Barbados EOR & PEO

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Hire in Barbados

Thinking about hiring in Barbados? This island nation is known for its beautiful beaches and rich culture and it also offers a thriving business environment. With a population of around 282,000 people, Barbados has a well-educated workforce and a growing economy that continuously attracts businesses from around the world. The country is known for its strong tourism sector, but it also has thriving industries in finance, manufacturing, and information technology.

Barbados is making great progress to become a hub for innovation and business. The government actively supports foreign investment and provides incentives for businesses that want to set up operations on the island. This makes it a great destination for companies looking to expand their global footprint.

Hiring in Barbados can be a smooth process if you understand the local labor laws and employment practices. Partnering with a Barbados Employer of Record (EOR) can simplify the process, allowing you to focus on building your team and growing your business. An EOR manages all the administrative and legal aspects of employment, ensuring that you stay compliant with local regulations while enjoying the benefits of a talented and motivated workforce. Whether you’re looking to hire locally or bring in international talent, Barbados offers a supportive environment for your business growth.

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hire employees in Barbados

What Is a Barbados EOR?

A Barbados Employer of Record is a third-party company that manages the legal and administrative responsibilities of employing workers in Barbados for your business. This means they handle tasks like payroll, taxes, benefits, and ensuring compliance with local labor laws. Essentially, the EOR becomes the official employer for your staff in Barbados, while you still manage their day-to-day tasks and overall performance. This arrangement allows you to focus on your core business activities without worrying about the complexities of local employment regulations.

The terms “Employer of Record” and “Professional Employer Organization” (PEO) are usually used interchangeably. Both refer to companies that take on HR tasks and legal responsibilities for other businesses. By partnering with an EOR or PEO, you can streamline your hiring process and ensure compliance with all local laws, making it easier to manage your workforce in Barbados.

Save Money And Time with A Barbados EOR

What Are the Benefits of a Barbados EOR?

Using a Barbados Employer of Record offers so many different benefits that can simplify and enhance the operations of your business.

Takes care of all the legal and administrative tasks: This means they handle payroll, taxes, benefits, and compliance with local labor laws, freeing you from these time-consuming and tedious responsibilities. This allows you to focus on what you do best – running and growing your business.
Speed and ease of hiring local talent: Setting up a local entity in Barbados can be a lengthy and complex process, but an EOR allows you to start hiring immediately without needing to establish a formal presence. This flexibility means you can quickly onboard new employees and adapt to changing business needs without the hassle of dealing with the local bureaucracy and red tape.
Helps manage risks associated with employment: They stay up-to-date with changes in labor laws and ensure that your business remains compliant, reducing the risk of fines and legal issues. This is very valuable in a country where the regulatory environment may be unfamiliar to foreign businesses. Also, the EOR handles all employment contracts, making sure they are legally sound and meet the local requirements.
Positive impact on employee satisfaction: An EOR manages employee benefits, such as health insurance and retirement plans, ensuring that your team receives the perks they deserve. This can improve morale and retention rates, helping you build a motivated and loyal workforce. Furthermore, the EOR provides support with employee onboarding and offboarding, ensuring a smooth transition for new hires and departing staff.

Horizons is Best IN Class

Why Choose Horizons?

Horizons stands out as a Barbados EOR through:

A strong regional presence in North America, meaning senior management are on the ground to deal with any issues.
Client-focused infrastructure. Horizons won’t oversell you on products and services you don’t need. Horizons offers the easiest platform to compliantly hire and pay people worldwide.
Cost-effective solutions. At $499 per employee, per month, no EOR in Barbados is more affordable. The cost is 100% transparent (onboarding, offboarding, deposit, no extra charges).
A customer-first culture. Horizons is an efficient bootstrapped company. It is not an externally-funded company burning investor cash to aggressively acquire new clients. Horizons is the only EOR that grows with its customer, reflecting the level of care and personal attention provided to each customer. Horizons will carefully advise on the best setup in each country: the type of contract needed, how to structure your benefits, and how to offboard a person while minimizing the risk of conflicts and extra cost
A long-term partnership. Horizons is the only EOR platform with a recruitment arm — a direct response to client demand. If any employee is leaving, or if our clients want to explore a new country, Horizons can recruit new candidates directly for the client. Horizons is:
- The only EOR doing this in-house — no subcontracting
- The only EOR doing this without a retainer — clients are only charged upon success
- The only EOR charging just a 2% fee per month.

Step-by-step Barbados EOR

How Does a Barbados EOR Work?

Hire your employees: A Barbados Employer of Record makes hiring new employees simple and hassle-free. You choose the candidates you want to hire, and the EOR takes care of all the legal paperwork and formalities. They handle everything needed to officially employ your chosen candidates in Barbados. This means you can quickly and easily bring new talent on board without having to set up a local entity. The EOR becomes the legal employer, while your employees work for you and follow your direction.
Manage employment contracts and onboarding: The EOR manages all aspects of employment contracts to ensure they comply with Barbados’ labor laws. They draft, review, and finalize contracts, making sure everything is clear and legally sound. The EOR also handles the onboarding process, ensuring new hires have all the necessary documents and understand their roles. This helps new employees start their jobs as seamlessly as possible.
Process payroll and handle employment taxes: Handling payroll and taxes can be complicated, but a Barbados EOR takes this burden off your shoulders. They manage all aspects of payroll, ensuring your employees are paid correctly and on time. The EOR calculates salaries, withholds the appropriate taxes, and handles any other necessary deductions, ensuring compliance with local tax laws. This ensures that your payroll process is smooth and error-free.
Administer benefits: An EOR also takes care of administering employee benefits, such as health insurance and retirement plans. They manage the enrollment process, handle contributions, and ensure that your employees receive their benefits. This helps you offer competitive benefits packages that attract and retain top talent. The EOR also deals with any benefit-related questions or issues that arise, providing support to your employees and keeping them satisfied.
Take care of exit procedures: When an employee leaves your company, the EOR handles the entire exit process. This includes managing all necessary paperwork, ensuring compliance with Barbados’ laws regarding termination and severance, and processing final paychecks. The EOR also makes sure that any company property is returned and that post-employment obligations are clear.

stay compliant with Barbados labor laws

Labor Laws

One of the principal reasons for engaging an EOR in Barbados is to ensure full compliance with Barbados’ employment laws. Here we explain in detail how a Barbados EOR ensures:

Compliance with Barbados employment contract requirements
Compliance with working hours, national holiday provisions, and Barbados social security requirements.

Employment contract types

In Barbados, employment contracts are most often categorized into permanent and fixed-term contracts. Permanent contracts offer ongoing employment with no specific end date, providing job security and long-term benefits. Fixed-term contracts, on the other hand, are for a specific period or project, with a clear start and end date. These are usually only for temporary or seasonal work.

Project-based

Fixed-term

Indefinite

Working hours in Barbados

The standard working hours in Barbados are generally set at 40 hours per week, typically spread over five days. Most businesses operate from Monday to Friday, with each workday lasting around eight hours. Employees are entitled to regular breaks, including a lunch break. If employees work beyond the standard hours, it is considered overtime and must be compensated at a higher rate, usually 1.5 times the regular hourly wage. This ensures that employees are fairly compensated for any additional work that they perform.

Overtime must be compensated in the following way:

Holiday Schedule in Barbados [2024]

In 2024, Barbados will observe several public holidays. On these days, employees have the day off with pay. If they are required to work on a public holiday, they must be compensated at a higher rate as per the country’s labor laws.

Date	Holiday name
1 Jan, 2024	New Year’s Day
21 Jan, 2024	Error Barrow Day
29 Mar, 2024	Good Friday
1 Apr, 2024	Easter Monday
28 Apr, 2024	National Heroes’ Day
1 May, 2024	Labor Day
20 May, 2024	Whit Monday
1 Aug, 2024	Emancipation Day
7 Aug, 2024	Kadooment Day
30 Nov, 2024	Independence Day
25 Dec, 2024	Christmas Day
26 Dec, 2024	Boxing Day

Paid time off

Employees in Barbados are entitled to paid time off, which includes vacation leave and public holidays. Full-time employees generally earn a minimum of 15 days of paid vacation per year, which increases to three weeks after ten years of service with the same employer. PTO policies should be clearly outlined in the employment contract, detailing how leave is accrued and the process for requesting time off.

Sick leave in Barbados

Sick leave in Barbados allows employees to take time off when they are sick without having to worry about missing out on pay. Full-time employees are generally entitled to a minimum of 10 days of paid sick leave per year.

Less than 6 months of sick leave:

(percentage of regular wages owed to the employee)

Over 6 months of sick leave

In order for employees to receive the full wages due to them, workers must present a valid medical certificate from a certified doctor to their employer.

Maternity leave in Barbados

Female employees are entitled to 12 weeks (3 months) of maternity leave and must have been employed for at least 12 months with the same employer. Male employees are entitled to 2 weeks (10 working days) of paternity leave.

Both maternity and paternity leave come with job protection, meaning employees should be able to return to the same or a comparable position after their leave.

Annual leave in Barbados

In Barbados, full-time employees are entitled to a minimum of 15 days of paid annual leave each year after completing one year of service. Employers can choose to offer more, but 15 days is the legal minimum. Annual leave should be scheduled in advance and agreed upon by both the employer and employee in order to ensure that business operations are not disrupted.

Termination & severance in Barbados

Termination of employment in Barbados must follow specific legal procedures to ensure fairness. Employers must provide notice or payment in lieu of notice, with the notice period depending on the employee’s length of service. For employees with less than one year of service, the notice period is almost always one week’s time. For anyone with a longer length of service, the notice period increases. Severance pay is required for employees terminated without cause, generally amounting to one week’s pay for each year of service.

Barbados' compulsory social security contributions

Social security contributions are mandated under the National Insurance Scheme (NIS). These contributions provide various benefits, including sickness, maternity, unemployment, and retirement benefits.

There is a maximum limit on the earnings subject to NIS contributions, which is periodically adjusted. Currently, the insurable earnings ceiling is BBD 4,870 per month.

Barbados social security for foreigners

Social security system through the National Insurance Scheme (NIS) applies to foreign employees just as it does to local employees. Both employees and employers make contributions, and the benefits provided by the NIS cover a wide range of social security needs, including retirement, sickness, maternity, and employment injury. Foreign workers legally employed in Barbados are required to participate in the NIS and make the necessary contributions.

Individual income tax

The tax system is progressive, meaning that the tax rate increases as income increases. Rates range from 12.5% to 28.5% depending on the tax bracket.

Health insurance

The Ministry of Health oversees the public healthcare system in Barbados, providing services through public hospitals, polyclinics, and health centers. Basic healthcare services at public facilities are generally provided at low or no direct cost to residents. This includes general medical care, hospital services, maternal and child health services, and treatment for common illnesses.

Private health insurance is available through local insurance companies. These policies can help cover the cost of private healthcare services and may include benefits such as hospitalization, outpatient care, specialist consultations, and emergency medical evacuation.

hassle-free Bajan compensation & benefits

Compensation & Benefits

Barbados compensation laws

In Barbados, the government sets a minimum wage, which was set at BBD8.50 per hour in 2021. Employers are required to pay their employees on a regular schedule, typically bi-weekly or monthly. Overtime work must be compensated at a higher rate, usually 1.5 times the regular hourly wage.

13 month salary in Barbados

The concept of a 13th month salary is not a standard practice in Barbados. Instead, bonuses and additional compensation are often performance-based or provided at the discretion of the employer.

Social security for Bajan nationals

Social security contributions in Barbados are essential for providing various social benefits, including pensions and healthcare. Both employers and employees contribute to the National Insurance Scheme (NIS). Employers deduct a certain portion of the employee’s salary and then match an additional amount. These contributions are regulated by the National Insurance and Social Security Act, ensuring that employees have access to benefits such as retirement pensions, unemployment insurance, and medical care.

Barbados Employer Of Record Peo

Navigation

Hire in Barbados

What Is a Barbados EOR?

What Are the Benefits of a Barbados EOR?

Why Choose Horizons?

How Does a Barbados EOR Work?

Labor Laws

Employment contract types

Working hours in Barbados

Compensation & Benefits

Frequently asked questions

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Frequently asked questions

How does an EOR in Barbados ensure compliance with local labor laws?

An Employer of Record in Barbados ensures compliance with local labor laws by staying updated on all the latest regulations and legal requirements. They handle everything from drafting legal employment contracts to processing payroll and managing taxes. The EOR makes sure that all employment practices meet local standards, reducing the risk of fines or legal issues. This allows you to focus on your business while knowing that all legal aspects are being managed properly.

What are the benefits of using an EOR for hiring in Barbados?

Using an EOR for hiring in Barbados offers several key benefits. It simplifies the hiring process by taking care of all the administrative and legal tasks, so you can focus on finding the right talent. You can quickly hire local employees without needing to set up a local entity. Additionally, an EOR ensures compliance with local labor laws, reducing the risk of fines or legal issues. This makes expanding your business into Barbados much easier and lets you concentrate on growing your operations while the EOR handles the employment details.

Barbados EOR & PEO

Start hiring in Barbados

Simple, compliant hiring with Horizons EOR & PEO

Hire in Barbados

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hire employees in Barbados

What Is a Barbados EOR?

Save Money And Time with A Barbados EOR

What Are the Benefits of a Barbados EOR?

Horizons is Best IN Class

Why Choose Horizons?

Step-by-step Barbados EOR

How Does a Barbados EOR Work?

stay compliant with Barbados labor laws

Labor Laws

Employment contract types

Project-based

Probationary period

Termination

Severance

Fixed-term

Probationary period

Termination notice period

Severance

Indefinite

Probationary period

Termination notice period

Severance

Working hours in Barbados

Overtime must be compensated in the following way:

For a regular workday:

For a rest day:

For a statutory holiday:

Paid time off

Under 1 year of employment

1-10 years of employment

10-20 years of employment

20+ years of employment

Sick leave in Barbados

Less than 6 months of sick leave:

Under 1 year of employment

1-10 years of employment

10-20 years of employment

20+ years of employment

Over 6 months of sick leave

Under 1 year of employment

1-3 years of employment

3+ years of employment

Maternity leave in Barbados

Annual leave in Barbados

Termination & severance in Barbados

Barbados' compulsory social security contributions

Barbados social security for foreigners

Individual income tax

Health insurance

hassle-free Bajan compensation & benefits

Compensation & Benefits

Barbados compensation laws

13 month salary in Barbados

Social security for Bajan nationals

Hire in Barbados in 24h without your own local entity.

Frequently asked questions

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