Employer of Record in Bermuda: A Comprehensive Guide for 2026

Introduction

Bermuda is one of the most attractive hiring markets in the Atlantic for foreign employers, with no personal income tax, no corporate tax for companies outside the in-scope Multinational Enterprise Group definition, deep talent in insurance and reinsurance, and time-zone alignment with the United States East Coast.

Hiring in Bermuda involves the Employment Act 2000 and its 2026 amendments, the Work Permit Policy 2025, Payroll Tax filings, Contributory Pension Fund contributions, occupational pension administration, and mandatory health insurance.

The compliance load sits in a different place than tax. This is where an Employer of Record (EOR) in Bermuda can help. An EOR can legally employ workers, so you can hire and pay talent in Bermuda without incorporating a local entity or sponsoring a work permit directly.

This guide covers employment laws, contractor classification, work permits, payroll, taxes, incorporation, and how Skuad's EOR supports each step.

Bermuda at a glance

Population: 64,484

Currency: Bermudian Dollar (BMD)

Capital: Hamilton

Languages: English

GDP: USD 8.98 billion

Employment in Bermuda

Bermuda's employment law is set out in several statutes. The Employment Act 2000 (as amended through the Employment Amendment Act 2026) is the primary statute. The Trade Union and Labour Relations (Consolidation) Act 2021 governs trade unions, collective bargaining, and labour disputes.

The Human Rights Act 1981 is the primary anti-discrimination statute. The Employment (Minimum Hourly Wage Entitlement) Act 2022 sets the minimum wage framework. The Bermuda Immigration and Protection Act 1956 governs the right of foreign nationals to work in Bermuda.

The Workers' Compensation Act 1965, the Health Insurance Act 1970, the Public Holidays Act 1947, and the Personal Information Protection Act 2016 cover workplace injury, health insurance, public holidays, and employee data privacy, respectively.

The Employment and Labour Code is the unified framework bringing the amended Employment Act 2000 and the Trade Union and Labour Relations (Consolidation) Act 2021 under a single labour regime.

The Employment Act 2000 applies to employees who work at least 15 hours per week, wholly or mainly in Bermuda. Casual workers, students employed during vacation periods, and certain other categories fall outside the Act's protections.

At the hiring stage, Bermuda law does distinguish between foreign nationals and Bermudians. Section 6(9) of the Human Rights Act 1981 allows employers to show preference in the hiring of Bermudians, and foreign nationals require a work permit before working in Bermuda under the Bermuda Immigration and Protection Act 1956.

Once a foreign national is hired, the statutory entitlements under the Employment Act 2000 apply on the same basis as for Bermudians.

Bermuda recognises two forms of employment contracts. Indefinite contracts (open-ended duration) and definite contracts (fixed-term).

Indefinite contracts are the default form in Bermuda. The employment relationship continues without a pre-set end date and can only be terminated for a valid reason connected with the employee's ability, performance, conduct, or the operational requirements of the employer's business.

Bermuda does not follow the at-will employment doctrine that operates in some other jurisdictions.

Definite contracts are permitted and are commonly used for project-based engagements, executive appointments tied to a specific term, and roles linked to a work permit period.

Section 6 of the Employment Act 2000 requires the written Statement of Employment to record where the employment is not expected to be permanent, the period for which it is expected to continue, or, if it is for a fixed term, the date on which it is to end.

The statutory notice periods and unfair dismissal protections do not apply where a fixed-term contract expires by its terms or where the employment was for the duration of a project that has been completed.

The statutory entitlements that an employer in Bermuda must provide are summarised below:

Foreign employers hiring in Bermuda operate under the Employment Act 2000, the Human Rights Act 1981, the Employment Act 2022, the Bermuda Immigration and Protection Act 1956, and the Personal Information Protection Act 2016, now in force from January 2025. 

Enforcement is spread across the Department of Labour, the Employment and Labour Relations Tribunal, the Human Rights Tribunal, and the Office of the Privacy Commissioner, each with its own filings and penalty regimes. 

Skuad helps with Bermuda employment compliance through a single workforce platform, so your team can hire, pay, and support Bermuda employees without setting up an entity or building in-country HR infrastructure.

Contractors vs. full-time employees

Bermuda law draws a clear line between independent contractors and full-time employees, and the line is drawn on substance. 

Section 4 of the Employment Act 2000 defines an employee as a person who works at least 15 hours per week, wholly or mainly in Bermuda, under a contract of employment, or any person whose working relationship more closely resembles that of an employee than an independent contractor. 

This substance-over-form test means a worker labelled as a contractor can still be treated as an employee if the working arrangement looks like employment in practice.

The Department of Labour issued an Independent Contractor Guidance, effective 1 April 2023, that the Labour Relations Section uses in its investigations into worker classification. 

The guidance looks at factors such as the organisation's right to direct and control how the work is done, the instructions given on how, when, or where the work happens, the tools and equipment used, and whether the organisation contributes towards the following worker's four statutory obligations: 

• Payroll Tax
• Social Insurance
• Health Insurance
• Private pension

If the organisation provides these benefits, that points to an employee relationship.

The main differences between contractors and full-time employees in Bermuda are as follows:

• Contractors are engaged for a specific task, project, or expert advisory role, and are paid based on the terms of a services agreement. Full-time employees work under a contract of employment that meets the Section 4 Employment Act 2000 definition and receive the statutory entitlements set out earlier in this guide.
• Independent contractors handle their own statutory obligations. Under the Payroll Tax Act 1995, Payroll Tax is levied on all employers, self-employed persons, and deemed employees, with foreign contractors and subcontractors in Bermuda also required to pay it. 

Taxable remuneration for a self-employed person is the total amount taken out of the business for personal use, capped at $1 million per annum per person, and returns must be filed quarterly on 15 January, 15 April, 15 July, and 15 October. 

Contributions to the Contributory Pension Fund under the Contributory Pensions Act 1970 are required for any person working more than 4 hours per week, even if they are self-employed, with weekly contributions administered by the Department of Social Insurance. 

Contractors are also responsible for their own Health Insurance under the Health Insurance Act 1970 and for any private pension arrangements.

• Full-time employees have these obligations administered by the employer. The employer accounts for the Employer and Employee portions of Payroll Tax and registers the employee with the Department of Social Insurance for Contributory Pension Fund contributions. 

The employer also provides statutory Health Insurance coverage and enrols qualifying employees in an occupational pension scheme under the National Pension Scheme (Occupational Pensions) Act 1998. 

The choice between engaging a contractor and hiring an employee should follow the actual nature of the work.

The Government of Bermuda has publicly raised concern about independent or consultant contracts being used to place workers outside the protections and benefits of the Bermuda Labour Code when, in substance, those workers function as employees. 

Independent contractor engagements are intended for expert advisory work, specific skill sets, and project-based tasks. A worker reclassified as an employee under the Section 4 substance-over-form test can bring claims for the statutory entitlements, severance, and unpaid contributions that should have applied from the start of the engagement.

The decision between hiring a full-time Bermuda employee and engaging an independent contractor changes everything downstream.

This includes the Section 4 Employment Act 2000 substance-over-form classification test, Payroll Tax obligations under the Payroll Tax Act 1995, Contributory Pension Fund contributions through the Department of Social Insurance, Health Insurance under the Health Insurance Act 1970, and the misclassification exposure flagged by the Department of Labour's Independent Contractor Guidance effective April 2023.

Skuad supports both hiring models from a single platform:

EOR for full-time employees

• Acts as the legal employer across 160+ countries, so you can hire without setting up a local entity
• Supports employment contract generation aligned with local employment laws across supported markets
• Facilitates statutory contribution workflows covering applicable payroll tax, social insurance, and pension obligations
• Supports payroll processing in 70+ currencies with automated tax withholding and statutory deductions
• Helps administer statutory benefits, paid leave, and parental entitlements in line with local requirements
• Assists with termination and offboarding, including notice periods and severance calculations as required locally

Contractor management

• Helps onboard contractors with locally compliant agreements that reduce misclassification exposure
• Supports invoice generation, approval workflows, and payment processing across supported currencies
• Helps flag classification risk through built-in worker classification checks before it becomes a compliance issue
• Facilitates multi-currency payouts across 70+ currencies with no manual reconciliation
• Helps manage contractor records, contracts, and payment history from a single dashboard alongside full-time employees

Full-time or contractor, Skuad supports both. See pricing.

Hiring in Bermuda

Bermuda has a two-track hiring framework. Bermudians, persons married to a Bermudian, and Permanent Resident Certificate (PRC) holders can be hired directly. Any other person needs a valid work permit before working in Bermuda. 

Work permits are governed by Part V of the Bermuda Immigration and Protection Act 1956 and the Work Permit Policy 2025, which took effect on 1 November 2025 and replaced the 2017 policy.

Bermudian preference and the bona fide search

Before applying for a work permit for a foreign national in most categories, an employer must conduct a genuine search for a suitably qualified local candidate. 

For a Standard Work Permit, the Department of Immigration requires the vacancy to be advertised at a minimum of three times over eight days in a local newspaper and for at least eight consecutive days on the Government Job Board at bermudajobboard.bm. 

Priority must be given to suitably qualified Bermudians, Spouses of Bermudians, and PRC holders who meet the minimum advertised requirements. Where an employer applies to hire a foreign national in a job for which there was a Bermudian, Spouse of a Bermudian, or PRC holder applicant, the employer must give clear, satisfactory reasons for not employing that local candidate. 

Skipping or shortening this advertising step is the most common reason for work permit refusal.

Key updates under the Work Permit Policy

The work permit policy brought in new English language proficiency requirements for Standard work permit applicants, the introduction of the Family Office Permit, and updated police certificate requirements for all first-time applicants. 

Police certificates are required from the applicant's home country and from any country of residence for the two years immediately preceding the work permit application.

The employer who signs the work permit application is responsible for its contents, and under the Bermuda Immigration and Protection Amendment (No. 2) Act 2013, this responsibility cannot be delegated. A foreign company using a third-party agent or an Employer of Record needs to understand that the named signing employer carries the legal responsibility for the application.

Statement of Employment

Once a candidate is hired, Section 6 of the Employment Act 2000 requires the employer to provide a written Statement of Employment, signed and dated by both parties, no later than one week after employment begins. 

The Statement covers job title, place of work, gross wage, normal days and hours, holiday and vacation entitlement, rest days and meal breaks, overtime arrangements, sick leave terms, notice periods, pension provision, applicable disciplinary and grievance procedures, work permit details where relevant, and the employer's bullying and sexual harassment policy.

For the broader candidate search, employers commonly use commercial Bermuda job boards alongside the mandatory Government Job Board. Some of them are as follows:

1. www.bermudajobboard.bm
2. www.royalgazette.com
3. www.jobsinbda.com
4. Indeed
5. LinkedIn

Commercial boards are useful for general candidate reach, but they do not satisfy the work permit advertising requirement on their own. For any role that may need a work permit, the Government Job Board must also be used.

Pre-employment screening in Bermuda sits under the Personal Information Protection Act 2016, now in force from January 2025, and under the Work Permit Policy 2025, updated police certificate requirements covering the applicant's home country and any country of residence for the two years preceding the application. 

Onboarding integrity becomes a multi-track load before the Statement of Employment is even signed. 

Skuad supports background checks as part of the hiring workflow, covering identity verification, employment history, criminal records, and education credentials, so you can see where each candidate stands before the contract is signed. 

Combined with Skuad's local EOR infrastructure, candidate verification and compliant onboarding are accessible through one platform.

Probation and termination

The probationary period in Bermuda is six months from the date of employment. As prescribed under Section 19 of the Employment Act 2000, the employer can extend the probationary period by up to three months before the expiration of the six-month period.

The 2020 Amendment to the Employment Act 2000 (effective 1 June 2021) introduced a mandatory midway performance review. Employers are now required to provide employees with a review of their performance midway through their probationary period so that employees are aware of areas that need improvement to enable successful completion of their probation. 

The three-month extension under Section 19(3) is only available after this midway review has been conducted.

During the probationary period, including any extension, Section 19(4) of the Employment Act 2000 allows the contract to be terminated without notice by the employer for reasons related to the employee's performance review, performance, conduct, or the operational requirements of the business, or by the employee for any reason. 

The six-month and three-month timeframes do not apply to customs officers, fire officers, police officers, or prison officers under Section 19(6).

Termination of service

Under Section 18 of the Employment Act 2000, an employer cannot terminate an employee's contract unless there is a valid reason connected with the employee's ability, performance, or conduct, or the operational requirements of the employer's business.

The notice requirements under Section 20 and, where applicable, the procedural requirements under Sections 26 or 27 must be met. These rules do not apply where a fixed-term contract has expired by its terms or where the employment was for the duration of a project that has been completed.

An employer must send a notice in writing before termination, except in cases where the duration or fixed period has expired. Under Section 20 of the Employment Act 2000, the statutory minimum notice periods are as follows:

Section 20(2)(d) provides that longer notice periods apply where customary, given the nature and functions of the work performed. In practice, executive and senior professional roles in Bermuda commonly carry 3 to 12 months' contractual notice. 

Section 20(3) also prohibits an employer from giving notice during an employee's absence on vacation leave, maternity leave, paternity leave, parental leave, or bereavement leave, or during sick leave unless the sick leave extends beyond six weeks. 

Under Section 21, an employer may, at its discretion, pay the wages, remuneration, and benefits that would have been due over the notice period in place of giving notice.

Performance, conduct, and serious misconduct

Section 25 of the Employment Act 2000 allows an employer to dismiss without notice or severance allowance for serious misconduct directly related to the employment relationship or with a detrimental effect on the employer's business.

Section 26 sets out the procedure for repeated misconduct. The employer must give a written warning setting out the misconduct and instructions on how to improve. 

Within six months, after a second occasion of similar misconduct following a written warning, the employer may terminate without notice or severance. Within twelve months, after a fourth occasion of similar misconduct following three prior written warnings, the same applies.

Section 27 sets out the procedure for unsatisfactory performance. The employer must give a written warning setting out the unsatisfactory performance and instructions on how to improve. If the employee does not demonstrate satisfactory performance within six months of the warning, the employer may terminate without notice or severance allowance.

Severance allowance

Under Section 23 of the Employment Act 2000, an employee who has completed at least one year of continuous employment is entitled to a statutory severance allowance: Two weeks' wages for every completed year of employment for the first ten years, and three weeks' wages for each completed year thereafter. 

Severance is payable on termination for redundancy, the employer's winding up or insolvency, the employer's death, or the employee's death from an occupational disease or accident.

The Employment Amendment Act 2024, effective 18 December 2024, increased the maximum severance from 26 weeks' wages to 32 weeks' wages for long-serving employees, and the law was amended at the same time to remove the requirement to pay payroll tax on severance pay. 

Severance is not payable where the employee unreasonably refuses an offer of re-employment by the employer at the same place of work under no less favourable terms.

Redundancy procedure

Under Section 30 of the Employment Act 2000, an employer who proposes to terminate an employee for redundancy must, no less than 14 days before giving notice in writing, inform the employee and their trade union or other representative of the conditions of redundancy that exist, the reasons for the contemplated termination, the number and categories of employees likely to be affected, and the period over which the termination is likely to be carried out. 

The employer must also consult on measures to avert or minimise the redundancy and steps to mitigate the impact on affected employees. 

Conditions of redundancy under Section 30(3) include modernisation, mechanisation or automation, discontinuance of the business, sale or other disposal, reorganisation, reduction in business due to economic conditions, and impossibility or impracticality of carrying on the business due to shortage of materials, mechanical breakdown, act of God, or other circumstances beyond the employer's control.

Unfair dismissal

Under Section 28 of the Employment Act 2000, a dismissal is unfair if based on race, sex, religion, colour, ethnic origin, national extraction, social origin, political opinion, disability, marital status, or age (subject to retirement provisions).

It is also unfair if based on pregnancy-related reasons within allocated leave, trade union activity, sickness or injury absence within allocated leave, public duties absence, self-removal from imminent danger to life or health, lawful industrial action, filing a complaint or participating in proceedings under the Act, or making a protected disclosure under Section 29A (whistleblowing).

Payment on termination and certificate

Under Section 18(5) of the Employment Act 2000, on termination, the employer must pay any wages, remuneration, and benefits accrued at the date of termination within seven days, or at the next regular payroll date if later. 

Under Section 22, on request, the employer must provide a certificate of termination stating the employer's name and address, nature of business, length of continuous employment, capacity in which the employee was employed, wages payable at the date of termination, and the reason for termination if requested.

Dispute forum

The Employment and Labour Relations Tribunal, established under the Employment Act 2000 and which came into effect on 1 June 2021, has jurisdiction to hear and determine complaints, labour disputes, differences, conflicts, and other matters referred to it under the Employment and Labour Code. 

Under Section 40 of the Employment Act 2000, where the Tribunal upholds an unfair dismissal claim, it may order reinstatement, re-engagement, or a compensation order of at least three weeks' wages per completed year of continuous employment for employees with no more than two years' service, or four weeks' wages per completed year in other cases, up to a maximum of 26 weeks' wages.

Bermuda's termination framework involves notice periods that scale by pay frequency under Section 20, the procedural requirements of Sections 26 (repeated misconduct) and 27 (unsatisfactory performance), and the prohibition on giving notice during protected leave.

It also covers severance allowance of two weeks' wages per completed year of service, rising to three weeks beyond ten years and capped at 32 weeks' wages under the Employment Amendment Act 2024, alongside the 14-day redundancy consultation requirement under Section 30.

Procedural missteps during termination can trigger Employment and Labour Relations Tribunal claims with reinstatement, re-engagement, or compensation orders of up to 26 weeks' wages.

Skuad supports termination and offboarding through the shield compliance layer across supported markets, helping align notice periods, severance, and final pay with the relevant local statutory framework.

EOR solution in Bermuda

Hiring in Bermuda involves several moving parts. The work permit bona fide search and Government Job Board advertising under the Work Permit Policy 2025, the Section 6 Statement of Employment within one week of hire, the four statutory obligations of Payroll Tax, Social Insurance, Health Insurance, and occupational pension, and the notice and termination procedures under Sections 18 to 30 of the Employment Act 2000.

An Employer of Record's local entity supports these obligations on behalf of the foreign client. The EOR's local entity in Bermuda is the named employer for work permit sponsorship with the Department of Immigration, payroll filings with the Office of the Tax Commissioner, and Social Insurance contributions with the Department of Social Insurance.

The EOR also supports occupational pension administration with the Pension Commission, health insurance arrangement under the Health Insurance Act 1970, and statutory leave and severance administration under the Employment Act 2000.

The foreign client retains day-to-day direction of the worker, compensation decisions, and decisions on termination. The client does not need to incorporate a Bermuda entity or register as an employer.

Hiring in Bermuda involves several moving parts, including the Work Permit Policy 2025 bona fide search and Government Job Board advertising, the Section 6 Statement of Employment within one week of hire, the four statutory obligations of Payroll Tax, Social Insurance, Health Insurance, and occupational pension, and the notice and termination procedures under Sections 18 to 30 of the Employment Act 2000.

Skuad acts as the legal employer in Bermuda, so your company can hire, onboard, and pay employees without entity setup, work permit sponsorship complexity, or in-house Bermuda payroll infrastructure.

Alongside the Bermuda-specific obligations covered above, Skuad supports:

• Hiring across 160+ countries from a single platform, so a Bermuda hire and a hire elsewhere sit on the same workflow
• Payroll processing in 70+ currencies with tax withholding and statutory deductions
• Contractor management on the same platform, with built-in worker classification checks to flag misclassification risk before contracts are signed
• Background verification covering identity, employment history, and criminal records before onboarding
• A unified dashboard for contracts, payroll, leave balances, and compliance records

Book a demo to see how Skuad supports Bermuda hiring.

Types of visas in Bermuda

Bermuda does not issue its own tourist or business visa, and there is no immigrant or non-immigrant visa category structure. Entry to Bermuda is governed by the Bermuda Immigration and Protection (Prohibition of Entry) Order 2025, made under Section 26 of the Bermuda Immigration and Protection Act 1956 (BIPA).

Visitor entry

Travelers from most countries, including the United States, the United Kingdom, Canada, and European Union states, do not need a visa to enter Bermuda as a visitor within the standard visitor stay limits.

Travelers whose country is listed on Bermuda's Visa Controlled Nationals list must present a multi re-entry visa (MRV) for the United Kingdom, the United States, or Canada to enter Bermuda. Bermuda does not issue its own MRV. T

The MRV requirement applies to tourist visitors, Standard Work Permit holders with a visa condition on their work permit (including spouses and dependants of work permit holders who possess valid permission to reside in Bermuda), Short Term (including Emergency) Work Permit holders, and Periodic Work Permit holders.

The MRV and the traveler's passport must be valid for 45 days after the expiration of the visitor stay or of the Short Term or Periodic Work Permit. Travelers who arrive in Bermuda without an MRV or passport, or whose MRV and passport validity is less than 45 days, will be refused entry into Bermuda.

The Visa Controlled Nationals list is set by the Bermuda Immigration and Protection (Prohibition of Entry) Order 2025 and is updated periodically to track changes to the United Kingdom's Visa Controlled Nationals list, which means the list of countries affected can change. 

Employers engaging foreign nationals through an Employer of Record should check the current list before planning travel.

Standard Work Permit holders whose permit does not contain a visa condition (and their sponsored dependents who do not require a visa), Permanent Resident's Certificate (PRC) holders, and Resident Certificate holders do not need a multi-entry visa to enter Bermuda.

Entry visa versus work permit

An MRV or visa-free entry authorises entry to Bermuda as a visitor. It does not authorise the holder to work in Bermuda. Working in Bermuda requires a Bermuda work permit issued by the Department of Immigration to anyone who is not Bermudian, married to a Bermudian, or a PRC holder. 

A visa-controlled foreign worker, therefore, needs both an MRV from the United Kingdom, the United States, or Canada to enter Bermuda, and a Bermuda work permit to lawfully work in Bermuda. The work permit framework and categories are covered in the next section.

Long-term residence categories

Bermuda has several long-term residence categories under the Bermuda Immigration and Protection Act 1956:

• Bermudian status (by birth, parentage, or grant)
• Spouse of a Bermudian, with rights to reside and work in Bermuda
• Permanent Resident's Certificate (PRC) holders under Sections 31A, 31ZA, 31ZB, and 31BB BIPA. A PRC gives the right to live and work in Bermuda and to purchase Bermuda property with a lower Annual Rental Value. 

Eligibility includes being ordinarily resident in Bermuda for at least 20 years (including the two years immediately preceding the application), or 15 years for a non-Bermudian parent of a Bermudian son or daughter, or being the son, daughter, or spouse of a person granted a PRC.

The Department of Immigration began accepting applications under the Bermuda Immigration and Protection Amendment Act 2021 on 1 January 2022

• Working Resident Certificate holders
• One-Year Residential Certificate under Section 32 BIPA is issued for remote workers employed by a firm or their own company registered and operating overseas, and to non-Bermudian post-secondary students. 

The certificate entitles the holder to reside in Bermuda and to work remotely, but the holder is prohibited from seeking or obtaining gainful employment in Bermuda within the tenure of the certificate. 

Each application is considered on its own merits, and renewal is not automatic, so a new application is required for a subsequent certificate

The One Year Residential Certificate is the route for digital nomads and remote workers who want to live in Bermuda while working for an overseas employer. It is not the route for engaging Bermuda-based talent for a foreign company. Engaging local Bermuda talent requires a work permit, sponsored by the local employer.

Work permit

Work permits in Bermuda are governed by Part V of the Bermuda Immigration and Protection Act 1956 (BIPA) and the Work Permit Policy 2025, which took effect on 1 November 2025.

Processing time is 20 working days for Standard Work Permits, plus up to 10 days for document printing after approval. Other categories vary.

Work permit categories

The Work Permit Policy 2025 covers several categories, each with its own purpose, duration, and advertising rules.

• Standard Work Permit: Allows organisations in Bermuda to employ foreign nationals where the employer can demonstrate that a Bermudian, Spouse of a Bermudian, Belonger, Spouse of a Belonger, or PRC holder was not suitably qualified or available to be hired. Requires the bona fide search and advertising covered in the Hiring section.
• Periodic Work Permit: For non-resident individuals who make multiple visits to Bermuda over an extended period, staying no more than 30 days per visit, with a total stay of no more than 180 days in any 12 months. Granted for 1, 2, 3, 4, or 5 years. Advertising is not required.

Used only for maintenance agreements, equipment warranties, training contracts, or similar service agreements, and cannot be used for permanent, short-term, or part-time employee positions.

• Short-term Work Permit: For employment of up to 6 months. Applications are accepted for terms of 3, 4, 5, or 6 months. The holder is expected to leave Bermuda at the end of the term unless an extension is sought within the proper processing period

An extension is only available if the first Short Term Work Permit was valid for less than 180 days. Short-term work permit holders are not normally granted permission to reside and seek employment.

• Global Work Permit (renamed Intra-company Work Permit under the 2025 Policy): Allows a person already employed by a global company in another jurisdiction to transfer to the Bermuda office without the requirement to advertise the position. 

The company must demonstrate that the holder is not being transferred to fill a pre-existing position in Bermuda. The term is 1, 2, 3, 4, or 5 years. Not applicable to positions listed in the closed or restricted categories. To stay beyond expiry, the employer must apply for a Standard Work Permit.

• Global Entrepreneur Work Permit: Used by business service companies that have a business relationship with global investors who wish to domicile a company in Bermuda.
• New Business Work Permit: Allows an exempted company (per the Companies Act 1981) that is new to Bermuda to receive automatic approval of work permits within the first nine months of obtaining the first New Business Work Permit.
• Fintech Business Work Permit: Allows a Fintech company new to Bermuda to receive immediate approval of five work permits within the first six months of obtaining the first Fintech Business Work Permit.
• Family Office Work Permit (introduced under the 2025 Policy): Allows a Family company new to Bermuda to receive automatic approval of five work permits within the first six months of obtaining the first Family Office Work Permit.

Renewal and extension

Work permits are renewed by applying for a new permit before expiry, and the same process that applied to the original permit must be followed again. For Standard Work Permits, this includes the bona fide search and advertising covered in the Hiring section. Applications should be submitted no less than one month and no more than three months before the current permit expires.

Periodic Work Permit holders requiring a stay longer than 30 days, where the total stay will not exceed 180 days in the 12 months, may have the employer apply for a further 30 days by submitting a Visitor's Extension Application. 

Short-term work permit holders can only apply for an extension if the first permit was valid for less than 180 days. Global Work Permit holders who need to stay beyond the expiry of the Global Work Permit require the employer to apply for a Standard Work Permit.

Bermuda's work permit framework runs through Part V of the Bermuda Immigration and Protection Act 1956 and the Work Permit Policy 2025, in force from 1 November 2025. 

The Standard Work Permit route requires a bona fide search with a minimum of three newspaper advertisements over eight days, eight consecutive days on the Government Job Board, and a documented justification where a Bermudian, Spouse of a Bermudian, or PRC holder applicant was not selected. 

The Periodic, Short-term, Intra-company, New Business, Fintech, and the new Family Office permits each to carry their own duration, advertising, and renewal rules. Coordinating documentation, advertising, English language proficiency requirements, and updated police certificates across these stages adds weeks to any foreign national hire.

Skuad supports the work permit process across supported markets, including:

• Supporting work visa and residence permit applications for foreign nationals joining your team
• Helping coordinate visa documentation with the relevant immigration authorities
• Assisting with employer-side accreditation, labour market tests, and prevailing wage steps where they apply
• Helping track documentation requirements and renewal deadlines across the full permit lifecycle
• Helping keep your team aligned with immigration documentation requirements as local policy and renewal rules change

For foreign national hires whose first day depends on a clean permit application, the gap between the HR team and the immigration paperwork is where most timelines slip.

Book a demo to see how Skuad supports work permits and immigration for Bermuda hires.

Payroll and taxes in Bermuda

Bermuda's payroll obligations run under the Payroll Tax Act 1995 and the Payroll Tax Rates Act 1995, the Contributory Pensions Act 1970, the National Pension Scheme (Occupational Pensions) Act 1998, the Health Insurance Act 1970, and, for in-scope Multinational Enterprise (MNE) Groups, the Corporate Income Tax Act 2023. 

Running payroll in Bermuda means a registered employer remits Payroll Tax, Social Insurance contributions, occupational pension contributions where applicable, and health insurance premiums on a regular cycle, and files quarterly returns with the Office of the Tax Commissioner.

Setting up payroll in Bermuda

A foreign company hiring in Bermuda has two routes. The first is to incorporate a local subsidiary or register an overseas company, set up bank accounts, register with the Office of the Tax Commissioner and the Department of Social Insurance, register an occupational pension plan with the Pension Commission, and arrange employer-provided health insurance. 

The second is to engage an Employer of Record, whose local entity is already registered for all of the above and becomes the named employer for payroll, tax, and statutory benefit purposes. The Employer of Record route is faster and avoids the cost and ongoing compliance burden of running a Bermuda entity. 

Both routes carry the same statutory obligations on the named employer.

Taxes in Bermuda:

Total cost-to-employer in Bermuda runs above gross salary even without personal income tax.

The employer portion of Payroll Tax scales from 0.5% to 9.50% by annual payroll size, with 9.75% for Exempt Undertakings. Contributory Pension Fund contributions sit at $37.65 per week effective August 2025, and occupational pension contributions at 5% of pensionable earnings (capped at $200,000) apply for Bermudian employees and spouses.

Mandatory health insurance, typically split 50/50 between employer and employee, sits on top of the headline figure.

Skuad's employee cost calculator helps estimate the cost of hiring across supported markets, including employer social and tax contributions, statutory deductions, and net-to-gross conversion, so finance teams can build a clean total-cost view into headcount plans without manually modelling each country's contribution rules.

Incorporation

A foreign company that wants a corporate presence in Bermuda can choose from several business forms. Sole Proprietorship, Limited Companies, Partnerships, and Limited Liability Companies (LLCs). Limited companies are governed by the Companies Act 1981. 

LLCs are governed by the Limited Liability Company Act of 2016. Partnerships are governed by the Partnership Act 1902, the Limited Partnership Act 1883, and the Exempted Partnerships Act 1992. Sole proprietorships are for self-employed individuals and are not separate legal entities.

Local entities and exempted entities

Bermuda limited companies and LLCs fall into two principal categories.

Local entities are owned at least 60% by Bermudians and trade primarily in the Bermuda market. Exempted entities are formed by non-Bermudians to conduct business outside Bermuda and are exempted from the 60% Bermudian beneficial ownership requirement. 

For most foreign companies considering incorporation in Bermuda, the relevant form is the exempted company or the exempted LLC.

An exempted company that wants to carry on business in Bermuda (beyond the activities expressly permitted, such as transacting with other exempted undertakings) must apply for a licence under Section 129 of the Companies Act 1981. The same licensing framework applies to exempted LLCs.

Timeline

Formation of a limited company, partnership, or LLC that does not require consent of the Minister of Finance may be accomplished within one day after an application is received. Where the consent of the Minister is required, the processing time is up to a week from the date the Registrar of Companies has received all necessary information and personal declarations from the proposed beneficial owners.

Documents and certificates by entity type

The constitutional documents and certificate of registration differ by entity type.

• Limited companies (under the Companies Act 1981): Memorandum of Association and Bye-laws are the constitutional documents. The Registrar of Companies issues a Certificate of Incorporation on registration.
• LLCs (under the Limited Liability Company Act 2016): A Certificate of Formation and an LLC Agreement are the constitutional documents. The Registrar of Companies issues a Certificate of Formation on registration.
• Partnerships: The Registrar issues a Certificate of Exempted Partnership, Certificate of Limited Partnership, or Certificate of Overseas Partnership as applicable.

Steps to incorporate in Bermuda

A foreign company forming a Bermuda entity will typically engage a law firm, accounting firm, or corporate service provider (CSP) located in Bermuda to guide the process. The core steps are:

1. Name reservation with the Registrar of Companies.
2. Disclosure and vetting of proposed beneficial owners, including personal declarations where required. Bermuda's beneficial ownership transparency framework aligns with international standards.
3. Drafting the constitutional documents as outlined above.
4. Bermuda Monetary Authority (BMA) approval for the issuance of shares or equity interests where required.
5. Selecting a registered office in Bermuda and a resident representative, where the entity type requires one.
6. Submit the registration filing to the Registrar of Companies via the online portal at registrarofcompanies.gov.bm, paying the prescribed government fee.
7. Licence and permit applications based on the proposed business activity. For exempted companies and exempted LLCs that need a Section 129 licence to carry on business in Bermuda, the application fee is $2,100, the issuance fee is $1,000, and the annual licence fee is $1,000 payable each January.
8. Registration for payroll obligations with the Office of the Tax Commissioner (Payroll Tax), the Department of Social Insurance (Contributory Pension Fund), the Pension Commission (for an occupational pension plan where applicable), and arranging approved health insurance coverage. These obligations are covered in the Payroll and Taxes section.

Exempted entities engaged in "relevant activities" under the Economic Substance Act 2018 (including banking, insurance, fund management, financing and leasing, headquarters, shipping, distribution and service centre, holding company, and intellectual property) must also satisfy economic substance requirements in Bermuda.

Incorporating in Bermuda carries downstream weight beyond the initial Certificate of Incorporation or Certificate of Formation filing. 

Foreign companies face beneficial ownership disclosure and vetting requirements, Bermuda Monetary Authority approval for share issuance where applicable, and registered office and resident representative requirements.

They also face a Section 129 licence application for exempted companies trading in Bermuda ($2,100 application fee, $1,000 issuance fee, and $1,000 annual licence fee), Economic Substance Act 2018 compliance for relevant activities, and ongoing registrations with the Office of the Tax Commissioner, Department of Social Insurance, Pension Commission, and an approved health insurer.

Most foreign companies expecting fewer than five Bermuda hires find that this timeline and the ongoing compliance load outweigh the value of having a local legal presence at that scale.

Skuad acts as the legal employer in Bermuda, so foreign companies can hire and pay employees without entity setup, multi-agency registrations, or ongoing local compliance overhead. The incorporation decision can be revisited once the local team reaches a size that justifies it.

Book a demo to see how Skuad supports Bermuda hiring without incorporation.

Professional Employer Organization (PEO) vs EOR

Foreign companies expanding into a new market often consider two outsourced employment models. The Professional Employer Organization (PEO) and the Employer of Record (EOR). The two differ in their legal structure and in where they are recognised regulatorily.

A PEO is a regulatory construct defined most clearly in the United States. Per the Internal Revenue Service, a PEO is an organisation that agrees with a client to perform some or all of the federal employment tax withholding, reporting, and payment functions related to workers performing services for the client. 

The Tax Increase Prevention Act of 2014 created a voluntary IRS certification programme for PEOs under Section 7705 of the Internal Revenue Code, known as the Certified Professional Employer Organization (CPEO) programme. 

Under Section 3511 of the Internal Revenue Code, a CPEO is solely liable for federal employment taxes on remuneration it pays to work site employees, while the client retains common-law employer status for many other purposes.

The PEO model is a co-employment arrangement. The PEO and the client both have employment-related responsibilities, with the PEO assuming specific functions (federal employment tax in the US model) and the client retaining day-to-day direction and core employment decisions.

An Employer of Record's local entity acts as the legal employer of the worker for statutory purposes in the country where the worker is engaged.

The client retains day-to-day direction of the worker, decisions on compensation, decisions on the role and responsibilities, and the option to terminate the engagement, subject to local employment law. The client does not have to set up a local entity, and is not registered as an employer in the country.

The two models split along legal employer responsibility, regulatory recognition, and operational fit.

EOR Services in Bermuda Simplified

Bermuda's employment framework follows the Employment Act 2000 and its 2026 amendments, alongside Department of Immigration work permits under the Work Permit Policy 2025, Office of the Tax Commissioner Payroll Tax filings, Department of Social Insurance Contributory Pension Fund contributions, Pension Commission occupational pension administration, and Health Insurance Act 1970 coverage, all from the first hire.

Getting any of these wrong triggers Department of Labour penalties and Employment and Labour Relations Tribunal exposure under Sections 18 to 30 of the Employment Act 2000.

Skuad acts as the legal employer in Bermuda, so you can hire your Bermuda and foreign-national employees and meet statutory compliance requirements without registering with the Registrar of Companies, the Office of the Tax Commissioner, the Department of Social Insurance, or the Department of Immigration. 

Across supported markets, the platform covers employment contracts, payroll in 70+ currencies, statutory contributions, immigration, and termination support.

Book a demo to see how Skuad supports hiring in Bermuda.

FAQs

1. What is an employer of record in Bermuda?

An Employer of Record in Bermuda is a third party with its own Bermuda-registered entity that legally employs your workforce on your behalf. It handles Payroll Tax filings with the Office of the Tax Commissioner, Contributory Pension Fund contributions, work permit sponsorship, and compliance with the Employment Act 2000.

2. How much does an Employer of Record in Bermuda cost?

EOR pricing in Bermuda typically ranges from USD 199 to USD 700 per employee per month, depending on the provider. On top of the platform fee, you cover the employee's gross salary plus statutory employer costs, including the employer Payroll Tax portion, $37.65 per week to the Contributory Pension Fund, and mandatory health insurance.

3. Can a foreign company hire in Bermuda without setting up a local entity?

A foreign company can hire in Bermuda through an EOR, which legally employs the worker through its existing Bermuda-registered entity and sponsors the work permit as the named employer. This avoids incorporating an exempted company, Bermuda Monetary Authority approval, and a Section 129 licence to trade locally.

4. What are the risks of misclassifying employees as contractors in Bermuda?

Section 4 of the Employment Act 2000 applies a substance-over-form test, and the Department of Labour's Independent Contractor Guidance (April 2023) is used to investigate classification. A reclassified worker can claim statutory entitlements, severance, and unpaid Payroll Tax and Social Insurance from the start of the engagement.

5. When should a company use an EOR instead of setting up an exempted company in Bermuda?

An EOR fits foreign companies hiring fewer than five Bermuda employees, testing the market, or scaling without a permanent local footprint. Setting up an exempted company requires beneficial owner vetting, Bermuda Monetary Authority approval where applicable, and a Section 129 licence to trade in Bermuda.

6. How quickly can an EOR onboard a new hire in Bermuda?

An EOR can onboard a Bermudian, Spouse of a Bermudian, or PRC holder in one to two weeks, since the legal entity, Payroll Tax, and Social Insurance registrations are already in place. Foreign national hires take longer because of the Work Permit Policy 2025 bona fide search and the 20-working-day Standard Work Permit processing.