Bermuda - LaborBermuda-Labor
According to the 2015 Facts & Figures, in 2014 approximately 21 percent (7,304) of Bermuda’s labor force belonged to Bermuda’s two largest unions: the blue-collar Bermuda Industrial Union (BIU) and the white-collar Bermuda Public Services Union (BPSU). The unions’ principal focus is on job security.
The official unemployment rate in 2015 was 7 percent, although it was higher for blacks (9 percent) and those aged 16-24 (23 percent).
Work permits issued to third country nationals (TCNs) dropped to 7,868 in 2015, the lowest number in over a decade. TCNs fill positions all along the economic scale and in most occupations. According to the 2010 census, TCNs comprise approximately 28 percent of the total population and in 2015 held 23 percent of all jobs.
In recent years, IB companies have consolidated, downsized, and outsourced to less costly jurisdictions, including the U.S. and Canada, having serious implications for the employment of Bermudians. The Bermuda Chamber of Commerce points out that for every TCN work permit lost, five Bermudian jobs also disappear. The Association of Bermuda Insurers and Reinsurers also reports a direct correlation between TCN senior executives headquartered in Bermuda and employment opportunities for Bermudians.
The GOB generally expects employers to give Bermudian job applicants preference in hiring, locally known as the Bermudianization policy. However, in recognition of the key role IB and foreign investment play in the economy, particularly in terms of job creation for Bermudians, as well as Bermuda’s below-replacement level birth rate and its aging population, the GOB enacted a new work permit policy, effective March 1, 2015. In 2016, the GOB proposed immigration reform to grant status and permanent residence to long-term TCN residents. This issue proved to be extremely divisive with lines drawn along both race and political affiliation. Those in favor point to international practices and standards for a country to have a proscribed path to status for individuals living for 15 to 20 years in a country. Opponents view the proposal as the means to further disadvantage black Bermudians who suffer disproportionately from high unemployment ad lack of opportunity. At a public hearing on the subject on February 17, an unruly protest caused police to recommend that the meeting be halted. In March 2016, the People’s Campaign for Equality, Jobs and Justice - a coalition of labor unions and religious organizations formed in May 2014 to represent those suffering from the recession – called for an island-wide withdrawal of labor on March 11, which impacted public transportation and garbage removal that day and halfway through the following week, as a show of solidarity against the proposed Bermuda Immigration and Protection Act 2016. The proposed law would grant status and permanent residency to current non-Bermudian residents who have lived in Bermuda for at least 20 or 15 years, respectively. The Government withdrew the proposed legislation in the face of the protests and will attempt to address the less controversial parts of the proposal in a piecemeal fashion and with more consultation with both the opposition and public.
For information regarding labor complaints, see http://www.dwd.bm/labour-complaints-process. For information about the labor disputes process, see http://www.dwd.bm/referring-labour-disputes-under-labour-disputes-act-1992.
The Employment Act 2000 provides minimum employment standards. On termination of employment, an employee who has completed at least one year of continuous employment shall be entitled severance allowance, no less than the equivalent of two weeks wages for each completed year of continuous employment up to the first ten years and three weeks wages for each completed year of continuous employment thereafter, up to a maximum of 26 weeks wages.
In the case of layoff, an employee’s period of continuous employment continues until it is deemed that he has been terminated for redundancy and severance payment is accepted. Where any of the conditions of redundancy exist, an employer may lay off an employee for a continuous period not exceeding four months. Where the layoff exceeds four months, it shall be deemed to be a termination for redundancy.
The labor laws have not been waived to attract or retain investment.
The Department of Workforce Development is unaware of any gaps in law or practice identified by the International Labour Organization. Bermuda has laws in place that govern labor standards, except for a standard minimum wage and hours of work. Industries/sectors determine their employees’ hours of work and the Employment Act 2000 states that an employer shall provide each employee with a rest period of at least twenty-four consecutive hours in each week. The Labour Relations Section of the Department of Workforce Development along with the Human Rights Commission investigates unfair labor practices and the Department of Public Prosecutions prosecutes those who commit offences against the labor laws.
There have been no strikes in recent years that posed an investment risk or government’s reaction. Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
The official unemployment rate in 2015 was 7 percent, although it was higher for blacks (9 percent) and those aged 16-24 (23 percent).
Work permits issued to third country nationals (TCNs) dropped to 7,868 in 2015, the lowest number in over a decade. TCNs fill positions all along the economic scale and in most occupations. According to the 2010 census, TCNs comprise approximately 28 percent of the total population and in 2015 held 23 percent of all jobs.
In recent years, IB companies have consolidated, downsized, and outsourced to less costly jurisdictions, including the U.S. and Canada, having serious implications for the employment of Bermudians. The Bermuda Chamber of Commerce points out that for every TCN work permit lost, five Bermudian jobs also disappear. The Association of Bermuda Insurers and Reinsurers also reports a direct correlation between TCN senior executives headquartered in Bermuda and employment opportunities for Bermudians.
The GOB generally expects employers to give Bermudian job applicants preference in hiring, locally known as the Bermudianization policy. However, in recognition of the key role IB and foreign investment play in the economy, particularly in terms of job creation for Bermudians, as well as Bermuda’s below-replacement level birth rate and its aging population, the GOB enacted a new work permit policy, effective March 1, 2015. In 2016, the GOB proposed immigration reform to grant status and permanent residence to long-term TCN residents. This issue proved to be extremely divisive with lines drawn along both race and political affiliation. Those in favor point to international practices and standards for a country to have a proscribed path to status for individuals living for 15 to 20 years in a country. Opponents view the proposal as the means to further disadvantage black Bermudians who suffer disproportionately from high unemployment ad lack of opportunity. At a public hearing on the subject on February 17, an unruly protest caused police to recommend that the meeting be halted. In March 2016, the People’s Campaign for Equality, Jobs and Justice - a coalition of labor unions and religious organizations formed in May 2014 to represent those suffering from the recession – called for an island-wide withdrawal of labor on March 11, which impacted public transportation and garbage removal that day and halfway through the following week, as a show of solidarity against the proposed Bermuda Immigration and Protection Act 2016. The proposed law would grant status and permanent residency to current non-Bermudian residents who have lived in Bermuda for at least 20 or 15 years, respectively. The Government withdrew the proposed legislation in the face of the protests and will attempt to address the less controversial parts of the proposal in a piecemeal fashion and with more consultation with both the opposition and public.
For information regarding labor complaints, see http://www.dwd.bm/labour-complaints-process. For information about the labor disputes process, see http://www.dwd.bm/referring-labour-disputes-under-labour-disputes-act-1992.
The Employment Act 2000 provides minimum employment standards. On termination of employment, an employee who has completed at least one year of continuous employment shall be entitled severance allowance, no less than the equivalent of two weeks wages for each completed year of continuous employment up to the first ten years and three weeks wages for each completed year of continuous employment thereafter, up to a maximum of 26 weeks wages.
In the case of layoff, an employee’s period of continuous employment continues until it is deemed that he has been terminated for redundancy and severance payment is accepted. Where any of the conditions of redundancy exist, an employer may lay off an employee for a continuous period not exceeding four months. Where the layoff exceeds four months, it shall be deemed to be a termination for redundancy.
The labor laws have not been waived to attract or retain investment.
The Department of Workforce Development is unaware of any gaps in law or practice identified by the International Labour Organization. Bermuda has laws in place that govern labor standards, except for a standard minimum wage and hours of work. Industries/sectors determine their employees’ hours of work and the Employment Act 2000 states that an employer shall provide each employee with a rest period of at least twenty-four consecutive hours in each week. The Labour Relations Section of the Department of Workforce Development along with the Human Rights Commission investigates unfair labor practices and the Department of Public Prosecutions prosecutes those who commit offences against the labor laws.
There have been no strikes in recent years that posed an investment risk or government’s reaction. Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.