Employer of Record The Falkland Islands

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Employing in The Falkland Islands

The Falkland Islands, located about 300 miles off the coast of Argentina and around 500 miles from Antarctica, has been a British Overseas Territory since 1833. Employing in the Falkland Islands is similar to employing in the UK, with the vast majority of employment laws and practices carrying over to the Falkland Islands. The islands have gained plenty of international attention over the last few decades, with a high profile war against and subsequent claims from Argentina over the islands (which still continue to this day).

With specific employment regulations and established laws, which can be complex at times, engaging an Employer of Record is a sensible move for companies that want to establish a presence on the Falkland Islands.

An overview of employing in the Falkland Islands

Salary

Pound Sterling – £

Salary pay date

Employees on the Falkland Islands are paid on a monthly basis and Topsource Worldwide employees receive their salary on the final day of the month. Weekly pay is also common in the farming and oil and gas industries.

Salary increases

There is no provision for mandatory pay increases on the Falkland Islands and all salary rises are agreed between employer and employee. This is usually in line with inflation, or related to performance and progression.

Healthcare

Healthcare in the Falkland Islands is generally excellent and universal care is available to all residents. The only hospital in Stanley has state-of-the-art medical, dental, and nursing facilities, as well as highly-trained staff. For more complex care, residents often have to be airlifted, usually to South America or even the UK.

Social security

The Falkland Islands have a full social security system with 50/50 contributions from employers and employees. This contribution funds the pension system on the Falkland Islands.

Termination

Employment contracts

Employees must be given a written employment contract before they commence work. It should be written in English and should set out working hours, remuneration, notice periods and any other working agreements and arrangements.

Resignation by the employee

Employees are free to resign from their role at any time, but must give written notice and serve any remaining time on their contract, unless otherwise agreed.

Indirect termination

Employees who are dismissed for economic or restructuring reasons must be given notice in line with their contract. Consultation may be needed if multiple employees are dismissed for the same reason.

Termination by mutual consent

Employers and employees are free to terminate a contract mutually if the agreement is beneficial to both parties, otherwise the usual notice periods must be observed.

An overview of statutory benefits on the Falkland Islands

Pension

The Falkland Islands have a slightly different pension system to that of the UK. The Retirement Pension Scheme (RPS) is a state-mandated pension system that ensures a base level of retirement income for those who have paid into it. In order to qualify for a full pension, Falkland Islanders must make 2,200 contributions over their working lives.

Sickness pay

Workers can usually self-certify with illness for five days, but subsequent consecutive sickness days require a doctor’s note. The amount of sick pay received varies from employer to employer before the employee moves onto statutory sickness pay.

Maternity / Paternity

Mothers are entitled to six weeks of full pay during maternity leave, but in reality most employers offer a more comprehensive maternity leave agreement, often up to 12 weeks of full pay, then potentially half or reduced pay further into the maternity leave.

Fathers are usually entitled to up to two weeks at reduced pay, but this varies from organisation to organisation.

Contractual provisions on the Falkland Islands

Probationary period

Workers on the Falkland Islands must have their probationary period set out in their contract. Usually, this period lasts around three months, but can be up to six months. The probationary period can be extended with written agreement from both parties for any reason.

Working hours

The Falkland Islands have set working hours for certain positions. Those working in government jobs work between 8 am to 12 pm, then have a lunch break, then again from 1pm till 4:30pm. Private sector employees work until 5pm, but this may vary depending on shift patterns or the type of work.

Rest breaks

All Falkland Islanders are entitled to a lunch break of one hour and a sufficient rest period between working days, usually 12 hours at a minimum.

Overtime

Overtime must be paid in accordance with a pro-rata rate of the employee’s salary depending on the amount of additional hours worked outside of their contract. It is acceptable for employees to opt out of overtime hours, as long as this is agreed to in the employment contract.

Vacation allowance

Workers on the Falkland Islands are entitled to 22 days of annual leave, rising to 30 days after five years. This does not include additional public holidays.

Falkland Islands public holidays

2021 2022
New Year’s Day Friday 1 January Saturday 1 January
New Year Holiday Monday 3 January
Good Friday Friday 2 April Friday 15 April
The Queen’s Birthday Wednesday 21 April Thursday 21 April
Liberation Day Monday 14 June Tuesday 14 June
Peat Cutting Day Monday 4 October Monday 3 October
Battle Day Wednesday 8 December Thursday 8 December
Christmas Day Saturday 25 December Sunday 25 December
Boxing Day Sunday 26 December Monday 26 December
Christmas Holiday Monday 27 December Tuesday 27 December
Christmas Holiday Tuesday 28 December Wednesday 28 December

Keen to engage a EOR on the Falkland Islands? At TopSource Worldwide, we work with local experts to help you navigate the various admin and cost obstacles you may come across along your expansion journey

Get in touch today to see how we can help your business with our employment solutions.

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Published date: 3rd Aug 2021
Review date: 3rd Aug 2022