Employer of Record Guernsey

Employing people in Guernsey can be done in a number of methods, each with varying costs and compliance requirements:

The employee works for your foreign company and is paid by you

• Pros: It seems to be the most straightforward and affordable choice.
• Cons: The employee is governed by Guernsey’s employment rules and is unable to make the legally required social security contributions.

Setting Up an Entity

• Pros: This may be the most economical choice if you have a sizable workforce—typically over 15 employees.
• Cons: Setting up a formal company structure and adhering strictly to Guernsey’s tax and employment regulations can be expensive and time-consuming, especially for smaller businesses. This approach typically proves to be unworkable for companies with fewer than 15 employees.

Using an Employer of Record

• Pros: Employer of Record services are the most effective way to handle payroll, HR, and compliance tasks in Guernsey. This is particularly true for teams with less than fifteen members.
• Cons: Pricey when hiring a large number of employees. Selecting the right Employer of Record provider might be difficult.

Hire a Guernsey contractor

• Pros: Since you can assign a replacement for the employee during their vacation days, this tactic works well when they are not bound by your company’s contract.
• Cons: Hiring a full-time employee who is entirely committed to your business as a contractor will be deemed as  mis-classification, and is illegal in Guernsey. Such misclassification may result in fines or even criminal proceedings.

Yes, provided that the employee has another job, is free to choose how to complete tasks, and has the option to choose another contractor in the event that they are unable to do so. A person who only works for your company and whose responsibilities are set by it is considered an employee in Guernsey.

In Guernsey, a misclassified employee may be subject to severe fines, lost holiday pay, and social security contributions. Authorities may require the final employer to have a local presence or even file a lawsuit for violating workers’ rights at work.

Establishing a business in Guernsey requires a number of intricate legal and regulatory procedures, such as registering with the Guernsey Registry, acquiring a business licence, fulfilling substance criteria, and making sure local tax regulations are followed. Additionally, businesses have to handle social security contributions, payroll, and continuous reporting requirements.

It can be difficult to open a bank account in Guernsey; it frequently involves an in-person visit and stringent due diligence procedures. It takes a lot of effort and money to keep up with Guernsey’s business and employment laws.

Maintaining payroll and HR compliance is essential in Guernsey to prevent penalties, legal issues, and reputational damage. Businesses must adhere to stringent employment regulations that address contracts, taxes, social security, sick pay, and termination procedures.

Payroll or labour classification errors can have major financial consequences and possibly result in legal action. Administrative oversight, regular regulation updates, and local expertise are required to maintain compliance. They can all be challenging and time-consuming.

In Guernsey, Agility EOR is in charge of figuring out, submitting, and paying the necessary employee taxes and social security contributions. This covers all mandatory payments, employer and employee social security contributions, and income tax deductions.

We guarantee that all commitments are fulfilled precisely and on schedule, lowering your company’s administrative load and compliance concerns. While we handle the intricacies of social security and tax compliance, you only need to authorise payroll invoices.

The administrative strain of HR compliance is taken care of for you by Agility EOR:

Trusted Partners: Agility EOR works with only the top local legal and HR professionals to ensure that all employment contracts, payroll processes, and compliance duties adhere to Guernsey’s labour laws.

Comprehensive Knowledge: To ensure your business remains compliant and out of trouble, we stay current on tax regulations, employee rights, and regulatory changes.

Fast Action: Our staff provides quick support and guidance in the case of a question or concern, enabling you to resolve compliance concerns efficiently and with the least possible operational impact. We also offer onboarding within 24 hours.

Agility EOR handles employment contracts, payroll, taxes, and compliance, but your company still has important duties. You still have control over your employees’ everyday tasks, productivity, and professional development. You must also ensure worker safety, follow corporate standards, and immediately approve payroll invoices.

If disciplinary action or termination is required, you will have to work with us and give your approval.

Even while employing an EOR reduces legal and administrative risk, you are still ultimately in charge of upholding effective company management and leadership.

Guernsey’s tax structure is business-friendly, but it’s important to comply. Commodity import taxes and social security contributions (7.4% employer) must be paid by businesses.

Workers pay a flat income tax rate of 20% and make approximately 7.1% in social security contributions.

Yes, employees of Employers of Record (EORs) in Guernsey are entitled to the same benefits and legal protections as those hired directly. This includes social security contributions, paid time off, sick pay, and protections under employment law.

Because the EOR ensures compliance with local labor regulations, employees receive benefits and protections that are required by law.