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Bahamas: Labour Law

Back to Bahamas Information: Business, Taxation and Offshore

In this section:

- Bahamas Regulatory Environment
- Bahamas Work Permits

 

Bahamas Regulatory Environment

Work-place relations and employment are governed by the Fair Labour Standards Act 1970 and the Industrial Relations Act 1970 as amended.

Labour unions are organised by industry rather than by craft. About 30% of the workforce is unionised, predominantly in the hotel and shipping industries. There are no 'closed shops'. Strikes are rare, and industrial relations generally good; the unions act effectively in negotiation with employers and in controlling their members.

Written contracts of employment are not mandatory, but are often prepared, especially when a union is involved. One week of paid holiday is the entitlement after one year of employment, although normally two are given. Two weeks of paid sick leave are usually allowed. The law gives eight weeks of paid maternity leave.

There is no legal entitlement to notice on termination, but one pay period is the norm. There are no formal procedures to terminate employment, but it is prudent to consult with the Labour Board - a dismissed employee may appeal to the Labour Board if he believes the dismissal was unjust.

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Bahamas Work Permits

Foreigners wanting to work or trade in the islands must obtain a work permit from the Immigration Department. In the case of an employee, the employer makes the application and must show that there is no suitable Bahamian candidate for the position. This includes advertising in newspapers; employers are also expected to have training programmes for Bahamians in the skills they are likely to need.

Work permits are usually issued for one year, renewable, although for senior executives it can be three years.

Normally an application will not be processed if the prospective employee is already in The Bahamas, having entered as a visitor.

Work permit fees range from BSD350 to BSD10,000 per year depending on the category.

Where work permits have been granted, each employer will be required to identify a suitable Bahamian to understudy the expatriate so that the Bahamian trainee will fill the expatriate’s position within a reasonable time frame.

Each permit issued by the Immigration Board relates to a specific post. Permits are not altered by the director of immigration to reflect change of employment or residence. However, a person holding a work permit may make application for a new one (his new employer having been unsuccessful in recruiting a qualified Bahamian to fill the post) without having to leave the islands.

The renewal of a permit on expiration is not automatic. Generally, no expatriate may be continually employed in the country in any capacity for more than five years. However, there are likely to be cases where hardship will be caused by rigid implementation of this policy; according to government, this factor will be kept in mind in applying the regulations.

In early 2007, it emerged that the Bahamas financial services industry had developed an immigration framework designed to help the jurisdiction compete with other offshore financial centres for a finite pool of skilled workers. The proposals were drawn up following discussions between the Bahamas Financial Services Board (BFSB), responsible for promoting the jurisdiction's finance industry internationally, and the Ministry of Immigration, Labour and Training (MILT). Two primary 'financial services industry' contacts have been appointed within the Department of Immigration, with the turnaround period for the processing of completed FSI work permit applications now pegged at 6 weeks.

The MILT will also consider a more flexible work permit system that reflects the availability of workers in certain occupations and may grant shorter work permits for employment in areas where there is an acute shortage of skills in just the Bahamas, and medium- to long-term permits for jobs where there is a worldwide shortage of qualified candidates.

In November 2007, Minister of State for Immigration, Elma Campbell announced that the government’s comprehensive immigration policy was “well underway”, and was addressing the challenges facing the Department of Immigration in the areas of illegal migration and the processing of work permits.

Since the launching of the new immigration policy, the Immigration Board convenes weekly in New Providence and twice a month in Grand Bahama.

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