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Discover everything you need to know about Greenland

Hire in Greenland at a glance

Here ares some key facts regarding hiring in Greenland

Danish Krone
GDP growth
GDP world share
Payroll frequency
Working hours
40 hours/week

Overview in Greenland

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Greenland, the world's largest island, is predominantly covered by ice, with its habitable areas mainly along the coast. Historically, it has been inhabited since around 2500 BCE, starting with the Saqqaq people, followed by various Paleo-Eskimo cultures, Norse settlers, and finally the Thule people, ancestors of today's Inuit population. Greenland, part of the Kingdom of Denmark, gained home rule in 1979 and further autonomy in 2009.

The island's economy is primarily driven by fishing, particularly shrimp and halibut, with emerging sectors in tourism and mining, although the latter faces environmental concerns. The public sector is the largest employer. Greenland's workforce is small and predominantly Inuit, facing challenges such as skill shortages and the need for flexibility to accommodate traditional lifestyles. Cultural norms emphasize community, direct communication, and egalitarian values.

Climate change significantly impacts Greenland, accelerating ice melt and ecological shifts, which pose both challenges and new economic opportunities through potential new shipping routes and resource access. Despite these prospects, Greenland remains economically dependent on Denmark and faces infrastructural challenges due to its remote and harsh climate.

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Employer of Record in Greenland

Rivermate is a global Employer of Record company that helps you hire employees in Greenland without the need to set up a legal entity. We act as the Employer of Record for your employees in Greenland, taking care of all the legal and compliance aspects of employment, so you can focus on growing your business.

How does it work?

When you hire employees in Greenland through Rivermate, we become the legal employer of your staff. This means that we take on all the responsibilities of an employer, while you retain the day-to-day management of your employees.

You as the company maintain the direct relationshiop with the employee, you allocate them the work and manage their performance.
Rivermate takes care of the local payrolling of the employee, the contracts, HR, benefits and compliance.

Responsibilities of an Employer of Record

As an Employer of Record in Greenland, Rivermate is responsible for:

  • Creating and managing the employment contracts
  • Running the monthly payroll
  • Providing local and global benefits
  • Ensuring 100% local compliance
  • Providing local HR support

Responsibilities of the company that hires the employee

As the company that hires the employee through the Employer of Record, you are responsible for:

  • Day-to-day management of the employee
  • Work assignments
  • Performance management
  • Training and development

Taxes in Greenland

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In Greenland, the tax system mandates employers to withhold income tax and social security contributions from employee wages. The tax liability of an employee is determined by their residency status:

  • Full Tax Liability: Applies to residents (those in Greenland for over 183 days). Employers must withhold taxes at progressive rates up to 44%.
  • Limited Tax Liability: Applies to non-residents working temporarily (less than 183 days). Tax rules vary with the duration of stay, with no tax for stays under 14 days.

Employers also have additional responsibilities including payroll taxes, and must register with the Greenland Tax Authority. All employees are eligible for a standard deduction set annually, with residents receiving an additional allowance. Special tax regimes apply to certain industries like oil and gas, where a flat tax rate of 35% is imposed with no deductions.

The VAT system in Greenland imposes a standard rate of 25%, with certain items eligible for a reduced rate of 6%. Businesses must register for VAT if their turnover exceeds DKK 50,000, and comply with monthly VAT returns and payments. Non-compliance can lead to penalties, including fines and imprisonment.

Corporate tax is set at a flat rate of 25%, with a 6% surcharge, though certain industries may have exemptions. Greenland offers limited tax incentives, but companies can claim a credit for foreign taxes paid. It is advisable for businesses and employers to seek professional tax advice to navigate the complexities of the Greenlandic tax system.

Leave in Greenland

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Greenland's labor market is influenced by Danish laws and collective agreements, making it difficult to find specific labor regulations in English, as most are in Danish or Greenlandic. Employees in Greenland are likely entitled to five weeks of paid vacation, mirroring Denmark's standards, with full pay during these periods. The most reliable sources for specific vacation entitlements are industry-specific collective agreements.

Public holidays in Greenland include New Year's Day, Maundy Thursday, Good Friday, Easter Sunday and Monday, General Prayer Day, Ascension Day, Whit Sunday and Monday, Greenland's National Day, Christmas Eve, Christmas Day, Second Day of Christmas, and New Year's Eve. Additional local holidays may also be observed.

Other types of leave likely available to employees include sick leave, maternity/parental leave, with specifics typically outlined in collective agreements. While Danish laws provide a general framework, the most accurate leave information can be obtained from employment contracts, collective agreements, or union representatives.

Benefits in Greenland

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In Greenland, employment benefits are governed by legislation and collective agreements, ensuring a robust support system for employees. Key mandatory benefits include:

  • Paid Time Off: Employees receive a minimum of 5 weeks of paid annual leave, along with paid public holidays.
  • Sick Leave: Paid from the first day of illness, with duration and compensation varying by sector.
  • Maternity and Paternity Leave: Up to 17 weeks for mothers and variable for fathers, as per collective agreements.
  • Notice Period and Severance Pay: Required notice periods for termination and severance pay in cases of redundancy.

Social Security Benefits include unemployment benefits and mandatory pension fund contributions, with eligibility and benefits outlined in legislation.

Financial Security is further supported by optional supplemental pension plans offered by some employers, providing greater retirement income flexibility.

Work-Life Balance enhancements include potential options for remote work or compressed work weeks, offered by progressive companies.

Additional Perks might include supplemental private health insurance, providing faster access to specialists and broader coverage, alongside discounts on industry-related products or services, and subsidized gym memberships.

Public Health Insurance is comprehensive, funded by mandatory contributions, covering a wide range of medical services. Optional top-up insurance plans are available to address limitations like longer wait times in the public system.

Mandatory Public Pension involves contributions from both employees and employers, with full benefits requiring a minimum of 35 years of contributions and reaching the retirement age, which is set to increase to 67 by 2025.

Optional Private Pension Plans are available to enhance the public scheme, offering personalized investment options and the potential for higher returns.

Overall, while Greenland provides a strong foundation of mandatory benefits, the availability and specifics of optional benefits can vary by employer and industry, with limited data on their prevalence.

Workers Rights in Greenland

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Greenland's employment termination regulations balance employer flexibility and employee rights, allowing dismissals for reasons like employee conduct, incapacity, and operational requirements. Notice periods vary by tenure, with a maximum of six months for salaried employees. Severance pay may be required for redundancy or unfair dismissal. Greenlandic law prohibits discrimination based on gender and sexual orientation, with the Equality Council and courts providing redress mechanisms. Employer responsibilities include fostering a discrimination-free workplace and ensuring safety through the Working Environment Act, which mandates risk assessments and safety measures. Employees have rights to a safe work environment and can refuse unsafe work. The Greenlandic Working Environment Authority enforces health and safety regulations, with collaboration emphasized for maintaining workplace safety.

Agreements in Greenland

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In Greenland, employment agreements are divided into Individual Employment Agreements and Collective Bargaining Agreements. Individual agreements are between an employer and an employee, detailing terms like workplace location, job title, start date, employment duration, salary, benefits, and working hours, as mandated by the Employment Contracts Act of 2023. Collective agreements are negotiated between trade unions and employer organizations, setting industry-wide employment standards including wages, overtime, and leave entitlements.

Key components of individual agreements include:

  • Basic Information: Identifies parties, job position, and employment terms.
  • Compensation and Benefits: Details salary, working hours, and leave policies.
  • Termination: Specifies notice periods and grounds for termination.
  • Confidentiality and Intellectual Property: Outlines obligations for protecting company information and intellectual property rights.
  • Dispute Resolution: Establishes the governing law and procedures for resolving disputes.

Probationary periods, while not mandated by law, are common, typically lasting three months with a 14-day notice period for termination during this phase. Confidentiality clauses are enforceable if reasonable and proportional, while non-compete clauses face stricter scrutiny due to less specific regulations.

Remote Work in Greenland

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Greenland lacks a specific law for remote work, but it is influenced by the Greenlandic Working Environment Act, the Danish Executive Order on Telework, and the Danish Personal Data Act. Key technological requirements for remote work include reliable internet, secure remote access, and effective communication tools. Employers must ensure a stable power supply and consider the affordability of technology for employees.

Employer responsibilities include conducting risk assessments, establishing clear remote work policies, ensuring data security, maintaining communication, and addressing ergonomic needs. They should also ensure fair compensation and promote work-life balance for remote workers.

Flexible work arrangements like part-time work, flexitime, and job sharing are available, with terms typically outlined in employment contracts and employer policies. Data protection for remote workers involves adhering to the Danish Personal Data Act, ensuring lawful data processing, implementing strong security measures, and training employees on data security. Employees have rights to access and request corrections or deletions of their personal data.

Best practices for securing data in remote work include limiting data shared, using encrypted communication, educating employees on phishing, encouraging regular data backups, and establishing reporting channels for security issues.

Working Hours in Greenland

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Greenland's Employment Contracts Act governs working hours, setting a daily maximum of 8 hours and a weekly maximum of 40 hours to ensure employee well-being. Typically, employers adopt a 37-hour workweek from Monday to Friday. The Act also regulates overtime, requiring employee consent for more than 4 hours of overtime per day and capping weekly overtime at 48 hours. Overtime compensation is not mandated by law but is usually negotiated in employment contracts or collective agreements.

The Act mandates an 11-hour rest period every 24 hours, with possible exceptions in certain industries or for shift changes. Breaks during work hours are not explicitly defined but are expected to be reasonable and can be negotiated if not specified in contracts.

Night and weekend work regulations are less specific, with compensation typically determined through negotiations or collective agreements rather than mandated by law. Overall, the focus is on maintaining safe and healthy working conditions across all types of work schedules.

Salary in Greenland

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Understanding market competitive salaries in Greenland is essential for both employers and employees. Employers must offer attractive compensation packages to attract and retain talent, while employees need to ensure they are fairly compensated.

Factors Influencing Salaries in Greenland:

  • Job Title and Industry: Salary ranges vary by industry and job role, with management positions generally offering higher pay.
  • Experience and Skills: More experience and specialized skills typically lead to higher earnings.
  • Education and Qualifications: Higher educational achievements and relevant certifications boost earning potential.
  • Location: Salaries differ across regions, with Nuuk offering the highest average salaries.
  • Cost of Living: The high cost of living in Greenland influences salary decisions to maintain a decent living standard.

Resources for Salary Research:

  • Paylab and Salary Surveys from firms like Kroll Consultants provide insights, though they may be costly and less comprehensive.

Public Sector Wages:

  • Determined through collective bargaining, with minimum wages set based on experience. Public information on these rates can be scarce and may require direct contact with government agencies or unions.

Additional Compensation Elements:

  • Performance-Based Bonuses: Linked to individual or company performance metrics.
  • Industry-Specific Allowances: Includes location allowances for remote areas and shift differentials for non-standard work hours.
  • Social Benefits: Employer-sponsored pension plans, possibly supplemented private health insurance, and additional parental leave beyond the mandated.

Employment Practices:

  • Frequency of Payment: Often determined by collective agreements, with monthly payments being most common.
  • Salary Payment Date: Typically at the end of the month or a specific weekday, as outlined in employment contracts.
  • Salary Components: Include basic salary, overtime pay, and vacation pay.
  • Deductions and Withholdings: Employers withhold taxes and social security contributions, which are then remitted to the authorities.

Understanding these components is crucial for navigating the employment landscape in Greenland effectively.

Termination in Greenland

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In Greenland, the Salaried Employees Act governs notice periods and severance pay during employment termination. Notice periods for employers vary based on the employee's length of service, ranging from no required notice for less than 6 months of employment to a maximum of 6 months for employment of 9 years or more. Employees can terminate their employment with one month's notice. Severance pay is not generally mandated but may be specified in employment contracts or collective bargaining agreements, particularly for terminations due to economic, operational, or structural reasons after at least 8 years of service. Employers must provide written notice for termination, and immediate dismissal is allowed only in cases of serious misconduct. Collective bargaining agreements may also influence termination procedures.

Freelancing in Greenland

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In Greenland, the distinction between employees and independent contractors is influenced by Danish labor law, primarily using the control test to determine the level of employer authority over a worker. Employees are controlled more directly by employers, while independent contractors maintain autonomy over their work methods. This classification affects legal rights and obligations, including wages, benefits, and tax implications.

Contract structures for independent contractors in Greenland vary, including fixed-price, time-based, and performance-based contracts, each with specific benefits and risks. Effective negotiation of contract terms is crucial, covering deliverables, fees, payment terms, and termination clauses.

Opportunities for independent contractors are present in sectors like construction, tourism, translation, and IT. Intellectual property rights, based on the Danish Copyright Act, generally favor the freelancer as the initial rights holder, with the ability to transfer or specify usage rights through contractual agreements.

Freelancers in Greenland must manage their own taxes and can voluntarily contribute to social security for benefits like pension and healthcare. They also have various insurance options, including public health insurance through SIK or private plans, and can opt for additional coverages like professional indemnity insurance.

Health & Safety in Greenland

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The Greenland Working Environment Act is essential for maintaining health and safety standards in Greenland, outlining responsibilities for both employers and employees. Employers must assess risks, implement safety measures, provide training, and report incidents, while employees can refuse unsafe work and participate in safety matters without discrimination.

Key aspects of the Act include:

  • Regulations: Address specific hazards and industries such as chemicals, construction, and fishing.
  • Workplace Safety Committees: Required in workplaces with 10 or more employees to oversee risk assessments, inspections, and safety training.
  • Trade Unions: Play a significant role in advocating for health and safety through participation in committees and negotiations.
  • Workplace Conditions: Standards for ventilation, lighting, temperature, and noise are set to ensure a safe working environment.
  • Chemical and Physical Hazards: Employers must provide data sheets for chemicals, ensure machinery safety, and comply with electrical and fire safety standards.
  • Industry-Specific Standards: Special regulations for industries like mining, fishing, and construction address unique risks.
  • Psychosocial Work Environment: Employers must manage workplace stress and harassment, with policies to support work-life balance.

The Act also mandates regular workplace inspections by the Working Environment Authority to enforce compliance, with penalties for non-compliance including fines and imprisonment. Additionally, Greenland has a workers' compensation system to support employees injured at work.

Dispute Resolution in Greenland

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Greenland handles labor disputes through the Danish court system, utilizing mechanisms similar to those in mainland Denmark. The Danish Labor Court addresses collective labor disputes, while individual disputes are managed by regular courts. Arbitration is also available for resolving labor disputes under collective agreements. The Danish Collective Agreements Act, Administration of Justice Act, and Arbitration Act provide the legal frameworks for these processes.

In Greenland, labor laws from Denmark apply, ensuring a consistent regulatory framework. Greenlandic employers and workers often fall under collective agreements negotiated in Denmark. Compliance with labor standards is monitored through inspections conducted by Danish and specific Greenlandic regulatory bodies, focusing on industries like mining, fishing, and construction. Non-compliance can lead to severe penalties, including fines, operational suspensions, or closures.

Whistleblower protections in Greenland are primarily based on Danish law, with specific local ordinances potentially in place. The Danish Act on Protection of Whistleblowers offers protections, subject to conditions, against retaliation for reporting wrongdoing.

Greenland, as part of the Kingdom of Denmark, adheres to international labor conventions ratified by Denmark, including all eight fundamental ILO conventions, which cover rights such as freedom of association, collective bargaining, and non-discrimination in employment. Domestic laws in Greenland align with these international standards, influenced by Danish legislation and ILO conventions. Monitoring and enforcement of labor obligations are integrated with Danish systems, with additional oversight from EU institutions due to Denmark's EU membership.

Cultural Considerations in Greenland

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Greenland's work environment uniquely blends Inuit cultural values with Danish influences, creating a communication style that is indirect yet respectful, known as Kalaallit Qaqortoq. This style emphasizes harmony and avoids confrontation, often using suggestive language and deferring to seniority. Despite a touch of formality due to its colonial history with Denmark, the workplace is generally egalitarian and collaborative.

Non-verbal communication, including the use of silence and body language, plays a significant role in conveying respect and attentiveness. Building personal relationships is crucial in business, often starting with informal interactions such as sharing coffee or small talk.

Negotiation in Greenland also reflects these cultural values, focusing on patience, consensus building, and long-term relationships. The approach is collaborative, guided by the principle of Qaujimaaqatigiit (knowing each other), and decisions are typically reached through a consultative process involving multiple stakeholders.

Business hierarchies in Greenland may be influenced by traditional Inuit culture, which values consensus and collaboration, often leading to flatter organizational structures. Management styles may incorporate elements of paternalism and consultative decision-making, reflecting the community-oriented nature of Inuit culture.

Understanding Greenland's cultural and management practices, including statutory holidays and national observances, is essential for effective business operations within this unique cultural context.

Frequently Asked Questions for Employer of Record services in Greenland

What options are available for hiring a worker in Greenland?

Hiring a worker in Greenland involves navigating a unique set of employment laws and regulations, given its status as an autonomous territory within the Kingdom of Denmark. Here are the primary options available for hiring a worker in Greenland:

  1. Direct Employment:

    • Establishing a Legal Entity: To hire directly, a company must establish a legal entity in Greenland. This involves registering the business with the Greenlandic authorities, complying with local tax regulations, and adhering to employment laws. This process can be time-consuming and complex, especially for companies unfamiliar with Greenlandic legal and business environments.
    • Compliance with Local Laws: Employers must comply with Greenlandic labor laws, which include regulations on working hours, minimum wage, employee benefits, and termination procedures. Understanding and adhering to these laws is crucial to avoid legal issues.
  2. Employer of Record (EOR) Services:

    • Simplified Hiring Process: Using an Employer of Record (EOR) like Rivermate allows companies to hire employees in Greenland without establishing a local entity. The EOR acts as the legal employer, handling all administrative and compliance-related tasks.
    • Compliance and Risk Management: The EOR ensures that all employment practices comply with Greenlandic laws, including payroll, taxes, benefits, and labor regulations. This minimizes the risk of non-compliance and associated penalties.
    • Cost-Effective: Engaging an EOR can be more cost-effective than setting up a local entity, especially for companies looking to hire a small number of employees or for short-term projects.
    • Focus on Core Business: By outsourcing employment administration to an EOR, companies can focus on their core business activities and strategic objectives, rather than getting bogged down by HR and legal complexities.
  3. Contractors and Freelancers:

    • Independent Contractors: Companies can hire independent contractors or freelancers for specific projects or tasks. This option provides flexibility and can be cost-effective for short-term or specialized work.
    • Compliance Considerations: It is important to ensure that the relationship with contractors complies with Greenlandic laws regarding independent contractor status. Misclassification of employees as contractors can lead to legal and financial repercussions.
  4. Temporary Staffing Agencies:

    • Staffing Solutions: Temporary staffing agencies can provide workers for short-term or temporary needs. These agencies handle the recruitment, payroll, and compliance aspects, making it easier for companies to manage temporary workforce requirements.
    • Flexibility: This option offers flexibility in workforce management, allowing companies to scale up or down based on project demands.

In summary, companies looking to hire workers in Greenland have several options, each with its own advantages and considerations. Using an Employer of Record like Rivermate can simplify the hiring process, ensure compliance with local laws, and allow companies to focus on their core business activities.

Who handles the filing and payment of employees' taxes and social insurance contributions when using an Employer of Record in Greenland?

When using an Employer of Record (EOR) like Rivermate in Greenland, the EOR handles the filing and payment of employees' taxes and social insurance contributions. This includes ensuring compliance with Greenland's specific tax regulations and social insurance requirements. The EOR takes on the responsibility of calculating the appropriate amounts, withholding them from employees' salaries, and remitting these payments to the relevant Greenlandic authorities. This service alleviates the administrative burden on the client company, ensuring that all legal obligations are met accurately and on time.

Is it possible to hire independent contractors in Greenland?

Yes, it is possible to hire independent contractors in Greenland. However, there are several important considerations to keep in mind when doing so.

  1. Legal Framework: Greenland operates under a legal framework that is influenced by Danish law, but it has its own specific regulations. Independent contractors in Greenland are typically governed by commercial law rather than labor law, which means they do not enjoy the same protections and benefits as employees.

  2. Contractual Agreements: When hiring an independent contractor in Greenland, it is crucial to have a well-drafted contract that clearly outlines the scope of work, payment terms, duration, and other relevant conditions. This contract should also specify that the contractor is not an employee and is responsible for their own taxes and social contributions.

  3. Taxation: Independent contractors in Greenland are responsible for managing their own tax obligations. This includes income tax and any applicable social security contributions. Employers should ensure that contractors are aware of their tax responsibilities to avoid any legal complications.

  4. Compliance and Classification: Misclassification of workers can lead to significant legal and financial penalties. It is essential to ensure that the individual truly qualifies as an independent contractor under Greenlandic law. Factors such as the level of control over the work, the contractor's ability to work for other clients, and the method of payment can influence this classification.

  5. Benefits and Protections: Unlike employees, independent contractors in Greenland are not entitled to benefits such as paid leave, health insurance, or pension contributions. This can make contracting a more flexible but less secure option for workers.

  6. Employer of Record (EOR) Services: Using an Employer of Record (EOR) service like Rivermate can simplify the process of hiring independent contractors in Greenland. An EOR can handle compliance, payroll, and tax issues, ensuring that all legal requirements are met. This can be particularly beneficial for foreign companies unfamiliar with Greenlandic regulations.

In summary, while it is possible to hire independent contractors in Greenland, it is essential to navigate the legal and regulatory landscape carefully. Utilizing an EOR service can help mitigate risks and ensure compliance with local laws.

What is the timeline for setting up a company in Greenland?

Setting up a company in Greenland involves several steps and can take a considerable amount of time due to the regulatory requirements and administrative processes. Here is a detailed timeline for setting up a company in Greenland:

  1. Business Plan and Feasibility Study (1-2 months):

    • Before starting the registration process, it is essential to develop a comprehensive business plan and conduct a feasibility study. This includes market research, financial planning, and understanding the local business environment.
  2. Choosing the Legal Structure (1-2 weeks):

    • Decide on the legal structure of your company (e.g., sole proprietorship, partnership, limited liability company). This decision will impact the registration process and the legal requirements you need to fulfill.
  3. Name Registration (1-2 weeks):

    • Choose a unique name for your company and register it with the Greenlandic Business Register (Erhvervsstyrelsen). Ensure that the name complies with local regulations and is not already in use.
  4. Drafting Articles of Association (1-2 weeks):

    • Prepare the Articles of Association, which outline the company's purpose, structure, and operating procedures. This document is crucial for the registration process.
  5. Registering the Company (2-4 weeks):

    • Submit the necessary documents, including the Articles of Association, to the Greenlandic Business Register. This step involves filling out registration forms and paying the required fees.
  6. Obtaining Licenses and Permits (1-3 months):

    • Depending on the nature of your business, you may need to obtain specific licenses and permits from local authorities. This process can vary in duration based on the type of business and the regulatory requirements.
  7. Tax Registration (2-4 weeks):

    • Register your company for tax purposes with the Greenlandic Tax Authority (Skattestyrelsen). This includes obtaining a tax identification number and understanding your tax obligations.
  8. Opening a Bank Account (1-2 weeks):

    • Open a corporate bank account in Greenland. This step is necessary for managing your company's finances and conducting business transactions.
  9. Hiring Employees (1-3 months):

    • If you plan to hire employees, you will need to comply with local labor laws and regulations. This includes drafting employment contracts, registering with social security, and ensuring workplace safety standards.
  10. Setting Up Office Space (1-2 months):

    • Secure office space for your business operations. This may involve leasing or purchasing property, setting up utilities, and furnishing the office.
  11. Compliance and Reporting (Ongoing):

    • Once your company is established, you must comply with ongoing reporting and regulatory requirements. This includes submitting annual financial statements, tax returns, and other necessary documentation.

Overall, the timeline for setting up a company in Greenland can range from 6 to 12 months, depending on the complexity of your business and the efficiency of the registration process. Using an Employer of Record (EOR) service like Rivermate can significantly streamline this process by handling many of the administrative and compliance tasks on your behalf, allowing you to focus on growing your business.

What are the costs associated with employing someone in Greenland?

Employing someone in Greenland involves several costs that employers need to consider. These costs can be broadly categorized into direct compensation, statutory benefits, and administrative expenses. Here’s a detailed breakdown:

  1. Direct Compensation:

    • Salaries and Wages: The primary cost is the employee's salary or hourly wage. Greenland has a relatively high cost of living, which can influence wage levels. Employers need to offer competitive salaries to attract and retain talent.
    • Bonuses and Incentives: Depending on the industry and company policy, additional costs may include performance bonuses, commissions, and other incentive-based pay.
  2. Statutory Benefits:

    • Social Security Contributions: Employers in Greenland are required to contribute to the social security system, which covers various benefits such as pensions, unemployment insurance, and health insurance. The exact percentage can vary, but it is a significant part of the employment cost.
    • Pension Contributions: Employers must contribute to the employee’s pension fund. The contribution rates are typically defined by collective agreements or statutory requirements.
    • Health Insurance: While Greenland has a public healthcare system, employers may also offer supplementary private health insurance as part of the benefits package.
  3. Paid Leave:

    • Annual Leave: Employees are entitled to paid annual leave, which is usually around five weeks per year. This is a statutory requirement and must be factored into the overall employment cost.
    • Public Holidays: Greenland has several public holidays, and employees are entitled to paid time off on these days.
    • Sick Leave: Employers are generally required to provide paid sick leave. The duration and compensation during sick leave can vary based on collective agreements and company policies.
  4. Other Benefits:

    • Maternity and Paternity Leave: Employers must provide paid maternity and paternity leave as per statutory requirements. This can add to the overall employment cost.
    • Training and Development: Investing in employee training and development is crucial for maintaining a skilled workforce. These costs can include course fees, travel expenses, and time off for training.
  5. Administrative Costs:

    • Recruitment Costs: These include advertising job openings, recruitment agency fees, and the time spent by HR personnel in the hiring process.
    • Onboarding and Training: Initial training and onboarding processes can incur costs related to materials, trainers, and the time spent by new employees in training.
    • Compliance and Legal Costs: Ensuring compliance with local labor laws and regulations can involve legal fees, especially if the company needs to consult with legal experts or HR consultants.
  6. Workplace Costs:

    • Office Space and Equipment: Providing a workspace, whether in an office or remotely, involves costs for equipment, internet, utilities, and other necessary resources.
    • Safety and Health Measures: Employers must ensure a safe working environment, which may involve costs for safety equipment, training, and compliance with occupational health regulations.

Using an Employer of Record (EOR) like Rivermate can help manage these costs effectively. An EOR handles payroll, benefits administration, compliance, and other HR functions, allowing businesses to focus on their core operations while ensuring they meet all local employment requirements. This can be particularly beneficial in a unique and remote location like Greenland, where understanding and navigating local employment laws and practices can be challenging.

What legal responsibilities does a company have when using an Employer of Record service like Rivermate in Greenland?

When a company uses an Employer of Record (EOR) service like Rivermate in Greenland, the EOR assumes many of the legal responsibilities associated with employment. Here are the key legal responsibilities that the EOR handles on behalf of the company:

  1. Employment Contracts: The EOR is responsible for drafting and maintaining compliant employment contracts that adhere to Greenlandic labor laws. This includes ensuring that contracts are in the local language and meet all statutory requirements.

  2. Payroll Management: The EOR manages payroll processing, ensuring that employees are paid accurately and on time. This includes calculating wages, withholding taxes, and making necessary deductions for social security and other benefits.

  3. Tax Compliance: The EOR ensures compliance with Greenlandic tax laws, including the correct calculation and remittance of income tax, social security contributions, and any other applicable taxes. They handle all tax filings and reporting requirements.

  4. Benefits Administration: The EOR administers employee benefits in accordance with local laws and company policies. This includes health insurance, pension plans, and any other statutory or voluntary benefits.

  5. Labor Law Compliance: The EOR ensures that all employment practices comply with Greenlandic labor laws. This includes adherence to regulations regarding working hours, overtime, minimum wage, leave entitlements, and termination procedures.

  6. Work Permits and Visas: If the company employs foreign nationals, the EOR handles the process of obtaining necessary work permits and visas, ensuring compliance with immigration laws.

  7. Employee Onboarding and Offboarding: The EOR manages the onboarding process for new hires, including background checks, contract signing, and orientation. They also handle offboarding procedures, ensuring that terminations are conducted in compliance with local laws and that final payments and entitlements are correctly processed.

  8. Record Keeping: The EOR maintains accurate and up-to-date records of all employment-related documents, including contracts, payroll records, tax filings, and employee personal information, in compliance with data protection regulations.

  9. Dispute Resolution: In the event of employment disputes, the EOR provides support and ensures that any issues are resolved in accordance with Greenlandic labor laws. This may include handling grievances, mediations, or legal proceedings.

  10. Health and Safety Compliance: The EOR ensures that workplace health and safety standards are met, providing a safe working environment for employees and complying with local occupational health and safety regulations.

By using an EOR like Rivermate in Greenland, companies can mitigate the risks associated with non-compliance and focus on their core business activities, while the EOR handles the complexities of local employment laws and regulations.

Do employees receive all their rights and benefits when employed through an Employer of Record in Greenland?

Yes, employees in Greenland receive all their rights and benefits when employed through an Employer of Record (EOR) like Rivermate. An EOR ensures compliance with local labor laws and regulations, which is crucial in a unique and remote location like Greenland. Here are some key aspects of how an EOR ensures employees receive their rights and benefits:

  1. Compliance with Local Labor Laws: Greenland has specific labor laws that govern employment relationships, including working hours, minimum wage, and termination procedures. An EOR ensures that all these regulations are strictly followed, providing employees with the legal protections they are entitled to.

  2. Social Security and Taxation: Greenland has its own social security system and tax regulations. An EOR manages the necessary contributions to social security and ensures that taxes are correctly withheld and reported, ensuring employees receive their social benefits such as healthcare, pensions, and unemployment insurance.

  3. Employment Contracts: An EOR provides legally compliant employment contracts that outline the terms and conditions of employment, including job responsibilities, salary, benefits, and termination clauses. This ensures transparency and protects the rights of the employees.

  4. Benefits Administration: Employees are entitled to various benefits such as paid leave, sick leave, and parental leave. An EOR administers these benefits in accordance with Greenlandic laws, ensuring employees receive what they are entitled to.

  5. Health and Safety Regulations: Greenland has specific health and safety regulations to protect employees in the workplace. An EOR ensures that these regulations are adhered to, providing a safe working environment for employees.

  6. Dispute Resolution: In case of any employment disputes, an EOR provides mechanisms for resolution in line with local laws, ensuring that employees have a fair process to address their grievances.

By partnering with an EOR like Rivermate, companies can ensure that their employees in Greenland receive all their rights and benefits, while also mitigating the risks associated with non-compliance with local employment laws.

What is HR compliance in Greenland, and why is it important?

HR compliance in Greenland involves adhering to the local labor laws, regulations, and standards that govern employment practices within the country. This includes understanding and implementing policies related to employment contracts, working hours, wages, benefits, termination procedures, health and safety standards, and anti-discrimination laws.

Key Aspects of HR Compliance in Greenland:

  1. Employment Contracts: Employers must provide written employment contracts that outline the terms and conditions of employment, including job responsibilities, salary, working hours, and termination conditions. These contracts must comply with Greenlandic labor laws.

  2. Working Hours and Overtime: Greenland has specific regulations regarding standard working hours and overtime. Employers must ensure that employees do not exceed the legal working hours and are compensated appropriately for any overtime worked.

  3. Wages and Benefits: Employers must comply with minimum wage laws and ensure that employees receive all legally mandated benefits, such as paid leave, sick leave, and parental leave. Additionally, employers must adhere to regulations regarding pension contributions and other social security benefits.

  4. Termination Procedures: Terminating an employee must be done in accordance with Greenlandic labor laws, which may include providing notice periods, severance pay, and justifiable reasons for termination. Employers must follow due process to avoid wrongful termination claims.

  5. Health and Safety Standards: Employers are responsible for providing a safe and healthy work environment. This includes complying with occupational health and safety regulations, conducting regular risk assessments, and implementing necessary safety measures.

  6. Anti-Discrimination Laws: Employers must ensure that their hiring practices and workplace policies do not discriminate against employees based on race, gender, age, disability, religion, or other protected characteristics. Equal opportunity and fair treatment must be upheld.

Importance of HR Compliance in Greenland:

  1. Legal Protection: Adhering to HR compliance helps protect the company from legal disputes, fines, and penalties. Non-compliance can result in costly legal battles and damage to the company's reputation.

  2. Employee Satisfaction and Retention: Compliance with labor laws ensures that employees are treated fairly and receive their entitled benefits, which can lead to higher job satisfaction and lower turnover rates. A compliant workplace fosters trust and loyalty among employees.

  3. Operational Efficiency: Understanding and implementing HR compliance helps streamline HR processes and reduces the risk of errors and inconsistencies. This leads to more efficient and effective management of the workforce.

  4. Reputation Management: Companies that prioritize HR compliance are viewed as responsible and ethical employers. This enhances the company's reputation and can attract top talent and business opportunities.

  5. Risk Mitigation: Compliance with health and safety regulations minimizes the risk of workplace accidents and injuries, protecting both employees and the company from potential liabilities.

Using an Employer of Record (EOR) like Rivermate in Greenland:

An Employer of Record (EOR) service like Rivermate can be highly beneficial for companies operating in Greenland. An EOR takes on the responsibility of ensuring HR compliance, managing payroll, handling employment contracts, and navigating local labor laws. This allows companies to focus on their core business activities while ensuring that all HR-related matters are handled professionally and in accordance with Greenlandic regulations.

By partnering with an EOR, companies can:

  • Ensure Compliance: Rivermate's expertise in local labor laws ensures that all HR practices are compliant with Greenlandic regulations, reducing the risk of legal issues.
  • Save Time and Resources: Outsourcing HR functions to an EOR frees up internal resources and allows companies to focus on strategic initiatives.
  • Access Local Expertise: Rivermate provides valuable insights into the local labor market and helps companies navigate the complexities of employment laws in Greenland.
  • Simplify Expansion: For companies looking to expand into Greenland, an EOR simplifies the process by handling all HR-related tasks, from hiring to payroll management.

In summary, HR compliance in Greenland is crucial for legal protection, employee satisfaction, operational efficiency, reputation management, and risk mitigation. Utilizing an Employer of Record like Rivermate can help companies achieve and maintain compliance, allowing them to operate smoothly and successfully in Greenland.

How does Rivermate, as an Employer of Record in Greenland, ensure HR compliance?

Rivermate, as an Employer of Record (EOR) in Greenland, ensures HR compliance through a comprehensive understanding and application of local labor laws and regulations. Here are the key ways Rivermate achieves this:

  1. Local Expertise and Knowledge: Rivermate employs local HR experts who are well-versed in Greenlandic labor laws, including employment contracts, working hours, minimum wage requirements, and termination procedures. This local expertise ensures that all HR practices are compliant with the latest legal standards.

  2. Employment Contracts: Rivermate ensures that employment contracts are drafted in accordance with Greenlandic law. This includes specifying terms of employment, job responsibilities, compensation, benefits, and termination conditions. By doing so, Rivermate helps prevent any legal disputes that could arise from non-compliant contracts.

  3. Payroll Management: Rivermate handles payroll processing in compliance with Greenlandic regulations. This includes accurate calculation of wages, taxes, and social security contributions. Rivermate ensures timely and correct payments to employees, thereby avoiding any legal penalties associated with payroll errors.

  4. Tax Compliance: Rivermate manages all aspects of tax compliance, including withholding and remitting income taxes to the Greenlandic tax authorities. They stay updated on any changes in tax laws to ensure that both the employer and employees remain compliant.

  5. Benefits Administration: Rivermate administers employee benefits in line with Greenlandic requirements. This includes managing statutory benefits such as health insurance, pension contributions, and any other mandatory benefits. They also ensure that any additional benefits offered by the employer are compliant with local laws.

  6. Labor Relations: Rivermate assists in managing labor relations and ensures compliance with collective bargaining agreements if applicable. They provide guidance on handling employee grievances, disciplinary actions, and terminations in a manner that is legally compliant and fair.

  7. Health and Safety Regulations: Rivermate ensures that the workplace adheres to Greenlandic health and safety regulations. They provide guidance on maintaining a safe work environment and managing workplace injuries or illnesses in compliance with local laws.

  8. Data Protection and Privacy: Rivermate ensures that all employee data is handled in compliance with Greenlandic data protection laws. They implement robust data security measures to protect sensitive employee information.

  9. Continuous Monitoring and Updates: Rivermate continuously monitors changes in Greenlandic labor laws and regulations. They update their HR practices and policies accordingly to ensure ongoing compliance. This proactive approach helps mitigate risks associated with non-compliance.

By leveraging Rivermate's EOR services, companies can confidently expand their operations in Greenland, knowing that all HR and employment law aspects are managed in full compliance with local regulations. This allows businesses to focus on their core activities while minimizing legal risks and administrative burdens.

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