Notice Period
Per the Employment Rights Act, employment contracts can be terminated by either party by providing prior notice. The notice period is applicable to employees who maintain continuous employment.
The notice required to be given by an employer to terminate the contract of employment of an hourly, daily or weekly paid employee who has been continuously employed for one year or more is no less than:
- 1 week's notice where the service period is less than 2 years
- 2 weeks' notice where the service period is 2 years but less than 5 years
- 4 weeks' notice where the service period is 5 years but less than 10 years
- 6 weeks' notice where the service period is 10 years but less than 15 years
- 10 weeks' notice where the service period is 15 years or more
The notice required to be given by an employer to terminate the contract of employment of a bi-weekly paid employee who has been continuously employed for 1 year or more is not less than:
- 2 weeks' notice where the service period is less than 5 years
- 4 weeks' notice where the service period is 5 years but less than 10 years
- 6 weeks' notice where the service period is 10 years but less than 15 years
- 10 weeks' notice where the service period is 15 years or more
The notice required to be given by an employer to terminate the contract of employment of a monthly-paid employee who has been continuously employed for 1 year or more is not less than:
- 1 month's notice where the service period is less than 10 years
- 1.5 months' notice where the service period is 10 years but less than 15 years
- 2.5 months' notice where the service period is 15 years or more
The notice required to be given by an employee who has been continuously employed for 1 year or more to terminate his contract of employment is not less than:
- 1 week's notice in the case of hourly, daily, or weekly paid employee
- 2 weeks' notice in the case of bi-weekly paid employees
- 1 month's notice in the case of a monthly paid employee
Severance Benefits
Per the Barbados Severance Payments Act, an employee's eligibility for severance pay is dependent on the following criteria:
- 104 continuous weeks with the same employer
- Working at least 21 hours per week
- At least age 16 and no older than age 65
- Dismissed due to redundancy, natural disaster, or laid-off or short-term dismissal.
Severance pay is calculated by utilizing the 104-week period and backtracking through the years of service and the rates are as follows:
- 2.5 weeks' basic pay for each year up to 10 years
- 3 weeks basic pay for each year that exceeds 10 years but does not exceed 20 years
- 3.5 weeks' basic pay for each year that exceeds 20 years but does not exceed 33 years.
The basic weekly average should not exceed the maximum insurable earnings ceiling which is currently BBD 1,201.