Employer of Record in Turks and Caicos Islands

An Employer of Record (EOR) in the Turks and Caicos Islands lets you hire employees there without setting up a local entity. This means you can build a team in the country while the EOR handles all the legal and HR responsibilities. An EOR, like Rivermate, becomes the legal employer for your team members, managing everything from payroll and taxes to benefits and compliance with local labor laws.

How an Employer of Record (EOR) Works in Turks and Caicos Islands

Using an EOR in the Turks and Caicos Islands simplifies your expansion. Here is how it works:

1. You Find the Talent. You recruit and select the best candidate for your team in the Turks and Caicos Islands.
2. The EOR Hires Your Candidate. The EOR legally hires the employee through its local entity in the Turks and Caicos Islands.
3. A Service Agreement is Signed. You and the EOR sign an agreement that outlines the services, fees, and responsibilities.
4. The EOR Manages HR. The EOR handles all HR tasks. This includes payroll, taxes, benefits, and ensuring compliance with the Turks and Caicos Islands' Employment Ordinance. You can find official labor information on the Turks and Caicos Islands Government website (https://www.gov.tc/labour/).
5. You Manage Your Employee. You manage your employee's day-to-day work and responsibilities, just like any other member of your team.

Why use an Employer of Record in Turks and Caicos Islands

Using an EOR in the Turks and Caicos Islands is a practical way to grow your business without the usual headaches of international expansion. It saves you time and money by avoiding the need to register a local company. This lets you enter the market and start operations much faster.

Here are some key benefits:

• Stay Compliant. An EOR understands local labor laws, like the Employment Ordinance 2004. This helps you avoid legal issues.
• Save Time and Money. You avoid the costs and delays of setting up a legal entity in the Turks and Caicos Islands.
• Offer Better Benefits. EORs can often provide more competitive benefits packages for your employees.
• Focus on Your Business. You can concentrate on your main business goals while the EOR handles HR and administrative tasks.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Turks and Caicos Islands 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 Turks and Caicos Islands.

Hiring in the Turks and Caicos Islands can be a straightforward process, especially with the right information. The islands' economy is growing, with tourism and financial services being major sectors. When hiring, it's important to understand the local labor laws to ensure a fair and legal employment relationship. This guide will walk you through the key aspects of hiring in the Turks and Caicos Islands.

Employment contracts & must-have clauses

In the Turks and Caicos Islands, it is highly recommended to have a written employment contract. While oral agreements can exist, a written contract provides clarity and helps prevent disputes. There are two main types of employment contracts:

• Indefinite Term: This type of contract is for an ongoing role and continues until either you or the employee terminates it with proper notice.
• Fixed Term: This contract is for a specific period or for the completion of a particular project. It automatically ends at the conclusion of the term.

Your employment contracts must comply with the Employment Ordinance and should include the following essential clauses:

• Names of the employer and employee
• Date of commencement of employment
• Job title and description of the work
• Place of work
• Hours of work
• Rate of pay and how often it will be paid
• Holiday and sick leave entitlement and pay
• Notice period for termination
• Any collective agreements that apply

Probation periods

A probationary period allows both you and the new employee to see if the working relationship is a good fit. While there is no legally mandated maximum length for a probation period in the Turks and Caicos Islands, a common practice is to set it for three to six months. During this time, the notice period for termination is often shorter than the standard period.

Working hours & overtime

The standard work week in the Turks and Caicos Islands is 44 hours. Any hours worked beyond this are considered overtime. The law requires that employees have at least one 24-hour rest period in every seven consecutive work days.

Public & regional holidays

Your employees in the Turks and Caicos Islands are entitled to paid time off for public holidays. Here are the official public holidays for 2025:

Hiring contractors in Turks and Caicos Islands

Engaging independent contractors can offer flexibility for your business. However, it is crucial to correctly classify workers to avoid legal and financial penalties. Misclassifying an employee as an independent contractor can lead to back taxes, fines, and other liabilities.

The main difference between an employee and an independent contractor lies in the level of control. An independent contractor typically controls their own work, schedule, and methods. They are not usually integrated into the core of the business operations.

An Employer of Record (EOR) can help you mitigate the risks of misclassification. An EOR can help you understand and comply with local labor laws, ensuring that your workers are classified correctly. By partnering with an EOR, you can confidently engage talent in the Turks and Caicos Islands while minimizing your legal and financial exposure.

Navigating compensation and payroll in the Turks and Caicos Islands is straightforward. The system is known for its absence of direct taxes like income tax. Instead, it relies on mandatory contributions to social security programs. This approach simplifies payroll but still requires careful attention to ensure you meet all your obligations as an employer. The local currency is the US dollar, which further simplifies transactions for many international businesses.

Payroll cycles & wage structure

You should pay your employees at least once a month. While monthly pay is most common, you can opt for bi-weekly payments, especially for hourly workers. Direct deposit into an employee's bank account is the standard method of payment. You must provide a clear and detailed payslip with every payment.

Wages vary based on the industry, role, and an employee's experience. The tourism and hospitality sector is a major driver of the economy and offers a wide range of pay scales.

Overtime & minimums

The standard workweek is 40 hours, typically spread over five 8-hour days. Any hours worked beyond this are considered overtime.

• Weekday Overtime: You must pay 1.5 times the employee's regular hourly rate for overtime worked on weekdays.
• Public Holidays: If an employee works on a public holiday, they are entitled to double their basic wage.

The minimum wage in the Turks and Caicos Islands is $6.25 per hour.

Employer taxes and contributions

As an employer, you are responsible for contributing to two main social security funds for each of your employees: the National Insurance Board (NIB) and the National Health Insurance Plan (NHIP). There are no corporate income taxes.

Employee taxes and deductions

Employees in the Turks and Caicos Islands do not pay any income tax. Their primary payroll deductions are for their portion of social security contributions.

In Turks and Caicos, the law provides a solid foundation for employee leave and benefits. The government sets clear minimums for time off and other entitlements. Many businesses, however, choose to offer more than the basic requirements to attract and keep great employees. This creates a competitive environment where benefits packages can vary.

Statutory leave

The law in Turks and Caicos establishes several types of mandatory leave for employees.

• Annual Leave: You are entitled to two weeks of paid annual leave after completing one year of employment. This can increase with your length of service.
• Sick Leave: You are entitled to paid sick leave if you are unable to work due to illness. The law provides for up to 10-12 days of paid sick leave per year. Your employer may require a medical certificate to verify your illness.
• Maternity Leave: Female employees with at least 12 months of service are entitled to 6-14 weeks of maternity leave.
• Paternity Leave: Male employees receive 3 days of paid leave following the birth of their child.

Public holidays & regional holidays

If you work on a public holiday, you are typically entitled to double your normal pay rate.

Typical supplemental benefits

Employers must provide statutory benefits. They often offer supplemental benefits to stay competitive.

How an EOR can help with setting up benefits

Setting up a competitive and compliant benefits package in a new country can be complex. An Employer of Record (EOR) simplifies this process.

An EOR already has a legal entity in Turks and Caicos. They understand the local laws and market standards for benefits.

Here is how an EOR can help:

• Ensure Compliance: An EOR makes sure your benefits package meets all legal requirements.
• Save Time: They handle all the administrative work of setting up and managing benefits.
• Offer Competitive Packages: An EOR can advise you on what supplemental benefits are common in your industry to help you attract top talent.
• Manage Contributions: They take care of mandatory contributions like National Insurance.

Using an EOR allows you to focus on your business goals while they handle the complexities of local HR and benefits administration.

When a working relationship ends in the Turks and Caicos Islands, you need to follow specific rules. The process involves providing adequate notice, and in some cases, severance pay. The local labor laws are in place to make sure terminations are handled fairly, protecting both you and your employee.

Notice periods

You must give employees written notice before termination. The minimum amount of notice depends on how long the employee has worked for you.

You can agree to a longer notice period in the employment contract, but not a shorter one.

Severance pay

If you are making a position redundant, you will likely need to provide severance pay. To be eligible, an employee must have been with your company for a minimum continuous period, which is typically one year.

The amount of severance is based on the employee's length of service:

• Up to 10 years of service: Two weeks' wages for each full year of work.
• More than 10 years of service: Three weeks' wages for each full year of work.

The calculation uses the employee's average weekly wage from the 12 weeks before termination.

How Rivermate handles compliant exits

Navigating the details of termination and offboarding can be complex. We make sure every step is handled correctly and in compliance with local laws.

Here is how we manage the process:

• Compliance check: We review the situation to ensure the termination is fair and lawful.
• Notice and communication: We prepare and deliver the official written notice to the employee.
• Final pay calculation: We calculate the final payment, including any outstanding salary, vacation pay, and severance.
• Documentation: We handle all the necessary paperwork to finalize the termination.

By managing these steps, we help you avoid legal issues and ensure a smooth and respectful exit process for your employee.

Working in the Turks and Caicos Islands as a foreign national means getting a work permit. The process is straightforward, but it has some key steps you need to follow. For most people, visiting as a tourist is visa-free, but this does not give you the right to work. Any paid activity requires a work permit. The system is designed to ensure that local residents have the first opportunity for jobs.

Employment visas & sponsorship realities

Getting a work permit in the Turks and Caicos Islands is tied to a specific job with a specific employer. This means you must have a job offer before you can apply. The employer is responsible for leading the application process.

A key step is the labor market test. Your employer must advertise the job locally to prove that no qualified Turks and Caicos Islanders are available for the position. This is a strict requirement.

For companies without a legal entity in the Turks and Caicos Islands, an Employer of Record (EOR) can be a practical solution. An EOR is a local company that can legally hire employees on your behalf. This allows you to hire in the country without setting up your own entity. The EOR handles payroll, taxes, benefits, and ensures you comply with local labor laws.

Here are the main types of work permits:

• Standard Work Permit This is the most common permit. It is issued for a specific job and is typically valid for one year, with the option to renew.
• Temporary Work Permit If your work is for a shorter period, like a specific project, you can get a temporary permit for up to 90 days.

The work permit system can be complex. The process can take several months, so it is important to plan ahead.

Business travel compliance

If you are visiting the Turks and Caicos Islands for short-term business activities, you have a couple of options. You cannot work on a standard tourist visa.

Here’s what you need to know:

• Temporary Work Permit (TWP) For short-term work or commercial activities up to ten days, you will need a TWP. You can arrange to have this permit before you travel or collect it at the airport when you arrive.
• Business Visitors Permit (BVP) If you are a non-resident who needs to be employed for temporary business purposes on a regular basis, your employer can apply for a BVP. This permit is granted for up to seven days per visit.

It is important to understand the rules for business travel to avoid any issues with immigration. Always make sure you have the correct permit for your activities.