Hire in Falkland Islands (Malvinas) through our Employer of Record (EOR)

An Employer of Record (EOR) is a third-party organization that takes on the legal and administrative responsibilities of employing workers on behalf of another company. This arrangement allows businesses to hire employees in countries where they don't have a legal entity, effectively expanding their global reach without the need to establish a local subsidiary or branch office.

For the Falkland Islands (Malvinas), an EOR can be particularly useful due to the territory's unique geographical, political, and economic situation. Given its remote location and small population, companies looking to hire talent in the Falkland Islands may face challenges in navigating local employment laws and regulations. An EOR can simplify this process by managing payroll, taxes, benefits, and compliance issues, allowing businesses to focus on their core operations.

How Does EOR Work?

An Employer of Record operates by creating a co-employment relationship between the EOR, the client company, and the employee. Here's a breakdown of how this process typically works:

1. The client company identifies a candidate they wish to hire in the Falkland Islands.

2. The EOR becomes the legal employer of record for the worker, handling all formal employment tasks such as:

   • Drafting and signing employment contracts
   • Managing payroll and tax withholdings
   • Ensuring compliance with local labor laws and regulations
   • Administering benefits and insurance

3. The client company maintains control over the employee's day-to-day work activities, assignments, and performance management.

4. The EOR invoices the client company for the employee's salary plus additional fees for their services.

5. The employee receives their salary and benefits from the EOR but takes direction from the client company.

Benefits of Using an EOR

Utilizing an Employer of Record in the Falkland Islands can offer several advantages:

1. Simplified Market Entry: An EOR allows companies to quickly establish a presence in the Falkland Islands without the need to set up a legal entity, saving time and resources.

2. Compliance Assurance: EORs are well-versed in local employment laws and regulations, ensuring that companies remain compliant with the Falkland Islands' labor code, tax requirements, and other legal obligations.

3. Risk Mitigation: By taking on the legal responsibilities of employment, EORs help mitigate risks associated with non-compliance or misclassification of workers.

4. Flexibility: Companies can easily scale their operations up or down without the long-term commitments associated with establishing a local entity.

5. Local Expertise: EORs provide valuable insights into local business practices, cultural norms, and employment expectations in the Falkland Islands.

6. Cost-Effective: Using an EOR can be more cost-effective than establishing and maintaining a legal entity, especially for companies with a small number of employees in the territory.

7. Focus on Core Business: By outsourcing administrative and compliance tasks to the EOR, companies can focus on their core business activities and strategic goals.

8. Access to Benefits: EORs can often provide competitive benefits packages that might be challenging for smaller companies to offer independently.

In the context of the Falkland Islands, where the business environment may be unfamiliar to many international companies, an EOR can be an invaluable partner in navigating the complexities of local employment and expanding operations in this unique territory.

The Falkland Islands (Malvinas) boast a unique employment landscape shaped by their small population and distinctive geographical location. With a workforce of approximately 1,900 individuals, the islands' economy revolves around key sectors such as fishing, agriculture, tourism, and government services. The employment scene is characterized by a blend of local talent and international workers, primarily from the UK, Saint Helena, and Chile.

Overview of Labor Laws

Labor laws in the Falkland Islands are designed to protect both employers and employees while fostering a fair and productive work environment. Key aspects include:

• Minimum wage regulations
• Working hours and overtime provisions
• Annual leave entitlements
• Health and safety standards
• Anti-discrimination policies

These laws are generally aligned with UK standards but are tailored to suit the specific needs of the Falkland Islands' economy and workforce.

Cultural Considerations

The Falkland Islands' workplace culture is deeply influenced by the close-knit community and the islands' natural environment:

• Strong emphasis on work-life balance
• Flexible attitudes towards family and community commitments
• Appreciation for outdoor activities and leisure time
• Direct and informal communication styles
• Less rigid organizational hierarchies
• High value placed on practical problem-solving and individual initiative

Understanding and respecting these cultural nuances is crucial for successful integration into the Falkland Islands' work environment.

Challenges of Direct Hiring

While the Falkland Islands offer unique opportunities, direct hiring can present several challenges:

1. Limited talent pool: The small population can make it difficult to find specialized skills locally.

2. Remote location: Attracting international talent may be challenging due to the islands' geographical isolation.

3. Regulatory complexities: Navigating local employment laws and regulations can be complex for foreign companies.

4. Cultural adaptation: Ensuring that new hires, especially those from abroad, adapt to the local work culture and community life.

5. Infrastructure limitations: The islands' infrastructure may not always meet the needs of certain industries or roles.

6. Seasonal fluctuations: Some sectors, such as tourism and agriculture, experience significant seasonal variations in workforce demand.

Overcoming these challenges often requires a combination of strategic planning, cultural sensitivity, and potentially partnering with local organizations or employment services to facilitate smooth hiring processes.

The Falkland Islands (Malvinas) have a unique payroll and tax system that reflects the territory's small population and distinct economic structure. Understanding the intricacies of this system is crucial for both employers and employees to ensure compliance with local regulations and proper financial planning. The Falkland Islands Government (FIG) oversees the tax system, which includes income tax and social insurance contributions.

In the Falkland Islands, the tax year runs from January 1 to December 31. The primary mechanism for collecting income tax is through the Payments on Account of Tax (POAT) system, which functions similarly to Pay As You Earn (PAYE) systems in other countries. This system requires employers to withhold taxes from employee salaries and remit them to the government on behalf of their employees.

Employer Contributions

Employers in the Falkland Islands have several responsibilities when it comes to payroll and taxes:

1. POAT Withholding: Employers must withhold Payments on Account of Tax (POAT) from employee remuneration. The withholding rate depends on the employee's residency status:

   • For residents and ordinarily residents, tax is deducted based on a tax table that considers the employee's personal allowance.
   • For non-residents, a flat rate of 21% is deducted from gross wages.

2. Multiple Employments: If an employee has more than one employer, only the primary or full-time employer can account for the personal allowance when deducting tax. Secondary employers must deduct tax at the flat rate of 21%.

3. Grossing Up: When an employer pays POAT on the employee's behalf, the amount needs to be "grossed up" for tax purposes to ensure the employee receives the net amount after tax.

4. Retirement Pension Contributions: Employers are required to contribute to the Retirement Pension Scheme. The current employer contribution rate is 7.5% of the employee's earnings.

5. Medical Services Tax: Employers must pay a Medical Services Tax, which is currently set at 1.5% of the employee's earnings.

6. Reporting and Remittance: Employers are responsible for accurately reporting and remitting the withheld taxes and contributions to the Falkland Islands Government on a regular basis.

Employee Contributions

Employees in the Falkland Islands are also subject to various tax and contribution obligations:

1. Income Tax: Employees are subject to income tax, which is withheld through the POAT system. The tax rates are:

   • 21% on the first £12,000 of taxable income
   • 26% on income exceeding £12,000

2. Personal Allowance: Resident employees are entitled to a personal allowance, which is a tax-free amount deducted from their income before calculating tax liability. Non-residents receive a reduced personal allowance.

3. Retirement Pension Contributions: Employees are required to contribute to the Retirement Pension Scheme. The current employee contribution rate is 5% of their earnings.

4. Medical Services Tax: Employees must pay a Medical Services Tax, which is currently set at 1% of their earnings.

5. Tax Returns: While the POAT system aims to collect the correct amount of tax throughout the year, employees may need to file a tax return to reconcile their tax liability, especially if they have additional sources of income or are eligible for specific deductions.

6. Non-Resident Refunds: Non-resident employees who have had tax withheld at the flat rate of 21% can file a tax return to claim a refund if their actual tax liability is lower.

Understanding these employer and employee contributions is essential for proper payroll management and personal financial planning in the Falkland Islands. Both employers and employees should stay informed about any changes to tax rates or contribution requirements, as the government may update these periodically.

The Falkland Islands (Malvinas) offer a unique set of benefits for employees, combining mandatory provisions with optional perks that cater to the islands' distinctive environment. As an Employer of Record (EOR), Rivermate expertly manages these benefits, ensuring compliance with local regulations while helping companies attract and retain top talent. By handling the complexities of benefit administration, an EOR allows businesses to focus on their core operations while providing employees with a comprehensive and attractive benefits package.

Mandatory Benefits

• Paid Leave:

• 30 days of paid annual leave per year
• 9 paid public holidays annually

• Social Security:

• Mandatory Retirement Pension Scheme (RPS) for eligible employees
• Contributions split between employers and employees
• Current employee contribution rate: £40.60 per week (2023)

• Other Mandatory Benefits:

• Minimum one-hour lunch break
• Sufficient rest period between working days (typically 12 hours minimum)
• Overtime compensation at pro-rata rate
• Option to opt-out of overtime hours if agreed in employment contract

Optional Benefits

• Relocation Allowance:

• Assistance with moving costs for employees relocating from outside the Falklands
• May cover shipping of belongings and travel expenses for employees and dependents

• Flights:

• Travel to and from the Falkland Islands for employees and eligible dependents
• Potential mid-contract flights for longer stays

• Housing:

• Provision of housing or housing allowance to assist with rent
• Helps address challenges in finding suitable accommodation

• Starter Pack:

• Basic household goods and groceries upon arrival
• Eases the settling-in process for new employees

• Competitive Salary:

• Higher salaries compared to similar positions elsewhere
• Compensates for cost of living and remote location

• Additional Perks:

• Performance-based bonuses
• Profit-sharing schemes
• Other industry-specific benefits to attract and retain talent

By leveraging an EOR like Rivermate, companies can ensure that both mandatory and optional benefits are properly managed, creating an attractive package for employees while maintaining compliance with local regulations in the Falkland Islands (Malvinas).

The process of termination and offboarding in the Falkland Islands (Malvinas) is governed by specific regulations that protect both employers and employees. Understanding these rules is crucial for companies operating in this region to ensure compliance and maintain positive relationships with their workforce.

Grounds for Termination

In the Falkland Islands, employers must have valid reasons for terminating an employee's contract. These reasons, as outlined in the Employment Protection Ordinance 1989, include:

• Capability or qualifications
• Conduct
• Redundancy
• Statutory restriction
• Some other substantial reason (SOSR)

It's important to note that dismissals without a lawful reason or proper procedures are considered unfair. Specific circumstances that constitute unfair dismissal include terminations related to trade union membership, pregnancy, or an employee exercising their legal rights.

Notice Requirements

When terminating an employee, employers must provide adequate notice based on the employee's length of service:

• Less than 2 years: At least 1 week's notice
• 2-11 years: 1 week's notice for each year of service
• 12 years or more: At least 12 weeks' notice

Employees are also generally expected to give notice when resigning, with specific periods often outlined in their employment contracts.

Severance Pay

While statutory requirements for severance payments are limited in the Falkland Islands, certain circumstances may entitle an employee to severance:

• Unfair dismissal cases, where a tribunal may award compensation
• Contractual agreements that include severance provisions beyond statutory requirements

Offboarding Best Practices

To ensure a smooth termination and offboarding process:

1. Document the reasons for termination thoroughly
2. Provide clear communication about the decision and next steps
3. Conduct an exit interview to gather feedback
4. Ensure all company property is returned
5. Process final payments, including any applicable severance
6. Update internal systems and revoke access to company resources

By following these guidelines and understanding the legal requirements, companies can navigate the termination and offboarding process in the Falkland Islands (Malvinas) effectively and professionally.

The Falkland Islands, also known as Islas Malvinas, are a British Overseas Territory located in the South Atlantic Ocean. For foreign workers looking to work in the Falkland Islands, understanding the visa and work permit requirements is essential. Here's a concise overview of the process:

Entry Requirements

To enter the Falkland Islands, most visitors need a valid passport and an entry permit. Citizens of the UK, Ireland, and some Commonwealth countries may be exempt from the entry permit requirement for short stays.

Work Permit Process

Step 1: Job Offer

Before applying for a work permit, you must have a job offer from an employer in the Falkland Islands.

Step 2: Employer Application

Your prospective employer must apply for a work permit on your behalf. They need to demonstrate that the position cannot be filled by a local resident.

Step 3: Documentation

You'll need to provide various documents, including:

• Valid passport
• Proof of qualifications
• Criminal record check
• Medical certificate

Step 4: Approval

The Immigration Department will review the application and make a decision. If approved, you'll receive a work permit valid for the duration of your employment contract.

Important Considerations

• Work permits are typically issued for a specific job and employer.
• Permits can be renewed if your employment continues.
• Family members may be able to accompany you, but they'll need separate permits.
• The Falkland Islands government prioritizes employing local residents, so work permits for foreign workers are granted only when necessary skills are not available locally.

It's advisable to start the application process well in advance of your intended travel date, as processing times can vary. For the most up-to-date information, consult the Falkland Islands Government website or contact their Immigration Department directly.