Employer of Record Guide in 

Bermuda

Annual Leave (Vacation)

• Minimum Entitlement: 2 weeks (10 working days) after 1 year of service
• After 5 Years: 3 weeks (15 working days)
• After 10 Years: 4 weeks (20 working days) in some sectors
• Accrual: Leave typically accrues monthly (1.67 days per month for 2-week entitlement)
• Payout: Unused leave must be paid out upon termination

Sick Leave

• Statutory Minimum: 1 week (5 days) of paid sick leave per year
• Medical Certification: Required for absences exceeding 3 consecutive days
• Chronic Illness: Extended sick leave provisions may apply
• Accumulation: Unused sick leave may carry over to the following year (employer discretion)

Maternity Leave

• Duration: 13 weeks of maternity leave
• Pay: 8 weeks paid at 100% salary, 5 weeks unpaid
• Eligibility: Must have worked for 40 weeks in the 52 weeks preceding the leave
• Job Protection: Guaranteed return to same or comparable position

Paternity Leave

• Duration: 1 week of paid paternity leave
• Timing: Must be taken within 8 weeks of the child's birth
• Eligibility: Must have worked for the employer for at least 52 weeks

Adoption Leave

• Duration: Similar to maternity leave (13 weeks)
• Pay Structure: 8 weeks paid, 5 weeks unpaid
• Eligibility: Available for adoption of children under 16 years old

Bereavement Leave

• Duration: 3 days of paid leave for immediate family members
• Extended Family: 1 day for grandparents, aunts, uncles
• Documentation: Death certificate may be required

Summary

Termination Types

Termination With Cause:

• Immediate dismissal without notice or severance
• Must involve serious misconduct (theft, fraud, gross insubordination)
• Employer must provide clear documentation of cause

Termination Without Cause:

• Requires proper notice or payment in lieu
• Must not be discriminatory or retaliatory
• Most common form of employment termination

Redundancy:

• Position elimination due to business needs
• Enhanced severance may be required
• Must follow fair selection criteria

Notice Period Requirements

Notice periods are based on length of service:

Severance Pay

Statutory Severance:

• Not required by law unless specified in employment contract
• Common law may require reasonable notice beyond statutory minimums

Contractual Severance:

• Many employment contracts specify severance terms
• Typically ranges from 1-4 weeks per year of service

Final Pay Requirements

• Timeline: Final pay must be issued within 7 days of termination
• Components: Base salary, accrued vacation, overtime, bonuses earned
• Deductions: Only lawful deductions permitted (taxes, loan repayments with consent)

Wrongful Dismissal Protection

Employees are protected against dismissal for:

• Pregnancy or maternity leave
• Filing complaints about workplace safety
• Refusing to work in unsafe conditions
• Trade union activities
• Discrimination based on protected characteristics

Public Holidays

Bermuda observes the following statutory holidays:

Note: When a holiday falls on a weekend, the following Monday is typically observed as the statutory holiday.

Holiday Pay Eligibility

To qualify for holiday pay, employees must:

• Have worked for at least 30 days before the holiday
• Work their scheduled day before and after the holiday (unless excused)

Working on Public Holidays

• Premium Pay: Double time (2× regular rate) for work on statutory holidays
• Alternative: Time off in lieu plus regular pay (if agreed in writing)
• Essential Services: Some sectors may have different arrangements

Religious Observances

While not statutory holidays, employers are encouraged to accommodate:

• Religious holidays for minority faiths
• Cultural observances important to international workers
• Flexible scheduling for religious practices

Required Documentation

Employment Contract:

• Job title, duties, and reporting structure
• Salary, benefits, and working hours
• Termination clauses and notice periods
• Confidentiality and non-compete provisions

Government Forms:

• Work permit application (for non-Bermudians)
• Tax identification number
• Social insurance registration

Identity Verification:

• Valid passport
• Work permit (if applicable)
• Proof of qualifications/certifications

Work Permit Requirements

For Non-Bermudians:

• Work permit required before starting employment
• Employer must demonstrate no qualified Bermudian available
• Annual renewal required
• Specific to the employer and position

Permit Categories:

• Standard work permits (1-6 years)
• Global/senior executive permits
• Periodic permits for short-term work

Background Checks

• Criminal Record Check: Required for certain positions
• Reference Verification: Standard practice for most roles
• Professional Qualifications: Must be verified for regulated professions
• Credit Checks: Only for financial services positions

Data Protection Compliance

• Personal Information Protection Act applies
• Employee consent required for data collection
• Secure storage and limited access requirements
• Right to access and correct personal information

Probationary Periods

• Standard Period: 3-6 months for most positions
• Extended Periods: Up to 12 months for senior roles
• Reduced Notice: Shorter notice periods during probation
• Performance Reviews: Regular feedback required

Onboarding Timeline

Worker Classification

Employee vs Independent Contractor:

Bermuda follows common law principles for worker classification:

Employee Indicators:

• Works under employer's control and direction
• Uses employer's equipment and facilities
• Integrated into business operations
• Regular salary or wages
• Entitled to benefits and leave

Contractor Indicators:

• Operates independently
• Uses own tools and equipment
• Invoices for services
• Bears financial risk
• Multiple clients

Misclassification can result in penalties, back payments of benefits, and tax liabilities.

Anti-Discrimination Laws

The Human Rights Act 1981 prohibits discrimination based on:

• Race, colour, or ethnic origin
• Sex, sexual orientation, or gender identity
• Religious beliefs
• Political opinions
• Disability or physical characteristics
• Age (in employment contexts)

Collective Bargaining

• Union Recognition: Several active trade unions in Bermuda
• Collective Agreements: Common in hospitality, construction, and public sectors
• Right to Organise: Protected under labour relations legislation
• Strike Action: Legal with proper notice and procedures

Cultural Considerations

Business Culture:

• Formal business attire expected
• Punctuality highly valued
• Relationship-building important
• British business etiquette predominates

Communication Style:

• Direct but polite
• Written follow-up to verbal agreements
• Respect for hierarchy
• Collaborative decision-making

Remote Work Framework

Legal Considerations:

• Employment laws apply regardless of work location
• Work permit restrictions may limit remote work options
• Tax implications for cross-border remote work
• Data protection requirements for home offices

Employer Responsibilities:

• Provide necessary equipment
• Ensure safe working environment
• Maintain regular communication
• Respect work-life boundaries

What Borderless AI Handles

When you hire through Borderless AI in Bermuda, we manage:

• Employment contract drafting and compliance
• Work permit applications and renewals
• Payroll tax calculations and remittance
• Statutory leave tracking and administration
• Termination procedures and documentation
• Local legal compliance monitoring