Global EOR Services in Cayman Islands
Find, Hire & Pay Employees in Cayman Islands
The Cayman Islands is a globally recognized financial hub with a stable political environment, no direct taxes, and a highly skilled international workforce. It’s an attractive destination for global companies looking to expand or hire talent in the Caribbean.
However, navigating work permits, labor laws, and immigration rules can be challenging without local expertise. A Global Employer of Record (EOR) simplifies this by allowing companies to hire employees in the Cayman Islands legally without establishing a local entity—handling employment contracts, payroll, compliance, and benefits on your behalf.
🇰🇾 Employer of Record (EOR) Services in the Cayman Islands
Effortless Market Entry: Hire local talent swiftly without the need for entity establishment.
Regulatory Compliance: Ensure adherence to labor, tax, and social security laws.
Cost Optimization: Reduce overhead expenses by avoiding entity setup and administrative burdens.
Operational Focus: Delegate HR and compliance tasks while concentrating on core business activities.
🇰🇾Cayman Islands: A Comprehensive Guide to Employment and Labor Practices
Official Name: Cayman Islands
Capital: George Town
Population: ~70,000
Official Language: English
Currency: Cayman Islands Dollar (KYD)
Time Zone: UTC -5 (no daylight savings)
Government: British Overseas Territory with local self-governance
Economy: Service-based, driven by financial services, tourism, and real estate.
Corporate Tax: 🚫 None (no corporate, income, capital gains, or payroll tax).
Minimum Wage: KYD 6.00 per hour.
Employment Law: Governed by the Labour Act (2021 Revision) and the Immigration (Transition) Act, 2018.
Workforce: Predominantly expatriate (over 50% of the labor market).
Employment Laws and Policies in Cayman Islands
Employment relationships in the Cayman Islands are primarily governed by the Labour Act (2021 Revision), which sets out employee rights, employer obligations, and labor standards.
Employment Contracts
All employees must have a written employment contract detailing job title, duties, compensation, hours, and termination terms.
Contracts may be fixed-term or indefinite, depending on employment duration and project type.
Probation period: Usually 3 to 6 months.
Employment can be terminated with notice, except in cases of gross misconduct.
Working Hours
Standard workweek: 45 hours (typically 9 hours/day, 5 days/week).
Overtime: Paid at 1.5x the normal hourly rate after 45 hours per week.
Employees are entitled to one rest day per week (usually Sunday).
Leave Entitlements
Annual Leave:
Minimum 2 weeks per year after 1 year of continuous service.
3 weeks after 5 years of service.
Public Holidays: 11 paid national holidays annually.
Sick Leave: Up to 10 days per year, paid at full salary (with medical certificate).
Maternity Leave: 12 weeks (6 before and 6 after birth); employer pays full wages for at least 6 weeks.
Paternity Leave: 5 working days (paid).
Compassionate Leave: Up to 5 days (in case of death of close family member).
Payroll, Tax & Contributions
Income Tax: 🚫 None.
Payroll Tax: 🚫 None.
Social Security (Pension):
Mandatory for all employees (including expatriates employed for more than 9 months).
Employer Contribution: 5% of employee’s earnings (capped).
Employee Contribution: 5%.
Health Insurance:
Mandatory under the Health Insurance Act.
Employer must provide and contribute at least 50% of the premium.
Salaries are typically paid monthly in KYD or USD.
Health & Safety
Governed by the Labour Act and Occupational Safety and Health Regulations.
Employers must provide a safe working environment, proper training, and safety equipment.
Workplace inspections and compliance are overseen by the Department of Labour and Pensions.
Termination & Severance
Notice Period:
1 week (after 1 month of service)
2 weeks (after 1 year)
1 month (after 5 years or more)
Severance Pay:
Employees with 1+ year of service are entitled to 1 week’s pay for each completed year of employment if terminated (excluding misconduct).
Dismissal:
Must be for a fair reason—such as redundancy, incapacity, or performance.
Unlawful termination can lead to reinstatement or compensation.
Non-Discrimination & Equality
The Labour Act prohibits discrimination based on sex, race, religion, color, age, disability, political opinion, or nationality.
Employers must ensure equal pay for equal work and promote workplace diversity.
Sexual harassment is explicitly prohibited.
Opening a Legal Entity in Cayman Islands
Exempted Company
Annual government fee applies instead of corporate taxes.
Most common for international operations.
Can conduct business outside the Cayman Islands.
No local shareholder requirement.
Ordinary Resident Company
Subject to local business licensing requirements.
Used for local operations within the Cayman Islands.
Must have at least one Caymanian shareholder.
Limited Liability Company (LLC)
- Flexible structure combining partnership-style management with corporate limited liability.
- Popular for holding and investment entities.
Foreign Company Registration (Branch)
- Allows foreign entities to operate locally without forming a separate entity.
- Must register with the Registrar of Companies and obtain a Trade and Business License.
Registration Requirements:
- Memorandum and Articles of Association.
- Registered office in the Cayman Islands.
- Appointment of at least one director.
- Registration with the Department of Commerce and Investment (DCI) for local trading.
- Work permits for all non-Caymanian employees under the Workforce Opportunities & Residency Cayman (WORC) system.
Timeline:
Trade and business license: 1–2 weeks.
Company registration: 3–5 business days.
Global EOR Services as an Alternative:
Setting up an entity in the Cayman Islands can be costly and time-intensive, especially when managing immigration, licensing, and compliance.
A Global Employer of Record (EOR) lets you:
- Hire local or expatriate employees within days.
- Manage payroll, pensions, and health insurance in compliance with Cayman law.
- Avoid administrative burdens and focus on business growth.
By using an EOR, companies can test the Cayman market, build remote teams, and expand strategically without the overhead of establishing a full legal entity.
A Global EOR partner allows you to test the market, hire top local talent, and scale efficiently—without the administrative burden of setting up a local company.
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Popular Global EOR Providers Supporting Cayman Islands
(They often partner with in-country firms for local compliance.)
Explore how Global EOR Services can transform your global workforce management.
Contact us today to learn more about our tailored solutions and how we can support your business goals.
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