Employ Candidates Compliantly in Bermuda

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  1. Overview: Bermuda
  2. Global HR Compliance
  3. Global PEO and payroll
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
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Global HR Compliance in Bermuda

Bermuda’s close proximity to the US, its English speaking populace, its dollar-to-dollar currency and its beautiful landscape and beaches make Bermuda a prime location for global business operations. However, Bermuda has extensive laws governing labor and employment that global business entities must comply with:

  • Bermuda’s 60/40 Rule requires that local business entities must be controlled by Bermudian citizens, with upwards of 60% of the company’s shares held by Bermudians, and seats on a corporation’s board of directors occupied by a minimum of 60% Bermudians.
  • Foreigners can only work legally in Bermuda if they obtain a work permit, and in some cases a visa. Only Bermudian citizens and their legally married spouses, or workers who hold a Permanent Resident’s Certificate (PRC), may accept employment without a special permit.
  • The Bermudian Immigration Act delineates the terms and exemptions for obtaining work permits for foreign workers in Bermuda. Work permits may only be obtained through prospective employers.
  • Paid holidays and leave are mandated by the Bermuda Employment Act, and not by private business entities. They cover vacation days, sick leave, maternity and paternity leave, bereavement leave and national holidays.
  • Discrimination and harassment based on sex, marital status, disability, religious beliefs or political preferences is prohibited by the Human Rights Act.
  • Companies are required to maintain pension plans for all permanent workers, as per the Occupational Pension Act.
  • Employers are mandated to provide a safe working environment and meet specified health and safety standards via the Health and Safety at Work Act.

The country’s Bermudian-first employment policies make it difficult for international companies to hire non-Bermudian workers, although a Global Work Permit may be issued to current employees of a global company who are being transferred to Bermuda in a new role. By leveraging our Global Employment services, international businesses can expedite the issuance of work permits, to get key employees in place in the shortest time possible.

Employees’ Statutory Rights

Bermuda’s Employment Act of 2000 outlines the fundamental rights of Bermudian workers:

  • Employers must issue a written Statement of Employment within one week of the first day of employment, dated and signed by both employer and employee. The statement must include details about the terms of employment, including job description, wages, days off, and other relevant job details.
  • Employees must be issued an itemized pay statement upon payment of wages, including details about any deductions or additional funds for bonuses, living allowances or other payments.
  • Employees are entitled to overtime wages for hours worked in excess of 40 hours per week, or to compensation in the form of equal time off.
  • Employees are entitled to 24 consecutive hours of rest time each week.
  • Employers must pay workers for time off on public holidays, or pay overtime rates if employees are required to work on public holidays.
  • After one year of continuous employment, employees are entitled to two weeks of paid vacation every year.
  • After one year of continuous employment, employees are entitled to eight paid sick days per year.
  • New mothers are entitled to 13 weeks of paid maternity leave if they have been employed continuously for one year.
  • New fathers who have been employed continuously for one year are entitled to five consecutive days of paid paternity leave.
  • Employees are entitled to three consecutive days of paid bereavement leave upon the death of an immediate family member, or five consecutive days if the funeral is held overseas.

Navigating Bermuda’s Employment Laws

Employment agreements and employment termination are strictly governed by Bermuda’s Employment Act of 2000. The law mandates that employees cannot be terminated without due cause, based on their ability to perform their job duties and meet operational business demands. However, employees can be terminated when they engage in serious misconduct that harms the business.

Navigating Bermuda’s in-country labor legislation can pose obstacles for global businesses who are exploring the possibility of doing business in Bermuda. Our Global Employer of Record solution can help you avoid non-compliance risks by legally engaging and payrolling both local and expatriate talent on your behalf, saving you the expense of establishing an in-country business entity.

Whether your goal is to attract and retain global talent for your business or your clients, to quickly enter new global markets, or to provide local support for your international clients, our Global Employer of Record solution can save you time and money by making it easy to meet your HR needs in Bermuda with minimal risk and red tape.

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