Find your employer of record in Palau

To work in Palau, people need a valid visa or identification certificate. In addition, depending on the job they are going to perform, they will receive work permits, of which the following are the most popular:

• Provisional work visa. This provisional certificate allows entry into the country legally. Similarly, a private sector employer who wants to hire foreign workers must apply for this certificate. In addition, employees must wait for the document to be issued to request their work permit in the country. In this case, you can get this visa for employees with the help of HR and payroll outsourcing.
• Missionary visa. This visa is received by people who present proof that the applicant will do religious work or community service.
• Temporary permits. They are the certificates granted to a foreign worker who requires residence in Palau for 90 days. In addition, the employee may extend the residence period for another 90 days.

Starting in January 2023, Palau replaced the VAT with the Goods and Services Tax at a PGST rate of 10%.

Termination Process

By hiring a Professional Employment Organization, you can manage the termination of an employee easily. According to employment laws, the reasons for termination include resignation, medical reasons, and payroll reduction. Below, you can see in detail the reasons mentioned:

• Resignation. The employee must submit the resignation 10 days in advance. However, if the employee does not submit the written resignation, the authorized administrative official must file a statement of termination. This must be submitted to the office. of the Public Service System within 15 days following termination. Likewise, any employee who is absent, without a corresponding permit, for 15 consecutive days or more in 6 months, the employer may take it as a resignation.
• Termination for medical reasons. In this case, the employer may dismiss the employee in case of a serious, infectious, contagious, or risky disease. Besides, they will be able to do so if, after the illness, the employee become incapacitated, disabled mentally or physically permanently. Likewise, if the illness does not allow the employee to fulfill the assignments of his job.

Notice Period

An employer has up to 60 days to notify the employee of the termination.

Severance Pay

With PEO services, may pay the final salary to the terminated employee. In addition, the employer must make the deductions of debts or advances that the employee has contracted.

Probation Period

The probation period for an employee is 6 months maximum.

Paid Time Offs

In Palau, workers accrue vacations for the length of service they have in the company. Therefore, through an Employer of record in Palau you can manage annual leaves as follows:

• For a period of service of fewer than 3 years, they receive 4 hours of vacation for each pay period.
• For creditable service between 3 and 10 years, employees receive 6 hours of vacation per pay period.
• Employees with more than 10 years of service may receive 8 hours of annual vacation for each pay period.

On the other hand, employees in Palau will only be able to accumulate 360 hours of vacation per year. After that, the employee must use the vacation hours accrued before the end of the work year. Otherwise, you will lose the hours, since you cannot accumulate rest times for more than the mentioned period.

Public Holidays

There are 14 national holidays throughout the year.

Vacation Holidays

There are 4 vacation holidays throughout the year.

Sick Days

All workers can receive 4 hours of sick leave for each verified pay period. Likewise, employees can accumulate unlimited leave time.

On the other hand, for illnesses that can last for more than 3 days, the employee must present a validated health certificate. Next, the supervisor must be responsible for managing and delivering the license. Otherwise, hiring an Employer of record in Palau will make it easier to manage leave for hired staff.