COUNTRY

Employment contracts in Guam may be verbal, written or implied. Indefinite-term and fixed-term contracts are permitted. Common employment contract terms include:

• names of the employer and employee,

• work to be performed,

• work location,

• salary and payment intervals,

• start date and duration, if for a fixed term, and

• leave entitlements and other benefits.

The standard work week in Guam is 40 hours per week over five days. Employers in Guam must pay overtime to employees who work more than 40 hours per week. Overtime pay is 150% of the employee's normal hourly pay. Salaried employees with income over a legal threshold are exempt from the laws on hours and overtime.

Employees can take up to 12 weeks of unpaid sick leave in Guam. Employees must have at least 12 months of service with their employer, and at least 1,000 hours of service in the prior 12 months, to be eligible for leave. Employers with fewer than 25 employees in Guam do not have to give sick leave to their employees.

The Guam Family and Medical Leave Act (FMLA) gives employees up to 12 weeks of unpaid leave per year. Employees may use FMLA leave to give birth and care for a newborn or adopted child. Employees must have at least 12 months of service with their employer, and at least 1,000 hours of service in the prior 12 months, to be eligible for FMLA leave. Employers with fewer than 25 employees in Guam do not have to give FMLA leave to their employees.

Guam has a minimum wage. Guam’s labor law does not require employers to pay bonuses.

Employers are not required to provide paid annual leave, but most employers do.

In Guam, the public holidays are:

• New Year’s Day

• Martin Luther King Jr. Day

• Guam History and Chamorro Heritage Day

• Memorial Day

• US Independence Day

• Liberation Day

• Labor Day

• All Souls’ Day

• Veterans Day

• Thanksgiving

• Santa Marian Kamalen Day

• Christmas

Employers in Guam are not required to provide health insurance to employees. Employers may provide private health insurance as an employee benefit.

Employers in Guam generally can terminate employees at any time, with or without cause. However, it is illegal for an employer to fire an employee because of their race, color, national origin, religion, gender or age. An employee must be at least 40 years old to be protected from age discrimination.

Employers are not required to provide notice before terminating employment, except in large-scale layoffs. Employers are not required to pay severance.