Bahamas HR Information

Updated on: 2025/08/04 14:03 (UTC)

Overview

The main statutes governing labor and employment issues in the Bahamas are the Employment Act, the Minimum Wages Act, the Industrial Relations Act and the Health and Safety at Work Act.

Hiring

Employment Contracts

Under the labor code, an employment agreement is defined as a contract of service or apprenticeship, whether express or implied. Contracts can be oral or in writing.

Restrictions on Hiring

The minimum age of employment is 16—14 if in a family business— and restrictions apply to the employment of individuals younger than 18.

In general, employers cannot hire a foreigner in a position that could be easily filled by a Bahamian citizen. Employers must advertise open positions locally before they can search for employees outside the Bahamas.

The labor code prohibits the employment of children under age 14 for industrial work or work during school hours. Children under age 16 may not work at night. Children between ages 14 and 18 may work outside of school hours under the following conditions:

• in a school day, for not more than three hours;
• in a school week, for not more than 24 hours;
• in a nonschool day, for not more than eight hours and
• in a nonschool week, for not more than 40 hours.

The code also prohibits persons younger than age 18 from engaging in dangerous work including construction, mining and road building.

Recordkeeping

Employers must keep records for each employee, including:

• name,
• address,
• age,
• wages,
• hours worked and
• annual vacations.

Records of wage payments must be kept for at least three years.

Background Checks

Employers generally cannot require any person to provide a set of fingerprints or take a lie detector test as a requirement for new or continued employment.

Noncompetition Agreements

The labor code does not address noncompetition agreements.

Reference Citations

Employment Contracts: Employment Act, 2002, § 2

Restrictions on Hiring: Employment Act, 2002, §§ 50-51, 59; Certification of Vacancies to Hire Non-Bahamiams

Recordkeeping: Employment Act, 2002, § 71

Background Checks: Employment Act, 2002, §§ 67-68

Noncompetition Agreements: Employment Act, 2002, §§ 63-64

Immigration and Work Permits

In General

Employers cannot hire foreign workers for a position that could be easily filled by a Bahamian citizen. Employers must advertise open positions locally before they can search for employees outside the Bahamas.

Visa and Work Permits

Any non-Bahamian national seeking to work in the Bahamas for up to 90 days must apply for a short-term work permit from the Department of Immigration. If the vacant position is for a period longer than this, the employee must apply for a long-term work permit.

Employees applying for a long-term work permit must provide:

• a letter of request from the prospective employer stating reasons for the application, the position and the period of time required;
• a copy of the bio-data page of the applicant’s passport;
• passport-sized identical color photographs of the applicant with the applicant’s name printed on the reverse side;
• a police certificate of character covering five years (issued not more than six months prior to the submission of the application);
• a medical certificate dated not more than 30 days prior to the submission of the application;
• written reference(s) from previous employer(s) (no more than two in total);
• copies of certificates of examinations required for the application;
• copies of applicable job vacancy advertisements in the local newspaper with replies and results from interviews, if any, and
• a certificate from the Department of Labor with Notification of Vacancy attached indicating that a Bahamian is not available to fill the position.

Digital Nomad Visa. Professionals seeking to work remotely in the Bahamas for a company that does not have a presence in the country can apply for the Bahamas Extended Access Travel Stay (BEATS) permit. The visa is valid for an initial one-year period and can be extended for up to three years. Holders of a BEATS permit, or their dependents, cannot gain employment in the Bahamas during the term of the permit.

Penalties

Employers that commit or attempt to commit an offense of the Immigration Act can be fined B$3,000, imprisoned for two years or both fined and imprisoned.

Forms

Short-Term Work Visa Application Form.

Long-Term Work Visa Application Form.

Reference Citations

Visas and Work Permits: Applying for a Long-Term Permit

Penalties: Immigration Act, 1967, § 49

Nondiscrimination

In General

The labor code prohibits discrimination against an employee or applicant based on creed, sex, marital status, political opinion, age, or HIV/AIDS status.

The employer must pay employees the same amount for work of equal value.

Reference Citations

Nondiscrimination: Employment Act, 2002, § 6

Employee Privacy

Employee Data

Bahamian laws do not address employee privacy.

Employee Monitoring and Surveillance

Bahamian laws do not address employee monitoring and surveillance.

Reference Citations

Bahamian laws do not address employee privacy.

Compensation

Hours of Work

Normal working hours are a maximum eight per day and 40 per week. These restrictions do not apply to supervisory or managerial positions.

Employers must provide employees with a weekly rest period of at least 48 hours, at least 24 of them consecutive.

Minimum Wage

From Jan. 1, 2023, the minimum wage in the Bahamas is BSD$260 per week.

Overtime

Any hours worked over eight per day or 40 per week are considered overtime. The overtime premium is 50 percent of the regular rate (time and a half). Work performed on public holidays or days off is paid at twice the normal rate. Employers cannot require employees to work more than 12 hours in any one day.

Wage Payment

Employers must make salary payments at least once a month in Bahamian dollars. Wages must be paid on working days only and must be made by cash, check or deposit into the employee’s bank account.

Wages cannot be paid to an employee on any premises licensed for the sale of liquor or in any shop or store.

Employers may deduct from wages repayments of loans under an agreement with the employee as long as the deductions in any one period do not exceed one-fifth of the amount of the wages payable to the employee in the period.

Upon making payment of wages to an employee, the employer must provide the worker, in writing, with the following:

• the period for which the payment of wages is made,
• the number of hours for which payment is made,
• the rates of wages,
• details of any deductions made from the wages and
• the actual sum being paid to the employee.

Mandatory Bonuses

The labor code does not address bonuses.

Reference Citations

Hours of Work: Employment Act, 2002, §§ 8-10

Overtime: Employment Act, 2002, § 10

Wage Payment: Employment Act, 2002, §§ 63-64

Benefits

Vacation

Employees are entitled to paid annual leave of:

• one week, if employed between six months and one year;
• two weeks, if employed between one year and seven years and
• three weeks, if employed for seven years or more.

Employees must be paid their usual wages during leave, and the payment must be made prior to the beginning of leave. The vacation must be extended by one day for every public holiday that occurs during the leave.

Holidays

The following nine public holidays are observed in the Bahamas:

• Jan. 1: New Year’s Day
• First Monday after Easter
• First Monday after Whitsunday
• Labor Day (first Friday in June)
• July 10: Independence Day
• First Monday in August
• Oct. 12: Columbus Day
• Dec. 25: Christmas
• Dec. 26: Boxing Day

Workers are paid double time for working on a holiday. Holidays that fall on a Sunday are observed on the following day.

Maternity Leave

To qualify for maternity leave, a female employee must be employed for at least 12 months by the employer and must not have received maternity pay from the same employer within the past three years. The employee must provide a certificate issued by a medical practitioner confirming the expected date of her delivery.

Female employees who qualify for maternity benefits are entitled to 12 weeks of paid leave, which must be arranged so that the employee is allowed at least one week of leave before and eight weeks after the birth if she so chooses.

While the employee is on maternity leave, 66.6 percent of her wages are paid by the National Insurance Board (NIB), the remainder by her employer. If the birth occurs after the expected date, the leave is extended for the period between the expected and actual date of birth.

An additional six weeks may be granted for illness arising from the birth. This leave is paid by NIB and not by the employer.

Employees may not be dismissed or required to resign because they are pregnant or while they are on maternity leave. If a woman is dismissed after her six month of pregnancy, it is presumed the dismissal was on the grounds of pregnancy unless proven otherwise.

Paternity Leave

There is no specific provision for paternity leave, but employees who have been employed for at least six months are entitled to one week of unpaid family leave following the birth of a child.

Sick Leave

Employees who have been employed for at least six months are entitled to one week of paid sick leave.

Other Leave

Employees who have been employed for at least six months are entitled to one week of unpaid leave for the death or illness of a spouse or parent.

Pensions and Social Security

The minimum age for retirement is 65 with 150 weeks of contributions to the social security system.

Employers contribute 5.9 percent of payroll to National Insurance, which includes pension benefits; employees contribute 3.9 percent of wages.

Social security benefits are provided for maternity, sickness, unemployment and workplace injuries.

Sickness payments are made weekly to eligible insured persons who are temporarily unable to work due to an illness which is not an employment injury. They are paid at a weekly rate of 60 percent of the employee’s average weekly covered earnings after a three-day waiting period for up to 26 weeks.

To qualify for a sickness benefit, a person must be employed on the day of or on the day prior to the onset of the illness. Additionally, the individual must have:

• paid at least 40 contributions into the National Insurance Program and
• paid and/or been credited with at least 13 contributions in the 26 weeks immediately before the week the illness started, 26 contributions in the 52 contribution weeks immediately before the week the illness started or 26 contributions in the immediate preceding contribution year.

Workers’ Compensation

Following a three-day waiting period, workers’ compensation benefits are paid for up to 40 weeks. Workers who are on leave due to a workplace injury receive 66.6 percent of their wages from the NIB and the remainder from their employer. There are no contribution conditions that must be met in order to qualify for workers’ compensation benefits.

Reference Citations

Vacation: Employment Act, 2002, §§ 12-14

Holidays: Public Holidays Act, 1938, § 3, First Schedule; Employment Act, 2002, § 10

Maternity Leave: Employment Act, 2002, §§ 17-19

Paternity Leave: Employment Act, 2002, § 20

Sick Leave: Employment Act, 2002, § 11

Other Leave: Employment Act, 2002, § 11

Pensions and Social Security: National Insurance Regulations, §§ 31-34

Workers’ Compensation: National Insurance Regulations, §§ 48-50

Labor Relations

In General

The rights to organize, bargain collectively, and strike are guaranteed by the Industrial Relations Act. Employers cannot make it a condition of employment that the employee be or not be a member of a union.

Right to Organize

Employers must enter into negotiation with a bargaining agent within 45 days of receiving a claim for recognition. The Minister of Labor is obligated to determine a claim for recognition and issue a certificate of determination within 90 days of receipt of the claim.

Employers must begin bargaining within 45 days of receiving a proposed industrial agreement from a recognized union. The support of 50 percent of employees is required for an application to revoke recognition.

Works Councils

The labor law does not address works councils.

Dispute Resolution

General and individual disputes can be brought before the Industrial Labor Minister within 12 months of when the dispute first arose. If the parties are not able to resolve the dispute within seven days, the minister will attempt to settle it by conciliation within 16 days. If the minister is unable to secure a settlement within 16 days (or a longer period agreed upon by the parties if the employer provides a non-essential service), the dispute will be referred to the Industrial Tribunal.

Strikes and Lockouts

Employees and employers cannot take part in strikes or lockouts unless a report of the dispute has been made to the minister and sufficient time has elapsed to resolve the dispute.

Strikes or lockouts will be deemed illegal if they:

• have any objective other than the furtherance of a trade dispute within the industry in which the strikers or the employers locking out are engaged or
• are designed to coerce the government either directly or by inflicting hardship upon the community.

Successorship Clauses

In cases where a business is sold or transferred, the successor employer becomes responsible for its predecessor’s rights, privileges and duties towards the employees under the collective agreement.

Reference Citations

Right to Organize: Industrial Relations Act, 1970, § 78-79; Industrial Relations Act Amendment, 2017

Dispute Resolution: Industrial Relations Act, 1970, §§ 68-72

Strikes and Lockouts: Industrial Relations Act, 1970, §§ 74-75

Successorship Clauses: Employment Act, 2002, § 72

Safety, Health and Security

In General

All employers are required to ensure the health, safety, and welfare of their workers and persons who may be affected by their business.

Workplace Safety and Health

Specific employer responsibilities include offering systems of work that are safe and without risks to health and providing safety training. Employers with 20 or more workers must establish a health and safety committee.

Drug and Alcohol Use

The labor code does not address drug and alcohol use.

Reference Citations

Workplace Safety and Health: Health and Safety at Work Act, 2002, §§ 4-5, 22

Termination

Termination by Employer

Employers seeking to dismiss an employee who has been employed for 12 months or more must provide the worker with the following:

• two weeks’ notice or two weeks’ basic pay in lieu of notice, and
• two weeks’ basic pay for each year up to 24 weeks.

Employees who hold supervisory positions are entitled to:

• one month’s notice or one month’s basic pay in lieu of notice, and
• one month’s basic pay for each year up to 48 weeks.

An employer may summarily dismiss an employee without pay or notice when the employee has committed a fundamental breach of his or her employment contract or acted in a manner that contravenes the interests of the employer.

Examples of such conduct may include:

• theft,
• fraudulent offenses,
• dishonesty,
• gross insubordination,
• gross indecency,
• breach of confidentiality,
• gross negligence,
• incompetence and
• gross misconduct.

Every employee has the right not to be unfairly dismissed. A termination generally will be deemed unfair if it is based on the worker’s pregnancy or union activities.

Termination by Employee

Employees seeking to end the employment relationship must provide notice to their employers as follows:

• two weeks’ notice if the period of employment is one year or more but less than two years or
• four weeks’ notice if the period of employment is two years or more unless the employer has been guilty of a breach of the terms and conditions of employment.

Plant Closings and Mass Layoffs

The labor code does not address mass layoffs.

Payment on Termination

Employees whose tenure is 90 days or less are not entitled to notice or severance pay. Other employees are entitled to severance as follows:

• one week’s salary if employed six to 12 months,
• two weeks’ salary if employed at least a year and
• four weeks’ salary if managerial staff.

Unemployment Insurance

Employees under the age of 65 are eligible for unemployment benefits if they made at least 52 weeks of paid contributions, including 13 weeks’ in the 26 weeks before unemployment began and seven weeks’ in the 13 weeks before unemployment began.

To remain eligible, the insured must register with the labor exchange every four weeks, be available and looking for work and accept suitable employment. Benefits amount to 50 percent of the employee’s average covered weekly earnings after a two-week waiting period for up to 13 weeks in any 52-week period. After receiving benefits for 13 weeks in any 52-week period, the insured must wait 52 weeks to be eligible for another claim.

Reference Citations

Termination by Employer: Employment Act, 2002, § 29

Personal Taxes

Residency Requirements

The Bahamas has no income tax.

Taxable Income

The Bahamas has no income tax.

Tax Rates

While the Bahamas has no income tax, employers must contribute 5.9 percent of payroll to National Insurance, employees 3.9 percent of wages.

Reference Citations

The Bahamas does not have a tax code.

Web References

Law and Regulation

Employment Act

Health and Safety at Work Act

Industrial Relations Act

National Insurance Regulations

Public Holidays Act