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Undoubtedly, payroll is a critical process for any organization. The pay cycle in Vanuatu refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.

The frequency cycle in Vanuatu is Monthly.

In Vanuatu, there is no statutory requirement to pay a 13th month salary.

The current minimum wage in Vanuatu is set at VT 57,165 per month.

The standard work day in Vanuatu lasts 8 hours. The maximum amount of weekly working hours is 44.

• Overtime pay is granted for work performed outside of usual working hours.
• Any work done for more than 8 hours will qualify as overtime, or any hours exceeding the first 4 hours of overtime work in a week, employees are entitled to overtime pay at a rate of one-and-a-half times their normal hourly rate (150%).
• If working on a public holiday or Sunday, will be paid 1 ½ times the standard hourly rate. Work beyond normal working hours will be compensated at 1 ¼ times the normal hourly rate for the first 4 hours and 1 ½ times the normal hourly rate for every hour subsequently.

In Vanuatu, Employment Act No.12, 2010 serves as the primary reference for employment rights and obligations, including record-keeping practices related to employee data.

While it does not specify exact retention periods for employment records, it emphasizes the need for employers to maintain accurate and comprehensive records.

National Policy on Records and Information Management
This policy mandates that government employees manage documents and records appropriately, recognizing them as essential assets.

Compliance with this policy is required for all government staff to ensure sound record keeping practices.

Tax Administration Act No. 37 of 2018
Businesses are required to retain records for at least five years after the end of the tax period to which they relate. This includes documentation such as invoices and contracts.

Data Protection Legislation
Currently, Vanuatu is in the process of developing comprehensive data protection legislation to enhance privacy protections and align with international standards.

• January 1 - New Year 
• February 21 - In Memory of the "Fr. Of Independence" Fr. Dr. W.H. Lini 
• March 5 - Custom Chiefs' Day 
• March 29 - Good Friday 
• April 1 - Easter Monday 
• May 1 - Labour Day 
• May 9 - Ascension Day 
• July 24 - Children's Day 
• July 30 - Independence Day 
• August 15 - Assumption Day 
• October 5 - Constitution Day 
• November 29 - Unity Day 
• December 25 - Christmas Day 
• December 26 - Family Day

In Vanuatu, employees are entitled to 15 days of paid leave if they have been employed for six years. Employees with 7 to 19 years of employment are entitled to 21 working days of paid leave. After 20 years of employment, employees are entitled to 23 days of leave. After 25 years of employment, workers are entitled to 25 days of leave. After 30 years of employment, workers are entitled to 27 days of leave. All of them paid in full.The annual leave must be taken in one period or, if the employer and employee agree, in no more than two separate periods. If an employment contract is terminated before the employee has accrued annual leave entitlement, an allowance calculated on the basis of the normal wage received will be paid in lieu of leave.

Employment Act Cap 160, every employee who has been in continuous employment with the same employer for more than three months is entitled to 21 working days of paid leave per year for illness. This means that up to 21 days of absence per year will not be deducted from workers' salaries if they present a medical certificate.

After working for a year, an employee is eligible for maternity leave. They are entitled to 12 weeks of maternity leave at a rate of 66% of their regular wage. Out of these 12 weeks, six weeks leave is post-natal leave.

• Employees with less than three years of service: Must provide three months' notice before termination. 
• Employees with three or more years of service: Must provide a 14 days' notice before termination.

• Employees who are terminated (except for serious misconduct) are entitled to severance pay if they have been continuously employed for at least 12 months.
• The calculation for severance pay is based on the employee's length of service, specifically one month's salary for each year of service, capped at a maximum of six months' salary.

Vanuatu offers various work visa options for foreign nationals seeking employment or business opportunities in the country. Here’s a concise overview of the current work visa categories, requirements, and application procedures. 

Work Visa Categories:

• Long-Term Work Visa: Valid for one year, extendable up to four years. Suitable for individuals with ongoing employment in Vanuatu. 
• Temporary Work Visa: For employment periods of four months or less. Ideal for short-term projects or seasonal work. 
• Exempted Visa: Applicable for very short stays, typically lasting one month or less. 
• Remote Worker Visa: Designed for digital nomads and remote workers. Allows individuals to live in Vanuatu while working for foreign employers or running overseas businesses.

Requirements for Work Visas:
To apply for any work visa, the following general requirements must be met:

• A valid passport (minimum six months validity). 
• Completed application forms submitted by the employer to the Vanuatu Department of Labor and Employment. 
• Passport-sized photographs. 
• Documentation justifying the employment of a non-citizen, including a job notice and proof of recruitment efforts. 
• Health certificate and police clearance to verify no criminal record. 
• Specific Requirements for Remote Worker Visa, Proof of income or financial stability, such as bank statements.
• A return ticket upon application.

*Submission: The employer must submit the application along with all required documents to the Department of Labor and Employment Services.

In Vanuatu, employment background checks are essential for ensuring the integrity of potential hires. Here’s a brief overview of the key components involved in these checks:

Types of Background Checks:

• Education Checks: These are permissible and often include verification of degrees, dates of attendance, and other relevant details from educational institutions.
• Criminal Record Checks: Generally allowed but come with some restrictions. These checks typically report felony convictions from the past seven years and may include details such as case type and disposition.
• Credit and Financial Checks: These can be conducted but are subject to specific restrictions, often requiring consent from the individual being checked.
• Medical Screenings: These are restricted and typically not part of standard employment background checks in Vanuatu.
• Address Verification: This is also restricted, meaning that it may not be routinely performed without proper justification.
• Union Membership and Political Views: Both are restricted areas in background checks, limiting employers' ability to inquire about a candidate's affiliations or beliefs.

The average turnaround times for various checks can vary significantly based on the type of check and the efficiency of local processes.

For instance, Criminal record checks may take approximately 15 working days, and employment history verifications can also take around 15 days, depending on the availability of information from previous employers. Compliance and Legal Considerations Employers conducting background checks must comply with local laws regarding privacy and data protection. This includes obtaining consent from candidates before performing certain types of checks, especially those involving sensitive information like credit history or medical records.