Trinidad and Tobago Labor Law Guide for Hiring Employees and Contractors
Trinidad and Tobago, an island nation in the Caribbean, reported a stable economic performance in 2023, with a GDP of approximately USD 25 billion.
The country’s economy is heavily reliant on the energy sector, particularly oil and natural gas, which contribute significantly to its GDP. Other important sectors include manufacturing, agriculture, and tourism.
The country’s currency is the Trinidad and Tobago dollar (TTD).
Minimum Wage
TTD 22.50 per hour
Overtime Wage
1.5 times the regular hourly rate
Meal Breaks
1 hour
Rest Breaks
Two 15-minute breaks
Working hours
8 hours per day, 40 hours per week
Salary Payment Cycle
Monthly
Payroll Taxes
National Insurance, Health Surcharge
Paid Vacation
14 days
Overtime Hours
Beyond 8 hours per day
Night Shift Hours
2 times the regular hourly rate
Holidays
14 days
No Work Days
Sunday
Businesses wishing to hire workers in Trinidad and Tobago must be registered locally. The cost of setting up a business entity varies depending on the type of entity but typically ranges between TTD 2,000 and TTD 10,000. The process to establish or incorporate a business entity can take anywhere from 3 to 6 weeks.
Employers are required to sign written employment contracts with their employees, outlining terms such as job description, salary, benefits, working hours, and conditions for termination. The contract must also include clauses related to confidentiality, non-compete, and intellectual property, if applicable.
Labor laws in Trinidad and Tobago distinguish between employees and contractors. Contractors are generally not entitled to the same benefits and protections under labor laws as employees, making it important for businesses to clearly define the nature of the working relationship.
As of 2024, Trinidad and Tobago has a legally mandated minimum wage of TTD 22.50 per hour. This rate applies uniformly across all sectors and is the federal minimum wage. There are no specific exceptions to this minimum wage rate, and all workers, including part-time and temporary employees, are entitled to receive at least the minimum wage.
The country does not have any state-specific minimum wage rates, so the federal minimum wage is applicable nationwide. Employers are also required to pay holiday pay if employees work on public holidays.
The standard working hours in Trinidad and Tobago are 8 hours per day and 40 hours per week. Any work beyond these hours is considered overtime and must be compensated at 1.5 times the regular hourly rate. Night shift work is paid at twice the regular hourly rate.
The minimum age for employment is 16 years, and there are strict laws against child labor. Employers must ensure that all workers, particularly minors, are not subjected to hazardous conditions or work that interferes with their education.
Employers in Trinidad and Tobago are required to make several payroll deductions, including contributions to the National Insurance System (NIS) and the Health Surcharge. The NIS provides employees with benefits such as pensions, sickness and maternity benefits, and unemployment insurance.
The current income tax regime in Trinidad and Tobago is progressive, with tax rates as follows:
Income Level (TTD) | Tax Rate |
Up to 72,000 | 25% |
Over 72,000 | 30% |
Employers are responsible for deducting and remitting these taxes to the government on behalf of their employees.
Employees in Trinidad and Tobago are entitled to several types of leave, including paid vacation, maternity, and sick leave. The standard paid vacation is 14 days per year, and employees must have completed one year of continuous service to be eligible. Maternity leave is 13 weeks, with a portion paid by the employer and a portion covered by the NIS.
Public holidays are also mandated by law, and the following table lists the mandated holidays:
Holiday Name | Date |
New Year’s Day | January 1 |
Carnival Monday | Date varies |
Carnival Tuesday | Date varies |
Good Friday | Date varies |
Easter Monday | Date varies |
Spiritual Baptist Liberation Day | March 30 |
Indian Arrival Day | May 30 |
Corpus Christi | Date varies |
Labour Day | June 19 |
Emancipation Day | August 1 |
Independence Day | August 31 |
Republic Day | September 24 |
Christmas Day | December 25 |
Boxing Day | December 26 |
Employers in Trinidad and Tobago are required to provide several employee benefits, including contributions to the National Insurance System, which offers retirement benefits, healthcare, and unemployment insurance. In addition, employers must also provide annual bonuses based on the employee’s performance and tenure, as well as gratuity payments upon retirement or termination.
Employees are also entitled to health insurance, either through a group plan provided by the employer or through the NIS. Other benefits include paid maternity leave, sick leave, and adoption leave.
Trinidad and Tobago does not follow “At-Will Employment” laws. Employment termination is governed by the Industrial Relations Act and requires employers to follow a fair process. Termination must be based on just cause, such as poor performance, misconduct, or redundancy.
Employers are required to provide notice of termination, which varies based on the length of service, and may range from one to three months. In cases of redundancy, employers must provide severance pay based on the employee’s length of service. Employees or labor unions can challenge terminations through the Industrial Court if they believe the dismissal was unfair or unjustified.
Conditions under which an employer can legally terminate an employee include gross misconduct, consistent poor performance despite warnings, redundancy due to restructuring, and mutual agreement between the employer and employee.