Hiring in Bhutan

Thanks to its business-friendly environment, stable government, and English-speaking workforce, Bhutan is an attractive destination for international hiring, but its labor laws can be complex. Cultural and regulatory considerations in Bhutan include adherence to the principles of Gross National Happiness (GNH), national content policies prioritizing citizen employment, and strict environmental compliance standards. Employment relationships are governed by such laws as the Bhutan Labour and Employment Act (BLEA) of 2022 and its accompanying Regulations of 2023, covering contracts, working hours, leave entitlements, wages, social security, safety, and termination. 

Additionally, Bhutanese law regulates various contract types and mandates written contracts for indefinite, fixed-term, probationary, foreign-worker, and domestic employment, detailing terms such as roles, pay, duration, probation limits, notice, termination, and representation via worker representatives. Fixed-term contracts cannot exceed three years (including renewals); probation must be specified in writing and cannot exceed three months for permanent roles; foreign worker contracts require a work permit from the Department of Employment and Human Resources. 

Because of the complexity of employment laws in Bhutan, compliant employment contracts are an essential business need. With Safeguard Global as your partner, you can employ workers in Bhutan with confidence, knowing that every contract for every worker meets all requirements. We can also provide you with guidance about cultural norms and hiring best practices and keep you up to date with employment regulations as they change.

Relying on an employer of record (EOR) in Bhutan

An employer of record (EOR) provides an easier way for organizations to hire and pay local talent in Bhutan. Because of its in-country presence, the EOR can employ the workers a company needs and lease them to that company, taking care to comply with Bhutan’s labor laws. As a result, the organization doesn’t have to establish a legal presence or manage compliance in Bhutan.  

The EOR can hire and onboard employees in as little as two weeks and manage ongoing responsibilities such as payroll, benefits, and taxes. A full-service EOR can also manage recruitment. Together, these EOR services significantly reduce the administrative burden for an organization. 

Visit our Employer of Record services page to learn how we can help you meet your international employment needs in Bhutan.