Jamaica
Fixed-term contracts are legally permitted in Jamaica and naturally conclude at the end of the agreed term without the need for notice or severance. These contracts must be based on a legitimate, time-bound reason such as seasonal work or a specific project. While there is no statutory limit on the number of times a fixed-term contract may be renewed, repeated renewals may attract increased scrutiny to ensure the arrangement is not being used to circumvent permanent engagement obligations. Notably, if a Worker continues working beyond the contract’s expiration without formal renewal, the contract may be automatically reclassified as an indefinite-term agreement.
Holidays – Workers in Jamaica are entitled to 10 paid public holidays, as recognized under both the Public General Act and the Holidays with Pay Act. These holidays include: New Year’s Day Ash Wednesday Good Friday Easter Monday Labour Day (May 23) Emancipation Day (August 1) Independence Day (August 6) National Heroes’ Day (third Monday in October) Christmas Day Boxing Day These days are guaranteed paid time off. If a public holiday falls on a Sunday, it is observed on the following Monday. If a Worker is required to work on a public holiday, they are entitled to either double pay (200%) or a compensatory day off.
In Jamaica, Workers are entitled to a minimum of 10 days of paid vacation annually after completing 110 days of continuous service. After 10 years of service, this entitlement increases to at least 15 days of paid vacation per year. Unused vacation days do not automatically carry over to the next year, unless agreed upon by the parties. Upon termination of the engagement, any accrued but unused vacation leave must be paid out to the Worker.
In Jamaica, Workers can be classified in several ways based on the nature of their engagement. These classifications typically fall under categories such as type of contract (fixed-term, indefinite), work arrangements (full-time, part-time, remote), and type of engagement (permanent, temporary, casual, or seasonal).
Probationary periods are allowed in Jamaica and commonly used to assess a worker's suitability for a role. If the probationary period is 90 days or less, the engagement may be terminated without notice. However, for probationary periods exceeding 90 days statutory termination notice is required.
After 110 days of service, Workers are entitled to 1 sick day for every 22 days of work. After 1 year, Workers are entitled to 2 weeks of annual sick leave. Workers must provide notice of injury/illness on the first working day after it occurred. If the absence exceeds three days, they should provide a certificate from a registered medical practitioner.
The standard workweek in Jamaica consists of 40 hours, typically structured as 8 hours per day over 5 days. However, flexible arrangements may be made, allowing workers to complete their 40-hour workweek through alternative schedules up to a maximum of 12 hours per day. While meal and rest breaks are not mandated by law, they are commonly granted as a matter of workplace practice.
In Jamaica, any hours worked beyond the standard 40-hour workweek are considered overtime and must be compensated at 150% of the Worker's hourly wage. If a Worker is required to work on a designated rest day, they are entitled to premium pay at 200% their usual rate.
There are no mandatory bonuses in Jamaica.
In Jamaica, the termination of engagement, except in cases of gross misconduct, requires notice or payment in lieu, as well as severance once a worker has completed at least four weeks of service. Written notice must be provided based on the Worker's length of service as follows: 0-5 years: 2 weeks 5-10 years: 4 weeks 10-15 years: 6 weeks 15-20 years: 8 weeks Over 20 years: 12 weeks. The notice must be providing in writing or delivered verbally in the presence of a credible witness. Workers may also choose to waive their right to notice. Severance pay is mandatory for terminating a Worker who has completed at least four weeks of service. When termination is due to economic reasons rather an the Worker's conduct or performance, it is classified as a redundancy. Workers with a minimum of two years' service are entitled to redundancy pay, calculated as two weeks of pay per year of service for the first ten years and three weeks’ pay per year of service for each additional year beyond 10 years. Workers must be provided with written notice detailing the calculation of their redundancy pay.
Workers who have completed at least four weeks of service are required to provide a minimum of two weeks' notice when resigning from their engagement.
Severance pay is mandatory for terminating a Worker who has completed at least four weeks of service. When termination is due to economic reasons rather an the Worker's conduct or performance, it is classified as a redundancy. Workers with a minimum of two years' service are entitled to redundancy pay, calculated as two weeks of pay per year of service for the first ten years and three weeks’ pay per year of service for each additional year beyond 10 years. Workers must be provided with written notice detailing the calculation of their redundancy pay.
National Insurance Scheme (NIS), National Housing Trust (NHT), Human Employment & Resources Training (HEART) = ~ 12.50%
TCWGlobal stands unmatched as the leading employer of record service provider. Our global reach, expertise in diverse industries, and commitment to client satisfaction makes us the best choice. Looking for a global employer of record or international payrolling partner that will work with you and not for you? Trust TCWGlobal. We are here for you.
When choosing an Employer of Record (EOR) service, people often make mistakes such as overlooking compliance, global reach, technology integration, company experience, and fee transparency. Watch this video to see what to consider when picking an EOR.