Employer of Record in Jersey

Businesses can only operate smoothly in Jersey 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 Jersey below, to avoid any compliance issues.

Employment Contract Requirements

Understanding Jersey's employment laws is vital when hiring local talent, as these laws are specifically tailored to the country's way of life. A customary contract an employer may provide should include:

• Identification of both parties
• Start date of employment
• Job responsibilities and duties
• Employee's compensation and other benefits.

Onboarding Process

We can help you get a new employee started in Jersey 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 Jersey

In Jersey, there are no specific daily work-hour limits for employees, but employers must adhere to health and safety legislation, safe practices, and any industry-specific guidelines. Additionally, employees are entitled to a continuous 24-hour rest period within each 7-day working period.

Overtime in Jersey

Provisions for overtime should be included in employment contracts in Jersey.

Probation Period in Jersey

In Jersey, the probationary period for employees must not exceed six months.

Fiscal Year in Jersey

January 1st - December 31st is the 12-month accounting period that businesses in Jersey use for financial and tax reporting purposes.

Payroll Cycle in Jersey

The payroll cycle in Jersey is usually monthly, with employees being paid by the last day of the month.

Minimum Wage in Jersey

The minimum wage for employees in Jersey is typically 11.64 GBP per hour, amounting to ~1862.40 GBP per month for a typical 40 hour work week.

Bonus Payments in Jersey

There is no legal obligation to pay 13th-month salary in Jersey

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 6.5% on top of the employee salary in Jersey.

Employee Payroll Tax Contributions

In Jersey , the typical estimation for employee payroll contributions cost is around 6%.

Individual Income Tax Contributions

Jersey applies a flat income tax rate of 20%.

Pension in Jersey

In Jersey, there are various pension schemes available for residents, including occupational pension schemes, personal pension plans, and the Jersey Social Security pension scheme. These schemes provide retirement benefits and financial security for individuals after they retire.

Mandatory Leave Entitlement in Jersey

The annual leave entitlement in Jersey is 14 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Jersey

In Jersey, there are 11 recognized public holidays:

Paid Time Off in Jersey

Employees in Jersey are entitled to paid leave for 3 weeks or longer as stipulated in the employment agreement.

Parental Leave In Jersey

New parents have the right to 52 weeks of parental leave, with 6 weeks as paid leave. To be eligible, the new parent must notify their employer 15 weeks before the expected childbirth week.

Maternity Leave In Jersey

For birth mothers, the 6 weeks of paid leave must commence immediately after childbirth. The remaining 46 weeks is unpaid leave.

Paternity Leave In Jersey

There is no separate paternity leave in Jersey, as it has been integrated into parental leave.

Sick Leave In Jersey

An employment contract outlines an employee's sick leave entitlement in Jersey. Although statutory sick leave isn't guaranteed, protection against unfair dismissal exists. Some employers offer support during sickness through the Short Term Incapacity Allowance (STIA).

Termination Process in Jersey

To establish the fairness or unfairness of an employee's dismissal, the employer must show that the reasons for the action are justified. These reasons might include:

• Incapability of job role
• Misconduct
• Redundancy
• Legal obligations

Notice Period in Jersey

For employees on a permanent contract, who have worked eight hours or more weekly, the employer's minimum notice period is as follows based on continuous employment:

• 1 week's notice: For service under 2 years.
• 2 weeks' notice: For service of 2 to less than 3 years.
• 3 weeks' notice: For service of 3 to less than 4 years.
• 4 weeks' notice: For service of 4 to less than 5 years.
• 5 weeks' notice: For service of 5 to less than 6 years.
• 6 weeks' notice: For service of 6 to less than 7 years.
• 7 weeks' notice: For service of 7 to less than 8 years.
• 8 weeks' notice: For service of 8 to less than 9 years.
• 9 weeks' notice: For service of 9 to less than 10 years.
• 10 weeks' notice: For service of 10 to less than 11 years.
• 11 weeks' notice: For service of 11 to less than 12 years.
• 12 weeks' notice: For service of 12 years or more.

Severance in Jersey

If a dismissal is fair except for redundancy cases, no severance payment is due. In cases of unfair dismissal, the employee may receive a compensatory award. Monetary awards from the Jersey Employment Tribunal range up to 26 weeks' pay, based on the length of service:

• Less than 6 months' service or automatically unfair: up to 4 weeks' pay.
• 6 to 12 months' continuous service: 4 weeks' pay.
• Over 12 to less than 24 months' service: 8 weeks' pay.
• Over 24 to less than 36 months' service: 12 weeks' pay.
• Over 36 to less than 48 months' service: 16 weeks' pay.
• Over 48 to less than 60 months' service: 21 weeks' pay.
• Over 5 years' service: 26 weeks' pay.