Employment Law

Bahamas Employment Contract

Technically, an employment contract in The Bahamas can be oral or written. However, we strongly recommend providing a formal written employment contract when recruiting in this country. These contracts should cover all necessary details for the position, such as salary, benefits, working hours, etc. They should also be written in English and use the national currency, the Bahamian dollar.

Fixed Term

Indefinite

Bahamas Working Hours

The standard working week in The Bahamas is 40 hours, with five 8-hour days. However, many companies have very relaxed work cultures, so working hours can often be flexible.

Holiday Policy

Bahamas Vacations

Employees in The Bahamas are entitled to paid leave after one year of service to their employer. The length of holiday allowance depends on years of service and is usually 10 to 15 days.

Bahamas Sick Leave

Employees in The Bahamas are generally entitled to one to two weeks of paid sick leave per year. Medical records are usually required as proof of illness. You should always ensure that you set out accurate terms in your employment contract.

Parental Leave in the Bahamas

Employees in the Bahamas are generally entitled to 12 weeks of paid maternity leave after one year of employment with their employer. This leave can only be taken once every three years from the same employer.

Employee Severance Pay and Termination in The Bahamas

Generally speaking, employees in the Bahamas are entitled to two to four weeks’ notice before terminating their contract. The exact notice period depends on the number of years the employee has served the employer.

Taxation in the Bahamas

Employees and employers in The Bahamas are required to pay a certain percentage of their wages as social security contributions. Employees pay 3.9% and employers pay 5.9%. Employees must also pay 9.8% National Insurance, which should be withheld by the employer.

The Bahamas has no income tax and tax revenue comes from VAT and other forms of taxation.

The Bahamas has no corporate income tax.

Health Insurance in The Bahamas

The Bahamas has a public healthcare system, but it is limited to certain groups, such as the elderly. As a result, many employees expect their employers to provide private health insurance as part of their benefits package.

Salary and Benefits

Compensation Law in the Bahamas

In most cases, the minimum wage for Bahamian employees is $42 per day (BSD).

Benefits Administration in the Bahamas

Establishing the Bahamian benefits system as a foreign employer is a complex process. The law is complex, with federal and provincial differences to consider, and representation may need to be dispatched. All of this can make it a lengthy and expensive process.

Outsourcing your benefits administration processes ensures you fully understand and follow the rules, ensuring your compliance and significantly speeding up the process. At Horizon, our Bahamas employment experts will help you find and arrange your benefits, advise on your strategy, and ensure compliance with the law.