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Bahamas

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Global HR Compliance in the Bahamas

Hiring workers in the Bahamas means navigating a formal but relationship-driven employment system shaped by the Employment Act and National Insurance Act. From fixed-term contracts to redundancy procedures, employers must comply with well-defined rules for leave, notice, and pay, particularly around dismissal, sick pay, and maternity protections.

For foreign employers, the complexity of local compliance, immigration protocols, and payroll withholding can present major barriers to hiring. Acumen International’s Employer of Record (EOR) service allows you to hire in the Bahamas without establishing a local company. We manage employment, payroll, benefits, and compliance so your team can focus on growing the business.

Employment Contracts in the Bahamas

Employment contracts must clearly state the nature of work, wages, benefits, payment frequency, and working hours. Contracts may be:

  • Open-ended (no fixed duration)
  • Fixed-term, with no statutory cap on length or renewals

Failure to specify a term makes the contract open-ended by default.

The Employment Act mandates that employees must receive written particulars of their employment within one week of starting work. Contracts must clearly state:

  • Employer and employee identity
  • Job title and location
  • Pay and benefits
  • Hours of work
  • Notice periods
  • Duration (fixed or open-ended)

Fixed-term contracts are permitted and renewable, but employers must avoid misclassification or repeated renewals that imply permanent employment status.

Working Hours and Overtime

  • Standard workweek: 40 hours, with a maximum of 8 hours per day
  • Overtime pay: 1.5x regular wages for hours beyond the weekly limit
  • Exemptions: Managerial and supervisory staff are generally not entitled to overtime

Employees are entitled to at least one full day of rest per week.

Probationary Period

Employers may include a probation period of up to six months. This is allowed only once during employment and must be set out in writing.

Annual Leave

Annual leave entitlement is based on tenure:

  • 6–12 months: At least 1 week
  • 1–7 years: At least 2 weeks
  • Over 7 years: At least 3 weeks

Public holidays are separate and do not count against annual leave.

Sick Leave

Employees become eligible for paid sick leave after 6 months of continuous service. Entitlement:

Employer may dismiss an employee who cannot resume duties after exhausting sick leave

1 week of paid sick leave per year, consecutive or non-consecutive.

Maternity and Parental Leave

Maternity Leave:

  • 13 weeks total, typically taken before and after childbirth
  • Paid partly by the employer and partly by National Insurance (if qualifying conditions are met)
  • Employers must continue to pay at least 33.5% of wages up to the National Insurance ceiling

Paternity Leave:

  • One week of unpaid leave is provided for new fathers

A Maternity Grant is available for women (or spouses) with at least 50 weeks of contributions.

Termination and Severance

Employers may terminate employment for redundancy or conduct-based reasons with appropriate notice and compensation.

Notice Requirements

  • 6–12 months of service: 1 week’s notice or pay in lieu
  • 1+ years of service: 2 weeks’ notice or 2 weeks’ basic pay per year (max 24 weeks)
  • Supervisory/managerial roles: 1 month’s notice or pay in lieu, plus 1 month’s pay per year (max 48 weeks)

Employees are also required to provide 2–4 weeks’ notice depending on tenure.

Employee Resignation

  • 1–2 years’ service: 2 weeks’ notice
  • 2+ years: 4 weeks’ notice.

Severance Pay

For Non-Managerial Employees

  • 6–12 months’ service: 1 week’s basic pay
  • 12+ months: 2 weeks’ pay per year, capped at 24 weeks

For Managers and Supervisors

1 month’s pay per year of service, capped at 48 weeks.

Minimum Wage (2023)

  • BSD 260 per week (effective January 2023)
  • Applies across all sectors unless higher contractual or collective provisions exist
  • Reviewed periodically by the National Tripartite Council.

Statutory Employee Benefits in the Bahamas

Employee benefits are defined by law and administered through a mix of employer obligations and contributions to the National Insurance Board (NIB). These include:

  • Paid annual leave: From 1 to 3 weeks based on length of service
  • Sick leave: One week paid after six months of continuous service
  • Parental leave:
    • Maternity leave: 12 weeks (NIB-funded + potential employer top-up)
    • Paternity leave: One week unpaid
  • Public holidays: With paid entitlements when worked or falling on scheduled workdays

Benefits must be delivered in full compliance with the Employment Act and NIB regulations.

Employer of Record Services in the Bahamas by Acumen International

Direct Employment Without a Local Entity

Acumen International enables you to hire in the Bahamas without setting up a local company. As your Employer of Record (EOR), we act as the legal employer on your behalf, ensuring you can onboard talent quickly, compliantly, and without the delays or costs of incorporation.

Whether you need to hire one person or an entire team, our EOR solution allows you to establish a legal workforce presence immediately without legal entity registration, banking setup, or in-country payroll infrastructure.

Local Compliance, Centrally Managed

We take full responsibility for all employer obligations under Bahamian law. This includes:

  • Drafting and executing compliant employment contracts
  • Running local payroll and managing salary disbursements
  • Withholding and remitting taxes to the National Insurance Board (NIB)
  • Ensuring compliance with the Bahamas Employment Act and labour regulations
  • Maintaining proper employment records and audit documentation

Our clients benefit from full compliance oversight while retaining day-to-day management of their team.

Global Hiring

Hiring needs vary: from seasonal projects to long-term expansion. We tailor employment to match your operational model:

  • Regional or remote workforce coordination
  • Project-based or time-bound engagements
  • Strategic hires such as local sales representatives or technical leads

Our EOR model offers the agility to scale your team up or down without being locked into fixed infrastructure or long-term liabilities.

Global Mobility and Immigration Support

Relocating talent into the Bahamas requires planning around immigration, tax, and social security systems.

We provide:

  • Work permit sponsorship and visa application support
  • Coordination with the Department of Immigration and NIB
  • Strategic relocation planning to align contract terms and timelines

Our experts ensure your foreign hires enter and remain in the Bahamas legally, without employment-related risk.

Global Payroll Calculator: Plan Expansion with Precision

Our Global Payroll Calculator supports confident hiring decisions with accurate, real-time projections:

  • Gross-to-net salary breakdowns
  • Employer tax and social security cost estimates
  • Statutory benefits and leave liabilities
  • End-of-service cost planning

Whether planning for one hire or a multi-role expansion, our tool gives you budget clarity across 190+ countries.

Global Coverage, Single Partner

Hiring in the Bahamas is just one part of your global growth. With Acumen International, you gain:

  • A single point of contact across all your target jurisdictions
  • End-to-end employment lifecycle support
  • Built-in risk mitigation for multi-country hiring

Wherever you hire, we help you move faster, stay compliant, and focus on business.

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