Employment law in the Cayman Islands is regulated by both the Labour Law (2011 Revision) and, indirectly, the Immigration Law (2015 Revision). Between these two pieces of legislation, the right to work on the island is regulated, along with the terms and conditions of employment.
Employment issues arise at two stages of the employment relationship: first and foremost, it is essential to ensure that the employment contract is in order. There are penalties which may be imposed on employers under the Labour Law if the employment contract is not compliant with the Law. Even beyond the statutory requirements, it is very helpful for both parties to the employment relationship to ensure that there is a detailed employment contract in place from the outset, defining the rights and obligations of each party.
Unfortunately, the employment relationship will sometimes break down. The employment relationship is a special kind of contract. The employee promises to provide his or her labour to the best of their ability, and in return, the employer promises to pay for the labour provided. However, the relationship does not stop there. The employer also has obligations to provide a safe environment for the employee, while the employer implicitly promises to provide loyalty and confidentiality. The law has mechanisms for enforcing all of these promises between employer and employee.