Guide to employment, payroll and benefits in

Isle of Man

Rivermate offers complete payroll, benefits and compliance services for

Isle of Man

01. Overview

Last updated: 

August 19, 2021

Currency
British Pound
Capital
Douglas
Ease of doing business
Language
English
Population
85033
GDP growth

02. Grow your team in

Isle of Man

with Rivermate

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

Isle of Man

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

Isle of Man

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

The Isle of Man, also known as Mann, is a self-governing British Crown dependency located between the United Kingdom and Ireland in the Irish Sea. Queen Elizabeth II, Lord of Mann, is the head of state and is served by a lieutenant governor. The military defense of the isle is the responsibility of the United Kingdom. Since before 6500 BC, humans have lived on the island. The Manx language, a branch of the Goidelic languages, originated in the 5th century AD, as a result of Gaelic cultural influence. King Edwin of Northumbria captured the Isle of Man, as well as the majority of Mercia, in 627. Norsemen established the thalassocratic Kingdom of the Isles in the 9th century, which included the Isle of Man. Magnus III, King of Norway from 1093 to 1103, was also King of Mann and the Isles from 1099 to 1103. After being ruled by Norway, the island became part of Scotland under the Treaty of Perth in 1266. After a time of alternate rule by the kings of Scotland and England, the island was given to the English Crown as a feudal lordship in 1399. In 1765, the lordship was returned to the British Crown, but the island remained outside of the 18th-century kingdom of Great Britain, as well as its predecessors, the United Kingdom of Great Britain and Ireland and the current United Kingdom of Great Britain and Northern Ireland. It has always maintained its internal autonomy. The Isle of Man parliament, Tynwald, became the first national legislative body in the world to grant women the right to vote in general elections in 1881, though married women were not allowed to vote. The Isle of Man was designated as a biosphere reserve by UNESCO in 2016. Insurance and online gambling account for 17% of the GDP, with information and communications technology and banking accounting for 9% each. The Isle of Man is famous around the world for the TT motorcycle races and the Manx cat, a breed with short or no tails. The Isle of Man is a Celtic republic.

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

The contract or written declaration should specify the employee's statutory rights with regard to the notice he or she is required to give and is entitled to receive. Once notice of redundancy is issued, employees are also entitled to reasonably paid time off to hunt for work or arrange for training.


Where the Tribunal does not make an order for reemployment following a finding of unjust dismissal, it makes an award of compensation calculated as follows: a basic award of one week's gross salary, limited at £540 per week, for each completed year of continuous employment up to the calculation date.


The maximum number of years to be considered is 26. A compensating award may be made to the employee based on the employee's loss, including any reasonable expenses spent as a result of the dismissal and any other benefits, including pensions, that could reasonably have been expected but for the dismissal. The award cannot exceed £56,000, save in circumstances involving health and safety or whistleblowing, or in cases where an employer refuses to comply with a Tribunal decision of reemployment. Additionally, the Tribunal may award compensation for emotional distress, up to a fixed maximum of £5,000, if the Tribunal believes it is just and equitable.

Notice period

The statutory entitlement to notice, which an employee is both required to give and entitled to receive, should be included in the contract or written declaration. The following is the notice period that the employer must provide.


The notice period is one week if the employment duration is shorter than two years. If you have been employed for more than two years but less than twelve, the notice period is one week for each year of continuous employment. The notice period is 12 weeks if the employment period is longer than 12 years.


The employee must offer the following notice period. The notice period is one week if the employment duration is shorter than two years. If you have been employed for more than 2 years but less than 4 years, you will be given one week's notice for each year of continuous employment. If you've been employed for more than four years, you'll be given a four-week notice period.

Severance pay

Employees who have worked for the same employer for two years or more are entitled to a statutory redundancy payment if they are made redundant. A redundancy payment is equal to one week's gross pay, up to a maximum of £540 per week, for each completed year of continuous employment up to the calculation date. A maximum of 26 years may be considered, and the maximum statutory payment is £14,040.


If a contractual redundancy payment exceeds the statutory maximum, the contractual payment takes precedence. Once notice of redundancy is given, employees are entitled to reasonable paid time off to look for work or arrange for training. Where the Tribunal does not make an order for reemployment following a finding of unfair dismissal, it makes an award of compensation calculated as follows: a basic award of one week's gross pay capped at £540 per week for each completed year of continuous employment of the employee until to the calculation date.


The maximum number of years to be considered is 26. A compensatory award is due based on the employee's loss and may include any reasonable expenses incurred as a result of the dismissal, as well as any pensions that might have been reasonably expected. The award cannot exceed £56,000, except in cases involving health and safety or whistleblowing, or in cases where an employer refuses to comply with a Tribunal order of reemployment. If an injury to feelings was established and the Tribunal finds it just and equitable, an award of up to £5,000 is appropriate.

Probation period

Generally, the probationary period lasts between three and six months.

07. Working hours

General

Although there is no legislation defining working hours for other employees, an employer must consider the health and safety implications of requesting employees to work longer hours. When the working day exceeds six hours, all employees are entitled to a minimum 20-minute break.

Overtime

Civil servants (other than those without fixed conditioned hours) are eligible for overtime pay in accordance with the following provisions for hours worked at management's request that exceed their conditioned hours.

Overtime work should generally be reserved for periods of extreme work pressure and only at the direction of management. It should be completed Monday through Friday, if possible, and only on weekends as a last resort.

Overtime compensation is calculated on the basis of the civil servant's pay and allowances (excluding allowances in lieu of overtime or for night duty, for shift disruption, for housing, clothing, lodging, travel, and subsistence, or similar out-of-pocket expenses).

08. Minimum wage

General

A worker's hourly rate of pay must not be less than the appropriate rate of the minimum wage (which is subject to annual review). An employee whose age is older than the compulsory school age but younger than 18 years old ought to be paid £6.15 an hour. If the employee is over 18 years and does not work in development, the hourly rate is at least £8.25. An employee older than 18 years and works in development should be paid at least £7.30 per hour.

09. Employee benefits

General

Mandatory benefits postulated by law include a probationary period, pay on annual leaves, public holidays, sick leaves, maternity leave, paternity leave, and overtime pay. Statutory benefits also include social security benefits.

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

Establishing an entity in

Isle of Man

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

Isle of Man

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

Isle of Man

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

Isle of Man

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

Isle of Man

via our Employer of Record / PEO solution.

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