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Employer of Record (EOR) in Trinidad and Tobago

Employer of Record in Trinidad and Tobago

Skuad’s Employer of Record Trinidad and Tobago (EOR) solutions make business expansion to Trinidad and Tobago easy and hassle-free. Our unique HR platform allows companies to hire exceptionally talented employees in Trinidad and Tobago, without having to set up a separate legal entity. It streamlines the process of hiring and onboarding a remote team by handling payroll management, taxation, and other legal compliances. To learn more about Skuad, Book a demo today.

Trinidad and Tobago at a Glance

Population: 1,403,976 (2021, according to United Nations’ latest data)

Currency: Trinidadian dollar (TTD) 

Capital: Port of Spain

Languages: English (official language,) Trinidadian English Creole, Trinidadian Hindustani, Tobagonian Creole

Gross Domestic Product (GDP): USD 24.10 billion in the year 2019; expected to reach USD 27 billion by 2021.

Learn more about expanding your business into Trinidad and Tobago by partnering with Skuad.

Employment in Trinidad and Tobago

What You Should Know Before Employing in Trinidad and Tobago

The International Labor Organization regulates the Trinidad and Tobago employment laws. There are different terms and conditions related to HR activities for expansion into the country. Let’s look at some of the major terms related to Trinidad and Tobago labor laws in the table below.

Entitlement Explanation
Employment contract law in Trinidad and Tobago

The International Labor Organization states that the employment contracts in Trinidad and Tobago can be presented verbally or in writing. The terms and conditions can either be explicitly conveyed or can be indirectly stated.

The employment agreements in Trinidad and Tobago can be of various, types such as,

  • Permanent contract
  • Part-time contract
  • Fixed-term contract
  • Agency contract
  • Contractor agreement
  • Casual contract
Compensation laws in Trinidad and Tobago

The minimum wage for all workers is TTD 17.50 per hour. The payment is done monthly.

The employer needs to provide a payslip to all the employees containing information about period earnings, tax deductions, and NIS numbers.

Vacation leave

Although vacation leave is not a statutory provision under the law, all government employees are entitled to certain benefits.

For employees who work in the private sector, vacation days are determined in the employment contract or through collective bargaining.

Sick/Medical leave Employees are entitled to sick leaves as per the employment agreement. It is usually 14 days for government employees, and private employers can decide their own terms.
Maternity leave

Female employees in Trinidad and Tobago are entitled to 13 weeks of maternity leave. Six weeks of leave can be availed of before giving birth and seven weeks afterward.

However, to qualify for maternity leave, the employee must be employed in your organization for at least one year (12 months).

During this period, the employee is entitled to a month’s full pay and two months’ half pay.

Female employees retain the right to return to work if they so desire.

Paternity leave

Paternity leave is not mandatory, but employers are encouraged to offer it to their male employees. However, some professions guarantee paternity benefits.

For example, male teachers get four days of leave upon the birth of their children.

Employee health benefits in Trinidad and Tobago The National Insurance Board of Trinidad and Tobago (NIBTT) regulates the health benefits system for the workers. To receive the benefits the employees need to pay into the National Insurance System.
  • The employees who earn more than TTD 200 should contribute, and workers earning less than that can participate too. Employers must also contribute an equivalent amount.
  • The sick benefits under NIBTT compensate workers who cannot work due to serious illness
  • Employment injury benefits compensate employees who are unable to work due to certain injuries.
  • The employees are also entitled to cash payments for various medical expenses
Standard working hours According to the International Labor Organization, the work hours in a day should not exceed eight hours and the workweek should not exceed 40 hours.
Overtime entitlement If an employee works more than eight hours a day, they are entitled to additional payment at an hourly rate. Employees who choose to work on public holidays must get 200% of their wages.
Public holidays in Trinidad and Tobago The 16 public holidays in Trinidad and Tobago (2021) are,
  • January 1: New Year’s Day
  • March 30: Spiritual Baptist Liberation Day
  • April 2: Good Friday
  • April 5: Easter Monday
  • May 14: Eid ul Fitr
  • May 30: Indian Arrival Day
  • June 3: Corpus Christi
  • June 19: Labor Day
  • August 1: Emancipation Day
  • August 31: Independence Day
  • September 24: Republic Day
  • November 4: Diwali
  • December 25: Christmas Day
  • December 26: Boxing Day
Employee protection and anti-discrimination rights Trinidad and Tobago’s Equal Opportunities Act forbids discrimination (part III) at the workplace on the following grounds.
  • Sex
  • Race
  • Ethnicity
  • Origin
  • Marital status
  • Religion
  • Disability
Confidentiality of personal information The Data Protection Act of 2011 provides that employees’ data may be collected, used, or delivered to third parties only if permitted by the employees.

To ensure your expansion endeavors are in compliance with the Trinidad and Tobago employment laws, Contact Skuad today.

Contractors vs. Full-time Employees

Among the different employment contracts, the two most widely used employment contracts in Trinidad and Tobago are fixed-term contracts and full-time agreements. Other employment contracts are,

  • Agency contracts 
  • Zero-hour contracts
  • Freelance contracts 
  • Part-time contracts

Full-time employees are gradually becoming less popular than contractors. However, it is important to note that full-time contracts and fixed-term contracts are two different employment contracts in Trinidad and Tobago.

More and more employers are now switching to contractors or fixed-term contracts. Under the full-time contracts, employees work as per normal working hours, that is, 40 hours a week and are entitled to all the employee benefits.

On the other hand, under a contractor’s agreement, the employees will not receive any employee benefits and severance is easier in these types of contracts. The employees get flexible working hours and payment according to working hours.

Contracts can be written or oral, although written contracts are recommended. They should specify all the terms of employment, including roles and responsibilities, work hours, compensation and benefits, leave policies, overtime policies, and compliance-related requirements.

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, further 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 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.

Learn more from Skuad experts about the pros and cons of hiring contractors and full-time employees in Trinidad and Tobago.

Hiring in Trinidad and Tobago

To hire employees in Trinidad and Tobago, employers must create an appropriate job advertisement. Employers need to make sure that they provide a proper job description that mentions the job role, responsibilities, wage. A well-defined job post increases the chances of getting only suitable candidates for that position. There are various websites where the employers can post the advertisement.

The employment compliance laws are different for different countries. For hiring employees in Trinidad and Tobago, the employers must register every new worker with the National Insurance Board (NIBTT) within the first seven days of recruiting the employee. The employees should also be registered with the Board of Inland Revenue (BIR). The new employees will receive a TD1 form from BIR to start working with the company. Although there is no definite time limit to register with BIR, it is always better to complete the process as soon as possible.

Once the employees register with NIBTT and BIR and sign the documents related to employment agreements, they can proceed to fulfill the company’s internal requirements. For example, companies can provide training to the new employees by organizing events to make them familiar with the daily tasks and responsibilities.

However, the tedious task of the hiring process takes a lot of time and effort, which makes it difficult for the companies to handle their core task. You can easily handle the hiring and recruitment process by utilizing Skuad’s EOR solution which ensures organizations are fully compliant with the country’s employment laws. Contact Skuadour team of Skuad experts today and know more about the recruitment process in Trinidad and Tobago.

Probation & Termination

Probation Period

The standard probation period in Trinidad and Tobago is three to six months for certain government offices such as the Defense Force and Civil Service. However, private firms are free to decide their employees’ probationary period in Trinidad and Tobago. Also, if there is a majority union, the union may negotiate the terms and conditions under the collective agreement.

Termination of Service

The termination of employment in Trinidad and Tobago is not governed by any legislation. Common laws can be applied if there are no collective agreement laws. Whether for fixed-term contracts or freelancers, termination must happen based on a just cause. There can be various reasons for termination, such as poor performance, expiry of an employment contract, or agreement between both parties.

Further, the employer has the right to terminate any employee, but they must provide a fair cause for dismissal. A notice in writing should be given to the employee at least one month before termination.

The employer must pay a severance amount if the worker has worked for more than a year but less than five years. In this case, the employer must provide two weeks of pay for each year of completion of service. Another case where severance is required is when the employee has provided a continuous service of more than five years. In this case, the employer must provide three weeks’ payment for each year of service.

According to the Retrenchment and Severance Benefits Act, the employer must provide a severance amount if the worker falls into the definition of “worker.” However, there are a few exceptions to this rule, as follows.

  • Employees who worked for less than a year
  • Workers who are still in their probation period
  • Casual workers
  • Fixed-term employees
  • Seasonal workers
  • Freelancers or contractors

If an employee is dismissed without any just cause, they may present their complaint in the Industrial Court. If in case the employee is found to be dismissed on an unjust cause, the court may either order for the worker’s re-employment or ask the employer to compensate the damages caused to the worker due to this dismissal.

An employer must know the rules of probation and termination in Trinidad and Tobago. Any non-compliance may cause serious damage to the employer. The option here would be to partner with an EOR company that relieves you from the complicated procedures of recruitment and termination in different countries. Learn more from Skuad experts about the best EOR solutions for full compliance with the employment laws of Trinidad and Tobago.

EOR Solution in Trinidad and Tobago

Business expansion is a long-drawn process that calls for extensive planning, especially when expanding to a foreign country. It is complicated and can take up to several months to complete but by choosing the EOR route for hiring employees in Trinidad and Tobago, you can fast-track the expansion process. Employer of Record Trinidad and Tobago (EOR) solutions by Skuad can make expansion to Trinidad and Tobago much simpler and a lot quicker for business. Our global outreach and a tech-enriched HR platform ensure compliance with local labor laws by managing employment responsibilities such as monthly payroll, work permits, employment contracts as well as taxation for your employees in Trinidad and Tobago. Book a demo with Skuad today.

Payroll Outsourcing in Trinidad and Tobago through an Employer of Record

An effective EOR service simplifies business expansion by taking the responsibility of keeping the company completely compliant with all the HR policies of Trinidad and Tobago. Trinidad and Tobago EOR solutions handle complex HR activities, such as recruitment, payroll, taxation, employee benefits, probation, and termination.

Expand your business with the high-tech EOR solutions provided by Skuad and build an effective team remotely. Scale up your business by staying fully compliant while hiring exceptional talent from Trinidad and Tobago. To know more about expanding your business into Trinidad and Tobago with our expert EOR service, contact Skuad.

Types of Visas in Trinidad and Tobago

Foreign nationals from the United States and many other countries do not need a visa to visit Trinidad and Tobago for a short duration. However, to stay in the country for a long time and work, you will need to obtain work permits.

Trinidad and Tobago work visas can be obtained initially for three years. The types of work visas include visas for work permits for less than a year and applications of work visas for more than one year.

There are Trinidad and Tobago work visa requirements that every foreign national applying for work visas in Trinidad and Tobago must abide by. Given below is the information related to work visas in Trinidad and Tobago.

Documents required to obtain a work visa in Trinidad and Tobago The following documents are required to obtain a work visa in Trinidad and Tobago.
  • A passport having a validity of at least six months;
  • A copy of the information page in the passport;
  • Three recent passport-size photos;
  • A duly filled application form with the candidate’s signature;
  • Proof of police background verification from the candidate’s country of residence;
  • Accommodation proof in Trinidad and Tobago; and
  • Payment proof of visa application fee.

Applicants seeking a work visa for more than a year will require the following additional documents.

  • Medical certificate of the candidate reflecting their health condition, and
  • A security bond that can cover the candidate’s return cost to their own country.
Procedure to get a work visa in Trinidad and Tobago The steps to get a work visa in Trinidad and Tobago are as follows.
  • Foreign nationals should first confirm if they need a visa by contacting the consulate of Trinidad and Tobago.
  • Trinidad and Tobago processes online applications only for work permits. The applicants can fill the form by following the directions given by the Ministry of National Security of the country.
  • The applicants can complete the online application from their country of residence and submit it online.
  • After the completion of the application process, the applicant will get a confirmation code. The applicant should then visit Trinidad and Tobago for further processing of the application.
  • The applicant will require the confirmation code to submit the required documentation to the Ministry of Security.
  • After successful submission of all the supporting documents, the applicant will get a work permit.

Talk to us and get more information and guidance related to types of visas and work visa requirements in Trinidad and Tobago. Skuad can handle all your visa requirements and ensure the expansion process is not delayed.

Work Permits

People who are willing to work in Trinidad and Tobago must obtain a work permit. If a candidate is applying for a Trinidad and Tobago work permit without a job offer, they need to submit the work visa application form on their own. Otherwise, if the applicant has a job offer, the application is submitted by the company.

A work permit is required, if,

  • The applicant is not a resident of Trinidad and Tobago
  • The applicant does not hold the certificate to work with the Caribbean community
  • The applicant needs to stay and work in the country for more than 30 days

The applicants will need to submit specific documents to obtain Trinidad and Tobago work permit for foreigners. The application should be duly filled and submitted online. The documents (mentioned in the previous section) should be kept handy for further verification.

The applicant can use a single work permit if the application is for less than 10 persons and a group application if the work permit is for more than 10 people. The application will be verified by the Ministry of National Security and approved within four to six weeks if there is no error in the application and documents.

The costs associated with the work permit process are,

  • TTD 600 at the time the application is submitted, and 
  • TTD 450 after the application is processed, to receive a work permit.

Learn more about work permits in Trinidad and Tobago with Skuad’s global EOR solutions.

Payroll & Taxes in Trinidad and Tobago

Payroll in Trinidad and Tobago

There are a few options that the employer can choose from for setting up payroll in Trinidad and Tobago.

  • Internal payroll: Here, the company processes payroll internally through their staff. 
  • Remote payroll: The company has a centralized payroll platform; however, the employers have to follow the laws of the country for which they are disbursing the payrolls. 
  • Payroll processing company in Trinidad and Tobago: Payroll is outsourced to a local company that manages HR tasks. However, your firm will be held liable in case of compliance-related issues. 
  • Payroll outsourcing through a global EOR: An EOR service such as Skuad ensures that your company stays completely compliant while processing the payroll seamlessly and handling all your HR requirements, from hiring to termination.

Trinidad and Tobago Taxes

Different countries have different taxation rules. Here are all the payroll tax rates that are applicable for the employees and employers of Trinidad and Tobago.

Tax Applicable in Trinidad and Tobago Explanation
Individual income tax

The maximum individual income tax rate is 30%.

The tax breakdown based on the salary range is as follows.

Income Range (TTD) Tax Rate (%)
Less than one million 25
More than one million 30
Corporate tax 30%; 35% for commercial banks
Sales tax/value-added tax 12.5%
Property tax (real estate tax) There are no estate taxes in Trinidad and Tobago.
Financial tax year January 1 to December 31 (calendar year)
Tax returns Tax returns must be filed within six months after April 30.
National Insurance Scheme (weekly pay, depending on the weekly earrings TTD 23.80 to 276.20
National Insurance Scheme TTD 11.90 to 138.10
Health Surcharge TTD 8.25

Talk to us and know more about payroll and taxes in Trinidad and Tobago!

Incorporation: How to Set Up a Subsidiary in Trinidad and Tobago

Choose a location that best suits your company’s requirements. Different laws apply to different regions in the country. So, it is essential to be aware of the local laws of the country.

Decide the subsidiary structure, that is, if your company would be a public limited company, limited liability company, or private limited company. Each entity possesses distinct laws that employers need to follow. The process of incorporating a holding company in Trinidad and Tobago can take up to a month. However, once the process is complete, the employers can build a legal presence in the county, hire employees, and set up payrolls.

Of all the options, a limited liability company is the most popular. To set up a limited liability company in Trinidad and Tobago, your company must,

  • Register as a legal entity with the registrar 
  • Register with the BIR
  • Obtain BIR a d PAYE numbers
  • Register for National Insurance as the formal employer within two weeks of hiring your first employee
  • Register a name for your business 
  • Draft and register articles of incorporation
  • Acquire a certificate of incorporation

The huge business opportunities in Trinidad and Tobago attract many employers. However, operating a business while being compliant with the system is tricky. Skuad’s unmatched EOR solutions offer an integrated platform for global remote team management. Talk to us to learn more about setting up a subsidiary in Trinidad and Tobago.

Professional Employer Organization (PEO)

A professional employer organization (PEO) Trinidad and Tobago handles all the HR activities of a company, such as payroll and risk management, employee benefits, and recruitment.

Many global companies take the help of PEO to expand their businesses as it allows the PEO to share and manage employee-related responsibilities and liabilities. A PEO takes care of HR tasks such as hiring, onboarding, payroll, taxation, probation, termination, employment contracts, and visas.

Many global companies take the help of PEO to expand their businesses as it allows the PEO to share and manage employee-related responsibilities and liabilities. A PEO takes care of HR tasks such as hiring, onboarding, payroll, taxation, probation, termination, employment contracts, and visas.

Partnering with a PEO works well if you already have a legal entity in a foreign country. However, an EOR service does not require an entity establishment; it can take care of incorporation for you.

Organizations planning to expand into new territories are better suited with a global EOR which becomes the legal employer on behalf of the organization. Instead of associating with a PEO, a co-employment partner, organizations have more to gain by utilizing the services of a EOR solution. The EOR solution safeguards organizations from unexpected policy changes, loss of control, and potential risks as the EOR bears every legal liability for the organization. In addition to these, the EOR handles payroll, tax, and employment law compliances. To know more about Skuad's EOR solution, Contact Skuad today.

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