Belize
Knowledge Base
Frequently asked question, important data and information on EOR.
General information
$ 5.00 BZD per hour
Labor Law
Laws that regulate Labor Relationship
Labour Act
Onboarding guide
Requirements for a labor contract
• The name of the employer or group of employers and, where practicable, of the undertaking and the place of employment;
• The name of the worker, the place of engagement and the place of origin of the worker, and any other particulars necessary for his identification;
• Where possible the name and addresses of the next of kin of the worker;
• The nature of the employment;
• The duration of the employment and the method of calculating this duration;
• The appropriate period of notice to be given by the party wishing to terminate the contract, due regard being had to the provisions of section 57 and to the fact that such provisions refer to an equitable settlement of monetary and other questions;
• The rates of wages and method of calculation thereof, the manner and periodicity of payment of wages, the advances of
wages, if any, and the manner of repayment of any such advances;
• The measures to be taken to provide for the welfare of the worker and any dependent who may accompany him under the terms of the contract;
• The conditions of repatriation where applicable
• Any special conditions of the contract
Pre-hire Medical exam
No
Types of contracts
• Indefinite
• Fixed- term
Probation Period
The probation period are the first two weeks of employment, and may be terminated at will by either party without notice.
Any agreement to the contrary, where agreement is reached between the employer and the worker for a probationary
period which exceed two weeks, the worker is entitled to any benefits which he may accrue during the probationary period if the employment is terminated by either party.
Are offer letters mandatory in the country?
Not Mandatory.
Are digital signatures in labor contracts valid?
Permitted.
Mandatory onboarding documents
• ID card
• Social Security ID
• TIN Number
Statutory benefits
Annual Bonus
It is not mandatory or customary to pay 13th-month payments in Belize
Additional bonus
Doesn’t apply
Leaves (medical, maternity, paternity, etc.)
• Sick days: Once an employee has worked for a company for a minimum of 60 days within the last 12 months, they are entitled to 16 days paid sick leave at their basic rate of pay. All sick leave must be validated by the production of a medical certificate from a medical professional within 48 hours of the start of the sick period.
• Maternity Leave: Maternity leave shall be taken as follows,
(a) Up to a maximum of seven weeks before the expected date of confinement on full pay;
(b) The balance after the expected date of confinement on
full pay;
(c) Two weeks before and seven weeks after the expected
date of confinement shall be mandatory,
Article 177, Labour Act.
Annual Leave (days per year)
At least 2 working weeks of paid leave per year. The annual holiday shall be given and taken in one period, or if the employer and worker so agree, in two separate periods and not otherwise.
How do vacation days expire?
Where the employment of a worker who has become entitled to an annual holiday is terminated, and the worker has not taken any part of such holiday, the employer shall be deemed to have given such annual holiday to the worker from the date of the termination of the employment, and shall forthwith pay to the worker, in addition to all other amounts due to him, his average pay in respect of the period of his employment with such employer during the period of twelve months to which such annual holiday related.
Official Holidays
• 2 Jan New Year’s Day
•16 Jan George Price Day Holiday
•6 Mar National Heroes and Benefactors Day
•7 Apr Good Friday
•8 Apr Holy Saturday
•10 Apr Easter Monday
•1 May Labor Day
•31 Jul Emancipation Day
•11 Sep Saint George’s Caye Holiday
•21 Sep Independence Day
•9 Oct Indigenous Peoples’ Resistance Day
•20 Nov Garifuna Settlement Holiday
•25 Dec Christmas Day
•26 Dec Boxing Day
No worker shall be obliged to work on any public holiday or on any Sunday, if Sunday is the agreed rest day, or other agreed rest day substituted for a Sunday by agreement between an employer or an organisation of employers, on the one hand, and a worker or organisation of workers, on the other hand, entered into not less than seven days before such rest day is taken. All work done on public holidays other than Christmas Day, Good Friday and Easter Monday shall be paid for at half as much again is ordinary rates in addition to any payment to which the worker may be entitled. All work done on Christmas Day, Good Friday and Easter Monday shall be paid for at double rates in addition to any payment to which the worker may be entitled.
Working on holidays and Sundays
• On Christmas Day, Good Friday, and Easter Monday at a rate of not less than 100% on top of the regular wage
• On public holidays other than those set out previously, or on Sundays or other agreed rest days at a rate of not less than 50% on top of the regular wage.
Number of Working hours
9 hours a day, 45 hours a week. All employees are entitled to at least one day of rest per week.
Overtime
Paid at 50% extra on top of the regular wage.
Social Security (what does it cover)
•Sickness benefit
•Maternity benefit
•Invalidity benefit
•Retirement benefit
•Funeral grant
•Survivors’ benefit
•Injury benefit
Payroll
Salary payment currency
Belizean Dollar (BZD)
Can salary be paid in a different currency other than the local currency?
The Belizean dollar (BZD) is the official currency of Belize. However, it is possible to pay employees in other currencies, such as the US dollar, if the employer and employee agree to this arrangement.
Payment frequency
The typical payment frequency for employees in Belize is monthly. However, some employers may choose to pay employees weekly or bi-weekly. The payment frequency is typically specified in the employee’s contract of employment.
VAT percentage
There is no VAT however, there is a standard GST rate is 12.50%
Income Tax
Both residents and non-residents will pay a flat income tax rate of 25% on taxable income. Salaries under $26,000 BZ, you’re exempt from income tax.
Tax Payer Identification Number
Tax Identification Number – TIN
Offboarding
Voluntary resignation
An employee is entitled to terminate the contract of employment without notice or with less notice than that to which the employer is entitled by any statutory provision or contractual term, where the employer’s conduct has made it unreasonable to expect the worker to continue the employment relationship.
Section 42A, Labour Act
Contract termination
A contract shall be terminated,
• by the expiry of the period for which it was made; or
• by the death of the employer or worker.
Section 36, Labour Act
Justified Dismissal
• When an employee is guilty of misconduct, whether in the performance of his duties or not, inconsistent with the fulfillment of the express or implied terms of his employment contract.
• For willful disobedience to legal orders given by the company.
• Due to lack of ability that the employee expressly or implicitly justifies to possess.
• For habitual or substantial neglect of their duties;
• For absence from work without permission from the company or without other reasonable excuse.
Section 41, Labour Act
Unjustified Dismissal
The following reasons do not constitute good and
sufficient cause for dismissal or for the imposition of disciplinary action against a worker:
• Union membership or participation in union activities outside working hours or, with the company’s consent, within working hours.
• Seek office as, or act or have acted in the capacity of, a representative of the employees;
• The filing of a complaint, petition or participation in proceedings against a company involving an alleged violation of any law, or recourse to the competent administrative authorities;
• Race, color, sex, marital status, ethnic origin, family responsibilities, religion, nationality, indigenous population or social origin of the worker;
• Political opinion of an employee where that opinion does not interfere with job performance;
• Workers’ physical structure, disability or age; subject to any law or collective bargaining agreement regarding retirement;
• A worker’s pregnancy or a reason related to her pregnancy, or absence from work during maternity leave;
• That he/she was subjected to sexual harassment in the workplace or by the company or another employee of the same company;
• HIV status
• Temporary absence from work due to illness or injury not caused by the workers’ negligence and certified by a registered physician;
• Compulsory military leave
• Participation in the industrial action;
• Such other reason as the Minister may by Order published in the Gazette determine.
• Severance pay is calculated based on the employee continuous employment by any employer for a period of
(a) five to ten years and
(i) the employer terminates employment, or
(ii) the worker retires on or after attaining the age of sixty years or on medical grounds,
that worker shall be paid a severance pay of one week’s wages in respect of each complete year of service; or
(b) over ten years, and his employment is
(i) terminated by the employer for reasons, which do not amount to dismissal, or
(ii) ended because the worker retires on or after attaining the age of sixty years or on medical grounds,
(iii) worker abandons the service of an employer for good and sufficient cause, or
(iv) a worker who resigns after a minimum of 10 years is eligible for a gratuity equal to severance pay, or
(v) terminated on the expiration of a contract for a definite period;
that worker shall be paid a severance pay of two weeks’ wages for each full year of service.
• Due to changes in legislation, where an employee has completed over ten years of continuous employment, the severance pay shall be calculated as follows:
(a) For the period served before 1st May 2011 at the rate of one week’s pay for each complete year of service
(b) For the period served after 1st May 2011 at the rate of two weeks’ pay for each full year of service.
• In the case of casual workers, they must work an aggregate of one hundred and eighty (180) days in a year to be entitled to severance pay.
Part XV, Labour Act
Minimum Notice Period
The party that terminates the employment contract must give an advance notice to the other party, the extent of which depends on the length of the employment, as follows:
Length of Employment Minimum Advance Notice
• From 2 weeks to 6 months 7 days
• More than 6 months to 2 years 14 days
• More than 2 years to 5 years 4 weeks
• More than 5 years 8 weeks
Immigration
Visa process
Step 1: Submission of Application
• Make application submission at the Labour Department.
• If you are employed, your employer must make the submission on your behalf.
• If you are self-employed you must make the submission.
Step 2: Notification of Application Status
• Within 30 days you will receive a call from the Labour Department to inform you on the status of your application.
• On approval of application, you must visit the Labour Department Office to receive a copy of the approval letter.
• On denied application, you must visit the Labour Department Office and receive a copy of your letter of denial and present yourself to the Immigration Office to update your legal status.
Step 3: Visit the Immigration Office
• You must visit the Immigration Office and bring along the approval letter for the permit to be processed.
• You will be informed of the temporary employment permit fees which must be paid at the Immigration Office.
• You will be informed to go to the nearest Belize Tax Service to request an Income Tax Letter.
Step 4: Issuance of Permit
• You must present your valid passport, proof of payment and Income Tax letter to the Immigration Office as stated on the approval letter.
• The permit is issued immediately upon confirmation of payment.
• Then you must proceed to visit the Social Security Office to apply for your card.
Visa documents
• Application Form (We will provide this)
• Passport Copies of entire passport (including all blank pages)
• Eight (8) Passport Photographs
• Police Record from last place of residence.
• Police record from Belize
• Recommendation from Village Council/Town Board where business will be located
• Recommendation from Belize Tourism Board or Relative Agency if the business is Tourism oriented (we can assist with arranging an appointment)
• Belize Local Corporation Documents
• Information regarding local bank account for Local Corporation
• Belize Trade License depending where the business will be located. The business will need to have a physical location to be inspected for trade license approval.
• New Local Companies are required to submit a Business Plan to be vetted by the Ministry of Economic Development/BELTRAIDE before submitting application to Labour Department. We can assit in preparing a business plan.
• Certificates, Diplomas, Credentials, etc of applicant.
• Proof of funding of Business.
• For Private Individuals – Request Appointment to discuss this matter
• For Directors and Managers of a Local Company (Chapter 250)
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