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If you want to quickly find and hire highly qualified professionals in the Caribbean, you could do it with the help of an employer of record in Barbados. This island nation has one of the most thriving economies in the region, so anyone considering investing in the Caribbean should give it consideration.
International expansion involves many challenges, but by engaging the global services of an EOR, these are minimized. One of the advantages of these legal employers is that they avoid the creation of local entities, which helps companies save resources, such as time and money, which they can use to grow their business.
In addition to assuming the legal responsibility of hiring, an employer of record in Barbados manages its clients’ human resources, from payroll to benefits, vacations, sick leave, and the eventual termination of employees.
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A Barbadian EOR has extensive knowledge of the local market and wide recruitment networks, so it will help its clients find the best talent in a matter of weeks. The legal employer will manage employees but will report directly to the client-company.
Companies hiring an employer of record in Barbados should be aware that these providers sometimes call themselves a professional employer organization (PEO) because of their co-employment services. However, these third parties do not usually distinguish between EOR and PEO, and the names are often interchangeable.
If you want to hire highly qualified personnel quickly, smoothly, and in compliance with regulations through a registered employer in Barbados, get in touch with us.
Employer of record in Barbados: country overview
Located near the Lesser Antilles in the Atlantic Ocean, Barbados is 34 kilometers long and 23 kilometers wide, home to just over 281,000 inhabitants. For centuries, this island nation was known for its sugar and rum production, but today it is one of the most important tourist destinations in the region.
After centuries of British occupation, Barbados was recognized in 1966 as an independent nation. However, it adopted a system of parliamentary constitutional monarchy as one of the Commonwealth realms of the United Kingdom. However, after a transitional period, in 2021, Barbados became a parliamentary republic, with Sandra Mason as head of state.
Since its independence, this small island has bet on international tourism. In the 1990s, it began to take even more advantage of its tropical climate, pristine beaches, and reefs, giving way to foreign investment, mainly from the United States and Europe, through colossal hotel complexes.
The country retains much of the British culture, from its language to its political division: eleven parishes named after the Anglican religion of the settlers. Bridgetown, its capital, is located in the parish of Saint Michel. English is the first language of the island.
Barbadian market at a glance
Services derived from tourism, manufacturing, and agriculture are the sectors that drive the Barbadian economy. However, this country also receives significant income through remittances from Barbadians abroad. With a GDP of over 5 billion USD, it is the 157th largest economy, while its GDP per capita is US$17,758 annually. Its national currency is the Barbados Dollar (BBD)
Although tourism has displaced sugar production, sugar cane planting continues to be important, in addition to cotton, flowers, and foliage. The mining industry is limited to oil and natural gas production, although clay, limestone, and sand are also extracted.
To increase foreign investment, Barbados has requirements and procedures that incentivise foreigners to start a business on the island. For example, international trading companies with restricted liability, banks, and insurance companies can be established.
This nation is also attractive for foreign investment thanks to the excellent education it provides to its inhabitants. Barbados’ education system is modelled on the UK, so all citizens are entitled to free education until 16, which gives the country one of the highest literacy levels, almost 100%. Likewise, to guarantee a better standard of living for its inhabitants, this island of modest proportions has a quality national health system, which is free for all Barbadians.
Barbados, in addition to its natural wonders, is also characterized by its culture, enriched by its music with Latin and Caribbean rhythms, art, club nightlife, and sports such as cricket. Some of the most important cities are Bridgetown, which, in addition to being the capital, is also the island’s main port and financial center; Speightstown, also known as Little Bristol, the second urban center of the island; and Holetown, the oldest city.
Why acquire the services of an employer of record in Barbados?
Exploring markets away from home means investing time, money, and paperwork. Therefore, to face the challenges of international expansion, minimize the risks involved, understand local regulations, and recruit the best talent, many organizations acquire the services of other companies, such as an employer of record in Barbados.
Acquiring the services of a third party to find, hire and manage your staff has many advantages. One of the most important is that these legal employers have registered entities, so you will not have to open a subsidiary in the territory you are interested in, a process that can be time-consuming and costly. Instead, you can use these resources to grow your business.
In addition, thanks to its established recruitment networks, the employer of record in Barbados will not take long to find the personnel you are looking for, plus it will assume the legal responsibilities of hiring employees in another territory, such as handling payroll, tax withholdings, benefits and the eventual departure of workers.
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An EOR has complete knowledge of the labor regulations in the territories where they offer their services, which are often complicated to understand. For that reason, having an employer of record in Barbados will help minimize the risk of unexpected legal problems or possible financial penalties.
Although a third party will assume legal responsibility for hiring and managing human resources, expanding companies have complete control over their personnel. Your employer of record in Barbados will do the initial work but you are responsible for onboarding them, setting up activities, distributing workloads, and initiating an employment relationship.
The employer of record in Barbados will provide its clients with accounting information related to their human resources administration, as well as all requested reports. Thus, to enjoy all the benefits of hiring a legal employer, companies will have to pay a monthly fee, which will be fixed in the established agreement.
An employer of record in Barbados will handle the following labor regulations
Sometimes, understanding the labor regulations of a new territory can be complicated. So, to facilitate your entry into the Barbadian market and avoid possible fines for non-compliance, we list below the regulations for which your employer of record in Barbados will be responsible:
In Barbados, the Department of Labor is in charge of promoting stable and harmonious labor relations in addition to providing employment services to the community. Although different contracts may be entered into, indefinite and fixed-term contracts are the most common.
Both detail the employee’s name, the employer’s name and address, and the date of hire and duration of the contract, if fixed-term. It also includes data such as the job title and description, salaries and the intervals at which they will be paid, working hours, place of work, vacations, terms of termination, and probationary period, if necessary.
Salary. The salary in Barbados varies according to the field of work. The minimum hourly amount is BBD $8.50, about USD $4.20. The frequency of payments may also vary as agreed in the labor contract.
Vacations and national holidays. According to federal regulations, all employees are entitled to vacation after one year with a company for three weeks. This period is extended to four weeks when the employee has been with an organization for five or more years. In addition, there are 12 holidays: New Year’s Day, Whit Monday, National Heroes Day, Labor Day, Errol Barrow Day, Emancipation Day, Independence Day, Big Kadooment Day, Good Friday, Easter Monday, Christmas Day, and Boxing Day.
Sick leave. Sick leave is determined in the employment contract, but to be eligible for it, the employee must present a medical certificate after two days of absence. The National Insurance Plan will cover major absences, as long as the employee has made their contributions.
Maternity and paternity leave. Maternity leave is a benefit that also applies after one year of service and covers 12 weeks. In the event of any complication certified by a doctor, a female employee may take up to six additional weeks of maternity leave. However, a woman cannot have more than three maternity leaves with the same employer. Fathers, on the other hand, do not have paternity leave.
Employee severance and terminations. To terminate an employment relationship, there must be a reasonable cause that may be related to the employee’s ability or behavior. Thus, the notice period can be between one and 10 weeks, depending on the employee’s seniority. The severance indemnity is 2.5 weeks for each year of service, three weeks for each year for 10 to 20 years, and 3.5 weeks for each year if the employee has stayed 33 years in the company.
Taxes. In Barbados, tax collection is proportional to employees’ income. For example, when employees earn BBD $50,000, the tax rate is 12.5%. If income exceeds BBD $50,000, the rate is 28.5%. Income up to BBD $25,000 is not subject to tax.
Health insurance. Health care is universal in this country, and it is also exceptional. However, many companies offer their employees complementary medical services as part of their additional health and safety benefits. An employer of record in Barbados will take care of this.
Employer of record in Barbados — 7 steps to hire professionals
To hire professionals in an easy and hassle-free way through an employer of record in Barbados, follow the steps below:
1) Find your trusted EOR
Before looking for personnel, you should first hire a reliable EOR that knows the local market, understands your expansion needs, and fits your budget. To find the best one, check the reputation of the employer of record in Barbados that you have in your sights, and then sign an agreement in which you establish the terms and conditions of the service they will provide, such as the number of employees and the fee they will charge for managing them.
2) Define the profile of your employees
Now that you have the services of a certified EOR, with their help, define the profile of the people you want your employer of record in Barbados to hire. At this point, it is vital to work together, as they will establish all the requirements that the new members of the distributed workforce will have to meet, such as their knowledge, aptitudes, experience, and skills.
3) Pre-select candidates
Thanks to the local recruitment networks of your employer of record in Barbados, job applications will start arriving in a matter of days, making it easier than you think to start working in this territory. As soon as a minimum number of applications is met, your EOR will make a preliminary selection until it finds the profiles that best fit the vacancy requirements.
4) Start initial interviews
The most complete and attractive profiles will move on to the next stage, which is the initial interviews. At this point, your employer of record in Barbados will screen the candidates to verify that they suit the experience and skills described in their resumes. After discarding profiles, the process will continue until you find the best professionals.
5) Continue with in-depth interviews
After being selected in the first interview phase, candidates will be called for an in-depth conversation with you or one of the employer of record in Barbados’ hiring managers. This step helps you better understand whether the pre-selected professionals meet the requirements to join your team since technical knowledge and interpersonal skills are valued.
6) Draw up the job offers and sign the contracts
Once the candidates have passed all the filters, your employer of record in Barbados will assume responsibility for hiring following local regulations. Your EOR will forward the job offers. When both parties agree on what your company offers its employees, such as salary, benefits, and working hours, they will sign the employment contract.
7) Onboard your new employees
Your employer of record in Barbados will handle the administrative tasks related to hiring collaborators in this territory, so you can start managing the relationship with them. Now that they are part of the company, introduce them to the rest of the team, share the institutional values, review their roles and responsibilities, and make them feel part of your staff, even if they are thousands of miles away and will adopt asynchronous working.
Serviap Global can be your employer of record in Barbados
At Serviap Global, we assist our expanding clients with international PEO / EOR services in over 100 territories, including an employer of record in Barbados. We also offer global talent acquisition, making it easier for other companies to hire the most qualified professionals without establishing an entity in a new territory.
Our history as a family business began more than 12 years ago in Mexico, and then we expanded throughout Latin America and the rest of the world. Thanks to our commitment, personalized attention, and the quality of our products, today we are a reference in the personnel outsourcing market.
Contact us to find out how we can help you.
If you would like to learn more about how to recruit staff through an employer of record in Barbados or other countries, read the rest of our coverage.
