Bhutan’s nation development strategy is guided by its unique philosophy – Gross National Happiness (GNH). Bhutan’s economy is powered mainly by agriculture and forestry, and is also closely aligned with India’s through strong trade and monetary links. While it is one of the world’s smallest and least developed countries, Bhutan has a stable political and economic environment. Bhutan has also made tremendous progress in reducing poverty and promoting gender equality in recent years.
Employers need to follow the strict employment guidelines set forth by the local authorities before they could employ in Bhutan. This process can be time-consuming as the company first needs a legal entity in the country and it needs to manage payroll, tax, benefits and compliance.
Global payroll solutions make it easy to find and hire top talent in Bhutan. With one seamless integration and local legal entity, we take care of the compliance matters so that you can start your globelizing plan immediately.
Bhutan’s worker classification labour and tax laws distinguish between contractors and full timers. If the individual meets the legal definition of an employee but is classified as a contractor, your company will face penalties.
The primary laws governing employment relationships in Bhutan are labour administration policy and the Labour and Employment Act of the Kingdom of Bhutan, 2007 and its Regulations. Areas covered include protection of workers’ rights and vulnerable groups, working conditions, alleviation of poverty, social protection and welfare system, and more.
The Department of Labour delivers its services through the following four divisions:
Globelise will be able to help you navigate through the employment process and so that you’ll be able to offer a competitive and compliance offer to attract and retain your employees in Bhutan.
The Federation of Bhutanese Trade Unions is designed to help Bhutan stay competitive and workers remain employable. They work with the local authorities to tackle issues such as promotion of fair and progressive employment practices, flexible wage system, among other labour-related issues. Employees may seek their unions for help when they feel that they are unfairly treated or have been non-compliant with their employment terms.
Probation is optional in Bhutan. If applicable, it will be stated in the Employment Agreement and Collective Agreement.
Company or Individuals who are looking to hire talents and run payroll globally
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