TURKS & CAICOS Law and Practice Contributed by: Sophie Stanbrook, Sam Kelly and Davanya Deveaux, Stanbrook Prudhoe
rules governing cross-border investments and other relevant regimes designed to deter tax evasion.
All employers must make national insurance and national health insurance payments on behalf of employees. The national insurance contribution pay - able is 6.5% for employers and 5.5% for employees payable on up to a maximum of USD4,000 of monthly salary. The national health insurance contribution pay - able is 4.6% for employers and 3.4% for employees payable on up to a maximum of USD7,800 of monthly salary. Annually, a TCI employee is entitled to 12 paid sick days, and two weeks paid holiday. On an acquisition or other investment transaction in the TCI, employee compensation, and the cost to the purchaser/investor of terminating the employment of any employee would be reviewed as part of the due diligence process of the transaction. If a termi - nation is to occur, the provisions of the Employment Act regulating termination (including information to be provided to an employee) and employee compensa - tion (including severance pay based on the number of years worked) have to be complied with. 10.3 Employment Protection In the event of an acquisition, change of control or other investment transaction in the TCI, there is no TCI legislation that provides employees with a mandatory right to transfer their employment with an acquired business, or trade union/collective bargaining require - ments that need to be complied with. Employees have a right to not be unfairly dismissed. Any dismissal falling foul of the required/fair process may be challenged by an employee in the Labour Tribunal. If successful, an employee would be enti - tled to certain remedies, including damages from the employer. Pursuant to the Companies Act, no claim, debt, liabil - ity or obligation of a company is released or impaired by a merger or consolidation. Therefore, merged or consolidated companies continue to be bound by obligations under existing employment contracts.
10. Employment and Labour 10.1 Employment and Labour Framework The Employment Act governs the employment of all workers in the TCI and sets out requirements for employment contracts, minimum wage, holiday, sick leave, notice periods and dismissal. Employment contracts may grant more favourable terms than the Employment Act requires. Where an employee is unfairly dismissed, the Employment Act provides remedies that can be sought by the employee. Most employment disputes are heard by the TCI Labour Tribunal, which is a statutory body governed by the Employment Act. The Labour Tribunal is the primary venue for the majority of employment dis - putes. In certain circumstances (for example, claims that are excluded from the Labour Tribunal’s jurisdic - tion, enforcement of the Labour Tribunal’s awards, or appeals on points of law), employment cases are heard by the TCI Supreme Court. As statedin 1.1 Legal System , other legislation that relates to employment are the National Insurance Act, the National Health Insurance Act, and the Immigra - tion Act. The Immigration Act requires all foreign workers to obtain a TCI work permit in order to engage in gainful occupation. For short-term commercial activities, a temporary work permit can be obtained. Labour unions are not common in the TCI. 10.2 Employee Compensation The most common form of employee compensation in TCI is a salary, with the current minimum wage being USDD8.00 per hour for all employees except those in the security, manufacturing, construction, banking, financial services and insurance sectors, for whom the minimum wage is USD9.00 per hour. Some employ - ers offer additional incentives such as share schemes, and allowances for cars, housing and mobile phones, health insurance and pension schemes.
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