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Employer of Record in Guyana

Employer of Record in Guyana

Skuad’s Guyana Employer of Record (EOR) solution helps your business expand without the need for an entity setup. Guyana has many intricate labor and employment laws that require careful interpretation. Our unified and automated global human resource (HR) platform enables you to expedite the onboarding of your remote team, manage their payroll, benefits, taxation, probation, and termination in compliance with the local laws. In addition, we help you streamline the global expansion process with the able assistance of our international network of experts from over 150 countries. Book a demo with Skuad to kick-start your expansion into Guyana.

Guyana at a Glance

Population: 7.8 million people (2019 estimate)

Currency: Guyanese dollar (GYD)

Capital city: Georgetown

Language spoken: English

Gross Domestic Product (GDP): USD 6.806 billion (2020)

Employment in Guyana

Guyana labor laws apply both to foreign nationals and Guyanese citizens. However, there are some differences in their entitlements. To set up a local entity in Guyana, a company must be aware of all aspects of Guyana’s employment regulations. To minimize or mitigate the challenge for companies looking to set up a local office, it is advisable to partner with a payroll provider that is well aware of the Guyana labor laws for local and foreign workers.

Entitlements Explanations
Statutory working hours The statutory working hours are 40 hours per week.
Overtime eligibility Employees get one and a half times their standard payment for overtime work. For work during public holidays, employees are paid at double the standard rate.
Paid public holidays The public holidays for 2021 are as follows.
  • New Year’s Day (January 1)
  • Republic Dar (February 23)
  • Phagwah (March 28)
  • Good Friday (April 2)
  • Easter Monday (April 5)
  • Labor Day (May 1)
  • Arrival Day (May 5)
  • Independence Day (May 26)
  • Caricom Day (July 5)
  • Eid-ul-Adha (July 20)
  • Emancipation Day (August 1)
  • Youman-Nabi (October 19)
  • Deepavali (November 4)
  • Christmas Day (December 25)
  • Boxing Day (December 26)
Holiday pay Employees are entitled to paid holidays in Guyana.
Employment Type Paid Leaves
Employed on a weekly, fortnightly, or monthly basis One day for completing one month of service
Employed on a daily basis One day for every 20 days of work
Employed on an hourly basis One day for every 160 hours of work
Medical leave Guyana does not have any provision for paid sick leaves. On the third day of illness, the payment will be made by the National Insurance Scheme as per Guyana’s employee health benefits.
Maternity leave Female employees in Guyana are entitled to 13 weeks of maternity leave after childbirth and are paid weekly or bi-weekly by the Guyana Social Security System. In some cases, 13 weeks of leave can be further extended to 26 weeks of maternity leave.
Employee protection and anti-discrimination rights In Guyana, the Prevention of Discrimination Act protects the employee from discrimination based on caste, creed, race, religion, gender, ethnic origin, social origin, economic status, marital status, age, political opinion, responsibilities of family, disability, and indigenous origin.
Confidentiality of personal information Statistics Act 1965 protects the personal data and information of the individual.

To learn more about Guyana’s employment policies to ensure your expansion efforts fall within the legal requirements, book a demo with Skuad experts today. We can meet all your HR needs while complying with the local laws.

Contractors vs. Full-time Employees

A full-time employee works for you and is under your payroll, through which they get a fixed monthly salary and various benefits. A full-time employee signs a contract with you and is prohibited from working for another company. In the case of terminating a full-time employee, a termination notice must be given.

A contractor is an independent worker who works with your company for a limited period. A contractor gets the payment that is agreed upon and does not enjoy other benefits that a full-time employee enjoys.

When looking for someone to help you with the project immediately, hiring a contractor is the best option. However, when looking to hire someone for a long-term project, it is better to hire a full-time employee.

Skuad is a global HR platform that companies can use to hire exceptional remote talent as contractors and full-time employees. Skuad will take care of your onboarding, payroll, compliances, and benefits while managing compliance with the local laws. Book a demo with Skuad experts to learn more.

Hiring in Guyana

Hiring in Guyana starts with the employment contract. Although Guyana’s employment laws allow oral and written agreements, it is best to go with a written contract. An employment contract in Guyana should mention the following details.

  • The post/job profile
  • The hourly wages
  • The working hours
  • The grounds for dismissal from work

Once the employment contract has been signed by both parties, the employer needs to register them in the National Insurance Scheme (NIS) with the employee’s tax information.

Some of the best job portals to hire employees in Guyana are as follows.

  • JobsIsland.com: A website that allows the hiring companies in Guyana to upload their job requirement and filter the best candidate.
  • GuyanaWorx: A website that allows the candidate to filter their searches and give the result they are looking for.

Skuad’s EOR solution for Guyana can take care of all your hiring needs, such as finding, recruiting, and onboarding suitable talent for your organization. Talk to Skuad experts to learn more.

Probation & Termination

Probation Period

The standard probation period in Guyana is three months unless the parties involved agree to a different duration. In Guyana, both parties hold the right to terminate the contract without notice during the probation period.

Termination of Service

An employment contract is terminated upon its expiry, by mutual agreement between the employer and employee, or due to redundancy. The employer may terminate the employment agreement in Guyana without notice if serious misconduct affects the organization’s employees and the business.

If the employee is in probation period, the employment contract law in Guyana states that the employer can initiate the termination of the employment without notice or any severance pay.

Notice Period

  • If the employee has been employed for less than one year, the notice period is two weeks.
  • The notice period for employees working for the organization for more than a year is one month.

Book a demo with Skuad to learn more about the probation and termination services in Guyana.

EOR Solution in Guyana

The Employers of Record (EOR) model is a smart solution for companies seeking to enter and expand in Guyana 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

When you decide to expand into Guyana as an organization, you also need to decide the route you want to take. This concerns whether you want to build an in-house HR team or partner with an EOR firm to manage payroll and employee lifecycle. Many businesses choose to outsource their payroll through services such as Skuad to hire employees in a new country.

Often, interpreting the local laws, ensuring compliance, communicating with authorities in the local language, and playing within the boundaries of the country’s culture is not easy. Skuad’s integrated, tech-enabled HR platform and expertise in providing HR assistance in more than 150 countries is the answer to your expansion goals.

We can offer bespoke EOR solutions for all your expansion needs in Guyana. To avail yourself of our services, speak to Skuad experts today.

Types of Visas in Guyana

The different types of visas in Guyana are as follows.

  • Tourist visa (valid for 30 days but can be extended to 90 days)
  • Student visa (valid for three years)
  • Business visa (valid for five years)
  • Employment visa (valid for three years)
Work Visa Explanation
General information

The Immigration Service of Guyana offers only one type of work permit. A work permit is valid for three years and can be renewed when it expires.

Guyana also offers a business visa, but it is only valid for conducting business, and the person is not allowed to find employment with a business visa.

Criteria to obtain a work visa
  • Before applying for a work visa, the employee must have a job offer from an employer who is based out of Guyana.
  • The employer must share the details of the employee with the Ministry of Home Affairs.
  • After the employee submits the application for a work visa, the immigration services and the employer must approve them for the work permit.
  • After the work permit has been approved, the employee will receive the visa on arrival.

Get in touch with us for more information on the types of visas and work visa requirements in Guyana. Skuad can handle all your visa requirements and ensure your expansion plans are not delayed.

Work Permit

Skuad’s local partner in Guyana can sponsor foreign workers’ work permits. As an EOR service in Guyana, Skuad takes care of all the requirements and responsibilities related to employment. On Skuad’s HR platform, the client company can manage their employees’ daily activities and operations. Book a demo with Skuad experts for tailor-made EOR solutions for Guyana.

Key Details Explanation
Can Skuad sponsor work permits in Guyana? Yes, Skuad can sponsor work permits for your employees in Guyana.
Processing time It takes between seven to 30 days to process a work permit.
Work permit process The steps to apply for a work permit in Guyana are as follows.
  • The employer in Guyana applies to the Department of Citizenship and Immigration for the work permit of their candidate.
  • After reviewing the credentials, the acknowledgment letter is handed to the employer.
  • The employee submits the acknowledgment letter to the Guyana High Commission while applying for a visa.
  • Further approvals are subject to verification.
Documents required for a work permit The following documents are required while applying for a work permit.
  • Name and address of the employee and the sponsor
  • Contact details of the sponsor and employee
  • Place of employment in Guyana
Work permit validity A work permit is valid for three years from the date of issue.
Where is the application processed? The application is processed at the Guyanese Embassy in your country of origin.
What is the cost of a business visa A business visa costs USD 140.
Can spouses work on dependent visas? A Family, Partner, or Spouse visa allows the spouse to work in Guyana.

Connect with Skuad experts to know more about work permits for expanding into Guyana.

Payroll & Taxes in Guyana

Things You Must Know to Set Up Payroll in Guyana

To set up payroll in Guyana, you need to be aware of the rules that vary from one category to another. First, you must consider whether you want to employ foreign professionals or locals. As a foreign company, you must be aware and adhere to the local tax laws like income tax, business tax, withholding tax, employee compensation insurance, and social security costs.

There are two ways of setting up payroll in Guyana.

  • You can set up an in-house team to manage the payroll in Guyana.
  • You can enlist the services of a payroll specialist such as Skuad to manage your payroll.

Skuad’s tailor-made Guyana EOR solution will not only make payroll creation and management simpler but also ensure complete compliance with the Guyanese employment laws

Taxes in Guyana

Tax Explanation
Income tax rates The annual tax rate for Guyana residents is as follows.
Gross Income Tax Rate (%)
GYD 0 to GYD 1,559,999 28%
Above GYD 1,560,000 40%
Tax returns Tax returns must be filed by April 30 of the tax year.
Financial year-end date The financial year-end date is December 31.
Tax documents The two main tax documents are as follows.

* G0015 (for individuals)
* G0016 (for organizations)

Corporate tax The corporate tax for companies varies based on the type of company.
Type of Company Corporate Tax Rate (%)
Telephone companies 45%
Commercial companies 40%
Non-commercial companies 25%
Small companies (manufacturing, construction, or those registered with the Small Business Bureau) 25%
Withholding tax (for non-residents) The withholding tax for non-residents is as follows.
Recipient WHT(%)

Dividend     Interest     Royalties

Non-treaty

20                   20                  20

Canada (Treaty)

15                   25                  10

UK (Treaty)

10                   15                   10

CARICOM (Treaty)

0                    15                      15                   

Payroll tax The payroll tax for corporates is as follows.
Gross Income Tax Rate (%)
GYD 0 to GYD 1,559,999 28%
Above GYD 1,560,000 40%
Property tax Property tax is charged annually on the net property of the person.
Net Property (GYD) Property Tax Rate (%)
First 40 million 0
Every dollar on the next 20 million 0.5%
Every dollar on the remainder 0.75%
Value-added tax (VAT) The VAT rate is 14%.
Employers’ Social Security and statutory contributions Employers contribute 8.4% of tax toward Social Security.
Employees’ Social Security and statutory contributions Employees contribute 5.6% of tax toward Social Security.
Medical insurance Healthcare is available to every citizen of Guyana through a public insurance program.

To manage your taxes while expanding to Guyana, it is prudent to partner with an EOR service. Skuad’s Guyana EOR solution can take care of all HR-related tasks for you while ensuring compliance with the local laws, including those on taxation and payroll. To learn more, get in touch with Skuad experts.

Incorporation: How to Set Up a Subsidiary in Guyana

There are four entities to choose from to establish a company in Guyana.

1. Sole Proprietorship

A sole proprietor holds full responsibility for the assets and debts.

2. Partnership

Unlike a sole proprietorship, the responsibilities of assets and debts are spread across the partners.

3. Private Limited Liability Company (PLLC/LLC)

An LLC can be a foreign-owned company with a minimum of two to a maximum of 20 shareholders. It is mandatory for the LLC to have at least one director and any of the shareholders can be the director. It is one of the best choices to set up a company by a foreign company in Guyana.

4. Public Liability Company (PLC)

The ownership of a PLC is divided into shares that are publicly traded on the stock exchange. A PLC requires at least two directors.

Setting up an LLC in Guyana

The following steps must be completed to set up an LLC in Guyana.

  • Choose the name of the company
  • Acquire the duly filled and signed declaration of compliance.
  • Register the company in Guyana
  • Apply for TIN and VAT.
  • Apply for Social Security.
  • Create a company seal.

Talk to Skuad experts to know more about setting up an LLC or another type of subsidiary in Guyana.

Professional Employer Organization (PEO)

A professional employer organization (PEO) serves as the co-employer of your organization and is utilized by the entire workforce. A PEO works best for an organization that has registered in every country or state where its employees exist. It shares the HR responsibilities and liabilities of an organization and can take over the entire range of HR functions. A PEO also provides services for a minimum of five to 10 employees. However, since it is not the legal employer, it is not liable for any compliance-related issues your organization might face.

An EOR organization serves as a legal employer and assumes all the responsibilities and liabilities of an organization. An EOR service allows companies to set up an office in a new state or country without setting up a legal entity. It takes over a portion of the HR functions and can be used for a partial workforce, especially for a portion of employees in a different country. It provides services for a minimum of one to five employees. An EOR service handles compensation of the employees and unemployment claims.

Skuad is a top tier EOR solution platformis one of the leading EOR and PEO service providers that handleshandle the HR-related responsibilities for companies looking to expand their business.

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