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Trinidad and Tobago is a rising Caribbean economy that has grown as a hiring destination in recent years, thanks in part to the shift towards nearshoring, adoption of remote working arrangements, and the fact that English is the country’s official language.
For companies of all sizes, hiring local team members through an employer of record in Trinidad and Tobago can be a great option because it offers convenience and agility, on top of significant cost-savings.
SEE ALSO: Call center outsourcing: 5 great destinations to consider
Because an employer of record (EOR) hires professionals on your behalf via thier own local entity, meaning you don’t need to set one up yourself and you can have team members reporting to you from this dual-island nation in little more time than it takes to find and onboard them.
In the event you don’t already have people lined up, recruitment is something your EOR in Trinidad and Tobago will also be able to help with, on top of managing the payroll and dealing with other administrative matters related to every professional hired on your behalf.
Contact us if you need assistance with recruitment or hiring in Trinidad and Tobago.
Trinidad and Tobago: an overview
Trinidad and Tobago is located in the southern Caribbean, just off the coast of Venezuela and made up of the island of Trinidad and Tobago, the former being the larger and home to over 90% of the nation’s 1.5 million population.
The country is one of the top seven oil and gas producers in Latin America and the Caribbean, with that industry contributing significantly to Trinidad and Tobago being classed as a high-income country, according to classifications established by the World Bank.
Other industries that represent major sources of employment and revenue include petrochemicals and steel production, as well as tourism. Meanwhile, the country’s manufacturing sector is known for producing the likes of cement, garments, food and beverages.
More recently, the country as emerged as a destination for the likes of call centers and customer contact centers, thanks to English being the official language and the availability of talent at competitive rates. Much of that activity is based in the biggest urban centers, such as capital Port of Spain.
Ther country has also demonstrated its commitment to fostering business and entrepreneurship, with the announcement of a series of local economic development zones intended to guarantee that the neccessary infrastructure and facilities are available at key points around the country.
Meanwhile, the country’s education system is producing significant numbers of skilled professionals, with more than one in three graduates receiving degrees in STEM subjects — representing one of the highest rates in the world.
Hiring via an employer of record in Trinidad and Tobago
Hiring local professionals through an employer of record in Trinidad and Tobago offers a range of benefits, with cost-savings and the reduced initial outlay usually significant.
That is because when you hire via an EOR, you don’t need to assume the expense involved in setting up a legal entity or bringing on team members to administer them. So while you will pay the EOR a fee — usually a fixed monthly fee per person employed, but sometimes based on a percentage of the salary being managed.
That also makes is a much quicker process than setting up an entity and hiring team members directly, not to mention a significantly reduced source of risk. Because navigating unfamiliar regulations can be challenging, and failure to uphold them correctly can result in legal issues or financial penalties.
Not only will your EOR in Trinidad and Tobago guarantee compliance with local employment and corporate laws, but that provider will actually assume most liability related to being an employer.
In the event you need assistance sourcing the right talent, an employer of record in Trinidad and Tobago can leverage their network and expertise to source ideal candidates.
They will also manage the payroll for for all professionals employed on your behalf, ensuring that adherence with local regulations, not only in the payment of salaries, but also the proper adherence to the likes of statory leave and working hours.
Should you be planning to send someone to the country to oversee your operations, your employer of record in Trinidad and Tobago will most likely also be able to provide support during the process of them acquiring the right to work in the country.
Regulations an EOR in Trinidad and Tobago will handle
Some of the most important regulations, your employer of record in Trinidad and Tobago will handle compliance with include:
Employment contracts: Work contracts must be expressed in a language that all the concerned parties understand. This agreement should include aspects such as the position description, wage, working hours, and other relevant information.
Working hours: An average workday is eight hours long and a normal workweek is 40 hours long. Employees who work overtime are entitled to additional pay.
Vacations and public holidays: Employees in Trinidad and Tobago are generally entitled to at least two weeks of paid vacation after providing a full year of service, on top of usually being paid for the country’s 14 annual public holidays. Anyone who work on these days is entitled to double pay.
Maternity leave: Expectant and new mothers are entitled to 14 weeks of maternity leave, during which the employer must pay one month of salary in full and two months of salary at half the normal rate.
Taxes: the standard VAT rate is 12.5%. Employer and employee payroll taxes also include national insurance.
5 steps to hiring via an employer of record in Trinidad and Tobago
Hiring great people through an employer of record in Trinidad and Tobago mneans folloing these five key steps.
1) Define requirements
Outline your hiring needs and criteria. Specify the number of professionals required, the roles they will fulfill, the necessary skills, and possible employment agreements, ranging from independent contractors to full-time employees. Collaborate closely with your EOR to ensure alignment.
2) Review candidates
Your employer of record in Trinidad and Tobago will then source and screen potential candidates. They will present you with a curated selection of eligible candidates for your review. You may grant your EOR authority to make initial selections on your behalf, trusting their knowledge of the local talent pool.
3) Conduct interviews
Once your EOR has conducted initial screenings, you will have the opportunity to interview shortlisted candidates.
During these interviews, focus on assessing specialized or technical skills that may not have been fully evaluated by the EOR.
4) Complete onboarding
After selecting candidates, your employer of record in Trinidad and Tobago may make official offers, facilitate the acceptance process, and oversee the onboarding procedures. While most of the heavy lifting will be taken care of by your provider, you will need to provide a range of information to support them.
5) Ongoing administration
Once onboarded, your local team members will become part of the EOR’s payroll system. The EOR will handle payroll management, compliance with local labor laws, and other administrative tasks. You will be able to keep track of all of the people you have employed through the employee management system that your provider has in place.
Alternatives to hiring via an EOR in Trinidad and Tobago
The obvious alternative to hiring via an employer of record in Trinidad and Tobago is to establish a legal entity in the country and directly employ professionals. This approach may be preferable for businesses that know they are making a long-term entry into the market and are not working with tight timeframes in terms of having local professionals in place.
Another option is to hire international independent contractors. These freelancers operate autonomously and typically work on a project basis, offering flexibility and efficiency. While contractors may charge higher rates for their services, they are entitled to limited benefits, reducing overhead costs for employers.
However, it’s crucial to be mindful of the risk of contractor misclassification, as many countries have been cracking down on the misclassification of people as contractors when their working arrangements mean they should be classed as direct employees.
Failure to classify employees correctly can lead to significant penalties, so it’s essential to assess your level of misclassification risk based on the nature of the work arrangement.
Serviap Global can help you with hiring in Trinidad and Tobago
Serviap Global offers international hiring solutions, including EOR services, contractor hiring and recruitment process outsourcing (RPO). So if you need an employer of record in Trinidad and Tobago, we can help you.
Our years of operations in the global hiring industry have seen us emerge as experts in recruiting in emerging markets, and we are the trusted service provider of some of the biggest brands in the EOR industry in some of the key markets where we operate — especially in Latin America and the Caribbean.
So if you are interested in hiring in the region, you will not be able to find a provider with the same level of expertise and coverage to support you.
Contact us to find out more.
