Employer of Record in the Bahamas

Skuad's Bahamas Employer of Record (EOR) solution helps your business expand into the Bahamas without the need for an entity setup. Our unified and automated global HR platform enables you to expedite the onboarding of your remote team, manage their payroll, benefits, etc., compliantly. We help you streamline the global expansion process with the able assistance of our international network.

If you have planned and decided to set up your business in the Bahamas, you need to address one essential expansion aspect. That is the HR requirements of your company. Whether you require a handful of employees or an entire team, the recruitment process and every other HR process must comply with the Bahamas' labor laws. Understanding the complex legalities of the employment laws and statutory requirements can be challenging, time-consuming, and even financially burdensome. The right solution is to hire an EOR like Skuad to take care of end-to-end HR needs flawlessly and comply with the local laws.

Skuad is one of the most prominent Employers of Record in the Bahamas. With the right EOR solution, your entry into foreign soil becomes seamless and hassle-free. For details, speak to Skuad experts and kick-start your dream project in the Bahamas.

The Bahamas at a Glance

Population: 415,223 million (2024)

Capital: Nassau

Languages: English and several dialects that use Creole-style words

Local currency: Bahamian dollar (BSD), US Dollars (widely accepted)

GDP: 14.51 billion in U.S. dollars (2024)

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What You Must Know Before Employing in the Bahamas

Employment in the Bahamas

The statutory regulations that regulate the employee-employer relationship in the Bahamas are -

EA or The Employment Act, 2001. This particular Bahamas employment law regulates employment-related matters.
The Minimum Wages Act defines the wage, bonus, and other benefits of employees' remuneration packages.
The Industrial Relations Act defines the provisions for trade unions.
The Health and Safety at Work Act.

The Prerequisites for a Written Employment Contract

There is no legal requirement in The Bahamas that an employment contract is in writing. The terms in an employment contract can be expressed or implied, verbal or written. However, the Employment Act requires that certain terms of employment be communicated to an employee as soon as possible after starting work. Such terms can be outlined in writing and must include the following details:

The name of the employer or group of employers and the location of employment, if possible.
The employee's name, place of employment, and, where possible, place of origin, as well as any other information required for identification.
The nature of the job. When a person is employed for a set period, or in appropriate circumstances, the contract should mention the length of employment and the method of calculating the length.

In the absence of express terms, or where a contract of employment is silent on a specific issue, the EA will be implied within the contract of employment to set the minimum standards. Additional terms will be determined based on the type of work required and the employee's position within the company.
Employment, Contracting, and Working with a Private Entrepreneur are all examples of different types of involvement. Some companies and employees may use collective bargaining agreements if the employees are members of a recognized trade union.

Entitlements under the Bahamas Labor Laws:

Entitlements	Explanation
Working Hours	40 hours per week
Overtime Eligibility	The normal work hours for employees in The Bahamas are eight hours a day and forty hours a week. If the labor hours vary due to the nature of the work, the average number of hours worked over four weeks should be 40. Employees in the industrial, construction, manufacturing, transportation, law enforcement, and vital services industries may be required to work longer hours. Supervisors and managers are exempt from the usual 40-hour workweek. Overtime is paid at a rate ranging from 150 to 200% of the basic rate, depending on when the job is completed.
Public holidays	January 1 - New Year's Day January 10 - Majority Rule Day Friday preceding Easter Sunday - Good Friday Monday succeeding Easter Sunday - Easter Monday The 7th Monday after Easter - Whit Monday The first Friday in June - Randol Fawkes Day July 10 - Independence Day The first Monday in August - Emancipation Day The second Monday in October - National Heroes' Day December 25 - Christmas/Boxing Day
Vacation Leave	When employees have completed six months of work, they can get one week of paid leaves. The paid leaves are over and above the public holidays. When employees complete a year of work, they are entitled to two weeks of paid leaves. Employees that complete seven-plus years get three weeks of paid leaves. It is also mandatory that the pay for the paid leaves is paid before the start of vacation.
Sick Leave	Each year, employees who have completed at least six months of employment are entitled to one week of paid sick leave. Unused sick leave cannot be carried over to the following year. Employees must show proof of sickness in the form of a medical certificate. Employers can request an independent physician evaluation and have the authority to reject the leave if the physician concludes that the employee can work.
Maternity/Paternity Leave	Female workers who have worked for at least one year are entitled to 12 weeks of paid maternity leave every three years. Generally, at least one week before and eight weeks after delivery can be availed; however, this can be changed if the actual birth date differs from the due date. If the employee develops a pregnancy-related sickness, an extra six weeks of unpaid leave is permitted. Maternity benefits are paid to qualified employees by both the employer and the National Insurance Board. Employees working for at least six months are entitled to one week of paid family leave for childbirth or the loss or sickness of a spouse, child, or parent.
Bereavement Leave	There is no national policy on bereavement leaves in Barbados. The labor law does not include this clause.
Wages & Benefits	Employees need to be paid their wages regularly, at least once a month. Employers must maintain a record of wage payments. Wages need to be paid in either cheque, cash, or directly deposited in the employee's bank account. Wage payments need to be done on a working day. In case details of wage payments are requested by the Minister, the same needs to be furnished in the prescribed manner. In the nation, the minimum wage is BSD 5.25 per hour. The Bahamas is considered to be a tax haven. Individuals do not have to pay any personal taxes like taxes on capital gains, gifts, income, and inheritance. However, there is VAT, stamp taxes, license fees, import duties, and property taxes. International companies are not required to pay corporate tax until and unless it is local earnings. It is interesting to note that foreign companies do not need to pay any taxes for at least twenty years from incorporation.

Contractors vs. Full-Time Employees

There is a clear cut distinction between a full-time employee and a contractor as per the Bahamas Labour Laws. Employers hire full-time employees through an employment contract. Contractors, however, are not protected by the Employment Act of the Bahamas and are usually self-employed. They enter into a contract with an establishment or organization to offer specific services and undertake exclusive tasks against which they are paid a fee. The organization cannot demand or direct them to work beyond the parameters defined as per the contract or agreement pre-decided between the organization and the contractor. In the case of an employee, the employer has control over the individual's jobs and responsibilities, the working hours, the remuneration, benefits like social security, and more. In short, employees are protected within the gamut of the Employment Act but not independent contractors.

As per the laws of the land, employers must classify employees and contractors rightly. Not doing so can attract penalties, fines, and punishment for the employer.

With Skuad as your EOR, there are negligible reasons to worry because our automated solution and HR experts take care of the classification of employees and contractors relevantly so that there are no legal hassles for your business in the Bahamas.

Get to know more about Skuad's services here.

Hiring in the Bahamas

One of the first things that businesses need to do when starting is to hire employees in the Bahamas. One of the things that legal businesses can do is to take the help of hiring companies in the Bahamas. If you wish to do all of this independently, you can search for the right candidates – local and foreign – from top job portals in the Bahamas. Some of the most reputed online job sites are – Caribbean Jobs, jobisland.com, Glassdoor, Careerjet, and The Nation.

If you wish to go in for a simplified process, you can choose to work with an EOR like Skuad. The Employer of Record in the Bahamas will take care of the entire hire to retire, taking care of hiring, payroll, taxation, employee health benefits in the Bahamas, and more. Book a Demo here.

Probation & Termination

Termination clauses

Employers in the Bahamas can terminate employees provided they offer them the required notice or severance compensation.
The employee can build a wrongful dismissal case if the employer does not meet the above statutory clauses.
Employers have the right to termination when employees breach the terms of the employment contract or work against the organizational interest of the employer. In such cases, the employer is not statutorily required to give any notice to the employee or pay him severance compensation. Also called summary dismissal, these happen on the following grounds:

Dishonest activities
Theft
Indecency
Insolence or insubordination
Offenses
Negligence
Misconduct
Incompetence
Breach of confidentiality
Duration of employment and Notice period are mentioned below:
6 to 12 months
A week's notice or pay
More than 12 months
Two weeks' pay or notice

For managers and supervisors:
In this case, the notice period is one month or one month of basic pay.

Standard Probation Period in the Bahamas:

There is no statutory probation period in the Bahamas.
The Collective Agreements may contain clauses for the probation period.
It is usually a year or twelve months from the start of work.

EOR Solution in the Bahamas

Establishing a successful enterprise in a different country requires expert intervention as it is nearly impossible to know the varied compliance policies of the country. Employers of Record EOR, with its unified employment platform, can simplify your task of conducting business globally. Their extensive research on the country's laws and HR policies ensures business expansion faster, helping manage the entire life cycle of your employees. Skuad’s global HR platform handle complex HR-related matters and lets you focus on your core task. Employer of Record companies in the Bahamas facilitate hassle-free business expansion.

Hire talent from all over the world and improve your business prospects with Skuad's platform for managing globally distributed teams. The team of well-informed professionals handles the arduous task of managing global payroll, compliance, and taxation. Talk to us and build a global team of efficient workers.

Types of Visas in the Bahamas

Visa Requirements - All non-residents traveling to the Bahamas, whether for business or vacations, need to apply for a visa.

Bahamas Work Visa - The visa is mandatory for staying and working in the Bahamas. It takes about one month to get a work visa in the Bahamas.

Steps to Get the Work Visa

The application form has to be filled.
The form has to be notarized by paying 10 Bahamian Dollars.
All the relevant documents need to be there.
The notarized form and the documents need to be submitted to the Immigration Department.

Documents to Submit for a Work Visa in the Bahamas

The employer's request letter. It needs to detail the reason for hiring a foreigner, position details, and the term of employment.
Resume of the foreigner employee
Two colored passport photos of the employee
PCC or Police Character Certificate with a validity of five years
A valid medical certificate of the applicant
Two references from previous employers
Examination certificate copies
Employers need to submit a copy of the job advertisement in a local newspaper.

Work Permits

Work Permit in the Bahamas‍

There are two broad categories and subcategories of work permits issued:

Long-term is meant for a single individual foreigner who can stay in the island country and work for three months and more.
Short-term is meant for foreign employees who need to stay and work in the country for three months.

Work permits and work visas are the same. It means that individuals are not required to apply for different documents.

Requirement:

The applicant must be present in the country of residence when the permit is being processed.
It takes about a month to process the application.
Applicants and employers need to apply to the Department of Immigration, the Bahamas.

If you choose to enter the Bahamas on your own after incorporation, applying for a work visa and a work permit is a tedious process. The work can become easier with the expertise of an Employer of Record. The EOR is an experienced service provider that hires, onboards, or trains employees on your behalf and helps with recruiting ex-pats for your business.

Skuad is an experienced EOR service provider that offers expert services across multiple countries of the world. Our specialists are well-aware of the local laws regarding applying for work visas and permits ensuring that you do not have to utilize your crucial time and resources in first understanding the laws and then applying for the permit.

Skuad takes over the duty to obtain work permits by collaborating with its local partners to arrange and secure the essential permissions and give you a full report on the process's progress.

Contact Skuad for more information on obtaining a work visa for your expatriate employees and employing them through Skuad in the Bahamas.

Payroll & Taxes in the Bahamas

The Social Security Act is used to fund employees who cannot work due to maternity, death, unemployment, accidents, diseases, or physical impairments. Employers deduct employee contributions from their salaries, which are then deducted as a tax deduction from the employee's taxable income. Employee and employer payments are sent to the relevant authorities every month, and failure to do so leads to fines.

Payroll Taxes in the Bahamas

Social security contribution or National Insurance

Employer contribution - 5.9% of salary
Employee contribution - 3.9% of salary

Corporate Taxes In the Bahamas

Up to BBD 1,000,000 - 5.5%
BBD 1,000,000 to 20,000,000 - 3%
Between 20,000,000 and 30,000,000 - 2.5%
Above 30,000,000 - 1%
International companies - Between 1% to 2.5%

Incorporation

With rising business opportunities in the Bahamas, you have to choose whether to incorporate or hire an EOR. All of this needs to be streamlined before your firm's entry to expand your business in the Bahamas.

Incorporating a Holding Company in the Bahamas

Firms can be incorporated as per the Companies Act, 1992.
The International Business Companies Act or IBC also impacts establishing a company here.
To incorporate an international business here, the MoA and AoA need to be filed.
A certificate of incorporation is awarded, confirming the establishment of legal identity.
The IBC should have one director.
The annual fees that an international firm needs to pay to depend on the authorized share capital. If it is USD 50,000, the fee is USD 350, and if it is more than USD 50,000, the fee is USD 1,000.

Book a demo with Skuad experts to know more about incorporating a holding company in the Bahamas.

PEO (Generic Information & Comparison with EOR)

A Professional Employer Organization in the Bahamas manages all HR-related functions, such as compliance policies of the country, employee benefits, payroll management, taxes, and risk management. A PEO firm becomes your partner-employer, while the Employer of Record is a legal business entity with the right to employ on behalf of their clients.

Businesses willing to expand into another country must get their entity incorporated in the country. If you choose to work with a PEO firm, it is mandatory to register your business first in the Bahamas. However, with an EOR, you can legally start working and hiring employees in the country without setting up a subsidiary.

A PEO manages and handles all HR-related matters for your firm. An EOR company allows organizations to set up legal entities in different countries and mark their presence in the global market.

Skuad's integrated platform acts as an EOR. The expert professionals manage all HR-related functions; right from recruitment to termination, everything is handled by the single platform of Skuad. You can build an efficient team of workers remotely while complying with the local laws. Skuad handles all the functions such as onboarding workers, both full-time and contractors, managing their payroll and taxes, etc.

Connect with us and elevate your business prospects while saving your time and money with the advanced EOR solutions of Skuad.

Conclusion

Skuad provides a comprehensive range of HR-related functions to assist companies when expanding in the country. Our Employer of Record (EOR) services take care of all of the tedious HR admin and legal compliance matters so you can focus on growing your business. With Skuad by your side, you can streamline your business processes and operations without worrying about recruitment, hiring, boarding, termination, probation, and other legal compliance. Contact Skuad for more details.

FAQs

1) What is an employer of record in the Bahamas?

An Employer of Record (EOR) in the Bahamas is a third-party service that hires employees on behalf of foreign companies without a local entity. The EOR manages all administrative and legal responsibilities, including payroll, taxes, benefits, and compliance with Bahamian labor laws.

2) What is the difference between an employer of record and a staffing agency?

An EOR becomes the legal employer of the workforce, handling long-term employment contracts, compliance, payroll, and benefits while a staffing agency typically recruits temporary or contract workers for short-term assignments but does not assume full legal responsibility for those employees.

3) What is the best employer of record?

Some of the top global EOR providers like Skuad, Deel, Globalization Partners, and Papaya Global offer services in the Bahamas, but it’s important to evaluate each provider’s pricing structure, client reviews, and experience in navigating Bahamian labor laws. The best Employer of Record depends on a company’s specific needs, including the number of employees, the scope of services required, and local expertise.

4) How much does an EOR cost?

The cost of using an Employer of Record in the Bahamas typically ranges from $200 to $1000 or even more per employee per month, depending on the complexity of local compliance requirements and the services provided. Costs can vary based on the number of employees, payroll management, tax handling, and additional administrative services.

5) What is the difference between employer of record and PEO?

An Employer of Record (EOR) takes full legal responsibility for employing staff, managing compliance with local laws, payroll, and benefits, while the foreign company focuses on daily operations. A Professional Employer Organization (PEO), on the other hand, provides HR services through a co-employment model, where both the PEO and the client company share legal responsibilities. An EOR is ideal for companies without a legal entity in the country, while PEOs require the company to have a local presence.

6) What are the benefits of EOR?

Using an EOR in the Bahamas provides several benefits for foreign companies. It allows them to hire employees quickly without establishing a local entity, ensures compliance with labor laws and taxes, reduces administrative burdens, and mitigates legal risks. Additionally, the EOR handles payroll, benefits, and employee contracts, enabling companies to focus on their core business operations while ensuring legal and financial compliance in the Bahamas.

Bahamas

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Employer of Record in the Bahamas