- Overview: Bahamas
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Contractor vs. employee: which is better?
Global HR Compliance in Bahamas
The war for global talent has never been tougher. Attracting and keeping sought-after international employees requires knowledge. Whether your company is already engaging or planning to engage global workforce in Bahamas, you need to trust that your operations are executed without flaw and without any unnecessary risks.
Businesses of all sizes face a devastating lack of information and support on global employment, taxation, and immigration in Bahamas. There’s a common and significant gap between what’s required to be 100% compliant and what most organizations actually have at their disposal.
Acumen International can fill the gap in fragmented Global HR Compliance knowledge
We are experts in global workforce employment in Bahamas, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.
We act as an information service for corporate clients, agencies, and independent contractors and freelancers. Our Global HR Compliance service in Bahamas will help you:
- Navigate legislation and local nuances of Bahamas. You need to know what is acceptable and what can expose you to employment litigation as well as employee / independent contractor misclassification risk in Bahamas.
- Avoid areas of possible risk. Certain areas and activities can create unnecessary risk, such as employer-employee relations. We can help you with worker classification, payroll and tax calculations, and social cost contributions.
- Handle currency exchanges and local invoicing in Bahamas. We save you time and effort, freeing you from having to understand complicated regulations and tax calculations written in the local language and subject to frequent changes.
- Create employment contracts and handle compliant engagements. Our objective is to assist you with international HR compliance issues and offer you the best payment and taxation options in Bahamas.
- Manage expatriate immigration and visa support nuances in Bahamas. Acumen International provides information about the best scenarios of expat immigration and employment.
- Handle global recruitment issues. We can help you select the person and then employ him with our help. We advise you on local employment laws and implied compliance risks to determine the most cost-effective, compliant, and risk-free solution for you.
- Withdraw from the region in the least risky and most cost-effective way. If you choose to do so, we can help you withdraw from the region as simply as possible.
Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.
With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Bahamas.
Hiring and Firing Workforce in Bahamas Guide
# Employment Contracts
Employment relationship in Bahamas is regulated by Employment Act, employment contract and collective agreement (in case of parties’ membership in a recognized labor union). Employment contract may be written or verbal, as well as implied or expressed. In any case, employers are required to inform their employees of certain conditions of employment, possibly in writing, as quickly as possible on starting their jobs. According to the Employment Act, such conditions must cover, among other things, names of the parties of employment, place of employment, nature of job, duration of employment, hours of work, wage, benefits and conditions of payment.
# Minimum statutory employment rights
# Hours of work
The standard maximum hours employees are allowed to work is 8 hours per day and 40 hours per week. Exceptions are made in some cases, where the nature of a job requires more than 8 hours a day or 40 hours a week. In such cases, the maximum permissible hours shall be calculated as an average of no more than 4 weeks period. Certain employees who are affected by the provision of section 75 of the Industrial Relations Act may legally work up to 12 hours per day. In every calendar week, employees must be allowed to take no fewer than 48 hours of rest period, of which 24 hours must be taken consecutively.
# Probation period
New employees may be placed on probation for up to a period of 6 months.
# Annual leave
Employees are provided with 10 working days of paid annual leave from the completion of their first year of service up to 7 years. Employees are entitled to 15 working days of paid leave if they have at least 7 years of service. Employees have the right to an additional one day leave if any of the public holidays took place while they’re on their annual leave.
# Parental leave
Maternity leave entitlement is granted to female employees once within 3 years after they have completed at least one year of service with the employer. Eligible employees shall be granted at least 12 weeks of maternity leave in a way that allows for them to use at least one week prior to confinement date and at least 8 weeks after childbirth. Under General Orders 1586, employees may have their maternity leave extended by up to 4 weeks.
# Sick leave
Employees are entitled to one week of paid sick leave for their inability to temporarily perform their duties due to sickness. To be eligible for sick leave benefit, an employee must complete at least 6 months of service with the employer and must provide the employer with a doctor’s note. Upon the submission of a doctor’s notice, an employee may be requested to undergo a further medical examination, and may be denied sick leave if on the basis of doctor’s confirmation, the employee is considered to be strong and healthy for work.
Employees are entitled to overtime pay for working more than the standard permissible hours of work, including working on a day off or holiday. Employees are entitled to receive one and a half times normal rate of pay for overtime worked in a working day. Employees shall be paid at double rate of their regular pay if they work overtime during a day off or holiday.
# State minimum salary
Effective August 15, 2015, the legal minimum rate of pay all employers may pay their employees is BSD 5.25 an hour, BSD 42 a day and BSD 210 a week. Employers shall be liable to penalty if they pay below these statutory minimums.
# Employment termination
Employers have the right to terminate the employment contracts of their employees due to redundancy provided that:
- employees are given a two-weeks’ notice and two weeks’ wage for each year of employment up to 24 weeks’ wage if they have been employed for at least one year;
- employees are given a one-month notice and one-month wage for each year of employment up to 48 weeks’ wage if they hold managerial/supervisory position
Employers may terminate their employees’ contracts for reasons other than redundancy on the conditions that:
- employees are given a one-week notice or one-week wage in lieu if their number of years of service with the company is between 6 months and one year;
- employees are given a two-week notice or two weeks’ wage in lieu if they have been employed for at least one year;
- employees are given a one-month notice or one-month wage in lieu if they hold managerial/supervisory position.
In addition, employees shall be provided with severance payment that is equal to:
- one-week wage if their number of years of service with the company is between 6 months and one year;
- two weeks’ wage for each year of employment up to 24 weeks’ wage if they have been employed for at least one year;
- one-month wage for each year of employment up to 48 weeks’ wage if they hold managerial/supervisory positions.
Employees are obligated to provide their employers with notice period as follows if they want to terminate their employment contract:
- two-week notice if their number of years of service with the company is at least one year;
- four-week notice if their number of years of service with the company is at least 2 years.
Upon termination, employees shall be given monetary compensation for any unused annual leave that they acquire in the same year their contracts will be terminated.
Acumen International can help you fast-track your possibilities of entering and expanding your business in Bahamas by providing you with our Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any need to set up a legal entity first or afterwards.