When your company finds success at home, expanding globally may be your next move. This venture can lead to more significant success but comes with various hurdles. While you’ve likely familiarized yourself with employment laws and business requirements in your home country, an international expansion requires global expertise.
Globalization Partners can make your international expansion easy. Rather than deciphering stacks of official documents and labor laws, our team will guide you. Our Employer of Record model gives you access to our subsidiary in your country of choice along with our team of legal and HR experts. With knowledge and connections in over 180 countries, we can take your company anywhere you want.
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We streamline payroll processes and onboard employees with ease, all while taking on the associated risks. Your company is no longer liable for legal mistakes, and our lawyers use their in-country knowledge to keep your company compliant. When you begin your global expansion in Grenada, our guidance can help you make the right moves.
Grenada has an open economy with very little regulation on overseas investment. With expanding hospitality and tourism sectors, manufacturing supported by government incentives, and increased international services, the prospects are bright for global employers.
The Caribbean nation offers direct employment laws, easy-to-understand taxes, and opportunities for growth in many industries. With a well-executed business plan and an understanding of labor regulations, your international company can succeed.
Grenada’s labor laws require employment contracts. In most circumstances, these agreements are in writing, but oral agreements are appropriate for immediate family members, those who work less than 16 hours a week, and contracts shorter than 12 weeks.
There are three different types of contracts — specified time, unspecified time, and given task. Your written documents should include the type of employment and other notable information, including the:
- Names of both parties.
- Pay and pay interval.
- Start and end dates, if applicable.
- Nature of the work.
- Normal working hours.
You can also use employment agreements to describe termination and severance terms and any benefits included with the position.
Different industries have various working hours for the typical workday. The Employment Act outlines the following:
- Agriculture, construction, and industrial jobs: 40 hours a week, Monday through Friday.
- Clerical assistants and shop workers: 44 hours a week, Monday through Saturday.
- Catering assistants: 44 hours a week.
- Domestic workers and security guards: 60 hours a week.
You cannot require a worker to serve more than eight hours in a day unless they’re a security guard, domestic worker, or shift worker. Domestic workers can work for up to 10 hours a day with two hours of rest, and security guards and shift workers can complete 12 hours of work in a day.
No employee can work more than six consecutive days in a week, and the country classifies Sunday as a day off for every worker. If an employee must work on a Sunday, they should make double their standard pay. During overtime — any amount over an employee’s set hours — they should receive 150 percent of their regular rate.
During the first year of employment with your company, a worker earns two weeks of paid vacation time. After the first year, employees should have at least three weeks of vacation time. If an individual works on a daily or hourly schedule, they earn one day of leave for every 15 days of work.
Employees must use their vacation leave within six months of receiving the days, and you must provide payment for the vacation leave no later than the day before it starts.
After 12 months of work, an employee is entitled to paid sick leave with a certificate from a medical professional. The National Insurance Scheme (NIS) will cover sick leave lasting four days or more. Otherwise, you are responsible for paying employees’ sick days. You do not have to pay more than five sick days a year without a medical certificate.
If an employee works the day before and after a public holiday, they must receive payment during their time off. The 12 public holidays are:
- New Year’s Day.
- Labor Day.
- Whit Monday.
- Emancipation Day.
- Thanksgiving Day.
- Christmas Day.
- Feast of Corpus Christi.
- Good Friday.
- Easter Monday.
- Boxing Day.
- Independence Day.
If an employee works during a public holiday, they must earn double their standard wages.
Employees earn three months of maternity leave and may take these days before and after delivery in any way they prefer. Workers should submit a written note to you, the employer, regarding their maternity leave three weeks before it begins. You are responsible for paying workers while on maternity leave.
Maternity pay is as follows:
- Monthly employees: At least 40 percent of two months’ pay.
- Weekly and biweekly employees: 40 percent of four fortnights.
- Daily employees: 40 percent of 1/5th of pay in the last year.
You must deduct income tax and NIS contributions from employee paychecks.
Termination and Severance
You may terminate an employee for a range of reasons. For example, their employment may have a contracted end date or they underperformed, maintained poor conduct, or breached their contract. For lawful termination, you must provide a correct amount of notice based on the time served.
Notice requirements are:
- One day for less than one month of work.
- One week for one to three months of work.
- Two weeks for three months to a year.
- One month for one to five years.
- Two months for over five years.
You owe severance to employees based on the length of time they served and the status of their vacation days.
Grenada offers public and private health care facilities for its citizens. Public care costs a small amount, and most residents can live without insurance. You can choose to provide private health insurance schemes but are not obligated to. The NIS helps cover health expenses from sick days, maternity leave, and injuries on the job.
Bonuses and Additional Benefits
The Employment Act does not account for any required bonuses or additional benefits. You can provide these supplementary provisions at your own discretion.
Expand Business to Grenada With Help From Globalization Partners
Globalization Partners provides the support and expertise you need to streamline your international expansion. Let us focus on the details while you develop the big picture. Get in touch with our team today to learn more about our Employer of Record model in Grenada.