Should you hire in Grenada through an EOR or your own entity?
The right route for a first hire here needs a check, because Grenada licenses anyone who recruits or supplies workers. Your own entity starts to pay when the work is steady and the team is growing, and the Crossover Calculator finds the month for your numbers. For companies weighing a local entity, Teamed's real HR and legal experts, assigned within 24 hours, give you an honest answer on the right route. You also get 24/5 human support with a first response within 15 minutes.
· Grenada guide
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Whether you need a local company to employ someone in Grenada depends on the route. Grenada's Recruiting of Workers Act requires a licence to recruit workers, and its definition includes supplying workers to another person.
Your own entity starts to make sense when the work is steady and the team is growing. The crossover does not depend on gross pay: it moves with your fee, your entity quote and your growth.
What does Grenada's recruiting law say about supplying workers?
The Recruiting of Workers Act (Cap. 277) says no person may recruit workers unless licensed, and it defines recruiting to include supplying workers to be employed by another person.
A breach is an offence with a fine of EC$3,000 and imprisonment for six months.
Licences last at most a year, are not transferable and are granted at the licensing officer's discretion. The Act dates from 1939 and is aimed at recruiting and emigration, and we found nothing in the sources we read on how it applies to a modern employer of record. That is a question for local counsel.
We found no Grenada law that bars a company other than the user company from employing workers. The Employment Act also stops an employer, an intermediary or a labour contractor from taking payments from a worker for obtaining or keeping a job. Our experts check the route against these rules before any contract is signed.
What does an EOR do in Grenada that you would otherwise do yourself?
The employer of record is the legal employer named in the contract. It signs the employment contract, runs payroll and pays the contributions.
You direct the work and keep the output.
That includes the National Insurance and income tax duties and the Employment Act's rules on hours, leave, probation and termination. Employer of record is a commercial label, not a legal category. The legal employer is the company named in the contract.
A contractor who becomes an employee can move onto payroll without changing platform.
What changes when you employ people directly in Grenada?
You take on every employer duty yourself: National Insurance, income tax withholding, the Employment Act's hours, leave, notice and termination rules.
None of it is optional.
- Contributions. The employer's 7.25% National Insurance, the employee's 6.25%, and payment by the end of the month with a 14-day grace period.
- Registration. Employers register with the Comptroller of Inland Revenue within 30 days, and with the National Insurance Scheme.
- Income tax. Withholding on each payment, paid within seven days after the month ends, and an annual return.
- Leave. Two then three weeks of annual leave, paid sick leave after a year, and three months of maternity leave.
- Termination. A valid reason, written notice of up to two months, and a termination allowance after a year.
- Work permits. A foreign national or Commonwealth citizen needs one, so you check the right to work before the contract is signed.
When does your own local entity make sense?
When the work here is steady, the team is growing and your entity quote beats the cost of the other routes.
Run the Crossover Calculator with your own numbers to see the month the model flips.
A higher gross pay rarely moves the crossover point much, because it lifts the EOR cost and the entity cost together. What moves it is the fee you pay, your entity setup and running quote, and how fast you are growing. Headcount alone will not tell you where you cross.
Teamed tells you when you have crossed, and helps you move.
How does the move to your own entity work?
You move from contractor to employer of record to your own entity on one platform under Teamed's Graduation Model.
EOR is the right model for a first hire in many countries, until it isn't.
The same people move across, and your designated person plans the move with you. Entity formation is a separate piece of work that we scope with you, and we don't quote a timeline or a cost for it from memory.
Teamed prices every country the same way, with zero FX markup in any currency, and the pricing page shows the fee.
How does Teamed advise on the right route in Grenada?
Teamed's real HR and legal experts check the right route for your Grenada hire first: employer of record, contractor or your own entity.
Advice and the next steps run on one platform.
A designated person gives you an honest answer on the right route, and you can run the numbers yourself in the Crossover Calculator.
The check is part of every plan and comes before any contract is signed. Contractor, employer-of-record and own-entity routes run on one platform, so a change of route does not mean a change of provider.
Start from the Grenada hiring overview, then run the Crossover Calculator with your own numbers.
Frequently asked questions
Do I need a local company to hire an employee in Grenada?
It depends on the route. Grenada's Recruiting of Workers Act requires a licence to recruit workers, and it includes supplying them. Teamed's experts check which route fits your hire before any contract is signed, and you can open your own entity later.
What does a direct employer in Grenada have to run?
National Insurance and income tax withholding, and the Employment Act's rules on hours, leave, notice and the termination allowance. Income tax is due within seven days after each month.
Does gross pay decide when to open a local entity?
Rarely. A higher gross pay lifts both the EOR cost and the entity cost together. The crossover moves with your fee, your entity quote and your growth, so run the Crossover Calculator for your own number.
Can a contractor in Grenada become an employee on the same platform?
Yes. A contractor who converts to employment moves onto payroll on the same platform, and the same person can later move to your own entity.
Grenada licenses anyone who recruits or supplies workers, so the route for a hire is the first decision and not the last.
A direct employer then carries National Insurance, income tax withholding and an Employment Act with three-month maternity leave.
We will tell you when you have crossed, and help you move.
Looking for a job in Grenada yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.
