Jersey PEO & Employer of Record Services
Global PEO Services (GPS) helps companies hire employees in Jersey without establishing a legal entity. All human resources, benefits, payroll, and tax needs for the employees are managed by the Global PEO, while the new hires and headquarter teams focus on your business goals.
When hiring employees in Jersey, establishing a subsidiary or branch office is not always the best route, as it’s often a lengthy and expensive process. Hiring via a Professional Employer Organization (PEO), or Employer of Record (EOR), is a faster and often more effective option – especially when starting up in a new country.
Global PEO Services hires the employees on your behalf, legally contracting them through our subsidiary in accordance with Jersey labor laws. As a result, the burden of compliance is on us and the employees can begin work for your company in a matter of days. PEOs/EORs provide you with a streamlined option for hiring employees, testing markets, and responding to growing business needs in Jersey. With Global PEO Services, you get control without taking on legal entity liabilities, contractor risks, or sacrificing on talent or speed to market.
Jersey - Country Overview
Jersey is one of the Channel Islands, located between England and France. The country is well-known for its beaches, inland valleys, cliffside walking trails, and historic castles. When it comes to the economy, the current Gross Domestic Product or GDP of Jersey is £4.11 billion, and the annual GDP growth is 1%. The Gross Value Added or GVA of the country manifests the economic activities in the country where the predominant sectors are financial services, rental income from private households, miscellaneous business activities, public administration, wholesale & retail, construction, and hotel/restaurants.
Capital City
Saint Helier
Currency
Jersey Pound
Principal Language
English and French
Government
A Self-governing Dependency of the United Kingdom
Major Cities
St. John, St. Aubin, Gorey, St. Peter
Employment Contracts in Jersey
According to the Employment (Jersey) Law 2003, employers are required to provide a statement of employment particulars to all the employees whose regular hours of work are a minimum of 8 hours per week. The statement also contains the following details:
- The employment commencement date
- Place of work or the worksite
- Hours of work
- Remuneration
- Holidays and other benefits
- Notice periods
- Disciplinary and grievance procedures
Employers must provide the statement to their employees within 4 weeks after the employment commences. Employers who fail to provide the employment details in writing to employees may face a fine not exceeding GB£5,000.
The Jersey Employment Tribunal deals with all the employment disputes except those which include a breach of contract of more than GB£10,000, personal injury matters and injunctions. These are taken care of by the Royal Court.
Working Hours in Jersey
There are no prevalent statutory restrictions on the number of hours employees can work per day or week. However, the law provides for statutory restrictions for employers when it comes to providing adequate rest breaks. Also, employers need to be aware of the overriding duty of care toward employees who work overtime.
Employee Leave in Jersey
Holidays
There are 9 public holidays observed in Jersey:
- New Year’s Day
- Good Friday
- Easter Monday
- May Bank Holiday
- Spring Bank Holiday
- Summer Bank Holiday
- Christmas Day
- Boxing Day
- Liberation Day
Liberation Day (May 9) will only be a bank holiday if it falls on a weekday (Monday to Friday).
Annual Leave
Employees are entitled to a minimum of 2 weeks’ paid annual leave every year. A leave year can commence on a specific date in a relevant agreement, or if no date is specified, it is deemed to begin on the employment commencement date and each subsequent anniversary.
Sick Leave
Employees can take time off work for illness or injury as stated in the employment contract. Though there is no statutory right to take leave due to sickness except the general protection against unfair dismissal. Some employers usually provide a certain level of support.
Maternity Leave
Women employees may get paid maternity leave for up to 18 weeks, but only when they are not working. The earliest maternity benefit women employees can receive is the allowance, payable 11 weeks before the baby is due. The amount of this allowance depends on an employee’s contributions history.
Currently, the amount of full maternity allowance is GB£184.45 a week. The 18-week payment period can be extended if the baby is born late. The maternity leave period is usually divided into the following segments:
- 6 weeks before the birth
- The week of the birth
- 11 weeks after the birth
If employees have an agreement with their employers regarding payment during maternity leave, this should be specified in the employment contract, and usually applies after employees complete between 6 and 12 months’ service.
Employee Benefits in Jersey
Social Security Contributions
Employers must pay primary and secondary contributions for all of their employees as mentioned below:
- The primary contribution is 6% of employees’ monthly (or weekly) gross monthly earnings. This is deductible from employees’ gross wages before it is paid to them.
- The secondary contribution is 6.5% of employees’ gross monthly earnings. The employer pays this in addition to paying employees’ wages.
For employees working outside Jersey temporarily, contributions continue according to the country’s employment regulations.
Pension
Employees need not make stand-alone pension contributions, and they pay 6% of their gross salary to the Department of Social Security. Employers pay 6.5% of their employees’ gross (also an additional 2% as and when applicable) salary to the Department.
Linked to Employees’ Salary
Though not mandatory, it is common for employers to contribute to a supplementary pension plan for their employees. Any supplementary plan is run complying with certain rules. Every pension plan varies as it is tailored to the needs of employees.
Linked to Employer and Employee Contributions
A majority of the pension plans are currently defined contribution (DC) plans, and therefore pension entitlement cannot be determined at the beginning as it depends on the total contributions. The total value of the pension can only be accurately determined at the time of retirement.