Guide to employment, payroll and benefits in


Rivermate offers complete payroll, benefits and compliance services for


01. Overview

Last updated: 

August 19, 2021

East Caribbean Dollar
Saint George's
Ease of doing business
GDP growth

02. Grow your team in


with Rivermate

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


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


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

Grenada is a Caribbean island nation located at the southern end of the Grenadines island chain in the West Indies. Grenada is made up of the main island, two smaller islands (Carraiacou and Petite Martinique), and several small islands (the Grenadines) that lie to the north of the main island. It is situated northwest of Trinidad and Tobago, northeast of Venezuela, and southwest of the Grenadines. Its area is 348.5 square kilometers, and its population in July 2020 was projected to be 112,523 people. St. George's is the capital. Grenada is known as the "Island of Spice" because of its nutmeg and mace cultivation. Grenada was settled by the indigenous Arawaks and later by the Island Caribs until Europeans arrived in the Americas. Grenada was discovered by Christopher Columbus during his third voyage to the Americas in 1498. Following many failed attempts by Europeans to colonize the island due to Island Carib resistance, French settlement and colonization began in 1650 and lasted for the next century. Grenada was ceded to the British by the Treaty of Paris on February 10, 1763. The British ruled until 1974. Grenada was a member of the Federation of the West Indies, a short-lived union of British West Indian colonies, from 1958 to 1962. As an associated state, it was given full control over its internal affairs on March 3, 1967. The sovereign state of Grenada was granted independence on February 7, 1974, under the leadership of Eric Gairy, who became the first Prime Minister of Grenada. With Queen Elizabeth as its Head of State, the new nation joined the Commonwealth. In a bloodless coup d'état in March 1979, the Marxist–Leninist New Jewel Movement overthrew Gairy's government and formed the People's Revolutionary Government, led by Prime Minister Maurice Bishop. Bishop was later apprehended and killed by veterans of the People's Revolutionary Army, sparking an invasion by the United States in October 1983. The island has remained politically secure since then, with no further power grabs.

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

An employee may be terminated for a variety of reasons. For instance, their employment may have a contractual expiration date, or they may have underperformed, acted inappropriately, or violated their contract. To terminate your employment lawfully, you must offer the appropriate amount of notice based on the time served.

Notice period

The employer may terminate a contract for an unspecified period of time after the probationary period, if any, by giving the following minimum notice periods in writing.

If the employee has been with the company for less than a month, the notice period is one working day. When an employee has been with the company for one month or more but less than three months, the notice period is one week. When an employee has been with the company for three months or more but less than a year, the notice period is two weeks. When an employee has worked for the company for one year or more but less than five years, the notice period is one month. When an employee has been with the company for five years or more, the notice period is two months.

Severance pay

Under Grenada's Labour Law, employees are entitled to one week's pay for each year of service.

Probation period

In contracts of employment which do not specify the length of the probationary period, the following probationary periods shall be deemed to apply not more than one month in the case of unskilled workers; three months in the case of other workers, but which period may be extended by a collective agreement. Up to the end of a probationary period, a contract of employment may be terminated at any time by either party without notice.

07. Working hours


Different industries have varying workday schedules. The maximum workweek for agricultural, construction, and industrial jobs is 40 hours per week, Monday through Friday. The maximum workweek for clerical assistants and shop workers is 44 hours per week, Monday through Saturday. Catering assistants may work up to 44 hours per week. Domestic workers and security guards are permitted to work a maximum of 60 hours per week.

Employers are not permitted to require employees to work more than eight hours per day unless they are security guards, domestic workers, or shift workers. Domestic workers can work up to ten hours per day with a two-hour break, while security guards and shift workers can work up to twelve hours per day.


No employee may work more than six consecutive days in a week, and the country requires all employees to take Sunday off. If an employee is required to work on a Sunday, they should be compensated at double their regular rate. Employees should be compensated at 150 percent of their regular rate for overtime work.

08. Minimum wage


Grenada's minimum wage laws vary depending on the industry in which a job is located. The Wages Advisory Committee examines jobs and assesses the difficulties and dangers of specific positions in order to determine a reasonable minimum wage. As a result, wages differ depending on the job.

Bakery wrappers and packers must earn at least $170 Eastern Caribbean dollars (EC$) per week. Agricultural workers must be paid a minimum of EC$6.50 per hour. The Minimum Wage Order of 2011 was the most recent official order declaring these wages, but they are subject to change at the discretion of the Wages Advisory Committees.

09. Employee benefits


Grenada provides both public and private health-care services to its citizens. Public health care is inexpensive, and the majority of residents can live without insurance. You may choose to provide private health insurance schemes, but you are not required to do so. The NIS assists in covering health-care costs incurred as a result of sick days, maternity leave, and workplace injuries.

The Employment Act does not take into account any mandatory bonuses or additional benefits. You are free to include these supplemental provisions at your discretion.

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

Establishing an entity in


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


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


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


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


via our Employer of Record / PEO solution.

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