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Globalpedia

PEO & Employer of Record (EOR) in BmBermuda.

Population

63,913

Languages

1.

English

Country Capital

Hamilton

Currency

Bermudian dollar (BMD)

Bermuda is an archipelago of 181 islands situated in the Atlantic Ocean. With a population of around 70,000, it’s the most populated British international territory. If your company plans to expand its business to Bermuda, working with an Employer of Record is a simple way to hire employees based in Bermuda compliantly.

Hiring in Bermuda

Bermuda’s labor laws consist of official legislation enacted by Parliament and common case laws decided by the courts. When hiring in Bermuda, it helps to know how employment contracts function and the laws for working hours, paid leave, and benefits.

Employment contracts in Bermuda

Bermuda’s laws require a written employment contract. Employment contracts can be more favorable to employees than the law requires, but they cannot be less favorable. For example, an employer can’t offer an employee a contract that stipulates they’ll be paid less than minimum wage. Contracts can allow employees to receive higher wages or more paid leave than required.

Every employment contract needs to contain the following information:

  1. The employee’s salary
  2. Work hours
  3. A start date
  4. The employee’s duties

Working hours in Bermuda

Employees in Bermuda typically work 40 hours per week. Part-time employees work for less than 15 hours. If employees work more than 40 hours a week, they receive 1.5 times their usual pay rate for each hour over 40. Alternatively, employees can receive their standard pay rate and a certain number of hours off in exchange for overtime.

Vacation days in Bermuda

After working with a company for at least a year, employees in Bermuda are entitled to two weeks of paid vacation. Vacation days aren’t cumulative, meaning employees need to use them before the end of the year. Employees are entitled to full pay while on vacation and should receive their pay in advance.

Sick leave in Bermuda

After a year of continuous employment, employees can receive full pay for up to eight days annually if they can’t work due to injury or illness. To receive payment for two or more consecutive days, employees must show a certificate from a medical provider. The medical provider must certify that they have examined the employee and determined that illness or injury keeps the employee from working.

Maternity leave in Bermuda

Pregnant employees can receive maternity leave in Bermuda provided they present their employers with a certificate that verifies the pregnancy and provides a due date. Employees must apply for maternity leave four weeks before the date on which they want leave to begin.

Maternity leave can be paid or unpaid, depending on how long the employee has worked for the company.

Termination and severance in Bermuda

Employers in Bermuda need a valid reason to terminate employees’ contracts. Acceptable reasons include changes in a company’s operational requirements as well as misconduct or poor performance on the part of the employee.

Employees who have worked with a company for at least a year are entitled to severance pay. Severance pay will include at least two weeks’ pay for each year worked, up to 10 years, and three weeks’ pay for each year after. The maximum amount is 26 weeks of pay.

Paying taxes in Bermuda

Individuals based in Bermuda pay no income tax. Employers must pay payroll tax, and they can deduct up to 6 percent of employees’ salary from their paychecks to cover it.

Health insurance benefits in Bermuda

Employers must provide health insurance coverage to employees in Bermuda under the Health Insurance Act of 1970. Any employees who work at least 15 hours per week and at least two months in a calendar year must be covered by their employer’s health insurance plan.

Holidays in Bermuda

Public holidays in Bermuda include:

  1. New Year’s Day
  2. Good Friday
  3. Bermuda Day
  4. National Heroes Day
  5. Emancipation Day
  6. Mary Prince Day
  7. Labour Day
  8. Remembrance Day
  9. Christmas Day
  10. Boxing Day

Why G-P?

At G-P, we help companies unlock the power of global teams through our industry-leading Global Growth Platform™. Let us handle the costly and time-consuming tasks involved in finding, hiring, onboarding, and paying your team members, anywhere in the world, so you don’t have to. Contact us today to learn more.

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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