Employer of Record Guide in 

Jamaica

Vacation Leave

Jamaica's annual leave entitlements are based on length of continuous service:

Vacation Pay:

• Must be paid at regular rate
• Can be taken in instalments with employer agreement
• Must be paid out upon termination if unused

Sick Leave

• Entitlement: 10 days of paid sick leave per calendar year
• Medical Certification: Required for absences exceeding 3 consecutive days
• Accumulation: Unused sick leave may carry over to the following year (up to 120 days total)
• Payment: Full salary during approved sick leave periods

Maternity Leave

• Duration: 12 weeks total (can be taken 2 weeks before and 10 weeks after birth)
• Paid Leave: 8 weeks paid at full salary
• Unpaid Leave: 4 weeks unpaid (job protection continues)
• Eligibility: Must have worked for at least 52 weeks before expected delivery date
• Job Protection: Guaranteed return to same or comparable position

Paternity Leave

• Duration: 2 weeks
• Payment: Unpaid (unless employer policy provides otherwise)
• Timing: Must be taken within 6 weeks of child's birth
• Eligibility: Available to married fathers or fathers in common-law relationships

Bereavement Leave

• Duration: 3-5 days (varies by relationship to deceased)
• Payment: Typically paid for immediate family members
• Documentation: Death certificate may be required

Other Leave Types

Jury Duty Leave:

• Unpaid leave for jury service
• Job protection guaranteed

Study Leave:

• Discretionary, based on employer policy
• May be paid or unpaid depending on agreement

Emergency Leave:

• Short-term leave for family emergencies
• Usually unpaid unless covered by company policy

Summary

Termination Types

Termination With Cause:

• Immediate dismissal without notice or severance
• Must involve serious misconduct (theft, gross insubordination, criminal activity)
• Employer must provide clear evidence of misconduct

Termination Without Cause:

• Requires proper notice or payment in lieu
• Must not be discriminatory or in bad faith
• Employee entitled to severance benefits

Redundancy:

• Position elimination due to business needs
• Requires consultation with affected employees
• Enhanced severance may apply for mass redundancies

Notice Period Requirements

Notice periods are based on length of continuous service:

Severance Pay

Standard Severance:

• 2 weeks' pay for each year of service
• Minimum of 2 weeks' pay regardless of service length
• Based on average weekly earnings over the last 13 weeks

Redundancy Payments:

• Additional compensation for positions eliminated due to business restructuring
• Calculated separately from standard severance

Final Pay Requirements

Employers must provide final payment within 7 days of termination, including:

• Outstanding wages and overtime
• Accrued vacation pay
• Any earned bonuses or commissions
• Severance pay (if applicable)

Termination Documentation

Required Documents:

• Termination letter stating reason and effective date
• Final pay statement
• Certificate of service (employment verification)
• Return of company property acknowledgment

Legal Protections

Employees cannot be terminated for:

• Pregnancy or maternity leave
• Filing complaints about working conditions
• Union membership or activities
• Discrimination based on race, gender, religion, or other protected characteristics

National Public Holidays (2025)

Regional Observances

Some parishes may observe additional local holidays or cultural celebrations, though these are typically not statutory holidays requiring paid time off.

Holiday Pay Rules

Eligibility Requirements:

• Must have worked for at least 90 days before the holiday
• Must work the scheduled day before and after the holiday (unless excused)

Payment Rates:

• Regular Holiday Pay: Full day's pay for eligible employees
• Working on Holiday: 2× regular rate plus holiday pay
• Substitute Holiday: If holiday falls on weekend, Monday becomes the observed holiday

Holiday Scheduling

Employers may require employees to work on public holidays in essential services (healthcare, security, hospitality) but must provide:

• Premium pay (2× regular rate)
• Alternative day off within 30 days
• Prior notice of holiday work requirements

Required Documents for Employment

Employment Contract Must Include:

• Job title and description
• Salary and payment terms
• Working hours and location
• Leave entitlements
• Termination procedures
• Disciplinary policies

Employee Documentation:

• Tax Registration Number (TRN)
• National Insurance Scheme (NIS) number
• Valid identification (passport, driver's licence, or national ID)
• Bank account details for direct deposit
• Educational certificates (if required for role)

Tax Registration Requirements

All employees must have a Tax Registration Number (TRN) before starting work. Employers must:

• Verify TRN validity with Tax Administration Jamaica
• Register new employees for PAYE deductions
• Submit monthly PAYE returns

Background Checks & References

Permitted Checks:

• Criminal background verification (with written consent)
• Employment history verification
• Educational qualification verification
• Professional licence verification (for regulated professions)

Restrictions:

• Must be relevant to job requirements
• Cannot discriminate based on protected characteristics
• Must comply with data protection requirements

Work Permits & Immigration

Foreign Workers:

• Must obtain work permit before starting employment
• Employer typically sponsors work permit application
• Process can take 4-8 weeks
• Annual renewal required

Documentation Required:

• Valid passport
• Work permit approval
• Medical examination results
• Police clearance certificate

Data Protection & Privacy

Jamaica's Data Protection Act requires employers to:

• Obtain consent for personal data collection
• Secure storage of employee information
• Limit data sharing to authorised purposes
• Provide employees access to their personal data

Probationary Periods

• Standard Duration: 3-6 months for most positions
• Extended Periods: Up to 12 months for senior roles (with written agreement)
• Termination During Probation: Reduced notice requirements (typically 1 week)
• Performance Reviews: Regular evaluation during probationary period

Onboarding Timeline

What the EOR Handles

Borderless AI manages:

• Employment contract preparation and execution
• Tax registration and PAYE compliance
• NIS and other statutory registrations
• Payroll processing and remittances
• Work permit sponsorship (for foreign employees)
• Local labour law compliance monitoring

Worker Classification

Jamaica distinguishes between employees and independent contractors based on several factors:

Employee Indicators:

• Works under direct supervision and control
• Uses employer-provided tools and equipment
• Works set hours at employer's location
• Receives regular salary or wages
• Entitled to benefits and leave

Contractor Indicators:

• Operates independently with minimal supervision
• Provides own tools and equipment
• Sets own working hours and methods
• Invoices for services rendered
• Responsible for own taxes and benefits

Misclassification Risks:

• Back payment of taxes and contributions
• Penalties from labour authorities
• Employee claims for benefits and protections

Trade Unions & Collective Bargaining

Jamaica has a strong tradition of trade unionism, particularly in:

• Public sector employment
• Manufacturing industries
• Tourism and hospitality
• Transportation services

Key Considerations:

• Some workplaces may be covered by collective agreements
• Union recognition procedures are established by law
• Strikes and industrial action are regulated
• Employers must engage in good faith bargaining

Cultural Workplace Norms

Communication Style:

• Generally friendly and relationship-focused
• Respect for hierarchy while maintaining approachability
• Direct communication balanced with diplomatic courtesy

Work-Life Balance:

• Family obligations are highly valued
• Flexible arrangements often appreciated
• Religious observances commonly accommodated

Professional Development:

• Education and skills development highly valued
• Training opportunities seen as important benefits
• Mentorship relationships common in workplace culture

Anti-Discrimination Laws

Jamaica's employment laws prohibit discrimination based on:

• Race, colour, or national origin
• Gender or pregnancy status
• Religion or political opinion
• Disability (with reasonable accommodation requirements)
• Age (in certain circumstances)

Harassment Prevention:

• Employers must maintain harassment-free workplaces
• Clear policies and complaint procedures required
• Training and awareness programs recommended

Remote Work Considerations

Remote work arrangements in Jamaica must address:

Legal Requirements:

• Written remote work agreements
• Health and safety obligations extend to home offices
• Equipment and expense reimbursement policies
• Data security and confidentiality measures

Practical Considerations:

• Internet connectivity and power supply reliability
• Time zone coordination for international teams
• Regular check-ins and performance monitoring
• Social isolation and team cohesion challenges

Tax Implications:

• Remote workers remain subject to Jamaican tax if resident
• Equipment provided by employer may have tax implications
• Home office expense deductions may apply

Writer's Note: Given the research discrepancy noted, please verify all specific rates, dates, and regulatory requirements with current Jamaican labour legislation and consult with local legal experts before making hiring decisions.