Isle of Man

• New Year's Day (in lieu)
• Good Friday
• Easter Monday
• Bank Holiday
• Bank Holiday
• TT Bank Holiday
• Tynwald Day
• Summer Bank Holiday
• Christmas Day
• Boxing Day

Working Hours

The standard work week is 40 hours between 08.00 am and 06.00 pm, Monday to Friday. There is no statutory framework for overtime work.

Minimum Wage

From 1 July 2024, the minimum wage is set at £11.45 per hour.

Employee Tax

Annual income*	Tax rate
Up to IMP 14,500	0%
IMP 14,501 - 21,000	10%
More than IMP 21,000	20%
National insurance contribution	11%**

*Based on a single person’s income. Tax bands may be different for married couples filing jointly.

*Not applicable to employees with an income of less than IMP 138 per week.

Bonuses

Employers may provide employees with discretionary benefits, such as paid time off on public holidays.

Employment contracts in the Isle of Man  must be written and issued to the employee within one month.

Contracts must include the points below:

• Employer and employee details
• Start date
• Job title and responsibilities
• Workplace
• Working hours
• Salary and leave entitlement
• Contract length (if applicable)
• Vacation time
• Sickness allowance
• Pension allowance
• Notice period
• If a specified task contract or reliant on an event contract

Fixed-term contract employees are permitted the same protection rights as permanent employees.

There are no statutory probation period requirements. However, three months and an extension of an additional six months is considered acceptable.

Annual Leave

Leave entitlement is 20 working days for five working days in 12 months. Employers are entitled to include a paid bank holiday in the leave entitlement each year.

Sick Leave

Sick leave over 7 days requires a medical certificate from a medical professional. Short-term incapacity is 52 weeks and long-term incapacity is over 52 weeks.

Parental Leave

• Maternity leave: 26 weeks before delivery, provided the employee gives the employer 15 weeks' advance notice of the anticipated due date. If an employee has completed 26 weeks of service at the start of the 14th week before the due date, they are eligible for an additional 26 weeks of maternity leave.
• Paternity leave: One or two weeks within 56 days of the due date for a child, provided the father has worked 26 weeks continuously, ending with the week immediately before the 14th week before the anticipated due date.
• Parental leave: a parent of a disabled child, who has worked 12 consecutive months, is entitled to 18 weeks of unpaid leave.
• Adoption leave: the same rights as birth parents.

Termination Process

The steps an employer must take to dismiss an employee are outlined in the 2007 Code of Practice on Disciplinary and Grievances Procedures. The employee must receive a warning letter from the employer, and the employer must give the employee a chance to address the employee's concerns.

Employees with more than two years of continuous service get a maximum of 12 weeks' notice or one week for every full year of employment.

Severance Pay

An employee is entitled to severance pay if made redundant. For each full year an employee has worked continuously, the employee is entitled to a one-week redundancy payment, up to a maximum of £540.00.

Under a Mauve Group Employer of Record solution, clients and workers can reap the benefits of Mauve’s Global Master Insurance Programme – a market-leading unified corporate insurance programme that connects all Mauve entities to its two preferred providers.

The insurance provides coverage in overseas locations through a combination of the master policy and its linked local policies, where required by law in certain jurisdictions.  The policies include:

• Employer’s Liability and Public Liability - £10,000,000 combined limit.
• Professional Indemnity - £5,000,000 limit.
• Worker’s Compensation – Limit is dependent on location of work.

For specific information about statutory and recommended insurances in your chosen country, get in touch with Mauve.