Introduction

When managing a workforce across borders, few things are more important - or more complex - than understanding local labour laws. Employers often make the mistake of assuming that Guernsey, a Crown Dependency of the UK, shares the same employment regulations as the mainland. It doesn’t. And if you're also operating in the United States, the contrast in employment frameworks becomes even starker.

From at-will employment in the US to Guernsey’s formal employment protections, the differences impact hiring, firing, benefits, and dispute resolution. Understanding these distinctions is essential for avoiding legal missteps and protecting your people.

Quick Tips

• Don’t assume UK employment law applies in Guernsey - it has its own framework.

• US 'at-will' employment offers flexibility but carries high litigation risk.

• Guernsey requires written contracts with minimum notice periods and protections.

• Discrimination protections differ significantly between the jurisdictions.

• Always check classification rules - especially for contractors or remote workers.

Guernsey: Closer to UK in Spirit, But Legally Independent

Guernsey may look like the UK on the surface, but its employment legislation is self-governed. Employers must comply with local laws such as the Employment Protection (Guernsey) Law, 1998. Key requirements include:

• Mandatory written terms of employment (usually within 4 weeks).

• Clear minimum notice periods (generally one week per year of service after the first year).

• Robust maternity and parental leave provisions.

• A Discrimination Ordinance (2022) covering multiple protected characteristics.

Unlike in the UK, there is no national minimum wage for younger workers, and statutory sick pay provisions are far more limited. Employers need to understand these nuances to avoid accidental non-compliance.

I once worked with a London-based firm expanding into Guernsey. Their UK policies didn’t translate cleanly. We had to rewrite their employment contracts and update their grievance and disciplinary procedures to align with local expectations - a task made much smoother by planning early.

USA: Flexibility, But with Caution

In contrast, the United States operates under a decentralised system, where labour law is split between federal, state, and even local jurisdictions. Key federal laws like the Fair Labor Standards Act (FLSA) set baseline protections, but states can layer on their own rules.

One of the most notable differences is 'at-will' employment. Most US states allow employers to terminate employment at any time, for any legal reason, without notice. While this offers flexibility, it also leads to high litigation risk - particularly if termination processes are poorly documented.

Paid leave is not federally mandated, and benefits like healthcare and paid parental leave are often employer-funded and vary widely. For international firms, this patchwork can be hard to navigate. I supported a European company entering the US who had never dealt with at-will frameworks before. We spent considerable time developing training and documentation protocols to ensure fairness and limit exposure.

Classification and Compliance Pitfalls

Whether you're hiring in Guernsey or the US, getting employee classification right is crucial. Misclassifying a worker as an independent contractor instead of an employee can result in fines, back pay, and reputational harm.

In Guernsey, employment status is determined largely by control and mutuality of obligation. The US uses different criteria depending on the state, with the IRS and Department of Labor having separate tests.

For example, I helped a US tech startup that engaged remote workers in Guernsey. They had assumed contractor status, but based on the local criteria, the individuals should have been employees. We corrected the status, backdated contributions, and ensured compliance going forward. It cost less than a tribunal.

Final Thoughts

The differences between Guernsey and US labour laws are more than just legal technicalities - they reflect contrasting philosophies on worker rights, employer obligations, and risk. Businesses that succeed across borders are those who don’t copy-paste policies, but adapt thoughtfully and plan ahead.

What’s next for your global people strategy?

Book a free compliance check-in or HR audit with ThinkGlobal HR. Whether you’re expanding into new regions or just want peace of mind that your existing systems are sound, we’re here to support you with clarity, confidence, and a personalised approach.