Employer of Record in Dominica | INS Global

Employer of Record in Dominica

Hire Globally, Pay Locally, Expand Effortlessly

Partnering with an Employer of Record in Dominica can help simplify your entry into the country. Employer of Record (EOR) services like INS Global eliminate the need to establish an entity or subsidiary in Dominica.  

An EOR in Dominica assumes legal liability for all your employment-related responsibilities, such as hiring, employment contract documentation, onboarding, payroll management, tax compliance, expense claim declaration, social security management, and employee benefits and insurance administration  

Consequently, international companies can worry less about the administrative or legal duties of managing a team in Dominica and instead focus on core business activities that drive growth.  

Are you exploring opportunities in Dominica? Utilize our local presence, cultural grasp, and understanding of the tax and labor laws to proceed without risk 

 

Employer of Record in Dominica - Summary

The Advantages of Using an Employer of Record in Dominica

Assured Legal Compliance

An EOR partner keeps you up-to-date with Dominica’s labor laws, tax requirements, and HR policies. This approach eliminates legal risks and ensures your business operates within the legal framework. 

Reduced Cost And Time

Outsourcing non-primary tasks, such as payroll management, benefits administration, and other HR tasks, saves cost and time.  

Focus On Company Growth

An EOR in Dominica allows you to redirect your time, focus, and resources to core business activities that drive growth 

Fast Market Entry

Reduce the risk of costly legal disputes and reputation damage resulting from non-compliance, employee claims, or lawsuits. 

One Platform For Everything

A partner with the right local knowledge can be a great way to connect your local and global networks in Dominica. EOR partners like INS Global can manage all your global expansion needs, regardless of jurisdiction or geographical area.  

Why Choose an EOR over Company Incorporation in Dominica?

Company incorporation can be time-consuming and complex since it involves legal, financial, and administrative responsibilities. This includes time spent registering with government authorities, establishing a local infrastructure, and complying with various regulations.  

Conversely, market entry is much easier with an EOR partner. Pre-established local structures give you an edge in a competitive or ever-changing market. In addition, an EOR handles administrative tasks on your behalf, allowing you to focus on expansion strategies that make a difference. 

Furthermore, an EOR service is suited for a dynamic business environment with fluctuating staffing needs or time-bound hiring across several locations simultaneously. With in-house recruitment or employer responsibilities, you may find it harder to scale your workforce to your needs. A Dominican EOR’s dynamism and flexibility allow you to adapt to market demands and scale your operations more efficiently. 

testimonial from Manuel Ramos

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting in a market like China. Understanding the market doesn’t mean you need to set up a company immediately. 

5/5

How Does an Employer of Record in Dominica Work?

You can set up an Employer of Record agreement in Dominica in 4 easy steps:  

  • First, we meet to discuss your employment and business requirements in Dominica. This detailed exchange allows us to understand your needs, company culture, and growth trajectory better.  
  • Next, we provide you with a legal entity for hiring immediately in Dominica.  
  • Right away, we assume administrative and legal responsibility for your hires.  
  • All the while you manage and supervise daily employee contributions toward your growth in the country.  

What’s the Difference between a Dominican Professional Employer Organization and an Employer of Record?

Professional Employer Organization (PEO) and Employer of Record (EOR) services are similar in many ways but have some particularities.  

For example, a PEO enters a co-employment relationship with your company. Meanwhile, an EOR establishes a direct employment relationship with your employees on your behalf. 

Consequently, the PEO shares certain employment-related risks and are jointly responsible for compliance with labor and tax laws. In contrast, the EOR is primarily accountable for employment-related risks and liabilities and fully liable for compliance with labor and tax laws. 

Labor Law in Dominica

Employment Contracts In Dominica

Dominica’s Labor Contract Act requires a written employment contract to establish an employment relationship. Also, the employment contract helps to detail the rights and responsibilities of both the employer and the employee. Therefore, such agreements contain the following information:  

  • The employee and the employer’s names 
  • The employment date 
  • The employee duties  
  • The employee’s pay rate or the method used for calculating the pay  
  • The employee’s payment interval (not exceeding 1 month 
  • Length of the probation period (not exceeding 6 months) 
  • The normal employee work hour 
  • The payment rate for overtime work 
  • The employee’s annual leave duration and pay entitlement 
  • Employee sick leave entitlement and the pay during any period of sickness 
  • The notice period before contract termination or resignation

Working Hours In Dominica

Employees are not required to work more than 40 normal hours per week or 8 hours daily. Also, employees are entitled to at least 30 minutes off for lunch. 

Overtime work is 1.5 times the normal rate, but work done on public holidays is 2 times the normal rate. 

 An employee is entitled to at least a full day off every week.  

 Dominica has a current government-mandated minimum wage of around $7.50 (East Caribbean Dollar), with some variations depending on the industry.  

Holidays In Dominica

The government-approved holidays in Dominica include the following 10-11 days. Workers must receive a paid day off if these days fall on a work day: 

  • New Year’s Day: January 1st 
  • Good Friday: Varies each year (Friday before Easter Sunday) 
  • Easter Monday: Varies each year (Monday after Easter Sunday) 
  • Labor Day: May 1st 
  • Whit Monday: Varies each year (Monday, seven weeks after Easter) 
  • Carnival Monday: Varies each year (Monday before Ash Wednesday) 
  • Carnival Tuesday: Varies each year (Tuesday before Ash Wednesday) 
  • Emancipation Day: August 1st  
  • Independence Day: November 3rd  
  • National Day of Community Service: November 4th 
  • Christmas Day: December 25th 
  • Boxing Day: December 26th 
  • National Heroes’ Day: Varies each year 

Vacation in Dominica

An employee is eligible for annual vacation leave with pay after completing a calendar year of service. The minimum leave entitlement according to the country’s Labor Contract Act is as follows:  

  • Under 5 years of service: 2 weeks 
  • 5 years service and over: 3 weeks 

 

Maternity/Paternity Leave in Dominica

Female employees who have completed one year of continuous service with an employer are entitled to 12 weeks of maternity leave (comprising of not more than 6 weeks of prenatal period and not less than 6 weeks of postnatal period). The employee is entitled to 4 weeks at half pay during maternity leave.  

There are no provisions for paternity leave in Dominica. 

Social Security in Dominica

The social security system in Dominica is responsible for managing social security programs and administering benefits for disability, sickness, maternity, and retirement pension. Employees and employers jointly contribute to the system as follows: 

  • The employer contributes 7.25% of an employee’s earnings, up to $6,000 (East Caribbean Dollar)  maximum per month 
  • The employees contributes 6.25% of their earnings, up to $6,000 (East Caribbean Dollar) maximum per month 

Tax Law in Dominica

Dominican residents are taxed on their worldwide income. Meanwhile, nonresidents pay taxes on income sourced in the country. The income tax rate ranges from 0 percent to 35 percent, depending on the income tax bracket of the individual as follows:     

Taxable Income (East Caribbean Dollar) 

Rate (%) 

30,000 

0 

30,001 to 50,000  

15 

50,001 to 80,000  

25 

Above 80,000  

35 

Companies in Dominica are subject to a 25% corporate tax. 

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FAQs

No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.

Generally, you can have a team in Dominica in just 1 month. Meanwhile, incorporating a new subsidiary or establishing a branch office in the country can take 4-12 months.  

EOR services in Dominica cost a percentage of the worker’s monthly compensation. This price covers all HR tasks required to ensure compliance with the local employment rules. 

A Dominican EOR is a safe, legitimate, and efficient way to handle employer responsibilities without establishing a specific corporate structure. EORs accomplish this by hiring local legal professionals and offering top-notch HR assistance. 

EOR service agreements ensure your team members are paid accurately and on time each month. Also, you can access all Dominican employee benefits and be entirely protected by the law. 

Independent contractors retain complete control of their work and can interact with clients within the framework of a Dominican EOR. In addition, they may be eligible for some or all of the same benefits as regular employees. This arrangement is like working via an umbrella organization. 

Yes. Our expert team of recruitment consultants can find the best local talent for your needs in Dominica by using their wide professional networks, in-depth knowledge of local business resources and benchmarks, and consistent commitment to ethical hiring practices.  

Yes. An Employer of Record can help you find new workers in various cities or regions within Dominica. An EOR handles headhunting, interviews, and candidate selection in specific cities or areas within Dominica, depending on your needs or preference.  

Some PEO or EOR service providers in Dominica have a minimum hiring requirement or limit on the number of employees you hire simultaneously. However, INS Global allows you to scale up or down quickly at any time. So you are free to employ however many or few employees you need to achieve your goals. 

You can avoid needing a local address by using a Dominican PEO service. However, the option for your employees to work in a shared workspace whenever convenient is a good idea. 

Absolutely. We can manage the necessary visa and work permit processes, where local employment laws, tax laws, or employee benefits differ for Dominicans or foreigners. 

EOR and PEO solutions are ideal for enterprises of all sizes, from SMEs to multinational corporations. Such solutions ensure the efficient and secure employment of foreign or local workers. Also, our services allow you to scale up to meet increasing employment demands as needed.  

  

The legal expertise of PEO and EOR services is helpful for businesses that don’t have their own structures or seek to avoid cost-scaling difficulties and instead focus on expansion in a target country. 

Staffing firms and umbrella corporations are two kinds of third parties that may be used to hire independent freelancers directly or indirectly.  

  

In Dominica, most independent contractors are self-employed or run small enterprises. According to Dominican law, contractors must be hired by a work agreement rather than an employment contract.  

  

Before work starts, an independent contractor can provide a CV, portfolio, verified references, and possibly a signed NDA. 

The hiring cost in Dominica should consider factors like salary, recruiting service fees, signing bonuses, taxes and social security contributions, and other direct and indirect expenses, including payment processing fees and foreign employee tax management.  

Employers are responsible for managing payroll and salary for their employees in Dominica. For example, employers in Dominica are required to withhold income tax, deduct social security contributions, and pay wages regularly (often monthly).  

Dominica has a current government-mandated minimum wage of around $7.50 (East Caribbean Dollar), with some variations depending on the industry.   

There are many types of visas available to applicants when traveling to Dominica. The most commonly applicable visa for work purposes are:  

 

  

  • Work Permit: This is a standard visa for non-citizens who want to work in Dominica. Employers can sponsor and apply for this permit on behalf of their employees. This permit allows individuals to work in the country for a specified period legally. 

  

  • Temporary Employment Visa: This visa type suits individuals with secure temporary employment in Dominica. This visa is connected to a specific job and duration, granting the holder the right to work during the period. 

  

  • Skilled Professional Visa: This visa is designed for individuals with specialized, in-demand skills or expertise in Dominica. Skilled professionals with this visa type can work in their respective fields and contribute to the country’s development. 

  

  • Investor Visa: Dominica offers an Investor Visa program called the Dominica Economic Citizenship Program. Foreign investors can obtain citizenship and a passport by making a significant financial contribution to the country. Once citizenship is acquired, investors can work and reside in Dominica. 

The employers in Dominica contribute 7.25% of an employee’s earnings, up to $6,000 (East Caribbean Dollar)  maximum per month, to the country’s social security system (employees contribute 6.25% of their earnings).  

Employees in Dominica are entitled to a state pension, public holidays, paid leave (sick leave, annual leave, and parental leave), and health insurance. 

Modifying the employment contract in Dominica requires mutual agreement between the employer and the employee. The two parties must consent to the changes and document them through an amended contract or an addendum outlining the new terms and conditions. 

Dominica’s healthcare system combines public and private healthcare providers to serve its population. The government plays a significant role in providing healthcare benefits to cover hospitalization, consultations, and medication expenses to eligible individuals.  

A contract can include a severance pay agreement as part of the collective bargaining agreement (CBA). However, the employer may terminate employment without notice or severance payment where the employee is guilty of serious misconduct affecting their employment.  

The Ministry of Employment, Labor, and Social Security controls and oversee labor regulations in Dominica. 

Employees in Dominica are eligible for paid leave on the country’s 10-11 nationally recognized public holidays. These may also include local or regional holidays. 

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