Knowledge Base

Frequently asked question, important data and information on EOR.

General information

From $5.67 BBD to $8.50 BBD, depending on the job position

Labor Law

Laws that regulate Labor Relationship

• Employment Rights Act 2012-9
• Women Employment Act

Onboarding guide

Requirements for a labor contract

• an obligation on the part of the employee to give personal and exclusive service
• a requirement for the individual’s work to be carried out within fixed hours, or at a workplace or workplaces specified or agreed by the employer
• the entitlement on the part of the employee to holidays with pay
• a requirement for the work to involve the integration of the employee into the organization of the business, including their adherence to its policies
• a stipulation that the employee receive periodic remuneration payable on a stipulated basis (hourly, weekly or monthly) and all such payments to be subject to statutory deductions

Pre-hire Medical exam


Types of contracts

• Short-term
• Fixed-term
• Indefinite

For fixed-term contracts, there are no minimum or maximum lengths, and can be renewed as often as you wish. However, the employee by law become entitled to severance payment after 2 continuous years of service once the contract ends, even under fixed term contracts.

Probation Period

Usually, the first 3 months are probationary. For technical or high-level employees could be of six months. It’s not always required, depends on the client.

Are offer letters mandatory in the country?

Not Mandatory.

Are digital signatures in labor contracts valid?


Mandatory onboarding documents

• ID Card
• Proof of address
• National Tax Registry (RTN)
• Proof of studies
• Police Certificate
• Personal references
• Qualifications
• Bank account certificate

Statutory benefits

Annual Bonus

There is no statutory annual bonus in Barbados. Bonuses are discretionary payments that are made by employers to employees at their discretion.

Additional bonus

Doesn’t apply

Leaves (medical, maternity, paternity, etc.)

Sick Leave: Employees are entitled to sick leave for medical reasons. The specific rules regarding sick leave entitlement and duration may vary depending on the employment contract, company policies, and the nature of the illness. Generally, sick leave is granted with full pay for a certain number of days, such as up to 10 days per year, but this can vary.

Maternity Leave: Female employees are entitled to maternity leave when they are pregnant. The specific rules for maternity leave are governed by the Employment (Maternity Leave) Regulations. Generally, female employees are entitled to up to 13 weeks of maternity leave. During this period, they may receive maternity pay, which is a percentage of their average weekly earnings.•

Paternity Leave: Male employees are entitled to paternity leave when their partner gives birth or adopts a child. The specific rules for paternity leave are governed by the Employment (Paternity Leave) Regulations. Generally, male employees are entitled to up to 5 days of paternity leave, which may be taken consecutively or separatel••y.

Adoption Leave: Employees who adopt a child are entitled to adoption leave. The specific rules for adoption leave are governed by the Employment (Adoption Leave) Regulations. Generally, employees are entitled to up to 13 weeks of adoption leave, similar to maternity leave. During this period, they may receive adoption pay, which is a percentage of their average weekly earnings.

Annual Leave (days per year)

To qualify for annual leave, employees must work for a continuous year. eligible for the full three (3) weeks. For those who has worked less than 5 year, are entitled to 3 weeks of holiday, and the ones who has worked for 5 years or more, are entitled to 4 weeks. The annual holiday shall be given and taken in one period or, if the employer and employee agree, in two separate periods and not otherwise.
An employer may postpone an employee’s holiday for up to six (6) months once the employee becomes entitled. Further postponement can only be facilitated by the Chief Labor Officer.

How do vacation days expire?

According to the Holidays with Pay Act, Cap. 348 of Barbados, vacation days expire six months after they are accrued. This means that an employee who earns three weeks of vacation leave in January will have until July to take that leave. If the employee does not take their vacation by July, they will lose those days.

Official Holidays

• 1 Jan, New Year’s Day
• 2 Jan, New Year Holiday
• 21 Jan, Errol Barrow Day
• 7 Apr, Good Friday
• 10 Apr, Easter Monday
• 28 Apr, National Heroes Day
• 1 May, May Day
• 29 May, Whit Monday
• 1 Aug, Emancipation Day
• 7 Aug, Kadooment Day
• 30 Nov, Independence Day
• 25 Dec, Christmas Day
• 26 Dec, Boxing Day

Working on holidays and Sundays

The rules regarding working Sundays and on public holidays in Barbados are as follows: • Sundays: Employees who work on Sundays are entitled to time and a half pay. Time and a half pay is 1.5 times the employee’s regular rate of pay.

Public holidays: Employees who work on public holidays are entitled to double time pay. Double time pay is 2 times the employee’s regular rate of pay.

Number of Working hours

8 hours a day, 40 hours a week. Every employee is entitled to two rest days a week, typically on Saturday and Sunday. However, these rest days can occur during any two days as they’re at employers’ discretion.


Paid at 50% extra on the regular wage.

Social Security (what does it cover)

• Old age and Pension
• Disability
• Survivor pension
• Sickness and maternity benefits
• Dependents’ Medical Benefits


Salary payment currency

Barbados Dollar (BBD)

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


Payment frequency

• Monthly
• Bi-weekly
• Weekly

VAT percentage


Income Tax

The basic rate is 12.5% and the higher rate is 28.5%. The basic rate applies to the first 50,000 Barbados dollars (BBD) of taxable income; 28.5% applies to taxable income above BBD 50,000. For more information see

Tax Payer Identification Number

Tax Payer Identification (TIN)


Voluntary resignation

If the employee resigns they’re entitled to salary from the date of last payroll to the date of resignation and any accrued vacation. By resigning they would not be paid severance if they were employed for 2 years or more.

Contract termination

In Barbados, a labor contract can be terminated in various cases, including:
1. Termination by mutual agreement: The employer and employee agree to terminate the employment contract through mutual consent.
2. Termination by notice: Either the employer or the employee may terminate the contract by providing notice as stipulated in the employment agreement or as required by law. The length of the notice period may vary based on the length of service and other factors.
3. Termination for cause: The employer may terminate the contract for cause if the employee engages in serious misconduct or breach of contract, such as theft, fraud, gross negligence, or repeated performance issues.
4. Redundancy or retrenchment: The employer may terminate the contract due to a genuine redundancy situation, such as technological changes, organizational restructuring, or economic reasons. In such cases, the employer must follow proper consultation procedures and provide appropriate notice or severance pay.

Justified Dismissal

An employer shall have the right to dismiss an employee for a reason which falls within this subsection if it:
• relates to the capability of the employee to perform work of the kind which he was employed by the employer to do
• relates to the conduct of the employee
• is that the employee was redundant, but subject to section 31 of the Employment Rights Act 2012-9
• is that the employee could not continue to work in the position which he held without contravention, either on his part or on that of his employer, of a duty or restriction imposed by law.

Section 29, Employment Rights Act 2012-9

Unjustified Dismissal

In Barbados, the compensation paid for an unjustified dismissal is based on the length of service of the employee. The specific values or percentages for each seniority level may vary depending on factors such as the nature of the employment contract, collective bargaining agreements, and the Employment Rights Act. However, as a general guideline, the following compensation rates may apply:
1. Less than 1 year of service: Employees with less than 1 year of service may be entitled to compensation of up to 2 weeks’ wages for each completed year of service.
2. 1 to 10 years of service: Employees with 1 to 10 years of service may be entitled to compensation of up to 3 weeks’ wages for each completed year of service.
3. 10 or more years of service: Employees with 10 or more years of service may be entitled to compensation of up to 4 weeks’ wages for each completed year of service.

For severance to be paid, the employee must have two (2) years or 104 weeks of continuous employment with the same employer. Severance is paid as a result of redundancy; being laid off or kept on short time; or dismissal due to a natural disaster. Redundancy means: The employer has ceased or intends to cease to carry on business for the purposes of which the employee was employed or to carry on that business in the place where the employee was employed; The requirements of that business for employees to carry out work for which they were hired to carry out have ceased or diminished or are expected to cease or diminish.

An employee’s severance pay is calculated as follows: 2.5 weeks’ pay for the first ten completed years of employment, calculated at his average weekly basic pay for the last 104 weeks; 3 weeks’ pay for the next ten completed years of employment; 3.5 weeks’ pay for the every completed year of employment greater than 20 years, but not more than 33 completed years of employment.

Minimum Notice Period

If the terminated employee was associated with the company for less than a year, he would have to serve a notice period of 2 weeks. He will also be paid for the two weeks of service. If the employee is in a managerial position, he will be given a month’s notice period or will be paid additionally for a month.


Visa process

VISA and work permit – most persons do not require a VISA.  Caricom nationals can use the Caricom Skills Certificate or resident/immigrant status to live and work in Barbados and no work permit would be required. Short-term work permit valid for up to 11 months; long-term work permit valid for up to 3 years. For long-term work permit we would need to advertise the job, follow recruitment process (our recruitment fees would apply), advertise no suitable applicants found, then apply for the work permit. This process does not apply for short-term work permit. For both, the process can take up to 2 months, but could be longer for long-term work permit depending on category of job. Final fee varies depending on category of work and length of time requested plus any other direct costs incurred (e.g advertisements) For travel visa application there is two types: Single entry: one entry within a three-month period Multiple Entry: numerous entries within a six-month period. See visa documentation for more information about the documents to be submitted

Visa documents

Documents to be submitted: • Application(s) form(s) completed IN FULL and SIGNED. (ONE APPLICATION FORM PER APPLICANT) • One (1) passport size photograph • Copies of outer cover and biometric page of the passport. (ACTUAL PASSPORT IS NOT REQUIRED UNLESS APPLICANT WISHES TO HAVE THE VISA ENDORSED IN THE PASSPORT. VISA IS ISSUED IN THE FORM OF A LETTER WHICH IS ACCEPTED AT THE AIRLINE CHECK-IN COUNTER AND BY BARBADOS IMMIGRATION OFFICIALS AT THE PORTS OF ENTRY) • Birth certificate; Marriage certificate (where applicable) • Cover letter addressed to ‘Chief Immigration Officer’ bearing a return address, phone number, fax number and email address outlining the purpose of visit, the proposed date of entry and the duration of visit. • Copy of appointment letter (for persons attending US or UK Embassies) • An employment letter; Letter from school, college or university. • For persons residing in a country other than his/her place of birth, proof of status in the adoptive country in the form of Work Permit, Student Visa or Residence Permit must be copied and submitted.DOCUMENTS IN A LANGUAGE OTHER THAN ENGLISH MUST BE ACCOMPANIED BY A CERTIFIED COPY OF THE ENGLISH TRANSLATION. •  Documents with fees may be sent by FedEx, DHL, or LIAT Quik Pak to Barbados Immigration Department, Wharf Road, Bridgetown, BARBADOS. (Those persons submitting their passports must include a prepaid airway bill for the return of the passport.)

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