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Globalpedia

PEO & Employer of Record (EOR) in KyCayman Islands.

Population

71,432

Languages

1.

English

Country Capital

George Town

Currency

Cayman Islands dollar (KYD)

The Cayman Islands is a British international territory made up of three islands in the Western Caribbean Sea. If your company is ready to expand business to the Cayman Islands, working with an Employer of Record allows you to hire employees quickly and compliantly.

Hiring in the Cayman Islands

If you plan on expanding to the Cayman Islands, it’s beneficial to become familiar with the country’s Labour Act. The law outlines employees’ rights and defines the relationship between employers and employees.

Employment contracts in the Cayman Islands

Companies that hire Cayman Islands-based employees need to provide a written employment statement within 10 working days of their hiring. The statement must define the following:

  1. The employee’s title
  2. Working hours
  3. The rate of compensation and payment intervals
  4. The length of employment, if it’s not indefinite
  5. Sick and holiday leave entitlement
  6. The required length of notice before termination of employment

Working hours in the Cayman Islands

The standard workday in the Cayman Islands should not be more than nine hours, and the standard working week should not be more than 45 hours. One week is defined as a period of 168 hours. Employees that exceed the standard workday or week should receive overtime pay.

Employees are entitled to a 15-minute break for every three to five hours they work. They should receive two 15-minute breaks and a 30-minute lunch for any work shifts lasting more than five hours.

Vacation days in the Cayman Islands

Employees who have worked for a company for less than four years are entitled to two weeks of paid annual vacation. After working for an employer for at least four years — but not more than 10 years — employees are entitled to three weeks of vacation. Employees who have been with a company for more than 10 years receive four weeks of paid vacation leave.

Sick leave in the Cayman Islands

If an employee is ill or otherwise physically unable to work, they are entitled to sick leave. To qualify for sick leave, they must provide a physician’s note or other evidence to their employer. The first 10 days of sick leave in a year are paid at the same rate as the employee’s normal wage. After 10 days, an employee can still take time off when ill or injured, but the time off isn’t compensated.

Maternity leave in the Cayman Islands

Employees who become pregnant can receive up to 12 weeks of maternity leave. The first 20 days of leave are paid at the employee’s regular rate. After the first 20 days, employees receive half of their standard wage.

Termination and severance in the Cayman Islands

The termination process in the Cayman Islands depends on the contract. If employees work under a fixed-term contract and it is not renewed, the contract terminates automatically on the agreed-upon date. Employees on indeterminate contracts must receive notice of termination. The notice period is usually the length of time between paydays.

Employees are entitled to severance pay if they have worked continuously with their employer for at least one year. The payment amount is one week of pay for every year the employee worked with the company.

Paying taxes in the Cayman Islands

Employees in the Cayman Islands pay no income taxes, and employers have no payroll tax obligations. There are no mandatory social benefit program contributions.

Health insurance benefits in the Cayman Islands

The Cayman Islands requires employers to provide health insurance to their employees. Employers can share the cost of health insurance premiums with employees. Employees may be required to pay up to 50 percent of the cost of their insurance premiums and the full cost of any premiums for unemployed spouses and children.

Holidays in the Cayman Islands

Public holidays in the Cayman Islands include:

  1. New Year’s Day
  2. National Heroes Day
  3. Ash Wednesday
  4. Good Friday
  5. Easter Monday
  6. Discovery Day
  7. Constitution Day
  8. Remembrance Day
  9. Christmas Day
  10. Boxing Day

Why G-P?

At G-P, we help companies unlock the power of global teams through our industry-leading Global Growth Platform™. Let us handle the costly and time-consuming tasks involved in finding, hiring, onboarding, and paying your team members, anywhere in the world, so you don’t have to. Contact us today to learn more.

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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