Employer of Record in the Cayman Islands
Skuad’s Cayman Islands EOR solution helps organizations expand into the Cayman Islands, without having to set up an entity in that country. Skuad’s automated human resource (HR) platform enables organizations to grow and manage their business in the Cayman Islands, onboard new employees, distribute the workflow, and manage payroll, benefits, and more. With the able assistance of our global network spanning over 150 countries, you can easily penetrate the Cayman Islands market and work from your new business location. To avail yourself of our EOR services, get in touch with Skuad experts.
The Cayman Islands at a Glance
Population: 64,948 people (2019)
Currency: Cayman Islands dollar (KYD)
Capital city: George Town
Languages spoken: Cayman Islands English
Gross Domestic Product (GDP): USD 5.936 billion (2019)
Employment in the Cayman Islands
The Cayman Islands labor laws apply to both citizens and foreign nationals. Since the population of this country is very low, the work regulations give more opportunities to domestic citizens than foreign nationals. Moreover, some specific rules and entitlements must be followed while employing in the Cayman Islands.
Since 70% of the country’s GDP is dependent on tourism and other sectors associated with it, the rules and laws of employment have changed due to the COVID-19 situation. Thus, it is of utmost importance to be cognizant of these changes and abide by them.
The English Common Law of Employment is applicable for all employers. Under this Common Law, employers must sign a contract with employees, understating the terms and conditions of the employment. An employer cannot dictate the employment terms and conditions; an employment contract must comply with the minimum standard protections provided by the Labor Law.
The following table supports the understanding of the entitlements and the explanations to help businesses follow the Common Law of Employment in the Cayman Islands.
Contact us to learn more about our Cayman Island EOR services.
To learn more about the Cayman Islands’ employment policies to ensure your expansion efforts fall within the legal requirements, book a demo with Skuad experts today.
Contractors vs. Full-time Employees
Your business will need manpower to operate in the Cayman Islands; thus, it is vital to decide whether you want to hire employees on a contract or on a full-time basis.
One of the key metrics to determine the type of employment is whether you want to set up your business entity permanently. Other metrics are the type of work for which you want to hire the employee and the core idea behind your business entity there.
In both cases, the employers must provide a written employment contract to the employee within 10 days of employment. It must contain the necessary details like the job role and entitlements, including overtime, leaves, and other miscellaneous details.
Finally, let us consider the advantages of hiring contractors and full-time employees.
Advantages of Hiring Contractors
- Flexibility: Since contractors are hired on a short-term basis, you are free to determine the scope of their work temporarily. If new needs arise, new contracts can be drafted in the short term.
- Independence: Short-term contractors usually work independently and on their own timeline. They do not require close supervision, and your resources can be transferred elsewhere, as needed.
- Cost: Hiring contractors may be cheaper in the long run although their individual rates are higher than those of full-time employees. This is because such employees are not entitled to employment benefits such as bonuses and tax compensations.
Advantages of Hiring Full-time Employees
- Loyalty and organizational commitment: Full-time employees are likely to be more loyal as they exclusively work for your company. As their individual success depends on the performance of your firm, they are likely to invest more effort into their work.
- Knowledge: All employees undergo training when they join a firm. The skills and knowledge gained by a full-time employee, however, stay within the organization.
- Legal freedom: Since full-time employees are defined as such in their contracts from the outset, misclassifications and the repercussions thereof can be avoided completely. When hiring full-time employees, you determine the terms of the contract and entitlements, and these are not liable to change unless mutually decided by both parties.
Whether your organization requires contractors or full-time employees, Skuad’s Cayman Islands EOR solution can cater to all your hiring requirements. Learn more by talking to Skuad experts.
Hiring in the Cayman Islands
The hiring of employees in the Cayman Islands is based on the Labor Law and other legislative decisions, of which the majority favor Cayman Islands nationals. The nationals are given preference over people from different nationalities.
If a company wants to hire a person from another nation in the Cayman Islands, they will need to prove that there are no unemployed nationals capable of taking the job role offered. The foreign nationals applying for the job also need to have the qualifications and professional competence that matches the countries requirements. They just also have a Global Citizen Certificate.
Most employers advertise for employees by posting the job opening notices on hiring websites and portals. Some of these are,
Despite the advantages of modern technology, the hiring process can be time-consuming and cumbersome. You can use Skuad’s Cayman Islands EOR solution to hire employees in the Cayman Islands and onboard them as well. Skuad’s solution will enable you to focus on expanding your company, leaving HR-related tasks to our experts.
Probation & Termination
The probation period in the Cayman Islands Haiti is applicable for any new employee who has been given the employment contract recently. The initial probation period cannot exceed six months and this has to be in writing in the employment contract.
The probation period can be extended on mutual consideration at the end of the term, and during this time, the employees should be given sufficient training and other benefits as per the written contract. Employees can be terminated during their probation period but the reasons for the termination must be given to the employees.
Employees hired for a fixed term as per the written contract will automatically be terminated once the contract expires. To renew their work, they need to get a new contract made with the employer. Unless mentioned in the contract, the notice period cannot exceed 30 days.
However, when the employer wants to terminate the work in between the notice period, they must give the full payment of the notice period before terminating the employees.
Skuad covers all aspects of HR services, including, but not limited to, hiring, preparing employment contracts, termination, severance pay, and more. The platform acts as a single central tool for accomplishing your hire-to-retire services. Learn more about us to expedite your expansion.
EOR Solutions in the Cayman Islands
The Employers of Record (EOR) model is a smart solution for companies seeking to enter and expand in the Cayman Islands fast and agilely. With the help of Skuad's Employer of Record solution, business entities abroad can quickly source and hire the right professionals as per the organization's requirements. Hired employees get onboard seamlessly, helping your business save up a huge percentage of hiring and onboarding costs. Skuad’s End-to-end solutions help manage employment contracts, process payroll and income tax, blend statutory benefits, and manage overall administration of the backend HR processes. Our platform works as a unified employment platform with automated workflows, digital signatures, employee payroll, contractor payout, and all types of compliance solutions. Book a demo today.
Outsourcing Employment through an Employer of Record
Companies that are looking to expand their business in the Cayman Islands need to be clear of the overall hiring process, employment laws, work permit visas, and more.
Skuad has a high-tech, unified HR platform for businesses to manage and pay their remote teams. Some of Skuad’s primary functions are,
- Talent discovery: We discover exceptional talent and skill to onboard the employees for the companies.
- Updated EOR: The tech-enriched HR platform enables seamless and easy control over the hiring procedure, including onboarding, paying, and managing the hiring process.
- Local compliance: Not limited to the hiring process only, we release you from the hassle of complying with the local laws to create entities and manage tax.
- Conducting formalities: We help in creating a suitable employment contract, following all the legal provisions of the land, and ensuring an easy collection of documents for taxation.
To get started on your expansion journey in the Cayman Islands, you can book a demo with us here.
Types of Visas in the Cayman Islands
Since the Cayman Islands is mostly preferred as a vacation destination, there is no requirement for a visa for 30 days of stay. However, you will need a valid passport from your country.
Visitors who wish to work in the Cayman Islands require a visitor work visa.
There are only a few visa requirements in this country. However, you will need a proper work permit to set up your business entity in the country. Talk to us and get more information and guidance related to types of visas and work visa requirements in the Cayman Islands. Skuad can handle all your visa requirements and ensure the expansion process is not delayed.
To obtain a work permit in the Cayman Islands, certain steps need to be taken before the arrival of the permit holder. The work permit procedures can be managed and handled by Skuad’s local partner in the Cayman Islands.
You can check the complete work permit details with fees here.
To know more about work permits in the Cayman Islands and how Skuad can secure them for you, speak to our experts today and kick-start your expansion.
Payroll & Taxes in the Cayman Islands
Things You Must Know to Set Up Payroll in the Cayman Islands
The Cayman Islands has crystal clear rules for payroll and taxes depending on whether the companies hire foreigners or nationals. The companies registered in the Cayman Islands often prefer to manage and handle their payroll via an EOR service. The EOR complies with the tax and payroll regulations, immigration, and other HR tasks on behalf of the company, thus freeing up the leadership of the company to focus on the business expansion process.
Some clients prefer to keep their payroll information confidential from the internal employees. Therefore, the following services are covered under payroll management.
- Preparing offer letters
- Issuing the employees No Objection certificate (NOC)
- Planning and managing leave for the employees, such as paid holidays and sick leaves.
- Assisting with the selection and application of suitable medical and health insurance
- Assisting with the setup of wage protection system
- Calculating the statutory gratuity payments as per Cayman Islands labor laws
- Issuing of salary certificates, salary payslips, and bank transfer letters for the employees.
- The end of settlement calculation in case of termination after probation or during probation as per the labor laws.
Taxes in the Cayman Islands
Most taxes like income tax and corporate tax are exempt in the Cayman Islands, and hence, it is one of the most preferred places for employment and conducting business. However, the country earns most of its finances through duties imposed on goods and services related to tourism and more. Duty taxes of 22% to 27% are levied on most of the items. On luxury cars, the duty tax rates can be up to 42%.
To understand how payroll and taxes are managed in the Cayman Islands and expedite your expansion process, talk to Skuad experts and book a demo.
Incorporation: How to Set Up a Subsidiary in the Cayman Islands
If you are looking to form a corporation or a subsidiary in the Cayman Islands, there are certain rules and regulations that you need to follow. You need to have a minimum of one shareholder that can be a trust/company or a person. At least one of the directors should be a Cayman Islands citizen.
There is no minimum authorized capital share here. According to the Cayman Islands Registrar of Companies’ fee schedule, the registration cost of the corporation in the Cayman Islands is USD 750. You can get your subsidiary set up in the Cayman Islands on your own or with the help of Skuad’s EOR solution that acts as the legal owner for your business setup.
Skuad knows the laws governing the setting up of subsidiaries in the Cayman Islands and can even help you with opening your company’s bank accounts in one of the local banks. To learn more, get in touch with us.
Professional Employer Organization (PEO)
A professional employer organization (PEO) provides services such as onboarding, payroll processing, tax filing, compensation, and health insurance. It is a payroll outsourcing service provided to small or medium enterprises. An employee’s onboarding can be easily done through a PEO service based on the labor laws, and it can be completed within days.
An EOR company offers similar HR services to a PEO. However, the EOR acts as a legal employer and not a co-employer.
A PEO is useful when a foreign company intends to establish its legal presence in the country where it has employees. However, an EOR is more suited to the needs of an employer who wishes to hire employees in a country without setting up a legal presence.
Though a PEO offers a wide range of HR services, it has its drawbacks, such as the employer’s loss of control over organizational policies that are to be decided by the hired PEO and unexpected price fluctuations made by the PEO in the services offered by the employer’s company. Importantly, the employer will be held liable for the penalties imposed on any unwarranted employment-related actions executed by the PEO. An EOR service handles all liabilities related to compliance.
Skuad offers both PEO and EOR services. Companies can go for any of the two according to their preferences. Hire Skuad’s EOR solution for the Cayman Islands to take care of all the compliance and HR-related tasks, from onboarding to training. Talk to Skuad experts to learn more.
Conclusion: What Gives Skuad’s Cayman Islands Solutions an Edge?
Skuad is a global HR platform that makes way for companies to hire employees, onboard contractors, manage invoices, and take care of payroll. With a pool of pre-vetted “ready to hire” talent, Skuad offers to set up a team for you without delay and expedite your expansion.
Before you start with the business operations in the Cayman Islands, we will help you to ensure a smooth transition for setting up subsidiaries and recruiting the local talent. Further, we will provide services for payroll, taxation documents, and regulatory compliances.
Speak to Skuad’s experts for more details and information and kickstart your business expansion in the Cayman Islands today.