

Mandatory Leave Entitlement in Guernsey

The annual leave entitlement in Guernsey is 0 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid. There is no statutory entitlement to paid leave, including annual leave.

Public Holidays in Guernsey

Termination Process in Guernsey

In Guernsey, there are various grounds for a valid dismissal, which may include:

• Insufficient capacity of the employee, whether in terms of skills, qualifications (academic or technical), or health.
• Misconduct of the employee.
• Redundancy, which can occur due to business needs, changes in the workplace, or employee redundancy.
• Other significant reasons, such as business reorganization.

Notice Period in Guernsey

For employees not under a fixed-term agreement, the minimum notice period an employer must provide to terminate employment depends on the duration of continuous service:

• Between one month and less than two years: a minimum of one week's notice.
• Between two years and less than five years: a minimum of two weeks' notice.
• Five years or more: a minimum of four weeks' notice.

Severance in Guernsey

Employers are not legally obligated to offer severance pay to dismissed employees. However, they have the option to include this provision in employment contracts.