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Written Agreements

Written employment contracts are not mandatory in the Isle of Man. Employers must provide a written statement of employment containing employment terms within 4 weeks of the employee's start date. This requirement does not apply if a contract is made in writing. The employer must provide a copy of the contract to the employee. It must contain information on both parties' identities, job title, place of work, working hours, remuneration details, notice requirements, disciplinary rules, and procedures, etc.

A written statement of employment is legally binding on both parties. Employment contracts that are made for less than 4 weeks do not require a written statement. Employers must keep a copy of the written statement until 6 months after the termination of employment.

Oral Agreements

Oral contracts of employment are legal in the Isle of Man if the employment relationship's existence can be proved by the employee's obligation to undertake work personally and the employer's corresponding obligation to provide and control the work. Employers must provide a written statement of employment containing employment terms within 4 weeks of the employee's start date. The statement must contain information regarding both parties' identities, job title, place of work, working hours, remuneration details, notice requirements, disciplinary rules, and procedures, etc.

Implied Agreements

Implied contracts of employment are legal in the Isle of Man if the employment relationship's existence can be proved by the employee's obligation to undertake work personally and the employer's corresponding obligation to provide and control the work. Employers must provide a written statement of employment containing employment terms within 4 weeks of the employee's start date. The statement must contain information regarding both parties' identities, job titles, places of work, working hours, remuneration details, notice requirements, disciplinary rules and procedures, etc.

In addition to the express terms in an employment contract, there are implied terms that may not be recorded in the written contract of employment or the written statement. The general rule is that a term will be implied into a contract if it is so obvious that both parties would have regarded it as a term, even though they had not expressly stated it as a term, or if it is necessary to imply the term in order to give the contract business efficacy.

There are no statutory provisions regarding working hours. Employment agreements determine working hours and rest breaks.

There are restrictions on working hours for young workers under 16 years of age and shop workers. Young employees cannot be employed for more than 28 hours a week, 2 hours a day on school days, and 7 hours a day on non-school days. The maximum working hours of shop workers are 10 hours a day or 44 hours a week.

Employment contracts in the Isle of Man can include a probationary period. There is no statutory limit on the duration of probationary periods. Probationary period must be included in the written statement or contract of employment. An employee's contract may be terminated without notice during the first month of their job.

Both employees and employers can terminate an employment contract. If an employee has worked for at least one month, both the employer and the employee must give a minimum notice period to terminate the contract. Employees can be dismissed without notice by providing payment in lieu of notice or as a result of disciplinary proceedings against them.

Fixed-term employment contracts terminate automatically on their expiry date or when the specified job is completed. Such contracts can be terminated early as per the provisions in the contract.

Dismissed employees have the right to request a written statement of the reasons for dismissal from their employers. This statement must be provided to the employee within 14 days of such a request.

Notice Period

In the Isle of Man, when an employee has worked continuously for at least 1 month, both the employer and the employee must provide a minimum statutory notice period to terminate the contract. The notice period ranges from 1 week to 12 weeks for employers and from 1 week to 4 weeks for employees. Employees are entitled to all contractual benefits and payments during the notice period.

An employer or employee is not required to give the minimum notice if the other party's conduct amounts to contract termination (for example, gross misconduct, incompetence, or breach of contract).

An employer can pay the employee in lieu of notice if the contract specifically provides for payment in lieu of notice with agreement from the employee.

Severance Benefits

There are no statutory provisions for severance pay. Employment contracts can include provisions for termination pay. The law provides for a redundancy payment when an employee is made redundant after at least 2 years of employment. The redundancy payment is calculated as 1 week's pay for each year of employment.

If the employer fails to make statutory redundancy payments to employees, payment can be made by the Manx National Insurance Fund to employees who fulfill certain conditions. The government also provides support for redundancy payments to small employers with less than 40 employees.

Minimum Wage

In the Isle of Man, employers cannot pay adult employees less than minimum wage. Employees under 16 years of age are not entitled to minimum wage.

Minimum wages are set by the Minimum Wage Committee, which is made up of an independent Chair, 2 members representing employers, and 2 members representing workers. The current hourly minimum wage is as follows:

• Over compulsory school age (16 years) but under 18 - IMP 8.75 (Manx pounds)
• Aged over 18 (except for development workers) - IMP 11.45

The provision of accommodation for an employee by an employer is the only benefit-in-kind that can count towards minimum wage pay. The accommodation offset value cannot exceed IMP 1.05 an hour, IMP 6.00 a day, or IMP 42 a week.

Overtime, Holiday & Vacation Pay

There are no statutory overtime benefits in the Isle of Man's Employment Act. Employees with normal working hours fixed by their employment contracts are eligible for overtime pay if they work more than their normal hours. Employers determine shift and overtime premiums. Employees' gross pay includes commission and bonuses and excludes overtime or shift premiums.

All employees over the age of 16 years are entitled to 4 weeks' paid annual leave.

An employee is not entitled to a day off on a bank holiday. There is no general statutory entitlement to paid leave or an enhanced pay rate for working on a bank holiday. Where a bank holiday is taken as paid leave, it will count as one day of a worker's annual leave.

Visas

The following categories of visa are issued to visit the Isle of Man:

• Standard visitor visa - This visa is issued to persons visiting the Isle of Man for leisure, short-term business, to take part in sports or creative events, for medical treatment, or for a short-term academic sabbatical. It has a validity period of up to six months and allows studying for up to 30 days.
• Tier 4 (General) student visa - This visa is issued to persons above 18 years of age who have been offered a place in an education course in the country. Visa holders can work part-time (for up to 10 hours per week for below degree level study and up to 20 hours per week for degree level study) and full-time during vacations.
• Tier 3 (Child) student visa - This visa is issued to students under 18 years of age for their course duration (up to six years), plus four months after that. Students 16 or 17 years of age can stay for the course's duration (up to three years) and four months afterward. Students above 16 years of age can work part-time during the term (for up to ten hours a week) and full-time during vacations.
• Visa for family members - This visa is issued to family members of residents who wish to settle in the Isle of Man, including spouses and civil partners.
• Tier 1 migrant visa - This visa is issued to high net worth individuals making a substantial financial investment to the Isle of Man or entrepreneurs or employees for exceptional talent.
• Innovator visa - This visa is issued to persons who want to set up or run a business in the Isle of Man. They must have at least IMP 50,000 in investment funds. It allows a stay of up to three years that is extendable by another three years.
• Start-up visa - This visa is issued to persons who want to set up or run a business in the Isle of Man. It allows a stay of up to 2 years and 4 months and cannot be extended.
• Worker migrant visa - This visa is issued to persons employed by an Isle of Man employer to live and work in the country. It allows employment with the sponsoring employer in the particular job mentioned in their certificate of sponsorship.
• Tier 5 (Temporary work) visa - This visa is for certain types of temporary workers whose entry helps satisfy cultural, charitable, religious, or international objectives, including volunteering and job shadowing. It allows a stay of up to 24 months, and migrants under this visa are not eligible for settlement.

Schengen visas are not valid in the Isle of Man and cannot be issued by the Isle of Man Immigration Office. Persons holding a valid visa for the UK need not apply for a separate visa to visit the Isle of Man at the same time.

Work Permits

Foreign nationals who wish to take up employment or self-employment in the Isle of Man require a work permit. Workers who hold an Immigration Status, defined as an "Immigration Employment Document," do not require work permits.

An application for a work permit may be made to the Department for Enterprise by an employer to employ a specific individual or by a self-employed person for themselves. Employers must prove that they found no suitable employee in the Isle of Man and justify the need for foreign talent. Before entering the Isle of Man, a worker must also have a worker migrant visa. It is issued for a maximum of three years and 14 days, with a possibility of extension.

If issued, a work permit is limited to employment by the employer in a specified capacity. An employee cannot change employment unless the employer first obtains a new work permit.