Employer of Record in Belize
Skuad’s Belize EOR (Employer of Record) solution helps your business expand into Belize without the need for an entity setup. Belize is located on the northeast coast of Central America. Regarded as the last British colony in American land, it has a culturally diverse population. The startup or expansion of your company abroad calls for many challenges, including hiring and managing a remote team.
Skuad’s unified and automated global HR platform enables you to facilitate the onboarding of your remote team, manage payrolls, benefits, etc. in compliance with the local laws. It helps you streamline your global expansion process with the able assistance of its international network. Connect with Skuad experts to know more about its tailor-made HR solutions and automated platform that makes managing HR processes simpler than ever before.
Belize at a Glance
Population: 390,000
Currency: Belize Dollar (BZD)
Capital City: Belmopan
Languages: English, Creole, and Spanish
GDP: 1.88 billion (USD)
Employment in Belize
There are specific regulations on recruitment under different circumstances. The regulations are not applicable if:
- There are 20 or fewer employees under you
- You are hiring within the range of 10 miles from your company’s location.
- You want to hire domestic workers.
All oral contracts of service, contracts made by word of mouth, are governed by the Labour Act. It is against the law to make any oral contract that violates any provisions of the Labour Act that govern oral contracts. Workers must ensure their employers make deductions for Social Security contributions and pay those deductions to the Social Security Office. A worker should check with the nearest Social Security office to see whether or not the employer is paying. The mere fact that an employer makes Social Security deductions does not mean the deductions are being paid into the Social Security account. A worker should not leave it to the employer to register him or her and assist with obtaining a Social Security ID card.
The contract shall be made in writing when a contract of service of a worker-
- is made for a period of or exceeding three months or several working days equivalent to three months; o
- is a contract of service made within Belize and to be performed wholly or partially outside Belize; or
- stipulates conditions of employment which differ materially from those customary in the district of employment for similar work
| Entitlements |
Explanations |
| Statutory Working Hours |
45 Hours Per Week |
| Overtime Eligibility |
A worker who works more than:
- Eight hours per day under the Shops Act;
- Nine hours per day under the Labour Act;
- Six days per week; or 45 hours per week should be paid at the overtime rate of one and one-half times (1.5) the regular rate.
- A worker is not obligated to work overtime hours.
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| Paid Public Holidays |
- New Years Day
- Baron Bliss Day (9th March)
- Good Friday
- Holy Saturday
- Easter Monday
- Labour Day (1st May)
- Commonwealth Day (24th May)
- National Day (10th September)
- Independence Day (21st September)
- Pan-American Day (12th October)
- Garifuna Settlement Day (19th November)
- Boxing Day (26th December)
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| Holiday Pay |
A worker paid by the hour, by the day, by piece, or by task should be paid a day’s pay as holiday pay if he is at work on the scheduled workday, immediately preceding the public or bank holiday. Please note that the public and bank holiday has to fall on a normal working day for the worker to qualify for the holiday pay. There are thirteen public and bank holidays in Belize. All work done on Christmas, Good Friday, and Easter Monday is paid double the ordinary rate. All other public and bank holidays are paid at one-and-a-half times the ordinary rate.
If the rest day is the same every week, and public and bank holidays fall on the rest day, then the worker is NOT entitled to get paid for the public and bank holiday. The worker is not to lose from a regular week’s wages if a public holiday falls on a regular workday.
The Government Gazette comprises a list of holidays, the copy of which can be obtained from the Labour Department.
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| Medical Leave |
A worker has to be employed for at least sixty days to be entitled to sick leave with pay. Within any twelve months, he is entitled to sixteen working days of sick leave with full pay. A worker should produce a medical certificate to be entitled to sick leave with pay. An employer should give a worker in writing forty-eight hours to produce a medical certificate.
The employer pays the difference between payments made by the Social Security Board (SSB) and the employee’s basic rate of pay for sixteen working days. Payment after sixteen working days of illness will be paid by Social Security under the Social Security Act.
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| Maternity Leave |
A female worker is entitled to fourteen (14) weeks of maternity leave on full pay. Maternity leave shall be taken as follows:
- Up to a maximum of seven (7) weeks before the expected date of confinement;
- Up to a maximum of seven (7) weeks before the expected date of confinement;
- Two (2) weeks before and seven (7) weeks after the expected date of confinement is mandatory.
Provided that during the twelve months preceding her confinement, the same employer employed her for a period of not less than one hundred and fifty days (150) to qualify for full payment from the employer.
If a worker is entitled to maternity benefits under the Labour Act and Social Security Act, the worker will receive maternity benefits from Social Security and, in addition, be entitled to be paid by her employer the difference, if any.
Please note that an employer cannot terminate a worker during this period.
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| Annual Leave Accrual Entitlement |
Every worker at the end of each year is entitled to an annual leave of at least two (2) working weeks.
Where a worker is terminated before becoming entitled to the holiday and has worked three (3) months in respect of the Labour Act and 1 month in respect of the Shops Act, vacation accrues.
This is calculated as total remuneration (excluding overtime) divided by 26 per Labour Act and 1/6 multiplied by weekly wage multiplied by the number of months worked per the Shops Act.
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| Employee Protection and Anti-discrimination Rights |
Belize’s labor law has prohibited any form of discrimination based on the racial, social, national, or religious status of an individual. |
To ensure your expansion endeavors are in compliance with the Belize employment laws, Contact Skuad today.
Hiring in Belize
Every contract shall be presented by the employer within seven days of the agreement for attestation to a labor officer or other office authorized for the purpose by the Commissioner or the attesting officer. Any employer who fails or neglects to comply with this subsection commits an offense and is liable for summary conviction to a fine not exceeding two hundred and fifty dollars or imprisonment for a term not exceeding six months.
Before attesting any contract, the attesting officer shall-
Skuad’s expertise in EOR solutions can help onboard and manage employees with the need for a legal entity. While the businesses focus on their growth, Skuad takes care of the employee contracts, payroll, compliances, and benefits. Skuad’s services are driven by our product which is a self-serve, unified, and automated HR platform. Learn more about EOR solutions here.
Probation & Termination
The first two weeks of any employment are considered probationary and may be terminated by either party without notice.
Periods of notice:
Over two weeks to six months - one week
Over six months to two years - two weeks
Over two years to five years - four weeks
Over five years - eight weeks.
Good and sufficient cause for dismissal without notice:
- Misconduct (whether on the job or not);
- Wilful disobedience to lawful orders;
- Lack of skill which the worker express to possess;
- Habitual or substantial neglect of duties;
- Absence from work without the permission of the employer or other reasonable excuse.
EOR solution in Belize
The Employers of Record (EOR) model is a smart solution for companies seeking to enter and expand in Belize fast and agilely. With the help of Skuad's Employer of Record solution, business entities abroad can quickly source and hire the right professionals as per the organization's requirements. Hired employees get onboard seamlessly, helping your business save up a huge percentage of hiring and onboarding costs.
Skuad’s End-to-end solutions help manage employment contracts, process payroll and income tax, blend statutory benefits, and manage overall administration of the backend HR processes. Skuad EOR solution works as a unified employment platform with automated workflows, digital signatures, employee payroll, contractor payout, and all types of compliance solutions. Book a demo today.
Types of Visas in Belize
Belize only has one work visa type; however, people can apply for it in many circumstances — self-employment and standard employment. The application process is identical for both scenarios; however, the required documents candidates have to attach are slightly distinct. The visa also lasts for a year and has to be renewed.
Self-employment work visas are for individuals wishing to begin and run an organization within the country. You must apply for this visa as a part of your expansion process and present your registration and change license together with your application.
Regular employment work permits are for non-nationals seeking to work inside the country. In this circumstance, applicants require a job offer and employment letter to submit with their application. To qualify for the permit, the individual has to fall right into a specific employment category.
Work Permit
As a global employer, you could choose to handle your employee’s work visa application process; however, it’s not necessary. To process the work permit, applicants will need:
- A legitimate passport
- Copies of their bio-data pages.
- Three copies of their passport photos.
- A Belize police report from the past six months.
- An employment letter from you.
- A letter of recommendation from a relevant ministry and local organization concerned with the employment category.
- Relevant certificates.
- Three job advertisement clippings.
- The period of and expenses for the permit depending on the applicant’s profession.
Government officers make sure you've completed everything possible to hire nationals for your vacancies. The job advertisement clippings have to prove that you’ve published your open position for at least three weeks before inquiring about the service of a non-national.
The Department of Immigration and Nationality additionally ensures that the applicant has a desirable character and is competent for the position. The department frequently asks for police reports, training certificates, and confirmations from different groups to verify this.
Payrolls & Taxation: Things You Must Know To Set Up Payroll In Singapore
Your payroll setup method relies upon the management approach you choose. If you set up an internal department, you want to create a subsidiary in the country first. This technique calls for clearance from the authorities and an established corporate structure.
Beyond the subsidiary method, setting up payroll requires your employees’ tax ID numbers and social security numbers. These IDs will let you deduct income tax and make a contribution to the social security fund.
Taxes in Belize
With a flat 25 percent income tax in Belize, the primary BZD 26,000 in income is tax-free. You are accountable for deducting those taxes from workers’ paychecks and filing those deductions to the Belize Tax Service. Paycheck deductions additionally consist of contributions to the social safety fund. You and your employees contribute a collective nine percentage; however, the break-up relies upon an employee’s income. The first tier calls for 1.69 percent from the worker and 7.31 percent from you. As an employee earns greater, they upload a larger quantity to the nine percent contribution. The most contribution a worker will make is 3.91 percent at BZD 460 or greater in insurable income.
Incorporation: How to Set Up A Subsidiary in Belize
To set up a subsidiary, you must obtain a work permit. The country does not permit funding activity until you have proper clearance. Make sure to obtain a work permit from the Department of Immigration and Nationality when incorporating your company.
The most notable subsidiary regulation is the specified memorandum and articles of association. This document gives a framework for how you’ll run your company. It has to include the way you appoint directors, cope with finances, and report tax information.
Incorporating in a foreign country requires valuable sources but can result in a beneficial result. When you have an official business enterprise in the country, this entity is separate from your parent company. This allows your subsidiary to create its very own identity and combine it into the local professional culture. This arrangement is likewise ideal for separated liability. If a legal difficulty arises along with your subsidiary, it doesn’t affect your parent organization. This lowers your liability charges and guarantees your parent organization remains intact.
PEO
A professional employer organization (PEO) is a third-party organization that provides human resources services to small-and-medium-sized enterprises. It manages the entire HR function and shares responsibilities and liabilities but only if your organization is registered in the country. You may need to file tax under your tax ID if you choose to collaborate with a PEO. A PEO acts as your co-employer.
On the other hand, an EOR acts as the legal employer of your employees. It assumes all the responsibilities and liabilities of your remote team. You can outsource a specific HR function or end-to-end activities. An EOR allows you to expand your workforce without setting up a business entity. It handles payroll funding, worker’s compensation, and unemployment claims and reports. It files taxes under its file ID number. In other words, if you join hands with an employer of record, you are free from managing the human resources function during your business expansion.
Skuad's EOR solution is a good way to expand your business in Belize without setting up a separate entity. Our solutions help you to stay focused on your business and leave all business compliances, payroll processing and complete management work to us. Connect with Skuad to know more.
Conclusion
Businesses looking to expand their workforce in promising regions may find Belize an attractive destination especially if you have an employer of record like Skuad as a partner. Its one-of-a-kind EOR solution lets you streamline and expedite your global expansion process. Book a demo with Skuad experts to know more.
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