Hire in Bermuda through our Employer of Record (EOR)

An Employer of Record (EOR) is a third-party organization that takes on the legal and administrative responsibilities of employing workers on behalf of another company. This arrangement allows businesses to hire employees in countries where they don't have a legal entity, effectively expanding their global reach without the need to establish a local subsidiary or branch office.

In the context of Bermuda, an EOR can be particularly valuable for international companies looking to tap into the island's skilled workforce or establish a presence in its thriving financial services sector. By partnering with an EOR, businesses can navigate Bermuda's unique regulatory landscape and employment laws more easily, while focusing on their core operations.

How Does EOR Work?

When a company decides to use an EOR service in Bermuda, the process typically unfolds as follows:

1. The client company identifies a candidate they wish to hire in Bermuda.
2. The EOR becomes the legal employer of the worker, handling all administrative tasks such as payroll, tax withholding, and benefits administration.
3. The client company maintains day-to-day management of the employee, including work assignments and performance evaluations.
4. The EOR ensures compliance with Bermuda's labor laws, tax regulations, and other legal requirements.
5. The client company reimburses the EOR for the employee's salary and associated costs, plus a service fee.

This arrangement allows companies to quickly and efficiently hire talent in Bermuda without the need to establish a local entity or navigate complex local regulations independently.

Benefits of Using an EOR

Utilizing an EOR in Bermuda offers several advantages for international companies:

1. Rapid Market Entry: Companies can quickly hire employees in Bermuda without the time-consuming process of setting up a local entity.

2. Compliance Assurance: EORs are well-versed in Bermuda's employment laws, tax regulations, and other legal requirements, ensuring full compliance and minimizing legal risks.

3. Cost-Effectiveness: By eliminating the need to establish and maintain a local entity, companies can save on setup costs, ongoing administrative expenses, and legal fees.

4. Flexibility: EORs allow companies to test the Bermuda market or hire for short-term projects without long-term commitments.

5. Local Expertise: EORs provide valuable insights into Bermuda's business culture, employment practices, and regulatory environment.

6. Risk Mitigation: The EOR assumes many of the legal responsibilities associated with employment, reducing the client company's exposure to potential liabilities.

7. Focus on Core Business: By outsourcing HR and administrative tasks to the EOR, companies can concentrate on their primary business activities and strategic goals.

8. Access to Benefits: EORs often have established relationships with local benefits providers, allowing them to offer competitive packages to employees.

For companies looking to expand into Bermuda's unique business environment, partnering with an EOR can provide a streamlined, cost-effective, and compliant solution for hiring and managing local talent.

Bermuda's employment landscape is characterized by a diverse and highly educated workforce, with a significant presence in international business, tourism, and public services. The island's aging population and the mix of local and expatriate workers create a unique labor market. Bermuda's strong emphasis on family, community, and work-life balance shapes its work culture, while its position as a global financial hub influences employment trends and demands.

Overview of Labor Laws

Bermuda's labor laws are designed to protect both employees and employers, ensuring fair and equitable working conditions. Key aspects of these laws include:

• Employment Act 2000: This foundational legislation outlines the basic rights and responsibilities of employees and employers.
• Minimum wage regulations: While Bermuda doesn't have a statutory minimum wage, certain industries have established wage standards.
• Working hours: The standard workweek is typically 40 hours, with provisions for overtime pay.
• Annual leave: Employees are entitled to a minimum of two weeks of paid vacation per year.
• Maternity and paternity leave: Bermuda provides for 13 weeks of maternity leave and 5 days of paternity leave.
• Termination procedures: The law outlines specific processes for fair dismissal and redundancy.

Cultural Considerations

Understanding Bermuda's unique cultural norms is crucial for successful employment relationships:

• Emphasis on politeness and formality in the workplace
• Strong focus on family and community values
• Preference for indirect communication, especially when providing feedback
• Respect for hierarchy and seniority in organizational structures
• Blending of personal and professional life due to the island's small size
• Gradual shift towards more direct communication and work-life balance

Challenges of Direct Hiring

Employers considering direct hiring in Bermuda may face several challenges:

1. Limited talent pool: Bermuda's small population can make it difficult to find specialized skills locally.

2. Work permit regulations: Hiring non-Bermudians requires navigating complex work permit processes.

3. High cost of living: Attracting and retaining talent can be expensive due to Bermuda's high living costs.

4. Cultural adaptation: International hires may need support in adapting to Bermudian work culture.

5. Compliance complexities: Keeping up with local labor laws and regulations can be challenging for foreign companies.

6. Aging workforce: The island's demographic trends may impact long-term workforce planning.

7. Balancing local and expatriate hiring: Companies must navigate the expectations to prioritize Bermudian employment while meeting skill requirements.

Understanding these aspects of Bermuda's employment landscape is essential for companies looking to establish or expand their presence on the island. Navigating these challenges often requires local expertise and careful planning to ensure compliance and cultural fit.

Bermuda, a British Overseas Territory known for its pristine beaches and vibrant culture, also has a unique payroll and tax system that both employers and employees need to navigate. Understanding the intricacies of this system is crucial for businesses operating in Bermuda and individuals working on the island. Let's delve into the key aspects of payroll and taxes in Bermuda, exploring the responsibilities of both employers and employees.

Bermuda's tax system is relatively straightforward compared to many other countries. The island doesn't impose income tax, capital gains tax, or sales tax. However, it does have a payroll tax system and social insurance contributions that affect both employers and employees. These taxes and contributions fund various government services and social programs.

Employer Contributions

Payroll Tax

Employers in Bermuda are responsible for contributing to the Payroll Tax, which is a progressive tax based on the total annual remuneration of their employees. This tax is paid quarterly, with due dates on January 15, April 15, July 15, and October 15. The rates vary depending on the company's total payroll, making it essential for employers to keep accurate records of their employees' compensation.

Social Insurance (Contributory Pension Fund)

Another significant responsibility for employers is the monthly contribution to Bermuda's Contributory Pension Fund. This applies to all employees over 17 years old who work more than four hours per week. Interestingly, while employees over 65 are exempt from their portion of the contributions, employers must continue to pay their share for these older workers.

Land Tax

For employers who are also property owners or landlords, land tax is an additional consideration. This tax is calculated based on the Annual Rental Value (ARV) of land holdings in Bermuda. In some cases, tenants may be responsible for this tax, but it's typically the landlord's obligation.

Corporate Services Tax

Businesses providing corporate services to exempted companies and partnerships are subject to a 7% Corporate Services Tax on their gross revenue. This tax applies to services such as corporate administration, management, registered office provision, and certain financial services.

Other Considerations

It's worth noting that exempt undertakings, such as exempted companies and permit companies, may not be required to contribute to the Payroll Tax. Additionally, employers might indirectly deal with other taxes like customs duties or stamp duty in specific situations.

Employee Contributions

Payroll Tax Deduction

Employees in Bermuda are subject to payroll tax deductions from their gross salary. This tax is progressive, meaning the rates increase as the annual remuneration increases. It's crucial for employees to understand their tax bracket and ensure that the correct amount is being deducted from their paychecks.

Social Insurance (Contributory Pension Fund)

Employees are required to contribute to the Contributory Pension Fund through mandatory deductions from their salary. The total weekly deduction is split equally between the employee and the employer. However, employees over 65 are exempt from their portion of this contribution, although the employer must still pay their share.

Health Insurance Premiums

If an employer provides health insurance, employees may see premium deductions on their payslips. These deductions contribute to the cost of their health coverage.

Voluntary Deductions

Employees may choose to make additional voluntary contributions to retirement plans or other savings programs through payroll deductions. These can be an excellent way to save for the future or participate in employer-sponsored benefits programs.

Important Considerations

It's important to note that certain employees may be exempt from some of these contributions. For instance, those under 16 or working limited hours may not be subject to Payroll Tax and Social Insurance deductions. Students employed during school breaks might be entirely exempt from Social Insurance contributions.

Understanding the payroll and tax system in Bermuda is crucial for both employers and employees. Employers must ensure they're meeting their obligations and making the correct contributions, while employees should keep track of their payslips and tax deductions for their records. By staying informed and compliant, both parties can navigate Bermuda's unique tax landscape with confidence.

Bermuda offers a comprehensive set of employee benefits, ensuring workers receive essential protections and compensation. An Employer of Record (EOR) plays a crucial role in managing these benefits, ensuring compliance with local regulations while providing a seamless experience for both employers and employees. By partnering with an EOR like Rivermate, companies can navigate the complexities of Bermuda's benefit landscape, focusing on their core business operations while ensuring their workforce receives all mandatory benefits and any additional perks they choose to offer.

Mandatory Benefits

• Social Security contributions split between employer and employee
• Private pension scheme with a 10% total contribution
• Paid vacation leave starting at two weeks for the first year
• Paid public holidays
• Eight days of annual paid sick leave
• Maternity leave of up to 13 weeks after one year of employment
• Five days of paid paternity leave
• Required notice period for employment termination
• Severance pay in certain circumstances

Optional Benefits

• Enhanced health insurance plans covering:

  • Major medical expenses
  • Dental and vision care
  • Overseas medical coverage

• Wellness programs and gym memberships:

  • On-site gym facilities
  • Health screenings and fitness challenges

• Additional time off benefits:

  • Extended vacation leave
  • Personal leave days
  • Sick leave top-up

• Financial benefits:

  • Performance bonuses
  • Profit sharing programs
  • Company car or car allowance

• Other potential perks:

  • Life insurance coverage
  • Employee discount programs
  • Educational assistance and tuition reimbursement

By offering a mix of mandatory and optional benefits, employers in Bermuda can create attractive compensation packages that support employee well-being and job satisfaction. An EOR like Rivermate can help companies navigate these options, ensuring compliance while tailoring benefit offerings to meet both company goals and employee needs.

Terminating an employee and managing the offboarding process in Bermuda requires careful attention to legal requirements and best practices. The Employment Act 2000 serves as the primary legislation governing employment relationships and termination in the country.

Termination Process in Bermuda

In Bermuda, employers can terminate an employment contract for various reasons, including lack of capability or qualifications, misconduct, redundancy, operational requirements, or statutory illegality. The termination process must adhere to specific guidelines outlined in the Employment Act 2000.

Notice Periods

The Act mandates specific notice periods for termination, which should be clearly stated in the employment contract. The minimum notice periods are:

• One week for weekly paid employees
• Two weeks for fortnightly paid employees
• One month for monthly paid employees or others

It's important to note that these notice requirements may not apply during probationary periods. Additionally, employers cannot give notice of termination while an employee is on annual vacation, maternity leave, bereavement leave, or sick leave (unless the sick leave extends beyond four weeks).

Severance Pay

Bermuda law entitles employees to severance pay upon termination under specific circumstances. The calculation for severance pay is as follows:

• Two weeks' wages for each completed year of continuous employment (up to the first ten years)
• Three weeks' wages for each completed year of continuous employment thereafter
• Maximum of 26 weeks' wages

Constructive Dismissal

Employees who resign due to intolerable work conditions created by the employer's actions may claim constructive dismissal. This can include significant changes to job duties, harassment, or substantial breaches of the employment contract.

Offboarding Process

To ensure a smooth offboarding process in Bermuda, consider the following steps:

1. Provide written notice of termination, adhering to the required notice period.
2. Calculate and prepare severance pay, if applicable.
3. Issue a "Certificate for Termination" upon request, stating the reason for termination.
4. Arrange for the return of company property and revoke access to systems and facilities.
5. Conduct an exit interview to gather feedback and ensure a professional departure.
6. Process final payroll, including any outstanding wages, bonuses, or accrued vacation pay.
7. Provide information about benefits continuation or termination, if applicable.

It's crucial to remember that employment contracts may provide for longer notice periods or more generous severance pay than the statutory minimums. Employers should always review the specific terms of the employment agreement when managing terminations and offboarding.

By following these guidelines and maintaining clear communication throughout the process, employers can navigate terminations and offboarding in Bermuda while minimizing legal risks and ensuring a professional experience for all parties involved.

Bermuda, a British Overseas Territory known for its pristine beaches and vibrant business environment, has specific requirements for foreign workers seeking employment on the island. Understanding these regulations is crucial for both employers and employees to ensure compliance with local laws.

Work Permit Requirements

Standard Work Permit

• Required for most foreign workers
• Valid for up to 5 years
• Employer must demonstrate inability to find qualified local candidates

Global Work Permit

• For senior executives or those with specialized skills
• Valid for up to 5 years
• Allows holder to work for any employer in Bermuda

New Business Work Permit

• For companies new to Bermuda
• Expedited process to bring key personnel
• Valid for 1 year, renewable

Visa Requirements

Bermuda does not issue separate work visas. The work permit serves as both the authorization to work and the visa to enter the country. However, some nationalities may need to obtain a tourist visa before traveling to Bermuda, even with an approved work permit.

Application Process

1. Employer submits work permit application to the Department of Immigration
2. Application includes job description, qualifications, and proof of local recruitment efforts
3. Processing time varies but typically takes 4-6 weeks
4. Upon approval, employee can enter Bermuda and begin work

Important Considerations

• Spouses and dependents may need separate permits to live in Bermuda
• Some positions have term limits to encourage localization of jobs
• Employers must provide health insurance for foreign workers
• Renewal applications should be submitted at least 3 months before expiration

Understanding these requirements helps ensure a smooth transition for foreign workers coming to Bermuda. Both employers and employees should stay informed about any changes in immigration policies to maintain compliance throughout the employment period.