Global HR Compliance in Belize
Hiring in Belize is governed by a compact but prescriptive employment framework. The Labour Act sets binding rules on probation, working hours, overtime pay, public holiday pay, annual holiday entitlement, and paid sick leave. Payroll compliance also depends on correct handling of income tax withholding where applicable and Social Security Board contributions from the first pay cycle.
This guide summarises the core compliance obligations for employing staff in Belize and explains how Acumen International supports compliant hiring without the need to establish a local entity.
Employment contracts in Belize
Belize recognises both oral and written employment contracts, but written agreements are the practical baseline for control and defensibility, particularly for foreign employers.
Employment contracts should clearly define:
- role and reporting line
- working schedule, including the designated rest day and overtime approval rules
- pay rate, pay frequency, and any allowances
- public holiday treatment and pay mechanics
- annual holiday and sick leave entitlements, including certification requirements
- confidentiality and intellectual property provisions where relevant
- termination provisions aligned with Belize notice rules
Fixed-term contracts may be used, but employers should avoid repeated renewals where the employment is effectively ongoing, as termination obligations may still arise.
Probation period
Belize law treats the first two weeks of employment as probationary. During this period, either party may terminate the employment without notice. Where a longer probation period is agreed, employees remain entitled to benefits accrued during probation if employment ends.
Working hours, rest days, overtime, and public holiday pay
The Labour Act places limits on working time:
- no more than six working days in any week
- no more than nine hours of actual work in any day
- no more than forty-five hours of actual work in any week
Overtime applies where work exceeds these thresholds or where work is performed on Sundays, the agreed rest day, or public holidays.
Minimum overtime rates apply as follows:
- time-and-a-half for work performed on Sundays or rest days
- time-and-a-half for work performed on public holidays, other than Christmas Day, Good Friday, and Easter Monday
- double time for work performed on Christmas Day, Good Friday, and Easter Monday
Public holiday pay eligibility for hourly, daily, or task-based workers is subject to attendance conditions around the scheduled working days immediately before and after the holiday, with defined exceptions.
Statutory leave entitlements
Annual leave
Employees are entitled to a minimum of two working weeks of paid annual holiday for each year of continuous employment. Annual holiday should be taken within six months after it becomes due, unless there is written agreement to defer it.
Sick leave with pay
Employees who have completed at least sixty days of employment within the preceding twelve months are entitled to paid sick leave, up to a maximum of sixteen working days within that twelve-month period.
The law sets expectations around medical certification and how employer-paid sick leave interacts with social security sickness benefits where applicable.
Pay, payroll deductions, and statutory contributions
Minimum wage
Belize operates a national minimum wage framework. The general minimum wage is BZ$5.00 per hour, unless a specific wage order applies to a particular category of work.
Income tax withholding
Payroll income tax applies once an employee’s earnings exceed the applicable annual threshold. Employers are responsible for deducting and remitting income tax through payroll in line with statutory rules.
Social Security contributions
Employers must deduct and remit Social Security Board contributions. Contributions are calculated using prescribed earnings bands with fixed weekly contribution amounts, covering both employer and employee portions.
Termination rules and notice
Termination is regulated under the Labour Act. Notice obligations depend on the circumstances of termination and how pay is structured. Employers must ensure that termination processes and final pay handling align with statutory notice mechanics and accrued entitlements.
Failure to follow statutory notice and final pay requirements may expose employers to claims or enforcement action.
Acumen International: Employer of Record support in Belize
Hiring in Belize without establishing a local entity is feasible when employment and payroll are administered correctly from the outset. Acumen International provides Employer of Record support in Belize, allowing international companies to employ local staff while we assume responsibility for employment compliance and payroll administration.
Our service scope
- Employment contracts prepared in line with Belize labour law and actual working arrangements;
- Employee onboarding and statutory registrations required for payroll operations;
- Monthly payroll processing with accurate statutory deductions and contribution handling;
- Administration of annual holiday and paid sick leave in line with statutory entitlements;
- Support through termination processes, including notice handling, final pay, and documentation.
Employer responsibilities we take on
- Acting as the legal employer on record in Belize;
- Managing payroll compliance, including statutory deductions and contribution payments;
- Applying working time, overtime, and public holiday pay rules correctly in payroll;
- Maintaining compliant leave records and defensible employment documentation.
Risk and compliance management
We help employers avoid common compliance failures, including:
- incorrect wage payment timing or pay cadence;
- employee misclassification risk;
- miscalculated overtime or public holiday pay;
- failure to grant annual holiday within statutory timelines;
- inconsistent sick leave handling or certification practices;
- errors in social security contribution calculations;
- permanent establishment risk mitigation.