Employer of Record Guide in 

Gibraltar

Annual Leave

Note: Research shows conflicting information - please verify current entitlements

• Minimum Entitlement: 15-20 working days per year
• Accrual: Earned monthly (1/12th of annual entitlement)
• Carry Over: Limited carry-over to following year (typically 5 days)
• Payment: Must be paid at normal rate during leave
• Payout: Unused leave paid on termination

Sick Leave

• Statutory Sick Pay: Available after 4 consecutive days of illness
• Duration: Up to 28 weeks in any 3-year period
• Rate: Percentage of average weekly earnings
• Medical Certification: Required for absences over 7 days
• Employer Schemes: Many employers provide enhanced sick pay

Maternity Leave

Note: Research shows significant discrepancies - please verify current provisions

• Duration: 14-52 weeks (conflicting information requires verification)
• Statutory Pay: Available for qualifying periods
• Job Protection: Right to return to same or equivalent position
• Notification: 15 weeks' notice required before expected birth
• Shared Leave: Provisions for shared parental leave may apply

Paternity Leave

• Duration: 2 weeks following birth or adoption
• Pay: Statutory paternity pay available
• Timing: Must be taken within 56 days of birth
• Notification: 15 weeks' notice required

Other Statutory Leave

• Bereavement Leave: Reasonable time off for close family deaths
• Emergency Leave: Unpaid leave for family emergencies
• Jury Service: Paid leave for jury duty obligations
• Public Duties: Time off for civic responsibilities

Summary

Termination Types

Summary Dismissal (With Cause):

• Gross misconduct or serious breach of contract
• No notice period required
• No severance payment due
• Must be justified and documented

Termination Without Cause:

• Redundancy or business reasons
• Full notice period required
• Potential severance payments
• Must follow fair procedures

Notice Period Requirements

Notice periods based on length of continuous service:

Severance Pay

Redundancy Payments:

• Available after 2+ years of continuous service
• Calculated based on age, service length, and weekly pay
• Maximum weekly pay cap applies
• Tax-free up to statutory limits

Final Pay Requirements

• Timeline: Final pay due on last working day or next normal pay date
• Components: Basic pay, accrued holiday pay, overtime, bonuses
• Deductions: Only lawful deductions permitted
• Documentation: Detailed payslip required

Termination Process

Required Steps:

1. Investigation and documentation
2. Employee consultation meetings
3. Written termination notice
4. Final pay calculation
5. Return of company property
6. Reference provision (if requested)

Public Holidays

Gibraltar observes 10 statutory public holidays:

Holiday Pay

• Entitlement: All employees entitled to public holiday pay
• Rate: Normal daily rate of pay
• Working on Holidays: Double time or time off in lieu
• Part-time Workers: Pro-rated entitlement based on working pattern

Required Documentation

Employment Contract:

• Job title and description
• Salary and benefits
• Working hours and location
• Notice periods
• Disciplinary procedures

Tax and Social Insurance:

• Gibraltar ID card or residence permit
• Social insurance number
• Tax status declaration (ABS or GIBS election)
• Bank account details for salary payments

Work Authorisation

EU/EEA Citizens:

• Right to work under current arrangements
• May require registration depending on Brexit developments

Non-EU Citizens:

• Work permit required before employment
• Employer sponsorship necessary
• Immigration compliance obligations

Data Protection

Gibraltar follows GDPR-equivalent data protection laws:

• Employee consent for data processing
• Secure storage and handling requirements
• Right to access and correction
• Data breach notification obligations

Probationary Periods

• Maximum Duration: 6 months
• Notice Requirements: Reduced notice periods during probation
• Performance Reviews: Regular assessment recommended
• Extension: Possible with mutual agreement

Onboarding Timeline

Worker Classification

Gibraltar employment law distinguishes between:

Employees:

• Work under employer control and direction
• Entitled to full employment rights and benefits
• Subject to income tax and social insurance deductions

Self-Employed Contractors:

• Operate independently with own business
• Responsible for own tax and social insurance
• Limited employment law protections

Misclassification Risks:

• Penalties for incorrect classification
• Backdated tax and social insurance liabilities
• Employment tribunal claims possible

Industry-Specific Considerations

Financial Services:

• Enhanced regulatory requirements
• Fit and proper person assessments
• Ongoing compliance obligations
• Professional indemnity insurance

Gaming Industry:

• Licensing requirements for key personnel
• Regulatory approval processes
• Ongoing suitability assessments

Cultural Workplace Norms

Communication Style:

• Professional but friendly approach
• English as primary business language
• Multicultural workforce common

Work-Life Balance:

• Traditional European approach to holidays
• Flexible working increasingly common
• Family-friendly policies expected

Remote Work Framework

Legal Considerations:

• Employment contracts must specify work location
• Health and safety obligations extend to home offices
• Equipment provision and maintenance responsibilities
• Cross-border tax implications for non-residents

Practical Requirements:

• Secure IT infrastructure
• Regular communication protocols
• Performance management systems
• Compliance monitoring procedures

What Borderless AI Handles

When you hire through Borderless AI in Gibraltar, we manage:

• Local employment contract creation and compliance
• Payroll processing and tax withholdings
• Social insurance registration and contributions
• Statutory leave administration
• Termination procedures and documentation
• Ongoing regulatory compliance monitoring