Labor Law

Jamaica Employment Contract

In Jamaica, an employment contract can be oral or written. However, we recommend that you always write a formal contract when recruiting in Jamaica. The contract should be written in English, referenced to the local currency, the Jamaican dollar, and include all relevant details such as salary, benefits, working hours, etc.

Fixed Term

Probation	3 – 6 months (standard)
Termination notice period	2 weeks notice: 0 – 5 years of service 4 weeks notice: 5 – 10 years of service 6 weeks notice: 10 – 15 years of service 8 weeks notice: 15 – 20 years of service 12 weeks notice: 20+ years of service
Severance pay	2 weeks salary per annum for first 10 years of service only in case of redundancy 3 weeks salary per annum after 10 years of service

Indefinite

Probation	3 – 6 months (standard)
Termination notice period	2 weeks notice: 0 – 5 years of service 4 weeks notice: 5 – 10 years of service 6 weeks notice: 10 – 15 years of service 8 weeks notice: 15 – 20 years of service 12 weeks notice: 20+ years of service
Severance pay	2 weeks salary per annum for first 10 years of service only in case of redundancy 3 weeks salary per annum after 10 years of service

Working Hours in Jamaica

The standard working week for employees in Jamaica is 40 hours. Any time worked in excess of 40 hours must be paid overtime.

Holiday Policy

Jamaica Holidays

Employees in Jamaica are generally entitled to at least ten days of paid leave per year. After more than 10 years of employment with the employer, this right increases to 15 days.

Jamaica Sick Leave

After 110 days of service with the employer, employees in Jamaica are entitled to accrue one day of paid sick leave for every 22 days of service completed. After one year of employment, employees are entitled to two weeks of paid sick leave.

Maternity and Paternity Leave in Jamaica

After one year of service to their employer, female employees in Jamaica are entitled to 12 weeks of maternity leave, with the first eight weeks being paid.

Employee Severance Pay and Termination in Jamaica

Employees in Jamaica are generally entitled to receive between 2 and 12 weeks' notice before terminating their contract. The specific period of mandatory notice depends on the employee's number of years of service with the employer.

If severance pay is required, the amount is usually capped at 22 weeks' wages.

Jamaica Tax Laws

Both employers and employees in Jamaica are required to contribute part of their wages to social security at a rate of 2.5%. In addition, employers must contribute at least 5% to the pension fund for each employee.

Income tax for most employees in Jamaica is 25%.

Corporate taxes in Jamaica vary depending on the type of company. For most companies regulated by the Bank of Jamaica, the tax rate is 33% and one-third. For unregulated businesses, the tax rate is 25%. Other rates apply to other types of businesses, such as building societies.

Health Insurance in Jamaica

Jamaica has a public healthcare system, so employers are not required to provide private health insurance. However, some may choose to offer it as a benefit.

Salary and Benefits

Reparations Law in Jamaica

For most workers in Jamaica, the mandatory minimum wage is JMD 7,000 per week.

Welfare Administration in Jamaica

As a Jamaican employer, managing your benefits package may include setting up private health insurance, supplementary parental leave payments, a company car and more.

Setting up such a benefits system for Jamaican employees can be difficult if you are not familiar with Jamaica and its unique labor laws. If you want to set up a benefits system independently, it may take weeks or even months, which could significantly delay your expansion in Jamaica.

Remoly can simplify your Jamaican benefits administration, with our Jamaican experts setting up and managing everything for you and helping you focus on successfully expanding your business.

Remoly, bringing it all together

All you need is the Internet and Remoly.