Hire in The Bahamas
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Currency of Bahamas
Bahamian Dollar (BSD)
The Capital of Bahamas
Nassau
Time Zone in Bahamas
EST
Important Facts About the Country of The Bahamas
Introduction to Bahamas
The Bahamas, a breathtaking island nation located in the Atlantic Ocean, comprises 700 islands, over 2,000 rocks and cays, with its capital in Nassau. With a population of approximately 400,000, the Bahamas is celebrated as a popular tourist destination and maintains a thriving economy primarily driven by tourism, financial services, and international trade.
What to Know about Bahamas’s Geography
The Bahamas is positioned in the Caribbean Sea, just southeast of the United States. Comprised of islands, cays and rocks, the island nation spans a total land area of 10,010 square kilometers. Geographically, the country lies to the east of Florida in the United States, to the north of Cuba and the island of Hispaniola (Haiti and the Dominican Republic) and to the west of the British Overseas Territory of the Turks and Caicos Islands.
Climate in Bahamas
The Bahamas benefits from a steady tropical climate, with temperatures typically ranging between 20°C and 30°C (68°F and 86°F) year-round. It has two distinct seasons: summer, spanning from May to October, and winter, covering November through April. The country receives an average annual rainfall of approximately 50 inches, with the wettest months occurring from May to October.
The Culture of Bahamas
The Bahamas showcases a lively and unique culture, shaped by its rich history and geographical location. Among its noteworthy cultural celebrations is the Junkanoo festival, a dynamic street parade held on Boxing Day and New Year’s Day. This festival features captivating exhibits of colorful costumes, rhythmic music, and lively dance performances. Bahamian cuisine is celebrated for its delicious seafood offerings, with specialties like conch, lobster, and various fish types gaining global acclaim.
Religions Observed in Bahamas
The Bahamas predominantly follows the Christian faith, with around 95% of its population being Christians. Among the Christian community, the majority align with Protestant denominations, including Baptists and Anglicans. Additionally, there are smaller groups of Roman Catholics and Seventh-day Adventists in the country. Beyond Christianity, the Bahamas boasts diverse religious communities such as Judaism, Islam, and Buddhism. As a result, the religious landscape of the Bahamas is both rich and varied.
Languages Spoken in Bahamas
The official language of the Bahamas is English, spoken by nearly all Bahamians. Nevertheless, besides English, other languages are also used in the country, including Creole and Spanish.
Bahamas Human Resources at a Glance
Employment Law Protections in the Bahamas
The Employment Act of 2001 is the primary legislation governing employment relationships in the Bahamas, setting the minimum standards for employment in the country. Complementing this, other significant legal sources contribute to the framework of employment regulations:
- Minimum Wage Act
- Industrial Relations Act
- Health and Safety at Work Act
Employment Contracts in the Bahamas
In the Bahamas, the format of an employment contract is not strictly required to be in writing; it can be either verbal or written and may encompass both express and implied terms. However, as per the Employment Act, specific employment terms must be promptly communicated to an employee upon commencing work. Although these agreements can be documented in writing, they should encompass the following details:
- The name of the employer or group of employers, and if possible, the location of employment.
- The employee’s name, the work location, and, where feasible, the employee’s place of origin, along with any other necessary identification information.
- The nature of the employment.
- Specification of whether the employment is for a fixed period or, when applicable, the duration of the employment and the method for calculating it.
- The rate of wages and additional benefits, along with the method of calculation, payment period, and the procedure for repaying any advances.
- If the work is time-based, the number of daily working hours, as well as the starting and ending times of the work.
- The minimum wage, set at $260 per week within the Bahamas.
Contract Terms in Bahamas
While the Employment Act does not explicitly dictate particular terms for employment contracts, it is a prevalent practice for employers to frequently employ fixed-term contracts.
Bahamas's Guidelines Regarding Probation Period/Trial Period
The Employment Act in the Bahamas lacks specific statutory regulations concerning probation periods. Nevertheless, some collective agreements may incorporate provisions that stipulate a probationary period lasting 12 months.
Regulations and Rules Regarding Working Hours in Bahamas
In the Bahamas, the standard work schedule typically comprises eight hours per day or 40 hours per week.
Bahamas Laws Regarding Overtime
Should an employee be obligated to work beyond the standard hours, they are entitled to an overtime rate of wages not less than:
- Twice the regular rate of wages for overtime work on any public holiday or day off; or
- One and a half times the regular rate of wages in all other cases.
Bahamas Timesheets & Record Keeping
Employers are required to keep a record of salary payments and accounts for each employee, which should be preserved for a duration of three years.
Termination
In the Bahamas, employers possess the flexibility to terminate an employee without cause or provide notice or pay in lieu of notice. If there is a valid reason for dismissal, the employer is only obligated to compensate the employee for unused vacation time and hours worked. As per the Employment Act, an employer is permitted to terminate an employee “without pay or notice when the employee has committed a fundamental breach of their employment contract or has acted in a manner repugnant to the fundamental interests of the employer.”
In instances of termination with notice, the employer must offer compensation in accordance with the employment contract or the Employment Act. The minimum notice period is determined based on the employee’s position and length of service.
Under Bahamian law, employees are protected against dismissal if the employer’s grounds for termination fall into one of the following categories:
- Affiliation with a labor union
- Pregnancy status
- Engagement in a strike
Bahamas's Requirements Regarding Notice Periods
In the Bahamas, when an employer ends an employee’s contract, specific minimum notice periods or equivalent payments must be adhered to. The stipulations are as follows:
For employees holding supervisory or managerial roles: One month’s notice or payment equivalent to one month’s basic pay in lieu of notice.
For employees in non-supervisory positions:
- If employed for six months but less than one year: One week’s notice or payment equivalent to one week’s basic pay in lieu of notice.
- If employed for 12 months or more: Two weeks’ notice or payment equivalent to two weeks’ basic pay in lieu of notice.
Redundancy/Severance Pay in Bahamas
In cases of redundancy, employers in the Bahamas must provide severance pay to affected employees. For those in supervisory or managerial roles, the minimum severance pay is determined at one month’s salary for each year of service, with a cap at 48 weeks. This calculation is pro-rated.
For non-supervisory employees, the severance pay calculation is outlined as follows:
- Employed for more than six months but less than one year: One week’s severance pay pro-rated for the period between six months to one year of employment.
- Employed for at least one year: Two weeks’ severance pay for each year of employment, capped at a maximum of 24 weeks’ pay, pro-rated accordingly.
Data Protection
The Bahamas stands out as one of the trailblazing Caribbean nations to introduce the Data Protection Act, 2003 (DPA), overseeing the handling of personal data in both public and private sectors. As per the DPA, organizations must secure explicit consent to gather, process, and store personal data.
Tax and Social Security Information for Employers in The Bahamas
Personal Income Tax in The Bahamas
The Bahamas does not impose personal income tax.
Social Security in The Bahamas
In the Bahamas, every employed individual must contribute to the National Insurance Board (NIB). Employers deduct these contributions from their employees’ wages or individuals pay directly if they are self-employed. Contributions are compulsory for each “contribution week,” a seven-day period from Monday to Sunday. The amount payable is calculated based on the wages earned during that week, up to the insurable ceiling, presently set at 740 BSD. Contributions should be remitted monthly and must reach the Board no later than the 15th day of the following month.
In this context, “wages” include basic pay (including pay in lieu of notice) and formally paid tips/gratuities. However, bonuses, overtime pay, and severance pay are not classified as wages.
The contribution rates stand at 3.9% for the employee and 5.9% for the employer.
Deductions from the employee’s wages for contributions must commence with the first salary payment, encompassing the probationary period. Contributions not deducted when due cannot be reclaimed from the employee’s future earnings. Any outstanding arrears become the exclusive responsibility of the employer to settle.
*The provided rates are indicative and may vary from the actual rates charged.
Important Information for Bahamas Employees
Salary Payment
As per the Employment Act, employees in the Bahamas are mandated to receive payment at least once a month. The salary must be provided in the currency of the Bahamas and not in any other form.
Salary disbursements should exclusively occur on working days and can be facilitated through cash, checks, or by depositing the amount into the employee’s bank account.
Payslip
Employers are required to provide employees with a written pay slip at the time of salary payment. The pay slip should include the following details:
- The period covered by the salary payment.
- The number of hours for which payment is made.
- The salary rates.
- Specifics of any deductions made from the salary.
- The actual sum paid to the employee.
Annual Leave
Every employer is mandated to grant their employees a minimum of two weeks of vacation after each 12 months of employment. If any public holidays coincide with the vacation period, an additional day will be added for each holiday.
The calculation of vacation pay is based on the employee’s basic pay earned during the employment year in which they are entitled to take their vacation:
- For employees employed for less than a year: one week’s basic pay
- For employees employed for one to seven years: two weeks’ basic pay
- For employees employed for seven years or more: three weeks’ basic pay
The employer must compensate the employee with vacation pay at least one day before the commencement of the vacation period.
If an employee’s employment concludes before completing a full year, the employer is obliged to provide vacation pay on a pro-rata basis. However, it is essential to note that vacation pay is not mandatory for employees who have not been continuously employed for a minimum of 90 days.
Sick Leave
Employees with a tenure of at least six months qualify for one week of paid sick leave per year. Notably, sick leave cannot be carried over from one year to the next. However, if the sick leave duration is only for a single day, it will not be compensated.
In the case of sick leave, excluding the initial day, the employee must furnish the employer with a medical certificate as evidence.
Family Leave
Employees who have served for a minimum of six months are entitled to one week of unpaid family leave annually. This leave can be utilized in circumstances such as the birth of a child or in the case of the death or illness of a child, spouse, or parent.
To initiate the family leave request, the employee must submit supporting documentation, providing evidence of the birth, death, or illness to the employer.
Maternity & Parental Leave
Women employees with a tenure of at least one year are afforded a 12-week paid maternity leave every three years. To access this leave, the employee is required to furnish her employer with a medical certificate indicating the expected delivery date. Out of the 12 weeks, a minimum of one week should be taken before the delivery date, while a minimum of eight weeks should be taken post-delivery.
In instances where the employee undergoes a pregnancy-related illness, she is entitled to an additional six weeks of unpaid leave.
Public Holidays
The Bahamas observes a total of 12 public holidays annually.
Benefits to the Employee in The Bahamas
Bahamas Statutory Benefits
Workers in the Bahamas receive various mandated benefits, such as social security insurance covering sickness, maternity, unemployment, disability, death, injury, and survivorship. Additionally, employees are granted specific types of leave as per legal provisions, including annual leave, sick leave, maternity leave, and family leave.
Other Benefits
Beyond the essential benefits mandated by law, employers in the Bahamas commonly provide extra perks to their employees. These additional benefits can encompass bonuses, private health insurance, life insurance, various allowances, and the provision of extended or additional leave days.
Rules Regarding Visas and Foreign Workers in The Bahamas
General Information
The Bahamas operates a visa-free policy for citizens of over 100 countries, including the United States, Canada, and European Union member states, allowing stays of up to 90 days. However, individuals from other nations must obtain a visa for entry. The Bahamas offers various visa categories, including tourist, business, and student visas.
Tourist visas can be extended for a maximum of 90 days, permitting a total stay of up to 180 days. Business visas allow multiple entries for up to one year, catering to individuals involved in business-related activities. Student visas remain valid for the duration of the study program.
For those seeking employment in the Bahamas, two types of work permits are available: short-term and long-term. The short-term work permit allows foreign nationals to work in the Bahamas for up to 90 days, while the long-term permit is intended for those planning to work for more than three months.
Employers are responsible for applying for the work permit on behalf of foreign employees and must submit the necessary documentation to the Department of Immigration. Before applying, employers must advertise the job for at least two weeks in the local market, providing Bahamians with the opportunity to apply for the position.
Public Holidays Recognized by The Bahamas in 2024
| Occasion | Date | |
|---|---|---|
| 1 | New Year’s Day | January 1 |
| 2 | Majority Rule Day | January 10 |
| 3 | Good Friday | March 29 |
| 4 | Easter Monday | April 1 |
| 5 | Whit Monday | May 20 |
| 6 | Sir Randol Fawkes Day | June 7 |
| 7 | Independence Day | July 10 |
| 8 | Emancipation Day | August 5 |
| 9 | National Heroes Day | October 14 |
| 10 | Christmas Day | December 25 |
| 11 | Boxing Day | December 26 |
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