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Employer of Record Barbados

Employer of Record Barbados

Skuad's Barbados Employer of Record (EOR) solution helps your business expand into Barbados without the need for an entity setup. Its unified and automated global HR platform enables you to expedite the onboarding of your remote team, manage their payroll, benefits, etc. compliantly. It helps you streamline the global expansion process with the able assistance of its international network.

Employment In Barbados

What You Must Know Before Employing in Barbados

Employment in Barbados has started to evolve in recent times. Earlier the country was known to have a plantation economy. However, with the advancement and settlement of more people on the island, more industries evolved and are now contributing to the growth and the Gross Domestic Product of the country.

People are now traveling to these island economies to live their life peacefully. However, this does not mean that the island countries do not have any rules and regulations. Several Barbados employment laws apply to both the native residents and the foreign nationals who travel to Barbados for employment opportunities.

With Skuad, you can figure out a perfect mix of natives and foreign nations that should be employed in your company. Our experts will analyze your company and formulate a system that will work best for your company.

Some provisions under the Employment laws are as follows:

Employee Entitlements Explanation
Working Hours

Like every other country, Barbados also has a specific set of laws governing the maximum hours that an employee can work while employed in an organization in Barbados.

The standard working hours in Barbados is about 40 hours for five days. Generally, this duration is equally divided into 8 hours per day for five days. Therefore, employees work 8-hour shifts during working days in Barbados.

Overtime is permitted in the country. However, the employees who work more than what is required are over-compensated for the work they do. The payment made to an employee who works during a weekend is about 150% of a regular day's Pay.

This increases to 200% if the employee works or is forced to work on a public holiday. Also, there are some special provisions for the younger workforce, but it differs from company to company.

Vacation Leave

The employees can take 15 days of paid leaves in a year if employed in Barbados. The number of leaves increases to 20 if the employee completes at least five years of service in the organization.

However, unlike other countries, all of these leaves have to be availed at once in continuation if the person is employed in Barbados. The employer himself decides the dates of these annual leaves.

Sick Leaves There is no ‘sick leave’ policy in Barbados. However, every company gives a certain number of sick days to its employees. These sick days are granted to the company along with the monthly payments that an employee receives e to the employer to obtain these benefits.
Maternity, Paternity, and Bereavement Leaves

Women employees become eligible for maternity leave only after completing a year of service with the organization. Female employees can avail themselves of 12 weeks of paid maternity leaves if employed in Barbados.

Generally, the employees prefer taking a leave of 6 weeks before their due date and then six weeks leave post the baby is born. This leave can be extended to about six additional weeks. However, the additional days will not be paid leaves.

There are no policies for paternity leaves in Barbados.

Bereavement leave is at the discretion of the management except when included in a union agreement.

Jury Duty Leaves Under The Jury Duties Leave Act employees are entitled to paid leaves when summoned to serve on the jury. Employees can get back to work after they have been dismissed from the charges.
Public Holidays Employees in Barbados are given paid holidays on a few festivals and occasions of national importance. These are termed public holidays. The public holidays that can are given to the employees in Barbados are:
  • New Year’s Day
  • Errol Barrow Day
  • Good Friday
  • Easter Monday
  • National Heroes’ Day
  • May Day
  • Whit Monday
  • Emancipation Day
  • Kadooment Day
  • Independence Day
  • Christmas Day
  • Boxing Day
Some companies provide additional public holidays during the Christmas week.
Health Insurance Benefits Barbados is known for providing exceptional healthcare services. Therefore, universal healthcare is provided to all the employees working in an organization. However, it is recommended for employees to take private supplementary healthcare for added safety and health benefits.

Skuad enables organization to carry out business operations in Barbados while remaining 100% compliant with the employment laws in Barbados. Book a Demo with us to know more!

Contractors vs. Full-time Employees

There are different employment contracts in Barbados based on the kind of work that the company wants an employee to take up. However, there are two most common types of employment contracts in Barbados:

  1. Permanent Contracts
  2. Fixed-Term Contracts

Both of these contracts are considered to be valid employment agreements in Barbados. All the employment contracts for contractual and full-time employees have clauses and details related to the joining date, job title, description of the job, working hours, probation period, etc.

Fixed-term contracts are generally used for employing people for a project that has a specific length. Indefinite or permanent agreements are used to hire people who are given permanent work and contribute to the business's daily operations in some way or the other.

Generally, some foreign nationals are called from different countries to build infrastructure or capabilities in the country. These people are employed under a fixed-term contract.

Skuad can help you figure out the kind of contracts that should be drafted for a specific employee. All of these contracts have special and several clauses in place. Our experts have experience in drafting employment contracts from all around the world. You can reach out to us for all your employment contract needs.

Hiring in Barbados

There are several things that you must keep in mind while you hire employees in Barbados. Barbados is an island country. Therefore, it is growing and evolving. There are several hiring companies in Barbados like Skuad that can help you figure out the recruitment plan that will suit your organization.

There are job boards and global networking sites like LinkedIn from where you can attract the best of talent from all over the world. There are other popular sites like Caribbean Jobs, etc., where you can look for the best local talent. Barbados is a hub for the tourism industry.

The mixed economy has given rise to several companies and industries in the Barbados island region. Skuad is known for assisting all companies looking forward to hiring employees both locally and internationally. Give yourself an edge with Skuad’s international network and experience in the domain.

Probation & Termination

Like every other country, employees have a standard probation period in Barbados. However, there are no statutory restrictions for the probationary period in Barbados.

Probation

In the light of no restrictions in terms of probation period, companies define a probation period based on their internal policies and discretion. However, most companies prefer a minimum of 3 months of probation. It gives the company a reasonable time frame to analyze the employees' performance and absorb the employee completely.

Termination of employment in Barbados

The employment contract can be terminated because of several reasons. In the case of a fixed-term contract, the contract gets terminated as soon as the work is delivered or the contract expires. In the case of permanent employees, the employment contract gets terminated primarily due to the following two reasons:

  1. Voluntary Resignation
  2. Termination of employment by the employer due to underperformance or budget cuts.

In case the contract gets canceled by the employer, the employee is entitled to severance pay. The information of termination can be given out verbally or by written notice. However, a buffer period is given to the employee to look for a new job or make necessary arrangements.

If the terminated employee was associated with the company for less than a year, he would have to serve a notice period of 2 weeks. He will also be paid for the two weeks of service. If the employee is in a managerial position, he will be given a month's notice period or will be paid additionally for a month. The employee might not get any severance pay if he was involved in any fraudulent practices.

Termination of employees can get a little tricky. Skuad can handle all the termination-related formalities for your company. Talk to a Skuad expert and figure out how to handle the termination or resignation of an employee who holds a solid and influential position in the country.

EOR Solution

A company has to focus on several aspects of the business while entering any new market or a country. Therefore, it is essential to maximize resources that can directly or indirectly contribute to the main business. Managing human resources and the activities that come along with it is a cumbersome task. Once you decide to take the recruitment process into your own hands, you will have to devote resources to onboarding, legal requirements, payroll, taxation, etc.

An EOR Solution is a must for companies that want to focus on growth and other important aspects of the business. An employer of the record service provider will help you out with end-to-end HR solutions saving up some time and effort. Also, it will allow you to allocate resources to core business activities.

Skuad’s EOR solution is top-tier when it comes to managing all your activities related to EOR. Its unified employment solution can help your company with tailor-made contracts and all compliances related to employment and employment contracts. You can reach out to an expert today to relieve yourself from the burden of managing the day-to-day functioning of employees.

Types Of Visas in Barbados

There are several types of visas in Barbados, depending upon your need to travel to the country. A Barbados work visa is a must if you want to work in Barbados. Some popular types of visas in Barbados are as follows:

Types of work visas Explanation
Tourist Visa

The tourist visas are issued to people who want to visit Barbados for traveling or leisure. They get a visa so that they can spend their days in Barbados and enjoy the scenic beauty.

However, people who have US passports do not require a visa to enter Barbados. They can stay in Barbados for about six months without a visa.

Work Visa

A work visa is not required if the foreign national employee is a US citizen.

However, if the employee is from any other country apart from the US, you need a work visa.

Barbados work visa requirements:

  1. Passport
  2. Photos
  3. Proof of Departure from the home country
  4. Letter of Invitation to Barbados
  5. Business Letter or the letter of Appointment
  6. Visa Application Form
These documents have to be shipped to Washington DC or the New York office for processing.
Diplomat or Official Visa This visa is issued to someone who is a US citizen and is willing to travel to Barbados.

Skuad can help your employees in obtaining work visas. Also, we will help you out with all the documentation that goes into getting a work visa. To know more, talk to Skuad experts today!

Work Permits

You need a work permit in Barbados to work here. Getting a Barbados work permit without a job offer is extremely difficult or near to impossible.

There are two kinds of Barbados work permit for foreigners:

  • Short-Term Permits: These permits are valid for about 11 months. Employees can opt-in for this work permit in case they have signed a fixed-term contract.
  • Long-term Permits: These work permits are valid for three years. These work permits are for people looking forward to working in Barbados for a long time.

To get a long-term work permit, the employer needs to convince the immigration department that the work cannot be effectively done by a Barbadian national. Once the department gets convinced, the work permit is issued to the employee.

Acquiring work permits for foreign national employees can be a tricky business. A company cannot afford to put resources into getting work permits. Skuad is known for handling work permits pretty well. Reach out to us to learn more about work permits.

Payroll & Taxes in Barbados

Payroll Outsourcing in Barbados can be through an employer of record service provider. Written employment agreements are a prerequisite for a company to being considered for payroll processing. Listed below are some of the significant considerations for payroll in Barbados:

  • The minimum wage specified for household workers and shop assistants is BBD 6.25 per hour.
  • Employers must register with the director of National Insurance.
  • All employees and employers must contribute to a social security fund created to safeguard employees from any risks.

Barbados employer payroll taxes

Barbados uses a PAYE system when it comes to tax collection. PAYE stands for Pay as you earn.

Barbados' payroll tax rates are pretty simple to understand. Listed below are the two-income slabs based on which the tax amount or the tax percentage is decided.

Income level Tax Rate
Less than or equal to 50,000 Barbadian Dollars 12.5%
More than 50,000 Barbadian Dollars 28.5%

Skuad can help you with calculations of the tax amount. It also collects the amount and pays the authority responsible for the collection of taxes. Talk to Skuad experts to know more.

Incorporation

You can set up your business in Barbados with the help of a good employer or record service provider. You must decide what kind of company you want to set up in Barbados before registering your company. If your company is a corporate giant, you can opt-in for incorporating a holding company in Barbados.

There are several business opportunities in Barbados. You need to figure out what you are expecting from this island economy. Get in touch with Skuad to understand the types of business organizations in Barbados.

Professional Employer Organization (PEO)

There are several professional employer organizations in Barbados. A professional employer organization (PEO) collaborates with medium-and small-sized organizations to provide HR services. A PEO handles various HR services such as recruitment, payroll, training, and other HR tasks. An EOR also provides similar HR services; however, the difference lies in the arrangement or association between the outsourcing company and the business.

A PEO acts as your co-employer, whereas an EOR service acts as the legal employer of your employees. The latter assumes all the responsibilities and liabilities of your remote team. You can outsource a specific HR function or end-to-end activities.

Further, an EOR service allows you to expand your workforce without setting up a business entity. It handles payroll funding, worker’s compensation, and unemployment claims and reports. It files taxes under its file ID number.

Skuad offers organizations EOR services. Its unified employment platform handles all HR-related services with efficiency and dedication. It helps with payroll management, tax and employment compliance and every other activity that enables you to expand your business. Our bespoke services will save you precious time and money. Book a demo with Skuad experts to know more about our EOR solution.

Conclusion

From finding the best talent to getting all the documentation done for the foreign nationals, you can get solutions for all your HR-related concerns. With Skuad, you can carry out your business operations in Barbados without requiring to set up an entity. Talk to Skuad experts to know more.

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