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How to hire remote employees in
Bermuda is gorgeous, and more importantly for you, it’s home to plenty of great remote talent. What you might not know, however, is that hiring in Bermuda involves different labor laws and procedures than hiring in your home country. You have two options: Hiring talent as employees and hiring talent as contractors. Here are the differences between both:
If you want to successfully hire in
Bermuda
, you have two options:
Laws about hiring contractors are significantly more simple in
Bermuda
. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Thera for.
This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in
Bermuda
is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.
Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in
Bermuda
.
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
Hiring contractors in
Bermuda
means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
If you’re hiring contractors in
Bermuda
, you can pay them with Thera in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Bermuda than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Bermuda.
Employees may take up to 5 days of paid vacation leave after 6 months' continuous employment.
Previously, under the EA 2000, an employee could only take 10 days paid vacation leave per year after completing 1 year of continuous employment.
The employees are entitled to another day off with pay if the public holiday coincides with their rest day. If an employee works on a public holiday, the same terms as that of overtime are applicable.
In Bermuda, an employee also gets paid for a ‘Rest Day’, which the employer must provide every week and comprises one(1) whole day (24 hours).
There are 10 public holidays in Bermuda.
In Bermuda employment law, employers must provide employees who have worked at least one year of continuous employment with eight days of paid sick leave per year.
The Employment (Maternity Leave Extension and Paternity Leave) Amendment Act became effective on 1 January 2020. This Act has extended the paid maternity leave from the initial eight weeks to thirteen weeks
In Bermuda, five days of paid paternity leave have also been added.
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An employee is granted bereavement leave for three consecutive days on the demise of an immediate family member and five days to attend funerals of family members overseas (Section 17 of the Employment Act deals).
As per the employment act, immediate family members are:
Employers are not obliged to pay for the Bereavement Leave of an employee.
An employer must send a notice in writing before termination. Except in cases where the duration or fixed period has expired. Upon the service of minimum notice, employees can be terminated.
The notice period in Bermuda:
The amount depends on the length of service, the statutory minimum being two weeks' wages for each year of completed service up to 10 years, and three weeks' wages for each year of completed service thereafter, subject to a maximum of 26 weeks' wages.
Probation period is 6 months.
The standard working hours is 9 a.m. to 5 p.m from Monday through Friday, including an hour's break for lunch.
Generally, employees who work overtime for more than 40 hours per week must be given overtime pay.
The rate is one-and-a-half times more than the usual hourly wage.
The workers must be given the usual hourly rate for the overtime hours that they work. Moreover, they must be given the same number of hours off from work the next day.
Depending on the company that the employee works for, contracts include double pay for overtime work done on a Sunday and on public holidays.
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