Trinidad and Tobago

Employer of Record in Trinidad and Tobago

Trinidad and Tobago is an island country near the southernmost tip of the Caribbean chain. 

Over the years, two main islands have grown as the major financial centers in the Caribbean, setting a solid ground for foreign investments and global business expansion. 

Hiring in Trinidad and Tobago can be challenging. You can supplement the local workforce with foreign-skilled workers; however, you must comply with the statutory terms and conditions of employment in Trinidad and Tobago. 

Fortunately, an EOR (Employer of Record in Trinidad and Tobago) can simplify your hiring process. 

Take Skuad’s Trinidad and Tobago Employer of Record solutions for example. 

Our unique HR platform allows companies to hire exceptionally talented employees in Trinidad and Tobago without setting up a separate legal entity. 

It streamlines hiring and onboarding a remote team by handling payroll management, taxation, and other legal compliances. 

To learn more about Skuad, book a demo today. 

In this comprehensive guide, we have explored all aspects of employment in Trinidad and Tobago, providing you with valuable insights into the country's labor market regulations, salary insights, employee cost calculations, and best practices per Trinidad and Tobago culture.

Trinidad and Tobago at a Glance

• Population: 1,403,976 (2021, according to United Nations’ latest data)
• Currency: Trinidadian dollar (TTD) 
• Capital: Port of Spain
• Languages: English (official language,) Trinidadian English Creole, Trinidadian Hindustani, Tobagonian Creole‍
• Gross Domestic Product (GDP): USD 24.10 billion in 2019; expected to reach USD 27 billion by 2021.

Hiring in Trinidad and Tobago

To hire employees in Trinidad and Tobago, employers must create an appropriate job advertisement and ensure that they provide a proper job description mentioning the job role, responsibilities, and wage. 

A well-defined job post increases the chances of getting only suitable candidates. There are various websites where employers can post advertisements.

• Trinidad Job.com
• CaribbeanJob.com
• LinkedIn
• TTConnect

Employment compliance laws are different in different countries. 

For hiring employees in Trinidad and Tobago, the employers must register every new worker with the National Insurance Board (NIBTT) within the first seven days of recruiting the employee. The employees should also be registered with the Board of Inland Revenue (BIR). 

The new employees will receive a TD1 form from BIR to start working with the company. 

Although there is no definite time limit to register with BIR, completing the process as soon as possible is always better.

Once the employees register with NIBTT and BIR and sign the documents related to employment agreements, they can proceed to fulfill the company’s internal requirements. 

For example, companies can provide training to new employees by organizing events to familiarize them with their daily tasks and responsibilities.

However, the tedious hiring process takes a lot of time and effort, making it difficult for companies to handle their core tasks. 

You can easily handle the hiring and recruitment process by utilizing Skuad’s EOR solution, which ensures organizations are fully compliant with the country’s employment laws. 

Contact our team today to learn more about the recruitment process in Trinidad and Tobago.

Incorporation: How to Set Up a Subsidiary in Trinidad and Tobago

Choose a location that best suits your company’s requirements. Different laws apply to different regions in the country, so it is essential to be aware of the local laws.

Decide on the subsidiary structure, whether your company is a public limited company, limited liability company, or private limited company.

Each entity possesses distinct laws that employers need to follow. Incorporating a holding company in Trinidad and Tobago can take up to a month. 

However, once the process is complete, employers can build a legal presence in the county, hire employees, and set up payrolls.

Of all the options, a limited liability company is the most popular. To set up a limited liability company in Trinidad and Tobago, your company must,

• Register as a legal entity with the registrar 
• Register with the BIR
• Obtain BIR and PAYE numbers
• Register for National Insurance as the formal employer within two weeks of hiring your first employee.
• Register a name for your business 
• Draft and register articles of incorporation
• Acquire a certificate of incorporation

The huge business opportunities in Trinidad and Tobago attract many employers. However, operating a business while being compliant with the system is tricky. 

Skuad’s unmatched EOR solutions offer an integrated global remote team management platform. Talk to us to learn more about setting up a subsidiary in Trinidad and Tobago.

Pros & cons of setting up an entity

Pros:

• You have complete control over your operations and can tailor your business structure to your needs.
• Establishing an entity demonstrates a long-term commitment to the Trinidadian market.
• You may be eligible for certain tax incentives or exemptions.

Cons:

• Setting up an entity and hiring in Trinidad and Tobago can be complex and time-consuming.
• You will be responsible for complying with local labor laws, tax regulations, and other administrative requirements.

Alternatively, Skuad offers a convenient and efficient solution for global businesses looking to expand into the Caribbean by acting as an employer of record in Trinidad and Tobago. 

EOR Solution in Trinidad and Tobago

Business expansion is a long-drawn process that requires extensive planning, significantly when expanding to a foreign country. 

It is complicated and can take up to several months to complete, but by choosing the EOR route for hiring employees in Trinidad and Tobago, you can fast-track the expansion process. 

Employer of Record Trinidad and Tobago (EOR) solutions by Skuad can make expansion to Trinidad and Tobago much more straightforward and quicker for business. 

Our global outreach and tech-enriched HR platform ensures compliance with local labor laws by managing employment responsibilities such as monthly payroll, work permits, employment contracts, and taxation for your employees in Trinidad and Tobago. 

Book a demo with Skuad today.

Onboarding & Agreements per Labor Laws in Trinidad and Tobago

Onboarding new employees is an exciting process, supplemented by the terms and conditions of employment in Trinidad and Tobago based on statutory requirements. 

How to successfully onboard employees in Trinidad and Tobago

A successful onboarding process can improve employee retention, productivity, and satisfaction. Here are some tips for successfully onboarding employees in Trinidad and Tobago:

• Trinidad and Tobago has several labor laws that apply to onboarding, such as minimum wage requirements, statutory working hours and leave, and notice periods. Ensure that your onboarding process is compliant with these labor laws.
• Some paperwork, such as tax forms and employment contracts, needs to be completed during onboarding. Ensure you have all the necessary paperwork in order and that it is completed correctly.
• Be clear about what is expected of the new employee in their role. This includes things like their job duties, performance goals, and deadlines.
• Provide them with ongoing support and development opportunities to help them succeed in their role.

Visit our blog for more effective onboarding strategies. 

Types of employment agreements in Trinidad and Tobago

The employment agreements in Trinidad and Tobago can be of various types, such as,

• Permanent contract
• Part-time contract
• Fixed-term contract
• Agency contract
• Contractor Agreement
• Casual contract

Onboarding Checklist

Here is the quick checklist to simplify your onboarding task: 

Pre-Employment Verification

• Verify the employee's identity and eligibility to work in Trinidad and Tobago.
• Obtain necessary work permits or visas if required.
• Conduct reference checks and background screenings.

Employment Contract

• Draft a comprehensive employment contract that outlines the following:
  • Parties involved
  • Job title and description
  • Start date and probationary period
  • Compensation and benefits
  • Working hours and overtime
  • Sic and vacation leave entitlements in Trinidad and Tobago
  • Termination clauses
  • Confidentiality and non-compete agreements (if applicable)

Payroll Setup

• Collect necessary tax forms and documentation from the employee.
• Ensure proper registration with the relevant tax authorities.
• Set up payroll deductions for taxes, social security contributions, and other statutory payments.

Mandatory Benefits

• Enroll employees in mandatory benefits programs like the National Insurance Scheme (NIS) and the Health Surcharge.
• Information about other available benefits, such as group health insurance or pension plans.

HR Documentation

• Maintain a personnel file for the employee, including copies of all relevant documents.
• Update employee records with any changes in personal information or employment status.

Orientation and Training

• Conduct a thorough orientation program to familiarize employees with the company's culture, policies, and procedures.
• Provide training to equip employees with the skills and knowledge required for their role.

Performance Management

• Establish performance expectations and goals for the employee.
• Implement a performance review process to evaluate the employee's performance and provide feedback.

Compliance with Labor Laws

• Ensure compliance with all relevant labor laws in Trinidad and Tobago, including:
  • Minimum wage requirements
  • Working hours and overtime regulations
  • Maternity and paternity leave provisions
  • Workplace safety standards
  • Anti-discrimination laws

Employee Handbook

• Provide the employee with a copy of the company's employee handbook, which outlines policies and procedures related to various aspects of employment.

Taxation in Trinidad and Tobago

Different countries have different taxation rules. Here are all the payroll tax rates applicable for Trinidad and Tobago employees and employers

Two other key taxes are: 

Employer payroll taxes

Employee payroll taxes

VAT

• Value Added Tax (VAT) is a tax in Trinidad and Tobago that applies to goods and services. It's included in the final price you pay. 
• The VAT rate is 12.5%.
• Businesses that are registered for VAT need to collect this tax from their customers. They must also submit VAT returns and pay any owed VAT to the Inland Revenue Division of the Ministry of Finance.

‍Talk to us and learn more about payroll and taxes in Trinidad and Tobago!

Compliance for Hiring Employees in Trinidad and Tobago

Trinidad and Tobago has a robust legal framework governing employment relationships. Here are some key labor laws and regulations that employers must comply with:

Employment Act in Trinidad and Tobago

The International Labor Organization regulates the Trinidad and Tobago employment laws. There are different terms and conditions related to HR activities for expansion into the country. Let’s look at some of the major terms related to Trinidad and Tobago labor laws: 

Worker rights under employment act in Trinidad and Tobago: 

Contractors vs. full-time employees

Among the different employment contracts, the two most widely used employment contracts in Trinidad and Tobago are fixed-term contracts and full-time agreements. Other employment contracts are,

• Agency contracts 
• Zero-hour contracts
• Freelance contracts 
• Part-time contracts

Full-time employees are gradually becoming less popular than contractors. However, it is important to note that full-time contracts and fixed-term contracts are two different employment contracts in Trinidad and Tobago.

More and more employers are now switching to contractors or fixed-term contracts. Under full-time contracts, employees work as per normal working hours, 40 hours a week, and are entitled to all employee benefits.

On the other hand, under a contractor’s agreement, the employees will not receive any employee benefits and severance is easier in these contracts. The employees get flexible working hours and payment according to working hours in Trinidad and Tobago.

Contracts can be written or oral, although written contracts are recommended. They should specify all the terms of employment, including roles and responsibilities, work hours, compensation and benefits, leave policies, overtime policies, and compliance-related requirements.

Advantages of Hiring Contractors

• Flexibility: Since contractors are hired on a short-term basis, you are free to temporarily determine the scope of their work. If new needs arise, further contracts can be drafted in the short term.
• Independence: Short-term contractors usually work independently and on their timelines. They do not require close supervision, and your resources can be transferred elsewhere,
• Cost: Hiring contractors may be cheaper in the long run, although their individual rates are higher than those of full-time employees. This is because contractors are not entitled to employment benefits such as bonuses and tax compensation.

Advantages of Hiring Full-time Employees

• Loyalty and organizational commitment: Full-time employees will likely be more loyal as they exclusively work for your company. As their success depends on your firm's performance, they are likely to invest more effort into their work.
• Knowledge: All employees undergo training when they join a firm. However, the skills and knowledge a full-time employee gains will stay within the organization.
• Legal freedom: Since full-time employees are defined as such in their contracts from the outset, misclassifications can be avoided completely. When hiring full-time employees, you determine the contract terms and entitlements, which are not liable to change unless mutually decided by both parties.

Learn more from Skuad experts about the pros and cons of hiring contractors and full-time employees in Trinidad and Tobago.

Fines/Penalties for employers for non-compliance

You can reduce the risk of legal disputes and penalties by using an Employer of Record in Trinidad and Tobago. 

IP protection in Trinidad and Tobago

The Data Protection Act of 2011 provides that employees’ data may be collected, used, or delivered to third parties only if permitted by the employees.

Immigration in Trinidad and Tobago: Types of visas & work permit

Foreign nationals from the United States and many other countries do not need a visa to visit Trinidad and Tobago temporarily. However, to stay in the country for a long time and work, you will need to obtain work permits.

Trinidad and Tobago work visas can be obtained initially for three years. Other types of work visas include work permits for less than a year and applications for work visas for more than one year.

There are Trinidad and Tobago work visa requirements that every foreign national applying for work visas in Trinidad and Tobago must abide by. The information related to work visas in Trinidad and Tobago is given below.

Talk to us and get more information and guidance related to types of visas and work visa requirements in Trinidad and Tobago. Skuad can handle all your visa requirements and ensure the expansion process is not delayed.

Work Permits

People willing to work in Trinidad and Tobago must obtain a work permit. If a candidate is applying for a Trinidad and Tobago work permit without a job offer, they need to submit the work visa application form independently. Otherwise, if the applicant has a job offer, the application is submitted by the company.

A work permit is required if,

• The applicant is not a resident of Trinidad and Tobago
• The applicant does not hold the certificate to work with the Caribbean community
• The applicant needs to stay and work in the country for more than 30 days

The applicants must submit specific documents to obtain work permits for foreigners in Trinidad and Tobago. The application should be duly filled and submitted online. The documents (mentioned in the previous section) should be kept handy for further verification.

The applicant can use a single work permit if the application is for less than 10 people and a group application if the work permit is for more than 10 people. The application will be verified by the Ministry of National Security and approved within four to six weeks if there is no error in the application and documents.

The costs associated with the work permit process are,

• TTD 600 at the time the application is submitted, and 
• TTD 450 after the application is processed, to receive a work permit.

Learn more about work permits in Trinidad and Tobago with Skuad’s global EOR solutions.

Payroll in Trinidad and Tobago

Let’s understand how you can process payrolls of the onboarded employees:

How to pay employees

There are a few options that the employer can choose from when setting up payroll in Trinidad and Tobago.

• Internal payroll: Here, the company processes payroll internally through its staff. 
• Remote payroll: The company has a centralized payroll platform; however, the employers must follow the laws of the country for which they are disbursing the payroll. 
• Payroll processing company in Trinidad and Tobago: Payroll is outsourced to a local company that manages HR tasks. However, your firm will be held liable in case of compliance-related issues. ‍
• Payroll outsourcing through a global EOR: An EOR service such as Skuad ensures that your company stays completely compliant while processing the payroll seamlessly and handling all your HR requirements, from hiring to termination.

Best ways to pay employees in Trinidad and Tobago

An effective EOR service simplifies business expansion by taking responsibility for keeping the company completely compliant with Trinidad and Tobago's HR policies. 

Trinidad and Tobago EOR solutions handle complex HR activities, such as recruitment, payroll, taxation, employee benefits, probation, and termination.

Expand your business with the high-tech EOR solutions provided by Skuad and build an effective team remotely. 

Scale up your business by staying fully compliant while hiring exceptional talent from Trinidad and Tobago. 

To know more about expanding your business into Trinidad and Tobago with our expert EOR service, contact Skuad.

Benefits & Compensation Under Labor Laws of Trinidad and Tobago

Trinidad and Tobago is among 73 countries that offer universal health coverage to its citizens. You must account for it when you pay employees in Trinidad and Tobago:

Worker’s Right

The International Labor Organization states that the employment contracts in Trinidad and Tobago can be presented verbally or in writing. The terms and conditions can either be explicitly conveyed or can be indirectly stated. 

Remote & Hybrid Work Culture of Trinidad and Tobago

You must pass on the same worker rights and benefits to your remote worker in Trinidad and Tobago. 

As the Caribbean islands increasingly attract digital nomads, it's crucial to ensure flexible work arrangements are in place to accommodate different time zones and personal needs.

Flexible workplace

• Employees should be able to work from home or other locations as needed. They get an option and greater flexibility in their schedules.
• Providing the necessary technology and resources, such as laptops and software, is crucial for effective remote work.
• Clear communication guidelines should be established. It should outline expectations for preferred platforms and response times to ensure everyone stays connected.

Technology and infrastructure requirements 

• Ensure all the necessary facilities are installed on your remote worker premises. 
• You must include a separate data protection and privacy policy for remote work sessions and an employment contract. 
• Security is paramount, so ensure robust cybersecurity measures are in place, including VPN access and encryption for sensitive data.

You will find more useful in this remote work readiness checklist.

Salaries in Trinidad and Tobago

The minimum wage for all workers is TTD 17.50 per hour, paid monthly. 

Moreover, you need to provide a payslip to all employees containing information about period earnings, tax deductions, and NIS numbers.

You can use our salary insights tool to pay employees in Trinidad and Tobago per benchmark figures.

Leave Policy in Trinidad and Tobago

Here’s the leave policy that you have to follow as per Labor laws in Trinidad and Tobago:

Trinidad and Tobago Public Holidays: 

• January 1: New Year’s Day
• March 30: Spiritual Baptist Liberation Day
• April 2: Good Friday
• April 5: Easter Monday
• May 14: Eid ul Fitr
• May 30: Indian Arrival Day
• June 3: Corpus Christi
• June 19: Labor Day
• August 1: Emancipation Day
• August 31: Independence Day
• September 24: Republic Day
• November 4: Diwali
• December 25: Christmas Day
• December 26: Boxing Day

To ensure your expansion endeavors are in compliance with the Trinidad and Tobago employment laws, Contact Skuad today.

Background Checks in Trinidad and Tobago

Background checks are a common practice in Trinidad and Tobago. You can assess potential employees' suitability for a role by the following means: 

• Criminal Record Checks: Verify if the candidate has a criminal record.
• Credit Checks: Assess the candidate's financial responsibility and creditworthiness.
• Reference Checks: Contact previous employers or references to verify the candidate's work history and performance.
• Education Verification: Confirm the candidate's educational qualifications and degrees.
• Professional Licensing Verification: Verify if the candidate holds any necessary professional licenses or certifications.

Termination & Offboarding Per Labor Laws of Trinidad and Tobago

You must follow the procedure prescribed under the labor laws of Trinidad and Tobago for termination: 

Probation period

The standard probation period in Trinidad and Tobago is three to six months for certain government offices such as the Defense Force and Civil Service. 

However, private firms can decide their employees’ probationary period in Trinidad and Tobago. Also, if there is a majority union, the union may negotiate the terms and conditions under the collective agreement.

Termination of service

The termination of employment in Trinidad and Tobago is not governed by any legislation. Common laws can be applied if there are no collective agreement laws. 

Whether for fixed-term contracts or freelancers, termination must happen based on a just cause. 

There can be various reasons for termination, such as poor performance, expiry of an employment contract, or agreement between both parties.

Further, the employer has the right to terminate any employee, but they must provide a fair cause for dismissal. A notice in writing should be given to the employee at least one month before termination.

How to calculate severance pay in Trinidad and Tobago

The employer must pay a severance amount if the worker has worked for more than a year but less than five years.

In this case, the employer must provide two weeks of pay for each year of completion of service. 

Another case where severance is required is when the employee has provided continuous service for more than five years. In this case, the employer must provide three weeks’ payment for each year of service.

According to the Retrenchment and Severance Benefits Act, the employer must provide a severance amount if the worker falls into the definition of “worker.” However, there are a few exceptions to this rule.

• Employees who worked for less than a year
• Workers who are still in their probation period
• Casual workers
• Fixed-term employees
• Seasonal workers
• Freelancers or contractors

If an employee is dismissed without cause, they may present their complaint in the Industrial Court. If the employee is found to have been dismissed for unjust cause, the court may either order the worker’s re-employment or ask the employer to compensate the worker for the damages caused by this dismissal.

Offboarding process in Trinidad and Tobago

The offboarding process involves a series of steps to ensure a smooth transition of terminating an employee. It typically includes:

• Exit Interview: Conducting an exit interview to gather feedback and identify any issues.
• Return of Company Property: Ensuring that the employee returns all company property, including equipment, documents, and access cards.
• Final Pay and Benefits: Process the employee's final paycheck and ensure that all benefits are paid or terminated as required.
• Updating Records: Updating the employee's personnel file and removing access to company systems.
• Providing References (if applicable): Providing references for the employee, subject to applicable laws and company policies.

You must know the rules of probation and termination in Trinidad and Tobago. Any non-compliance may cause serious damage to the employer. 

The option here would be to partner with an EOR company that relieves you from the complicated procedures of recruitment and termination in different countries. 

Learn more from Skuad experts about the best EOR solutions for full compliance with the employment laws of Trinidad and Tobago.

Trinidad and Tobago Culture Considerations

When conducting your business according to Trinidad and Tobago traditions and preferences, several key aspects emerge:

• African, Indian, European, and Middle Eastern influences influence the society. Festivals like Carnival and Diwali are important.
• Direct, clear communication, though with a respectful tone, is valued. English is the official language, and Creole is often used in informal settings.
• Punctuality is respected, but social relationships often take precedence over rigid timekeeping. It’s common to begin meetings with small talk.
• Business environments respect authority and hierarchy, with decision-making typically done at senior levels.

Professional Employer Organization (PEO)

A professional employer organization (PEO) in Trinidad and Tobago handles all a company's HR activities, such as payroll and risk management, employee benefits, and recruitment.

Many global companies use a PEO to expand their businesses. This allows the PEO to share and manage employee-related responsibilities and liabilities. A PEO handles HR tasks such as hiring, onboarding, payroll, taxation, probation, termination, employment contracts, and visas.

Partnering with a PEO works well if you already have a legal entity in a foreign country. However, an EOR service does not require an entity establishment; it can take care of incorporation for you.

Organizations planning to expand into new territories are better suited with a global EOR, which becomes the legal employer on behalf of the organization. Instead of associating with a PEO, a co-employment partner, organizations have more to gain by utilizing the services of an EOR solution. 

The EOR solution safeguards organizations from unexpected policy changes, loss of control, and potential risks, as the EOR bears every legal liability for the organization. 

In addition, the EOR handles payroll, tax, and employment law compliances. To learn more about Skuad's EOR solution, contact Skuad today.

Conclusion: What Gives Skuad’s Trinidad and Tobago Solutions an Edge?

Trinidad and Tobago has an ideal market and employable talent, which makes it suitable for business expansion endeavors. However, it is difficult to adhere to the local laws, navigate language and cultural barriers, and set up an entity from scratch.

Skuad has an extensive network in 150+ countries worldwide and provides a single interface to onboard and manage employees and contractors. 

We offer consistent prices regardless of location and manage your team's payment through a single invoice. We also ensure that your IP, invention rights, and sensitive employee details are fully protected wherever you operate.

Expand your business into Trinidad and Tobago seamlessly by partnering with Skuad experts. Build an efficient team remotely who can contribute to your business's profit and growth. 

Manage complex compliance policies with ease, talk to us today to learn all about business expansion in Trinidad and Tobago.

FAQ

1) What is an employer of record in Trinidad and Tobago?

An Employer of Record (EOR) in Trinidad and Tobago, like Skuad, is a third-party organization that legally employs and manages workers on behalf of other companies that don't have a legal entity in the country. The EOR handles payroll, taxes, benefits, and compliance with local labor laws.

2) What is an employer of record vs PEO?

An Employer of Record (EOR) assumes complete legal responsibility for employees, including compliance with labor laws, payroll, and taxes. A Professional Employer Organization (PEO) operates under a co-employment model, where the PEO and the company share employer responsibilities.

3) What is the difference between employer of record and payroll?

A Trinidad Employer of Record (EOR) handles the employee management lifecycle, including payroll. Meanwhile, payroll services only manage employee payment processing, tax deductions, and financial compliance.

4) What is an employer of record vs PEO?

The Employer of Record and PEO are outsourcing solutions that solve the problem of managing employees in foreign jurisdictions. 

However, they differ from each other based on: 

• EORs act as the legal employer, assuming full responsibility for employment-related tasks. In contrast, PEOs share responsibility with the client company. 
• While EORs offer greater control, they can be more costly due to their sole responsibility. PEOs, on the other hand, can be more cost-effective due to shared responsibilities but may have limitations in terms of control over employees.

5) What are the benefits of EOR?

Using an EOR in Trinidad and Tobago allows foreign companies to quickly hire employees without setting up a local entity. It also ensures compliance with labor laws, taxes, and benefits, reduces administrative burdens, mitigates legal risks, and allows companies to focus on their core business activities.