Guide to employment, payroll and benefits in

Gibraltar

Rivermate offers complete payroll, benefits and compliance services for

Gibraltar

01. Overview

Last updated: 

August 19, 2021

Currency
Gibraltar Pound
Capital
Gibraltar
Ease of doing business
Language
Spanish
Population
33691
GDP growth

02. Grow your team in

Gibraltar

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Gibraltar

, particularly if you don't have established local relationships. You can hire employees in

Gibraltar

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Gibraltar is a British Overseas Territory on the Iberian Peninsula's southern tip. It is 6.7 km2 in size and is bordered on the north by Spain. The Rock of Gibraltar dominates the landscape, with a densely populated town area at its foot, home to over 32,000 inhabitants, mostly Gibraltarians. During the War of the Spanish Succession in 1704, Anglo-Dutch forces took Gibraltar from Spain on behalf of the Habsburg claim to the Spanish throne. The Treaty of Utrecht, signed in 1713, gave the land to Great Britain in perpetuity. It was an vital base for the Royal Navy during the Napoleonic Wars and World War II since it protected the entrance and exit to the Mediterranean Sea, the Strait of Gibraltar, which is just 14.3 km wide at this naval choke point. With half of the world's seaborne trade passing through the strait, it remains strategically significant. The economy of Gibraltar today is primarily dependent on tourism, online gambling, financial services, and bunkering. Gibraltar's sovereignty is a source of contention in Anglo-Spanish relations since Spain claims the territory. In a referendum in 1967, Gibraltarians rejected plans for Spanish sovereignty, and in a referendum in 2002, the concept of mutual sovereignty was also rejected. The United Kingdom and Gibraltar will leave the European Union on January 31, 2020. In December 2020, the United Kingdom and Spain agreed in principle to a framework on which the UK and the EU will discuss conditions for Gibraltar's participation in Schengen-related activities.

04. Public holidays

05. Types of leave

Paid time off

Public holidays

Sick days

Maternity leave

Paternity leave

Parental leave

Other leave

06. Employment termination

Termination process

Within seven days after dismissal, the employer must file a Notice of Termination with the Employment and Training Board. Failure to do so results in a GIP£750 fine.


Employers must adhere to any contractual responsibilities regarding termination in order to prevent breach of contract charges. To avoid charges of unfair dismissal, a fair process must be followed.


While this is not a legislative necessity, the Employment Tribunal will assess the employer's process. For instance, in cases of misconduct, the method should often contain the following steps: conducting a reasonable investigation, notifying the employee of the allegations made against him or her, conducting a disciplinary hearing, and providing an option to appeal.

Notice period

The length of service and pay frequency determine the notice period after the first week, as shown below:


Employees who are paid on a monthly basis are entitled to one month's notice. Employees who are paid on a weekly or biweekly basis are entitled to one week's notice.


Employers who are paid on a monthly basis are entitled to a minimum of one month for up to eight years of service, two months for eight to ten years, and three months for ten years or more. Employees paid weekly or fortnightly are entitled to a minimum of one week if they have worked for less than two years, two weeks if they have worked for two to five years, four weeks if they have worked for five to eight years, eight weeks if they have worked for more than ten years, and thirteen weeks if they have worked for more than ten years.

Severance pay

Fixed-term employees who are terminated prior to the contract's expiration are entitled to receive 50% of the compensation that would have accrued over the contract's remaining duration.

Probation period

The first week of any employment is a probationary period and can be legally terminated at the end of the week.

07. Working hours

General

Over a time of 17 weeks, the average weekly work hours must not exceed 48 hours, although employees may contract out of the Act if certain conditions are met. Workers aged 15 to 18 years old are not permitted to work more than 40 hours per week.


The average normal hours worked by a night worker must not exceed eight hours in any 24-hour period. Night workers, with certain exceptions, are generally entitled to the same breaks as other workers. For instance, a shift worker who is required to work during a rest period must be granted a compensatory period of rest.

Overtime

08. Minimum wage

General

Since August of 2020, the minimum wage in Gibraltar has been set to £7.25 per hour or £282.75 per week.

09. Employee benefits

General

In Gibraltar, the Department of Social Security is in charge of benefits and welfare. Employees make contributions to the social security system; self-employed people make voluntary contributions. Benefits can only be claimed if contributions have been made to the system. UK citizens who were receiving benefits in the UK may be able to continue receiving them while in Gibraltar.

Benefits available to Gibraltar residents include compensation for industrial accidents and diseases, unemployment benefits, maternity benefits and grants, and pensions.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Gibraltar

to hire a team takes time, money, and effort. The labor law in

Gibraltar

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Gibraltar

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Gibraltar

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Gibraltar

via our Employer of Record / PEO solution.

Ready to get started? Our friendly staff is ready to assist you with all your questions, let's connect.