Employer of Record in Guyana

An Employer of Record (EOR) is your solution to hiring in Guyana without setting up a local entity. It acts as the legal employer for your team on paper, handling all the HR tasks. This includes payroll, taxes, benefits, and compliance with Guyana's labor laws. You get to focus on managing your team's day-to-day work, while the EOR takes care of the administrative burdens. For companies looking to expand into new markets, an EOR like Rivermate offers a straightforward way to build a global team.

How an Employer of Record (EOR) Works in Guyana

Using an EOR simplifies the process of hiring in Guyana. Here is how it typically works:

1. You Find the Talent: You recruit and select the best candidate for your team in Guyana.
2. The EOR Hires Them: The EOR legally hires the employee on your behalf through a compliant local employment contract.
3. Onboarding Begins: The EOR manages the entire onboarding process, ensuring all necessary paperwork is completed correctly.
4. Payroll and Benefits are Managed: The EOR handles all payroll, tax withholdings, and statutory benefits as required by Guyanese law.
5. Ongoing HR Support: The EOR provides continuous HR support to ensure compliance with local labor regulations, leaving you to manage your employee's daily tasks and projects.

Why use an Employer of Record in Guyana

Partnering with an EOR in Guyana offers a strategic advantage, especially for international companies. It allows you to tap into the local talent pool and growing economy without the significant investment and complexity of establishing a legal entity in the country.

Here are some key benefits:

• Enter the Market Faster: You can have employees legally working for you in Guyana in a fraction of the time it would take to set up a local company.
• Ensure Compliance: EORs are experts in local labor laws, so you can be confident that your hiring practices are fully compliant with Guyanese regulations.
• Reduce Costs: Avoid the high costs associated with company registration, legal fees, and setting up local HR infrastructure.
• Focus on Your Business: Offload the administrative burden of international employment so you can concentrate on your core business objectives.
• Access to Expertise: Gain access to local HR and legal experts who can navigate the complexities of the Guyanese employment landscape for you.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Guyana includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Guyana.

Hiring in Guyana is a straightforward process when you understand the local labor laws. The primary legislation governing employment is the Labour Act, which sets the foundation for fair and compliant hiring practices. Whether you're bringing on full-time employees or engaging independent contractors, a clear understanding of your obligations will ensure a smooth and successful working relationship.

Employment contracts & must-have clauses

While not legally required to be in writing, we strongly recommend a written employment contract for all your hires in Guyana. A written agreement provides clarity and helps prevent future disputes. There are two main types of employment contracts in Guyana:

• Indefinite contracts: These are the standard for permanent, ongoing employment.
• Fixed-term contracts: These are used for temporary or project-based work and must specify a clear end date.

Your employment contracts should include the following essential clauses:

• Parties' information: Full legal names and addresses of both the employer and employee.
• Job details: A clear job title and a description of the employee's responsibilities.
• Start date: The official commencement date of employment.
• Working hours: The expected hours of work.
• Compensation: The employee's salary or wages.
• Leave entitlements: Details on annual leave, sick leave, and other types of leave.

Probation periods

In Guyana, a probationary period of three months is standard for new hires. This period allows both you and the new employee to assess the fit. You and the employee can mutually agree to a shorter or longer probationary period. During this time, either party can terminate the employment contract without notice.

Working hours & overtime

The standard workweek in Guyana is 40 hours, typically spread over five days. Any hours worked beyond the standard 40-hour week are considered overtime.

Public & regional holidays

Your employees in Guyana are entitled to paid time off for public holidays. If a public holiday falls on a Sunday, the following Monday is typically observed as the holiday.

Here is a list of public holidays in Guyana for 2024:

• New Year's Day
• Republic Day
• Holi
• Good Friday
• Easter Monday
• Labour Day
• Arrival Day
• Independence Day
• CARICOM Day
• Emancipation Day
• Eid al-Adha
• Youman-Nabi
• Diwali
• Christmas Day
• Boxing Day

Hiring contractors in Guyana

Engaging independent contractors in Guyana can be a flexible way to access specialized skills for specific projects. Unlike employees, independent contractors are not covered by the same labor laws regarding minimum wage, working hours, and leave entitlements. Their work relationship is governed by the terms of their service agreement.

However, it's crucial to correctly classify your workers. Misclassifying an employee as an independent contractor can lead to significant penalties, including back taxes and fines. The authorities will look at the nature of the working relationship, focusing on factors like the level of control you have over the work and how integrated the worker is into your business operations.

An Employer of Record (EOR) can help you mitigate these risks. An EOR acts as the legal employer for your workers in Guyana, ensuring compliance with all local labor laws. This includes handling payroll, taxes, and benefits, so you can focus on managing your team and growing your business without the worry of misclassification.

Understanding compensation and payroll in Guyana is straightforward. The system is built on a clear framework of regular pay cycles and defined wage structures. You'll find that paying your team in Guyana involves standard practices you might already know. This includes things like regular paydays, overtime rules, and tax withholdings. The local currency is the Guyanese dollar (GYD).

Payroll cycles & wage structure

In Guyana, you have a couple of options for paying your employees. The most common pay schedule is monthly. Many businesses pay their teams on the last working day of the month. Some companies, especially those with hourly workers, choose to pay every two weeks. The law requires that you pay your employees at least once a month.

When it comes to how you pay, direct bank transfers are the standard and most secure method. While some smaller businesses might still use cash, bank transfers are the norm for most companies.

Guyana does not require a 13th-month salary or bonus. However, some companies choose to offer bonuses based on performance or during holidays.

Overtime & minimums

The standard work week in Guyana is 40 hours, typically spread over five days. Any time worked beyond these 40 hours is considered overtime.

For overtime hours, you are required to pay employees at a premium rate. The standard overtime pay is 1.5 times the employee's regular hourly wage. If an employee works on a Sunday or a public holiday, they are also entitled to overtime pay.

Guyana has a national minimum wage that applies to all employers. For the private sector, the minimum wage is GYD $60,000 per month.

Employer taxes and contributions

As an employer in Guyana, you are responsible for contributing to the National Insurance Scheme (NIS) for each of your employees. This is the country's social security program. It covers benefits like pensions, sickness, and maternity leave.

You must deduct and remit these contributions to the Guyana Revenue Authority (GRA) and the National Insurance Scheme (NIS). Payments are typically due by the 15th of the month after you pay your employees.

Employee taxes and deductions

Employees in Guyana also contribute to the National Insurance Scheme (NIS). You will deduct this from their paychecks. In addition to NIS contributions, you are required to withhold income tax from your employees' salaries. This system is known as Pay As You Earn (PAYE).

The amount of income tax you withhold depends on the employee's earnings. Employees have a personal allowance, which is an amount of their income that is not taxed.

Here is a breakdown of the employee's contributions:

In Guyana, benefits and leave are a mix of government rules and what companies choose to offer. The law sets the minimums for things like vacation time and social security. This gives employees a basic level of protection. Many companies, however, offer more to attract and keep good people. Think of the legal requirements as the starting point.

Statutory leave

The government of Guyana requires companies to provide several types of leave.

• Annual Leave: You get one day of paid leave for every month you work. If you have worked for more than ten years, this increases to two days per month.
• Sick Leave: While there is no law that forces private companies to offer paid sick leave, the National Insurance Scheme (NIS) provides sickness benefits. This social security program pays 70% of your average earnings for up to 26 weeks. Payments start from the fourth day of your illness.
• Maternity Leave: Female employees receive 13 weeks of paid maternity leave. They can get an additional 13 weeks if there are medical complications. The NIS covers the pay during this time.

Public holidays & regional holidays

You get paid time off for national public holidays. If you work on these days, you must be paid at a higher rate.

Typical supplemental benefits

Companies often provide extra benefits to stay competitive. These go beyond what the law requires.

How an EOR can help with setting up benefits

Setting up a benefits plan in a new country can be tricky. An Employer of Record (EOR) makes it simple. We handle the complexities for you.

An EOR already understands Guyana's labor laws and common practices. We make sure you comply with all legal requirements for statutory benefits. This avoids any legal trouble.

We can also help you create a competitive supplemental benefits package. We know what local employees value. This helps you attract and retain top talent. An EOR manages the administration of all these benefits, saving you time and resources. You can focus on your business goals.

When an employment relationship in Guyana ends, it's important to handle the process correctly. Both you and your employee have rights and obligations under the law. A proper offboarding ensures you are compliant and treats your former employee with respect. This process involves giving adequate notice, calculating final pay, and understanding the rules around severance.

Notice periods

When you terminate an employment contract in Guyana, you must provide a minimum amount of written notice. The length of the notice period depends on how long the employee has worked for you.

Here are the minimum notice periods required by law:

In some cases, an employment contract or a collective agreement might specify a longer notice period. If so, the longer period is the one you must follow. You can also choose to pay the employee in lieu of notice. This means you pay them what they would have earned during the notice period, and their employment ends immediately.

Severance pay

If you end a contract for reasons of redundancy, you must pay severance. An employee is entitled to severance pay if they have completed at least one year of continuous service. The amount of severance pay is based on the employee's length of service.

The calculation is as follows:

• For the first five years of service: One week's wages for each completed year.
• From the sixth to the tenth year of service: Two weeks' wages for each completed year.
• From the eleventh year onwards: Three weeks' wages for each completed year.

There is a maximum limit to severance pay, which is 52 weeks' wages.

How Rivermate handles compliant exits

At Rivermate, we help you navigate the complexities of employee terminations in Guyana. We ensure that every step of the offboarding process is handled correctly and in compliance with local labor laws.

Here’s how we support you:

• Compliance review: We review each termination case to ensure it aligns with Guyana's legal requirements, including valid reasons for dismissal.
• Notice and final pay: We help you calculate the correct notice period and ensure all final payments, including unused vacation days and severance, are accurate.
• Documentation: We provide the necessary documentation, such as the official termination letter, to ensure a clear and compliant process.

Our goal is to make the process as smooth as possible, minimizing risks for your company while ensuring fair treatment for your departing employees.

Navigating the visa and work permit landscape in Guyana is a critical step for any company looking to hire talent in this growing market. The process is manageable, but you need to understand the requirements to ensure a smooth and compliant entry for your employees. Foreign nationals who want to work in Guyana must secure a work permit, and depending on their nationality, they may also need a visa to enter the country. The work permit is the legal authorization to be employed, while a visa grants entry.

Employment visas & sponsorship realities

When you hire foreign talent to work in Guyana, you will need to sponsor their work permit. This is a key responsibility for employers. An Employer of Record (EOR) with a registered legal entity in Guyana can handle this sponsorship for you, which simplifies the process considerably.

Here are the practical routes and realities of employment sponsorship:

• EOR Sponsorship: An EOR can legally hire employees on your behalf in Guyana. They will manage the entire work permit and visa process, from preparing the necessary documentation to liaising with local authorities. This is often the most efficient route, as it removes the need for you to establish your own local entity.
• Employer Obligations: As the sponsoring employer (or through your EOR), you must provide a valid job offer and a formal employment contract. You will also need to justify why you are hiring a foreign national over a local candidate.
• Work Permit Application: The work permit application is typically submitted to the Ministry of Home Affairs. The processing time for a work permit is generally between two to four weeks.

Types of Work Visas

Business travel compliance

For short-term visits that do not involve formal employment, you need to be clear on what is allowed to remain compliant.

• Business Visa: A business visa is for activities like attending meetings, conferences, or business negotiations. It does not permit you to be employed in Guyana.
• Visitor Visa: A visitor visa is for tourism, visiting family, or other recreational purposes. You cannot conduct any work-related activities on a visitor visa.

Some nationalities can enter Guyana without a visa for short stays. It is important to check the latest requirements for your employee's nationality before they travel. Whether they need a visa or not, the purpose of their visit must align with the activities permitted for business travelers or tourists.