Employer of Record Guide in 

Bahamas

Vacation Leave

• Standard Entitlement: Minimum 2 weeks of paid vacation after 12 months of continuous employment
• After 5 Years: Increases to 3 weeks in many cases
• Vacation Pay: Typically calculated as a percentage of annual earnings
• Payout Rules: Must be paid out on termination if unused

Sick Leave

• Standard Provision: Varies by employer policy, typically 5-10 days annually
• Medical Certification: Required for extended sick leave periods
• Paid vs Unpaid: Often a combination, with initial days paid and extended periods unpaid

Note: Sick leave provisions are largely determined by employment contracts and company policies.

Maternity Leave

• Length: Up to 13 weeks (8 weeks paid through NIB, additional weeks may be unpaid)
• Eligibility: Must have sufficient NIB contributions
• Job Protection: Employers must guarantee position upon return
• Pay Rate: Approximately 60% of average weekly earnings through NIB

Parental Leave

• Paternity Leave: Limited provisions, typically 1-2 weeks
• Adoption Leave: May be available through employer policies
• Shared Leave: Not commonly structured in Bahamian law

Bereavement Leave

• Duration: Typically 3-5 days for immediate family members
• Paid Status: Often paid for immediate family, unpaid for extended family
• Qualifying Events: Death of spouse, children, parents, siblings

Personal & Family Leave

• Family Responsibilities: Limited statutory provisions
• Emergency Leave: Available for urgent family matters
• Compassionate Leave: May be granted at employer discretion

Summary

Termination Types

Termination With Cause:

• No notice or severance required
• Must involve serious misconduct (theft, fraud, gross negligence)
• Burden of proof rests with the employer

Termination Without Cause:

• Permitted under Bahamian employment law
• Requires appropriate notice or payment in lieu

Notice Period Requirements

Notice periods are based on length of service and position level.

Severance Pay

Severance pay requirements depend on circumstances of termination and length of service.

• Redundancy: May require severance payment
• Long Service: Additional compensation for lengthy employment
• Calculation: Typically based on length of service and weekly wages

Probationary Periods

• Standard Period: Up to 6 months for most positions
• Extended Period: Up to 12 months for senior roles
• Termination Rights: Reduced notice requirements during probation

Final Pay Requirements

• Timeline: Final pay must be issued within 7 days of termination
• Components: Base salary, accrued vacation, overtime, and other earned benefits
• Deductions: Only legally permitted deductions may be made

Anti-Discrimination & Retaliation Laws

Employees cannot be terminated for reasons related to:

• Pregnancy or maternity leave
• Filing complaints with labour authorities
• Union activities
• Protected characteristics under employment law

National (Public) Holidays

Holiday Pay Eligibility

To qualify for public holiday pay, employees must:

• Have worked the scheduled day before and after the holiday
• Be employed for at least 30 days prior to the holiday
• Not be absent without permission

Working on a Public Holiday

If an employee works on a public holiday:

• They receive double time (2× normal rate) plus a substitute day off
• Alternative arrangements may be made by mutual agreement

Religious Observances

• Employers should reasonably accommodate religious observances
• Time off may be unpaid unless covered by vacation entitlement
• Advance notice is typically required

Required Documents for Employment

• Employment Contract: Must include job title, duties, salary, working hours, benefits, termination clauses
• Work Permit: Required for non-Bahamian nationals
• Government Forms:
  • NIB registration forms
  • Tax compliance certificate (for businesses)
• Banking Information: For direct deposit setup
• Identification: Valid passport or national ID

Work Authorization Requirements

• Bahamian Citizens: No work authorization required
• Permanent Residents: May work without restrictions
• Foreign Nationals: Must obtain work permit before commencing employment
• Permit Categories: Various categories based on skill level and industry

Background Checks & References

• Employment Verification: Standard practice for most positions
• Criminal Background: Required for certain sectors (banking, security)
• Educational Verification: Common for professional roles
• Consent Required: Written consent must be obtained from candidates

Data Protection & Privacy

• Employers must protect employee personal information
• Consent required for data collection and processing
• International data transfers may require additional safeguards
• Employee access rights to personal data must be respected

IP Assignment & Confidentiality

• Work Product: Generally belongs to employer unless otherwise specified
• Confidentiality Agreements: Common and enforceable
• Non-Compete Clauses: Limited enforceability, must be reasonable in scope

Probation Period Setup

• Clearly defined in employment contract
• Performance expectations and review schedule
• Termination procedures during probation
• Extension possibilities if needed

Onboarding Timeline

Worker Classification: Employee vs. Contractor

Proper classification is essential to avoid legal and financial penalties.

• Employees: Work under employer control, receive benefits, covered by employment law
• Contractors: Operate independently, invoice for services, responsible for own taxes and NIB
• Classification Tests: Based on control, economic reality, and integration into business

Note: Misclassification can result in penalties, back payments, and loss of legal protections.

Unionization & Collective Agreements

• Right to Organize: Protected under Bahamian law
• Key Sectors: Strong union presence in tourism, utilities, and public sector
• Collective Bargaining: Common in unionized workplaces
• Strike Rights: Regulated process for work stoppages

Cultural Norms & Workplace Expectations

Bahamian workplace culture emphasizes:

• Relationship Building: Personal connections are important
• Respect and Courtesy: Formal communication styles preferred
• Work-Life Balance: Family and community obligations respected
• Punctuality: Expected in business settings

Remote Work Considerations

Remote work is increasingly accepted, particularly post-COVID:

• Equipment: Employer responsibility for necessary tools
• Work Hours: Must still comply with standard working time regulations
• Health and Safety: Employer obligations extend to home offices
• Cross-Border: Complex regulations for remote work across borders

Tourism Industry Considerations

Given the Bahamas' tourism-dependent economy:

• Seasonal Employment: Common in hospitality sector
• Gratuity Policies: Important consideration for service roles
• Customer Service Standards: High expectations in tourism-facing positions
• Language Requirements: English proficiency typically required

What the EOR Handles

Borderless AI manages:

• Employment contract compliance
• NIB registration and contributions
• Work permit coordination
• Payroll processing in BSD
• Local labour law compliance
• Cultural integration support