Employer of Record in Guernsey

Hiring independent contractors has boomed in popularity because of the cost savings and flexibility they offer. It can be a great option if you require niche skills or short-term project support. Contractors allow businesses to access specialized skills quickly, without the time and cost of setting up a local entity.

However, it’s important to know the limits of this model: contractors are not a substitute for full-time employees. Relying on them for ongoing, long-term roles can create serious compliance risks, including employee misclassification, which can lead to fines, back taxes, and reputational damage.

Playroll’s contractor management solutions make it simple to compliantly engage, onboard, and pay contractors around the world. We provide clear visibility into agreements, streamline payments, and reduce compliance risks – so you can focus on getting the work done. And when you’re ready to take the next step, we can help seamlessly convert contractors into full-time employees through our global Employer of Record service.

Businesses can only operate smoothly in Guernsey if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Guernsey below, to avoid any compliance issues.

Employment Contract Requirements

Under the Conditions of Employment (Guernsey) Law 1985, it is mandatory for employers to provide employees with a written statement detailing the terms of their employment within four weeks of their commencement of work. This written statement must encompass the following information:

• Identity of both parties
• Job title
• Commencement date of employment (and expiry date of any fixed contract, if applicable)
• Hours of work
• Notice periods
• Maternity pay and leave
• Details of pay, including overtime, shift pay, and other benefits, along with payment schedule
• Entitlement to holidays and holiday pay, sickness and sick pay, and pension.

Onboarding Process

We can help you get a new employee started in Guernsey quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Guernsey

Guernsey does not have mandatory limits on working hours or rest breaks. Therefore, it's vital for both employers and employees to clearly document all terms and conditions regarding work hours in writing.

Overtime in Guernsey

Under Guernsey's Conditions of Employment Law, 1985, it is also necessary to include overtime rates (if applicable) in the written statement of employment or contract of employment.

Probation Period in Guernsey

Guernsey does not enforce a statutory probationary period; instead, it is typically addressed within the terms of the employment contract. These probationary periods generally span from three to six months, yet they may differ based on the employer's discretion and the specifics of the position.

Setting up a local legal entity in Guernsey can be time-consuming and expensive. It often involves complex paperwork, local representation, banking, registrations, and ongoing tax filings, which isn't cost-effective if you're simply looking to hire a few employees or test the market. An Employer of Record removes these barriers entirely. Instead of spending months establishing a presence, an EOR lets you hire and onboard employees within days while staying fully compliant.

This enables faster market entry and greater agility. Whether you’re launching a pilot program, supporting a regional client, or adding specialized talent, you don't need to commit to long-term infrastructure to explore new business opportunities. The EOR handles local employment logistics while you retain day-to-day oversight of your hires. This model lets you scale up or down based on business needs, giving you more flexibility with less overhead and risk.

Fiscal Year in Guernsey

1 April to 31 March is the 12-month accounting period that businesses in Guernsey use for financial and tax reporting purposes.

Payroll Cycle in Guernsey

The payroll cycle in Guernsey is usually monthly , with employees being paid as stipulated in employment contract.

Minimum Wage in Guernsey

As of October 1, 2025, Guernsey's minimum wage rates are as follows:

• Adult Workers (18 years and over): £12.60 per hour
• Young Workers (16 and 17 years old): £11.35 per hour (90% of the adult rate)

These rates reflect a 5% increase from the previous rates, effective October 1, 2025, following approval by the States of Guernsey.

Bonus Payments in Guernsey

In Guernsey, there is no requirement for employers to provide 13th or 14th cheques. It typically depends on the company's policies and practices, as well as any agreements negotiated between the employer and employees.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 7% on top of the employee salary in Guernsey.

Employee Payroll Tax Contributions

In Guernsey , the typical estimation for employee payroll contributions cost is around 7.4%.

Individual Income Tax Contributions

In Guernsey, income tax is applied at a flat rate for employees, regardless of income level.

Pension in Guernsey

In Guernsey, pensions primarily comprise of employer-sponsored occupational schemes and personal pensions established by individuals. Although a basic state pension is provided, numerous residents choose to supplement it with private pensions for a more secure retirement.

One of the biggest risks in global hiring is payroll mismanagement. In Guernsey, even small errors in tax reporting or social contribution payments can trigger audits, fines, or reputational damage. For companies without in-country expertise, the risk isn’t worth taking. An Employer of Record removes this burden by owning the legal responsibility of payroll, executing every step with built-in compliance.

Key Ways an EOR Supports Payroll in Guernsey:

• Mitigates Compliance Risk: Oversees all legal obligations for payroll, tax filings, and recordkeeping.
• Local Regulatory Expertise: Interprets and applies Guernsey’s latest labor and tax changes in real time.
• Free Processing: Reduces mistakes in wage calculations and reporting through built
• Payroll Record Management: Maintains compliant payroll audit trails and documentation for each employee.

In Guernsey, work permits and visas are necessary for employers hiring foreign talent. The primary permits include the Short Term Employment Permit (STEP), Long Term Employment Permit (LTEP), and Seasonal Employment Permit (SEP).

Each permit type comes with specific criteria, durations, and accommodation requirements. Employers must submit applications, pay relevant fees, and adhere to local regulations when sponsoring international employees.

Mandatory Leave Entitlement in Guernsey

The annual leave entitlement in Guernsey is 0 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid. There is no statutory entitlement to paid leave, including annual leave.

Public Holidays in Guernsey

In Guernsey, benefits play a central role in attracting and retaining top talent. Employees often expect more than just a paycheck – they're looking for stability, healthcare coverage, pension plans, and other perks that show a company is invested in their well-being. If you're not familiar with what’s standard or required, you risk falling short. An Employer of Record helps bridge that gap by administering a locally competitive benefits package that meets both legal requirements and employee expectations.

An EOR doesn't just check boxes, they make sure your employees receive benefits that are timely, properly communicated, and well-managed from the moment they’re onboarded. From managing healthcare contributions to adjusting for regional differences in leave or bonus entitlements, an EOR acts as both a legal and operational partner. The result is a better employee experience, less administrative burden on your internal team, and greater confidence that your offer is aligned with what top candidates in Guernsey actually want and need.

Termination Process in Guernsey

In Guernsey, there are various grounds for a valid dismissal, which may include:

• Insufficient capacity of the employee, whether in terms of skills, qualifications (academic or technical), or health.
• Misconduct of the employee.
• Redundancy, which can occur due to business needs, changes in the workplace, or employee redundancy.
• Other significant reasons, such as business reorganization.
• Contravention of a duty or restriction under Guernsey law.

Notice Period in Guernsey

For employees not under a fixed-term agreement, the minimum notice period an employer must provide to terminate employment depends on the duration of continuous service:

• Between one month and less than two years: a minimum of one week's notice.
• Between two years and less than five years: a minimum of two weeks' notice.
• Five years or more: a minimum of four weeks' notice.

Severance in Guernsey

Employers are not legally obligated to offer severance pay to dismissed employees. However, they have the option to include this provision in employment contracts.