Bermuda
Knowledge Base
Frequently asked question, important data and information on EOR.
General information
$16.00 – $16.40 BMD per hour
Labor Law
Laws that regulate Labor Relationship
Employment Act 2000
Onboarding guide
Requirements for a labor contract
• The full names of the employer and employee;
• The date when the employment began;
• The job title and brief description of the work for which the employee is employed;
• The place or places of work;
• The gross wage or the method of calculating it, and the intervals at which it is to be paid;
• The normal days and hours of employment or, where the job involves shift work, the normal pattern of the shifts;
• The entitlement to holidays, including public holidays, and paid annual vacation;
• The terms relating to incapacity for work due to sickness or injury, including provision for sick leave;
• The length of notice which the employee is obliged to give, and entitled to receive, to terminate his contract of employment;
• Details of any pension provided, whether under the National Pension Scheme (Occupational Pensions) Act 1998 or otherwise
• Any disciplinary and grievance procedures applicable;
• Where the employment is not expected to be permanent, the period for which it is expected to continue or, if it is for a fixed term, the date on which it is to end
• Any probationary period;
• Any dress code;
• The existence of any collective agreement which directly affects the terms and conditions of the employment (p) such other matters as may be prescribed; and may contain other details relating to the terms and conditions of employment.
Pre-hire Medical exam
No
Types of contracts
•Indefinite
•Fixed-term
Probation Period
The probation period can not exceed six months.
Are offer letters mandatory in the country?
Not Mandatory.
Are digital signatures in labor contracts valid?
Permitted.
Mandatory onboarding documents
• CV
• ID Card
• Birth Certificate
• Proof of Address
• National Tax Registry (RTN)
Statutory benefits
Annual Bonus
Doesn’t Apply
Additional bonus
Doesn’t apply
Leaves (medical, maternity, paternity, etc.)
• Ante-natal care: An employee who is pregnant and who has, on the advice of a registered medical practitioner, made an appointment to receive antenatal care, is entitled to take time off during her working hours to attend the appointment.
• Maternity leave: Extends maternity leave to thirteen paid weeks for employees who have worked for one continuous year. The current allowance for maternity leave is eight weeks paid leave and four weeks unpaid leave. Employees who have not worked for a full year will be entitled to thirteen weeks of unpaid leave.
• Paternity leave: Provides five paid days paternity leave for employees who are becoming fathers and who have worked for one continuous year by the expected date of birth. Employees who have not worked for a full year will be entitled to five days unpaid leave.
• Sick leave: An employee who has completed at least one year of continuous employment shall be entitled to be paid at his normal hourly wage in respect of eight days per year when he is unable to work due to sickness or injury. An employee shall not be entitled to be paid in respect of a period of two or more consecutive days unless, where his employer so requests, the employee provides the employer with a certificate from a registered medical practitioner certifying that the practitioner has examined the employee and determined that he is unable to work due to sickness or injury.
• Bereavement leave :
(a) three consecutive days on the death of a member of the employee’s immediate family;
(b) five consecutive days in order to attend the funeral of a member of the employee’s immediate family overseas.
Annual Leave (days per year)
An employee shall be entitled to a period of two weeks annual vacation after he has completed a year of continuous employment. Periods of vacation are not cumulative. If the employee requests it, and it is practicable to do, the employee is entitled to be paid his or her holiday wages prior to going on holiday.
Time Off/Leaves of Absence, Bermuda Labour and Employment Law Handbook
How do vacation days expire?
Such periods of vacation are not cumulative.
Official Holidays
• 2 Jan New Year Holiday
• 7 Apr Good Friday
• 26 May Bermuda Day
• 19 Jun National Heroes Day
• 3 Aug Emancipation Day
• 4 Aug Mary Prince Day
• 4 Sep Labour Day
• 11 Nov Remembrance Day
• 13 Nov Remembrance Day Holiday
• 25 Dec Christmas Day
• 26 Dec Boxing Day
Working on holidays and Sundays
An employer shall grant every employee a holiday with pay on each public holiday falling within any period of employment. Where a public holiday falls on an employee’s rest day, the employer shall grant him a holiday with pay on
• the working day immediately following the public holiday; or
• such other day as may be agreed by the employer and employee.
Where an employee is required to work on a public holiday, the employer shall:
• pay that employee at a rate at least equal to the overtime rate (50% extra on top of the regular wage)
• pay that employee at his regular rate of wages and grant him a holiday with pay on such other day as may be agreed by the employer and employee . An employer shall not be obliged to pay an employee in respect of a public
holiday if the employee does not work on his working day immediately preceding and his working day immediately following the public holiday, unless he was on annual leave or sick leave on such a day.
Number of Working hours
8 hours a day, 40 hours per week. Monday to Friday
Overtime
Paid at 50% extra on top of the regular wage or the same number of hours time off in lieu
Social Security (what does it cover)
• Collecting pension benefits
• Disability benefits
• Benefits for widows and widowers
• Survivors Benefit
Payroll
Salary payment currency
Bermudan Dollar (BMD)
Can salary be paid in a different currency other than the local currency?
Yes, but fx costs would need to be covered.
Payment frequency
Payroll tax is payable on a quarterly basis, commencing on the first day of April, July, October, and January. Payments are due within 15 days of the end of each tax period.
VAT percentage
There is no VAT or sales tax in Bermuda.
Income Tax
Since income taxes are not imposed on individuals in Bermuda, income tax rates are not relevant in the context of Bermuda taxation. For more information see https://taxsummaries.pwc.com/bermuda/individual/other-taxes
Tax Payer Identification Number
Bermuda does not issue tax identification numbers (TINs) or equivalent identifiers for tax purposes.
Offboarding
Voluntary resignation
Where an employee terminates his contract of employment without notice in circumstances in which notice was required, and his employer has not waived the right to notice, the employee shall be entitled only to such wages and other remuneration which accrued at the date of termination.
Contract termination
An employee’s contract of employment shall not be terminated by an employer unless there is a valid reason for termination connected with
• the ability, performance or conduct of the employee; or
• the operational requirements of the employer’s business.
Termination of employment means termination by reason of:
• redundancy;
• the winding up or insolvency of an employer
• the death of an employer
• the death of an employee from an occupational disease or accident resulting from that employment
Employment Act 2000.
Justified Dismissal
• In lieu of providing notice of termination of employment in accordance with section 20, an employer may, at his discretion, pay an employee a sum equal to the wages and other remuneration and confer on him all other benefits that would have been due up to the expiry of any required period of notice.
• An employer is entitled to dismiss without notice or payment of any severance allowance an employee who is guilty of serious misconduct:
(a). which is directly related to the employment relationship; or
(b). which has a detrimental effect on the employer’s business,
such that it would be unreasonable to expect the employer to continue the employment relationship.
Unjustified Dismissal
The following do not constitute valid reasons for dismissal or the imposition of disciplinary action
• an employee’s race, sex, religion, color, ethnic origin, national extraction, social origin, political opinion, disability or marital status
• an employee’s age, subject to any other enactment or any relevant collective agreement regarding retirement
• any reason connected with an employee’s pregnancy, unless it involves absence from work which exceeds allocated leave entitlement
• an employee’s trade union activity
• an employee’s temporary absence from work because of sickness or injury, unless it occurs frequently and exceeds allocated leave entitlement
• an employee’s absence from work for any of the reasons mentioned in section 13 (public duties), or due to service as a volunteer fire officer
• an employee who removes himself from a work situation which he reasonably believes presents an imminent and serious danger to life or health
• an employee’s participation in any industrial action which takes place in conformity with the Labour Relations Act 1975
• the filing of a complaint or the participation in proceedings against an employer involving alleged violations of this Act
Section 28, Employment Act 2000
• Subject to subsection (7) of Employment Act 2000, on termination of his employment, an employee who has completed at least one year of continuous employment shall be entitled to be paid severance allowance by his employer.
• The amount of severance allowance payable to an employee shall be no less than the equivalent of:
(a) two weeks wages, for each completed year of continuous employment up to the first ten years;
(b) three weeks wages for each completed year of continuous employment thereafter;
up to a maximum of 26 weeks wages.
• Severance allowance is not payable where an employee:
(a) unreasonably refuses to accept an offer of reemployment by the employer at the same place of work under no less favourable terms than he was employed immediately prior to the termination;
(b) is employed by a partnership and his employment ceases on the dissolution of the partnership and:
(i) he enters into employment with one or more of the partners immediately after the dissolution, or
(ii) he unreasonably refuses to accept an offer of reemployment by any of the partners under no less favourable terms than he was employed immediately prior to the termination
(c) is employed by an employer who dies and:
(i) he enters into employment with the personal representative, widow, widower or any heir of the deceased employer immediately after the death, or
(ii) he unreasonably refuses to accept an offer of re-employment by such a person under no less favourable terms than he was employed immediately prior to the death.
• Where the contract of employment is terminated by reason of the death of the employee:
(a) the severance allowance shall be paid to such person as the employee may have nominated in writing or, in the absence of such a person, to his estate representative; and
(b) the employer shall be entitled to set off any life insurance which has been provided to the employee under his contract of employment.
Employment Act 2000
Minimum Notice Period
A contract of employment may be terminated by the employer on giving the following minimum periods of notice in writing:
• One week, where the employee is paid each week
• Two weeks, where the employee is paid every two weeks
• One month, in any other case
Immigration
Visa process
• You need a passport/travel document valid for at least 6 months.
• You need a job offer from an employer in Bermuda.
• You must possess the required skill/experience demanded by the job offered.
• You need sufficient funds to cover your stay.
• You must have multi re-entry visa (MRV) of UK,US or Canada.
• MRV for the UK, US or Canada must be valid for 45 days after the expiration of the work permit.
• You should be of good character and health.
• You need to have details of accommodation at your destination.
• You need valid travel insurance covering the entire period of stay.
Visa documents
• Visa application form, completed and signed.
• Copies of valid passport (like the bio page, past visas, etc.).
• Copies of job offer letter from an employer.
• Original and copies of Police Certificate.
• Original and copies of Medical Certificate.
• Qualification certificates of applicant.
• Original certified copy of multi-entry visa or permanent resident card.
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