Employer of Record in Belize | Employment Law

Employment Law in Belize

Contracts

Under the Belize Labour Act, a contract must be in writing if:

• The employment period is expected to exceed three months.
• The employment contract contains conditions that differ significantly from standard terms for similar work.
• The employment contract is made by a Belizean entity for a Belizean resident, but is to be executed partially or wholly outside of Belize.

When contracts are required, certain information must be included under law. Even in situations where employment contracts aren’t legally required, it’s considered a best practice in order to ensure you and your worker are on the same page.

Employment contracts should include:

• The names and addresses of both parties.
• A job description including title, roles, and responsibilities.
• The base salary or wages, frequency of payments, and any additional compensation that will be given.
• Standard working hours for the position, plus what the overtime rate will be.
• The start date for employment and, if applicable, the end date.
• The length of the probation period.
• How much notice will be given for termination.
• Leave entitlements such as paid annual leave, sick time, and holidays.

Contracts must be written in English and use Belize dollars (BZD) as currency.

As your employment partner in Belize, we can help you ensure fully compliment employment contracts that are tailored to your organization’s needs.

Termination and notice periods

While employers are legally able to terminate employees without a specified cause, it’s still illegal to practice discriminatory or retaliatory terminations, and employers must adhere to regulations about notice periods and severance pay.

In Belize, when employers are terminating an employee for “good and sufficient cause,” such as persistent dereliction of duty, gross misconduct, or willful disobedience, they do not need to provide notice or severance. If they are terminating an employee without cause, they must give notice as follows.

• Two weeks to six months of service: one week notice
• Six months to two years of service: two weeks’ notice
• Two years to five years of service: four weeks’ notice
• More than five years of service: eight weeks’ notice

Employees with more than five years of service are also entitled to severance pay: Employees with five to 10 years of service receive one week’s wages for each year, and employees with more than 10 years of service receive two weeks’ wages for each year. Note that a 2025 ruling by the Caribbean Court of Justice (CCJ) reinforced that these severance benefits are a statutory right that workers have earned through service and cannot be subsumed by employees’ private pension plans, unless the plan specifically accounts for those legal entitlements.

As your employer of record (EOR) in Belize, we can assist you in managing employee terminations by providing legal guidance and a personalized process to ensure compliance with national labor standards and to minimize legal risks.

Probation periods

According to section 29A of the Belize Labour Act, the first two weeks of employment are automatically considered a probation period. During this period, the employment contract can be terminated by either party without notice. Some employers may elect to specify a longer probation period in their employment contracts; the maximum length of the probation period is six months. However, for probation periods lasting more than two weeks, employees in Belize are entitled to any benefits that may accrue during that period (such as paid leave).

Working hours and overtime

The Belize Labour Act states that the standard work week cannot exceed 45 hours and the standard workday cannot exceed nine hours (or eight hours for those in the retail sector). Employees working more than the maximum per day or per week are entitled to overtime pay in the amount of 1.5 times their ordinary rate. Employees who work on an assigned rest day (usually Sunday) or a standard public holiday are also entitled to overtime pay. Work performed on Good Friday, Easter Monday, and Christmas Day must be compensated at two times the ordinary rate.

Taxes

Unlike countries that base corporate tax rates on net profits, Belize is relatively unique in that it is one of a few countries that bases taxes on gross receipts. Most commercial businesses are taxed at a flat rate of 1.75% on gross receipts. However, businesses in certain sectors such as legal services and telecommunications may be taxed at a higher rate.

Employer payroll contributions

Employers in Belize must contribute to the Social Security Board (SSB) to help cover the cost of retirement and survivors’ benefits for Belizean workers as well as leave for sickness, maternity, and work-related accidents. The amount that employers must contribute varies based on employee earning brackets and can range from approximately 6% to 8.5% of an employee’s earnings.