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.
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.
All employees over the age of 16 years are entitled to 4 weeks' paid annual leave in the Isle of Man. A week's leave allows an employee to be away from work for a week. It is the same amount of time as the working week for the employee. There is no qualifying period for this entitlement. The leave accumulates at the rate of 1/12th of the annual entitlement per month in the first year of employment. If an employee has availed themselves of sick leave for more than 26 weeks in a year, their entitlement to annual leave is reduced proportionately.
There are no provisions for carrying over statutory annual leave to the next year or for payment in lieu of unused leave, except in the case of employment termination, where an employer must pay compensation for unused leave.
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.
All employees are eligible for an unpaid ordinary maternity leave of 26 weeks, including 2 weeks of compulsory leave after childbirth. Employees must inform their employers of their maternity leave at least 15 weeks before the expected delivery date and submit a related medical certificate. If they have been continuously employed for 26 weeks at the beginning of the 14th week before their expected delivery date, employees can also be eligible for an additional 26 weeks of unpaid maternity leave, to be taken immediately after the end of their ordinary maternity leave.
Effective November 1, 2025, employees can take parental bereavement leave of 1 week in case of a miscarriage. A week is the same number of days as they normally work in a week. This leave can be taken by their partner as well. The employer is not required to pay for this leave; it is paid by the Isle of Man government at the rate of 90% of the employee's weekly earnings, limited to a maximum of IMP 257.25 per week.
Employees who earn at least IMP 30 (Manx pounds) per week are eligible to claim maternity allowance from the Social Security Division for up to 39 weeks, starting no earlier than 11 weeks from the delivery date. This allowance is paid as 90% of the employee's weekly earnings, limited to a maximum of IMP 257.25 per week.
Employees have the right to return to the job they held before their leave. Refusal to allow an employee to return to work after maternity leave constitutes dismissal and is automatically unfair.
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:
From April 1, 2026, the hourly minimum wage will be as follows:
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.
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