How to Legally Hire Your First Employee in Antigua & Barbuda
- Rich Co Business Services
- Jun 18
- 5 min read
Updated: Aug 26
Your Step-by-Step Guide to Getting It Right the First Time
Hiring your first employee is an exciting milestone. It means your business is growing! But before you bring someone on board, it is essential to understand the legal and administrative steps involved. Hiring without the proper foundation can lead to fines, disputes, and unnecessary stress.
This guide walks you through how to legally and confidently hire your first employee in Antigua and Barbuda, ensuring compliance with local laws and setting your business up for long-term success.
Step 1: Define the Role and Terms of Employment
Before posting a job or making an offer, you should be able to answer the following questions:
What are the expectations of the role? What will the employee be responsible for? Clear expectations will help define success for the role, guide performance, and reduce confusion once the employee starts. Consider daily duties, deliverables, performance goals, KPIs, and how the role supports the business’s bigger picture.
What skills, qualifications and competencies are needed to perform in this role at the desired standard? Hiring someone without the right capabilities will likely lead to poor performance and wasted resources. Don’t get too consumed with educational achievements and forget to consider other vital factors such as personal attributes and alignment with your business’ values.
Will the employee be engaged on a full time basis, part-time, temporarily or seasonal? Will the role be in-person, remote or hybrid? This is vital in determining legal entitlements and employer obligations.
How will the employee be compensated? While this may be negotiated with your prospective employee, it is important to go into the process having an idea of what you can afford, and how you would like the compensation package to be structured (base pay, commission, allowances, etc.).
Step 2: Draft a Legal Employment Contract
Under the Antigua & Barbuda Labour Code, every employee must have a written employment statement (contract). This document protects both you and your new hire and lays the foundation for a professional relationship.
Your contract should clearly outline at minimum:
General responsibilities and related duties
Regular hours of work and rest periods
Starting compensation
Terms of employment (full-time, part-time, seasonal, etc.)
Probationary period, if any (standard three (3) months)
Leave entitlements (vacation, sick days, etc.)
💼 Need help? Rich Co will prepare your contracts to meet legal requirements and match the needs of your business.
Step 3: Set Up Payroll & Leave Tracking
Running your own payroll may seem daunting but it doesn’t have to be complicated. Here are three (3) practical options:
Use a manual Excel or Google Sheet with built-in formulas
Try a low-cost online payroll tool such as Payroll4Free or Zoho Payroll
Outsource payroll to a trusted provider — Rich Co offers flexible, affordable payroll support tailored to small businesses.
At minimum, you want to track:
Hours worked, basic and premium wages, commissions, etc.
Statutory deductions (Social Security, Medical Benefits and Education Levy)
Vacation days, sick leave, and public holidays
Pay slips and contribution records (retain for at least seven (7) years)
Step 4: Register as an Employer with the Social Security Board (SSB)
Once you've determined how you’ll manage payroll, your next priority is registering with the relevant national authorities.
All employers in Antigua and Barbuda must register with the Social Security Board within seven (7) days of employing their first employee and begin making monthly contributions immediately. To register you will need:
A completed Social Security Employers’ Registration form
Business registration certificate
Valid passport of listed business owner(s)
Articles of Incorporation (if registered as a LLC)
Find more information in this Social Security Board Employers' Guide.
If you delay registration, you open yourself up to possible fees. Aim to complete this step as soon as the offer is accepted by your new hire.
Step 5: Register with Medical Benefits Scheme and Board of Education
Once you have registered with Social Security, your next step will be to do the same with the Medical Benefits Scheme and the Board of Education.
For MBS you’ll typically need:
Business registration certificate
Valid passport of listed owner(s) and contact person for business if different from the owner
Medical Benefits card and Social Security card of listed owner(s)
Find more information in this MBS Employers' Guide.
At the Board of Education, you will need:
Business registration certificate
Social Security printout showing your registration number
Government issued ID of owner or contact person
Although these deductions come partly from the employee’s salary, it’s the employer’s responsibility to ensure timely registration and remittance.
Step 6: Onboard Your Employee
A structured onboarding process sets your employee up for success and ensures all necessary documentation is collected. Even in a small business, proper onboarding supports performance and retention.
Include in your onboarding:
A review of the job description and expectations
Orientation on your business policies and values
Signing of employment contract and any internal policies
Collection of important information and documents for employee file to include banking and emergency contact info (See the next step for a detailed list)
Introduction to other team members (if applicable)
🧩Rich Co offers hiring and onboarding support — from interview prep to Day One orientation. Book a consultation to find out how we can help you!
Step 7: Set Up and Maintain an Employee File
After onboarding, you should keep a secure employee file that includes all relevant documents. This protects both you and your employee in the event of disputes, audits, or compliance checks.
Here’s what to include:
Signed employment contract
Copy of passport or birth certificate (proof of citizenship)
Social Security & Medical Benefits IDs
Resume or job application
Educational certificates
Police record
Emergency contact information
💡 Pro Tip: Keep both a physical folder and a digital backup of each employee's file. Use cloud storage like Google Drive (with restricted access) to ensure records are secure, organized, and accessible in case of audits or emergencies.
Hiring shortcuts may seem easier in the moment, but they often lead to avoidable issues.
Starting strong gives your employee and your business the best chance to succeed with clear expectations, legal compliance, and a structured foundation.
💬 Ready to Hire Your First Employee? Let's Get It Right.
Hiring doesn’t have to feel overwhelming. With the right support, it can be a smooth and empowering process for your business.
Book a free consultation with Rich Co Business Services!
About Rich Co Business Services
Rich Co Business Services is a boutique consultancy based in Antigua and Barbuda, dedicated to empowering micro and small business owners with the tools, systems, and support they need to succeed. We help entrepreneurs simplify operations, strengthen decision-making, and grow confidently. Our services included business consultancy and coaching, recruitment, expat management and entrepreneurial development training. Learn more at www.richcobusiness.com.
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