Employer of Record in Jersey

An Employer of Record (EOR) in Jersey is a company that legally hires employees on your behalf. This means you can build a team in Jersey without setting up a local entity. The EOR takes care of all the legal and HR work. This includes payroll, taxes, benefits, and making sure you follow local labor laws. You manage your team's day to day work, and the EOR handles the rest. It's a simple way to hire in Jersey, saving you time and money. For a provider that can help you with this, consider Rivermate.

How an Employer of Record (EOR) Works in Jersey

Using an EOR simplifies the process of hiring in Jersey. Here is a step-by-step look at how it works:

• You Find the Talent. You recruit and select the best person for the job.
• The EOR Hires Them. The EOR becomes the legal employer for your chosen candidate in Jersey. They handle the employment contract and all the necessary paperwork.
• They Manage HR and Payroll. The EOR takes care of salary payments, taxes, and social security contributions. In Jersey, employers contribute about 6.5% in payroll taxes.
• You Manage the Employee. You are in charge of your employee's daily tasks, projects, and performance.
• The EOR Ensures Compliance. The EOR stays up to date with Jersey's employment laws. This reduces the risk of legal issues for your business.

Why use an Employer of Record in Jersey

Using an EOR in Jersey offers a straightforward way to grow your business without the complexities of setting up a legal entity in a new location. It allows you to enter the market quickly and efficiently while ensuring you comply with all local regulations.

Here are some key benefits:

• Avoid Setting Up a Local Entity. You can hire employees in Jersey without the time and expense of establishing a local company.
• Ensure Legal Compliance. An EOR understands Jersey's labor laws, which helps you avoid fines and legal issues related to non-compliance.
• Simplify Payroll and Taxes. The EOR manages all aspects of payroll, including tax deductions and social security contributions, ensuring your team is paid correctly and on time.
• Administer Employee Benefits. EORs can help you offer competitive benefits packages, including health insurance and paid leave, which are essential for attracting top talent.
• Focus on Your Business. By outsourcing HR and administrative tasks, you can concentrate on your core business activities and growth.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Jersey includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Jersey.

Hiring in Jersey comes with its own set of rules and opportunities. It’s a unique place to build a team, but you need to know the local employment landscape. This guide cuts to the chase, giving you the essential information to hire in Jersey with confidence.

Employment contracts & must-have clauses

You must give new employees a written statement of their employment terms within four weeks of their start date. This isn't just good practice; it's the law under the Employment (Jersey) Law 2003.

Think of this document as the foundation of your relationship. It needs to be clear and cover all the important bases.

Here are the key details you must include:

• The basics: Names of both you (the employer) and the employee.
• Start date: The official first day of employment.
• Pay details: How much the employee will be paid and how often (e.g., weekly, monthly).
• Working hours: The expected hours of work.
• Holiday entitlement: Information on annual leave, public holidays, and holiday pay.
• Sick leave and pay: Your policy on sickness and any associated pay.
• Pension: Details of any pension schemes.
• Notice periods: How much notice you must give the employee, and how much they must give you.
• Job title and description: A brief overview of the role and main duties.
• Place of work: Where the employee will be based.
• Disciplinary and grievance procedures: The steps to follow if issues arise.

Getting this right from the start helps prevent misunderstandings down the road.

Probation periods

Probation periods are a common way to see if a new hire is a good fit. In Jersey, these are typically set out in the employment contract and often last three to six months.

There's a proposal to set a maximum probation period of six months, which cannot be extended more than once. This change is expected to be implemented by June 2025. For fixed-term contracts of six months or less, the proposal suggests no probation period should apply.

Working hours & overtime

There is no statutory limit on daily or weekly working hours in Jersey. However, a typical full-time week averages around 39.7 hours.

When it comes to overtime, the law doesn't require you to pay extra. Any overtime rates and conditions should be clearly spelled out in the employment contract. This ensures everyone is on the same page and avoids disputes later.

Public & regional holidays

Employees in Jersey are entitled to paid time off for public and bank holidays. For 2025, the official public holidays are:

Hiring contractors in Jersey

Hiring independent contractors can be a flexible way to bring in specialist skills. But it's vital to get the classification right. A contractor works under a "contract for services," while an employee has a "contract of service." This distinction is important because employment laws, like those covering minimum wage and unfair dismissal, do not typically apply to genuine independent contractors.

Misclassifying an employee as a contractor, even by mistake, can lead to serious problems. If a worker is found to be an employee in reality, you could be liable for backdated income tax, social security contributions, and employee benefits.

An Employer of Record (EOR) can help you avoid these risks. An EOR acts as the legal employer for your workers in Jersey. This means they handle all the legal and administrative tasks, including:

• Ensuring workers are classified correctly.
• Managing compliant contracts.
• Processing payroll and taxes.
• Providing statutory benefits.

By partnering with an EOR, you can confidently build your team in Jersey without getting tangled in complex local employment laws. You get the talent you need, and the EOR takes care of the rest.

Paying your team in Jersey involves understanding a straightforward system of social security contributions and income tax. You need to handle deductions correctly and make sure you pay your contributions on time. This guide breaks down what you need to know about payroll in Jersey to keep your process smooth and compliant.

Payroll cycles & wage structure

You can pay your employees on a schedule that fits your business. The most common payroll cycle in Jersey is monthly. However, you can also run payroll on a weekly or bi-weekly basis.

Your wage structure is up to you. You can pay an hourly wage or a set salary. The key is to clearly outline the pay rate and schedule in your employment contracts.

Overtime & minimums

In Jersey, there is no law that requires you to pay a special rate for overtime. Your policy on overtime pay should be clearly stated in the employment contract.

You must pay at least the minimum wage. As of January 2024, the minimum wage for most employees is £11.64 per hour. There are different rates for trainees.

Employer taxes and contributions

As an employer, you pay social security contributions for your employees. These payments fund pensions and other benefits. The contributions are based on your employee's earnings up to certain limits.

Here is a breakdown of your main payroll contributions for 2024:

Employee taxes and deductions

You must deduct social security and income tax from your employees' pay. The income tax system in Jersey is called the Income Tax Instalment System (ITIS). Each employee has a specific tax rate given to them by Revenue Jersey.

Here are the deductions you will make from your employee's gross pay in 2024:

In Jersey, benefits and leave are a mix of legal requirements and common practices. You need to know the difference to attract and keep the best employees. Understanding these rules is key to managing your team well. This guide breaks down what you need to know.

Statutory Leave

Jersey law sets out the minimum leave you must give your employees.

• Annual Leave: Full-time employees get at least three weeks of paid annual leave. You also have to give paid time off for public and bank holidays. Part-time employees get a pro-rated amount.
• Parental and Adoption Leave: All employees, no matter how long they've worked for you, are entitled to 52 weeks of leave when they become a parent. Six of these weeks must be fully paid.
• Rest Periods: You must give employees at least 24 hours of uninterrupted rest in every seven-day period. They are also entitled to a 20-minute break for every six hours of continuous work.
• Sick Leave: You are not legally required to pay employees when they are sick. However, employees may be able to get Short Term Incapacity Allowance from the government. Many employers choose to offer their own sick pay as an added benefit.

Public Holidays & Regional Holidays

Here are the public holidays in Jersey. If a holiday falls on a weekend, it's usually observed on the following Monday.

Typical Supplemental Benefits

To stay competitive, many employers in Jersey offer more than the legal minimum.

How an EOR Can Help with Setting Up Benefits

Setting up a benefits package in a new place can be tricky. An Employer of Record (EOR) makes it simple.

An EOR already understands the local laws and what employees expect. We can help you create a competitive benefits package that follows all the rules. This includes everything from paid leave to health insurance and pensions.

Using an EOR saves you time and reduces risk. You can be sure you're offering the right benefits to attract the best talent in Jersey. We handle the administration, so you can focus on growing your business.

Ending a working relationship in Jersey involves clear legal steps. You need to follow specific rules for notice periods and final pay to ensure a fair and compliant process. This protects both you and your employee. Managing the exit process correctly helps you avoid legal trouble and maintain a positive reputation.

Notice periods

You must give employees proper notice before their employment ends. The legal minimum notice period depends on how long the employee has worked for you. Your employment contract can state a longer notice period, but not a shorter one.

Here are the minimum notice periods you must provide by law:

Employees also need to give you notice if they decide to leave. The minimum notice they must provide is:

Severance pay

In Jersey, you generally pay severance to an employee only in a redundancy situation. An employee is eligible for redundancy pay if they have worked for you continuously for at least two years.

The statutory redundancy payment is one week's pay for each full year of service. There is a cap on the amount for a week's pay, which is updated periodically. A contractual agreement can provide for a more generous redundancy payment.

If an employee is made redundant, they are also entitled to paid time off to look for new work. This is equal to 40% of their normal working week, which is typically two days for a full-time employee.

How Rivermate handles compliant exits

When you use Rivermate as your Employer of Record, we manage the termination and offboarding process for you. We make sure everything is done by the book, so you don't have to worry about compliance.

Here is how we handle it:

• Reviewing agreements: We check the employment contract and any other agreements to understand the specific terms of the departure.
• Calculating final pay: We calculate all final payments, including any outstanding salary, unused holiday pay, and redundancy pay if applicable.
• Managing notice periods: We ensure the correct notice period is given, whether it's the statutory minimum or a longer contractual period.
• Clear communication: We handle the communication with the departing employee, making sure they understand the process and their final entitlements.
• Documentation: We prepare all the necessary paperwork to formally end the employment relationship in a compliant way.

We take care of the details so you can focus on your business.

Navigating the visa and work permit requirements for Jersey can seem complex. The island has its own immigration rules, which are closely linked to the United Kingdom's policies. If you are not a British or Irish citizen, you will likely need permission to work in Jersey. This usually involves your employer obtaining a work permit for you before you can apply for a visa.

Employment visas & sponsorship realities

An Employer of Record (EOR) can help you navigate Jersey's immigration system. However, there are practical limits to what an EOR can and cannot do.

An EOR can typically sponsor skilled workers for roles that are in demand. To get a work permit, your employer must show that they could not find a suitable candidate from the local workforce. The EOR, acting as your legal employer, handles the work permit application on your behalf.

Here are the common routes for obtaining an employment visa:

• Skilled Worker Visa: This is the most common path for professionals. It requires sponsorship from a licensed employer in Jersey.
• Temporary Work Permits: These are available for specific industries like agriculture, construction, and hospitality for shorter durations.

It is important to know that work permits are tied to a specific job and employer. If you change jobs, you will likely need a new work permit.

Business travel compliance

For short-term business trips, you might not need a work permit. However, the activities you can perform are limited. You can typically attend meetings, conferences, and negotiations.

You cannot engage in paid work for a Jersey-based company on a business visit. If you have immigration permission to be in the UK, you generally do not need a separate visa for a short visit to Jersey.

Always check the latest regulations before you travel. The rules can change, and it is your responsibility to be compliant.