When your company finds success at home, taking the business to other countries is a logical next step. This venture can lead to widespread success on a global stage, and it’s accessible to you with the right team by your side.
Globalization Partners uses our Employer of Record model to give you the comprehensive support you need to expand your business to a new country like the Marshall Islands. Our team includes HR professionals and legal experts educated on employment law worldwide. We have connections in over 185 countries, making us your single resource for your global expansion.
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Our services start with subsidiary outsourcing. We hire your workforce through our entity in your country of expansion. Our legal team guides your employment terms for total compliance while our HR representatives support a smooth onboarding process for new team members abroad. We’ll manage your team on our payroll and help you handle compensation and benefits.
On top of our services, you release all associated legal risks. Our Employer of Record model allows us to handle all liability concerns to keep you free from legal damages. With mitigated risk and global expertise, our services cover all the details of your expansion, allowing you to focus on the business side of your venture.
When it comes to global expansion in the Marshall Islands, Globalization Partners can help. Take a look at some of our country-specific knowledge and how we’ll use it to guide your development and set your company up for lasting success.
Doing Business in the Marshall Islands
The Republic of the Marshall Islands (RMI) is a small nation nestled between Hawaii and Australia and spread among the islands of Micronesia. The employed majority are involved in the public sector, marine work, and agriculture.
RMI holds a close relationship with the United States under a compact of free association. With shared resources and traveling between these countries, the small island offers promise for expanding companies.
In 2007, the country joined the International Labor Organization (ILO), allowing it to align with the global labor benchmarks. The nation separates many of its employment laws between sectors, and with the recent changes with the ILO, the employment laws and the professional environment are shifting.
Globalization Partners is here to help you understand and comply with these changing regulations as you begin your expansion. To understand the complexities of this country’s employment laws, get in touch with one of our experts today.
The laws for employment contracts may vary according to each sector. Legal obligations and requirements may also change as the national laws shift to align with the ILO. At Globalization Partners, we believe in creating written agreements for your employees to clarify terms and create a stable foundation for your professional environment.
When you take your business to this island nation, we’ll give you the guidance you need to draft a comprehensive agreement with all the correct terms. According to your industry, we’ll discuss the intricacies of labor regulations and draft terms for complete compliance.
Meeting with one of our representatives will give you a chance to discuss various compliance concerns, including:
- Working hours and overtime.
- Annual leave.
- Sick days.
- Maternity benefits.
- Termination regulations.
We’ll make sure you stay compliant and help you to set your company’s terms based on what other businesses in the area are offering employees. Going above and beyond can help you maintain a competitive edge when it comes to recruiting and hiring the country’s top talent.
The country recognizes 10 public holidays that employees can take off each year. These events include the following days:
- New Year’s Day
- Nuclear Victims Remembrance Day
- Good Friday
- Constitution Day
- Fishermen’s Day
- Ri Jerbal Day
- Manit Day
- President’s Day
- Gospel Day
- Christmas Day
If any of these days fall on a Saturday, Friday should be the day employees have off. If any public holiday falls on a Sunday, Monday will be the day off. The Public Holidays Act of 1988 also describes the declaration of a special holiday in a single year if the need should arise.
Termination and Severance
While regulations surrounding notice for termination may vary, the nation’s Social Security Administration offers severance for individuals who retire. These benefits include a percentage of contributions made throughout a person’s career.
The legal retirement age in the country is 60 years old. There are early retirement benefits available in certain circumstances and lump-sum provisions for employees who reach retirement age without meeting the minimum contribution requirements.
Once a tax haven, the Marshall Islands have a two-tiered income tax system for residents and a single income tax rate for non-residents. Residents pay 8 percent for the first $10,400 in annual earnings and 12 percent for anything over that amount. Nonresidents pay 10 percent for all earnings.
Beyond income tax, employees and employers are responsible for contributions to the Social Security Administration at 8 percent for both parties.
The health care system in the Marshall Islands is still in developmental stages as the Ministry of Health works with Community Health Councils to provide universal care to residents. Private health insurance is available, though employers are not obligated to provide insurance schemes under their employment contracts. Your company may or may not choose to offer private insurance to employees as a benefit.
Expand Business to the Marshall Islands With Globalization Partners
Expand your business, maintain professional support, and mitigate risk overseas with Globalization Partners. Our team has the intricate knowledge you need to expand to RMI with compliance and efficiency. Get in touch with our team today to learn more about their detailed labor regulations and how to begin your expansion.