COUNTRY

Written Agreements

The Employment Act of the Bahamas does not mandate the provision of written employment contracts. If a written agreement is concluded, the employer must provide information that includes the names of the parties, the nature of the job and its duration, wages, workplace address, and hours of work. A valid contract may be oral.

Any contract, implied or otherwise, requires the employer to provide information to the employee ranging from the name of the parties, nature of the job and its duration, to wages, workplace address, and hours of work.

Oral Agreements

An oral contract requires the employer to provide specific information to the employee, such as the names of parties, the nature of the job and its duration, wages, workplace address, and hours of work.

Implied Agreements

Any contract, implied or otherwise, requires the employer to provide information to the employee ranging from the name of the parties, nature of the job and its duration, to wages, workplace address, and hours of work.

In the Bahamas, the Employment Act indicates that the standard workweek is 40 hours (8 hours per day). Minors under 18 years of age cannot be employed for more than 24 hours in a school week or 40 hours in a non school week.

In every 7-day period, an employer must allow each employee at least 48 hours of rest with not less than 24 of such hours being consecutive.

• New Year's Day - January 1
• Good Friday - date subject to change every year
• 1st Monday after Easter - date subject to change every year
• Whit Monday - date subject to change every year
• Labour Day - first Friday in June
• Independence Day - July 10
• Emancipation Day - first Monday in August
• National Heroes Day - second Monday in October
• Christmas Day - December 25
• Boxing Day - December 26

Employees become entitled to annual leave after a year of service. Annual leave is based on tenure at work and paid in advance, as basic salary:

• 6 months to one year of employment - 1 week of basic salary
• For 1 year to 7 years of service - 2 weeks
• For employees who have been employed for more than 7 years - 3 weeks

Annual leave may be accumulated for up to 3 years. If an employee's contract is terminated before utilizing all leaves, they will be entitled to payment for the remaining leave duration on a pro-rata basis.

The Bahamian labor code grants employees who have worked for at least 6 months with the same employer the right to paid sick leave of 1 week per year if they are unable to work due to an illness. Sick leave cannot be rolled over or claimed in cash if it is not used within a period of 12 months. Employees are required to produce a medical certificate when the sick leave lasts longer than 1 day.

An employer may, on processing a claim for sick leave by an employee, require such employee to be examined by an independent physician and may refuse such leave if the physician is of the opinion that the employee is fit for work.

The Bahamian Employment Act entitles female employees to 12 weeks of maternity leave. The leave must begin at least 1 week before the date of delivery and last for at least 8 weeks after. The employee is required to submit a certificate issued by a medical practitioner or midwife setting forth her expected delivery date.

Maternity Benefit is a weekly payment made by the National Insurance Board of the Bahamas to eligible insured women while they remain at home during late pregnancy and delivery. The benefit is paid at a weekly rate of 66.66% of the woman’s average insured income, with a range of BSD 66.42 (Bahamian dollars) per week as a minimum payment and BSD 333.30 per week as a maximum payment.

During the employee's maternity leave, the employer must pay the mother a minimum sum equivalent to 33.33% of that portion of her wages which does not exceed the National Insurance ceiling on insurable wages (BSD 333.30 per week). A woman on maternity leave may not receive payment from her employer more than once every 3 years.

Per Bahamian labor law, an employee who has been employed for at least 6 months is entitled to family leave without pay for a period not exceeding 1 week per year following the birth of a child.

Minimum Wage

The minimum wage is BSD 260 (Bahamian dollars) per week beginning January 2023.

Salary must be paid at regular intervals, not exceeding 1 month, and employers must maintain a payroll record for at least 3 years.

Overtime, Holiday & Vacation Pay

According to the Employment Act of the Bahamas, the employer is obligated to pay for overtime (work done in excess of the standard working hours of 40 hours per week) at 1.5 times the regular wages of the employee for regular workdays and 2 times the regular wages for a public holiday or day off.

Employees are entitled to their basic wage for the duration of annual leave.

Notice Period

When an employee (at least 1-year tenure) is dismissed because of redundancy, the following notice periods must be observed:

• 2 weeks or 2 weeks' basic pay in lieu of notice if the employee has been employed for more than 12 months
• If the employee holds a supervisory or managerial position - 1 month or 1 month's basic pay in lieu of notice

In case of dismissal due to causes other than redundancy, the following notice period must be observed:

• 1 week or 1 week pay in lieu of notice if the employee has been employed for more than 6 months or more but less than 12 months
• 2 weeks or 2 weeks pay in lieu of notice if the employee has been employed for more than 12 months
• 2 weeks’ notice if the employee has been employed for one year or more but less than 2 years.
• 4 weeks’ notice if the employee has been employed for more than 2 years.
• If the employee holds a supervisory or managerial position - 1 month or 1 month's pay in lieu of notice

Severance Benefits

Dismissed employees receive severance pay that varies according to their tenure, supervisory status, and reason for dismissal:

Dismissal due to redundancy

• 2 weeks' basic pay (or a part thereof on a pro-rata basis) for each year up to 24 weeks of pay
• If the employee holds a supervisory or managerial position - 1 month's basic pay (or a part thereof on a pro-rata basis) for each year up to 48 weeks.

Dismissal due to causes other than redundancy

• If the employee has been employed for 6 months or more but less than 12 months, 1 week's basic pay
• If the employee has been employed for more than 12 months, 2 weeks' basic pay (or a part thereof on a pro-rata basis) for each year up to 24 weeks of pay
• If the employee holds a supervisory or managerial position - 1 month's basic pay (or a part thereof on a pro-rata basis) for each year up to 48 weeks.

Employees who are summarily dismissed are not entitled to severance benefits.

Pension

Legal retirement age is 65 years in the Bahamas with benefits paid as a percentage of average monthly income in the last three years before retirement, starting from 15% of the average monthly income for 150 to 199 weeks of contributions, and going up to 60% of the average monthly income for more than 1,750 weeks of contributions. The minimum pension is BSD 301 (Bahamian dollars) per month.

Contributions made to the National Insurance Board range from 2% to 8.8% of the monthly income by the employee and 2% to 5.9% of the monthly income by the employer, depending on age, earning level, seasonal work, or self-employed status.

Dependents/Survivors Benefits

Eligible dependents include widow(ers), surviving children under 16 (21 if they are full-time students), and parents, amongst others. Benefits are paid as below:

• Widow/widower receives 50% of the survivors benefit, depending on work status or childcare situation.
• Children each receive 10% of the survivors benefit per month.
• Other survivors are eligible to receive 50% of the survivors benefit.

The minimum payment is BSD 270 (Bahamian dollars) per month for widow/widower and parents, BSD 110 per month for a dependent child, and BSD 125 per month for an unmarried orphan, with contributions to the National Insurance Board varying in percentage based on employment, similar to pensions.

Invalidity Benefits

The National Insurance Board provides disability benefits to eligible individuals who must:

• Be under 65 years of age
• Be permanently disabled with a non-occupational injury
• Have paid at least 150 contributions to the National Insurance Board

The invalidity benefit is as follows:

• If disability ranges from 1 to 24%, a lump sum grant is paid as BSD 100 (Bahamian dollars) for each percentage point of disability
• If the disability is above 25%, a lump sum grant is paid as an amount between BSD 500 and BSD 1,000 and a monthly pension ranging from 20% to 100% of the injury benefit (66.6% of the monthly average income of the insured person)

Contributions are made to the National Insurance Board varying in percentage based on employment, similar to pensions. Upon retirement, the disability pension is replaced by the old-age pension.