Knowledge Base

Frequently asked question, important data and information on EOR.

General information

$ 5.25 BSD per hour

Labor Law

Laws that regulate Labor Relationship

Employment Act

Onboarding guide

Requirements for a labor contract

• Sign date
• Employee’s name
• Job position
• Client’s name
• Position class
• Contract duration
• Start date
• Job description
• Weekly gross salary
• Medical contribution percentage
• Employee medical contribution percentage
• Delivery date
• Employer’s name
• Employer’s Title

Pre-hire Medical exam

If employee is to enroll in medical insurance, the insurance company Will require a medical examination.

Types of contracts

• Indefinite term
• Fixed term

Probation Period

No statutory regulation in the EA. Certain collective agreements stipulate a 12 months probationary period.

Are offer letters mandatory in the country?


Are digital signatures in labor contracts valid?


Mandatory onboarding documents

• Completed Job Application
• Employment Agreement
• Job Description
• Birth Certificate/ Registered Affidavit/ Adoption Certificate
• Marriage Certificate/ Divorce Decree *females
• Passport Copy (bio-data page)
• 2 Passport Photos
• Police Record
• National Insurance Card
• Two Reference Letters (character & professional)
• Emergency Contact Form
• Banking Information
• Medical certificate/ Covid19 Test/ VAX card
• Academic certificates
• Employee Handbook Authorization Page

Statutory benefits

Annual Bonus

Bonus of the 13th month is not mandatory.

Additional bonus

Doesn’t Apply.

Leaves (medical, maternity, paternity, etc.)

• Maternity Leave: Every female employee is, in addition to her annual holiday, entitled to maternity leave and in addition to the grant of maternity leave the payment to her by the employer during such leave once in every three years of a minimum sum equivalent to thirty-three and one-third per cent of that portion of her wages which does not exceed the National Insurance ceiling on insurable wage. Except where an employee otherwise desires, maternity leave shall be for a period of not less than twelve weeks.
• Family Leave: An employee who has been employed for at least six months is entitled to family leave without pay for a period not exceeding one week per annum following
(a) the birth of a child; or
(b) the death or illness of a child, spouse or parent.
• Sick leave: An employee who has been employed for at least six months is entitled to one week sick leave with pay in any year where he is prevented by illness from performing his duties at his place of work.
Employment Act

Annual Leave (days per year)

Every employer shall give a vacation of at least 2 weeks to each employee upon the completion of each 12 months of employment. The vacation shall be extended by one day for every public holiday that occurs during the vacation. The vacation pay (is paid at least 1 day prior to vacation).

How do vacation days expire?

Where the employment of any employee ends before the completion of a year of employment, the employer shall forthwith pay to the employee:
• vacation pay then owing to such employee in respect of any completed year of such employment; and
• on a pro rata basis of the basic pay earned by the employee during the incompleted year.

Official Holidays

• Jan 01 New year’s day
• Jan 10 Majority Rule Day
• Apr 07 Good Friday
• Apr 10 Easter Monday
• Jun 01 Whit Monday
• Jun 05 Labor Day
• Jul 10 Independence Day of Bahamas
• Aug 03 Emancipation day (of Bahamas)
• Oct 12 National Heroes Day
• Dec 25 Christmas day
• Dec 26 Boxing day

Working on holidays and Sundays

Paid at 100% extra on top of the regular wage.

Number of Working hours

8 hours a day, 40 hours a week.


Paid at 50% extra on top of the regular wage.

Social Security (what does it cover)

• Old-Age Benefits
• Permanent Disability Benefits
• Temporary Disability Benefits
• Survivor Benefits
• Sickness and Maternity Benefits
• Workers’ Medical Benefits
• Dependents’ Medical Benefits
• Unemployment Benefits


Salary payment currency

Bahamian Dollar (BSD)

Can salary be paid in a different currency other than the local currency?


Payment frequency


VAT percentage


Income Tax

There is no income tax in the Bahamas.

Tax Payer Identification Number

Tax Identification Number – TIN


Voluntary resignation

An employee may also resign. The employee needs to provide two weeks of notice if they have one year but less than two years of service and four weeks of notice if they have two or more years of service.

Contract termination

A contract is terminated in the following cases:
• Death of the employee  
• Resignation of the employee
• End of the contract term
• Mutual agreement between the employee and the employer
• Dismissal

Justified Dismissal

An employer may summarily dismiss an employee without pay or notice when the employee has committed a fundamental breach of his contract of employment or has acted in a manner repugnant to the fundamental interests of the employer. Subject to provisions in the relevant contract of employment, misconduct which may constitute a fundamental breach of a contract of employment or may be repugnant to the fundamental interests of the employer shall include (but shall not be limited to) the following:
• theft;
• fraudulent offences;
• dishonesty;
• gross insubordination or insolence;
• gross indecency:
• breach of confidentiality, provided that this ground shall not include a report made to a law enforcement agency or to a government regulatory department or agency;
• gross negligence;
• incompetence;
• gross misconduct.

Unjustified Dismissal

The dismissal of an employee by an employer shall be regarded as having been unfair if the reason for it (or, if more than one, the principal reason) was that the employee:
• was, or proposed to become, a member of an independent trade union;
• had taken, or proposed to take, part at any appropriate time in the activities of an independent trade union; or
• was not a member of any trade union, or of a particular trade union, or of one of a number of particular trade unions, or had refused or proposed to refuse to become or remain a member.
• is pregnant or is for any other reason connected with her pregnancy.

Under the Employment Act, employees can be terminated without cause, and at any time, provided that employees are provided with a minimum period of notice (or pay in lieu of notice) and severance pay. This statutory position can be varied by express terms within a contract of employment, which may set out specific requirements and procedures related to dismissals.
Where an employee has committed a fundamental breach of the terms of the employment contract, or has acted in a manner repugnant to the fundamental interests of the employer, the employer will generally have the right to summarily dismiss that employee without notice and without any severance pay.

Minimum Notice Period

The notice period to be given to an employee is of:
• More than 6 months and up to 1 year worked, one week’s notice or one week’s basic pay in lieu of notice and one week’s basic pay (or a part thereof on a pro rata basis) for the said period between six months and twelve months
• More than 1 year worked, two weeks’ notice or two weeks’ basic pay in lieu of notice, and two weeks’ basic pay (or a part thereof on a pro rata basis) for each year up to twenty four weeks
• Employee holds a supervisory or managerial position, one month’s notice or one month’s basic pay in lieu of notice and one month’s basic pay (or a part thereof on a pro rata basis) for each year up to forty eight weeks.


Visa process

The government in the Bahamas issues several different types of visas to foreign nationals. Anyone who wishes to travel to the Bahamas for employment purposes will need one of the following permits:
• Short-term work permit: This permit allows foreign nationals to work in the Bahamas for up to 90 days.
• Long-term work permit: This permit is the one foreign employees will need to stay in the Bahamas for more than three months and work for your company.
These permits also function as visas, so employees will not need to obtain a second document to enter the Bahamas.
It can be challenging for expatriates to obtain a Bahamian work visa, as the government tries to ensure that eligible job seekers in the country have priority over foreign nationals when it comes to employment. However, the visa application process is relatively simple for foreign workers who have already secured a job with a company based in the Bahamas.
In the Bahamas, the Department of Immigration is responsible for the issuance of work permits. Work permit applications are available online as well as at the Department’s offices. Prospective employees should take the following steps:
• Complete the application form and get it notarized.
• Attach the appropriate stamp.
• Submit the completed form along with all supporting documents to the Bahamian Department of Immigration.
Applicants should remain in their country of residence while the work permit application is being processed. Processing times may vary, so it’s a good idea to apply well in advance of the planned departure date. Within three to four weeks, applicants should contact the Inquiries Unit of the Bahamian Department of Immigration for an update. Once the permit is issued, the prospective employee can travel to the Bahamas and begin working for your company.

Visa documents

Annual Work Permit Application Requirements:
• $200.00 non-refundable processing fee (payable by cash, credit/debit card, postal money order, or bank certified cheque) 
• Letter of Request addressed to the Director of Immigration
• Duly completed First Schedule Form 1 application with $10.00 Bahamian postage stamp affixed thereon (legible and notarized)
• Applicant’s original medical certificate (dated not earlier than 30 days before submission of the application. Required for every applicant)
• Applicant’s original police certificate (issued not earlier than six (6) months and must cover five (5) years of residence; required of applicants 14 years old and over)
• Two (2) current passport photographs of the applicant on white background with name printed on the back of the photo (captured within six (6) months of application date; photo size must be 2 X 2 inches)
• Copy of the biographical data page of applicant’s CURRENT passport (must be signed and readable with minimum of two (2) months validity)
• Copy of biographical data page of Employer/Sponsor’s current passport (if the employer is a non-Bahamian, evidence of immigration status is also required)
• Labour Certificate with Notification of Vacancy from the Department of Labour-Bahamas.
• Nationally circulated newspaper advertisements (must be advertised for three (3) consecutive days)
• Two (2) written references from previous employers (provide telephone contacts and email addresses)
• Letter of release from applicant’s previous employer of (if applicable)
• Copy of VALID Business License, Certificate of Incumbency or Certificate of Incorporation of Employer/SponsorCopy of Employer/Sponsor’s National Insurance Card/Certificate

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