Country Guide
Employer of Record in Barbados
Capital City
Canberra
Languages
English
Currency
Australian dollar ($, AUD)
Population Size
25,771,300
Employer Taxes
18.45%
Employee Costs
2%
Payroll Frequency
Monthly
Hire Globally, Pay Locally, Expand Effortlessly
When it comes to expanding your business globally, INS Global is the perfect partner for streamlining and compliance assurance. By collaborating with our experienced Employer of Record in Barbados, you can effortlessly recruit, hire, and manage employees without establishing a local company, all while skillfully navigating the complexities and costs of international expansion.
Our EOR and PEO services in Barbados provide a secure, efficient, and cost-effective solution for sourcing, employing, and managing local talent. With INS Global’s top-tier PEO services available in Barbados and over 160 countries worldwide, you can seamlessly handle a diverse and international workforce from anywhere in the world.
By acting as the authorized employer, our dedicated Employer of Record (EOR) in Barbados assumes complete responsibility for all HR-related activities on your behalf. This streamlined process enables you to enter new markets within a week, effectively reducing both the time and expenses associated with growing your business abroad.
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Why Choose an EOR in Barbados Over Company Incorporation?
Creating a new company takes time but also adds to the expansion cost in Barbados. EOR services streamline the process and allow you to expand in less than a week with no fear of costly penalties.
Working with a Barbadian EOR…
- Reduces expansion time
- Lowers expansion costs
- Ensures legal compliance
- Allows you to focus on growth
PEO/EOR vs Company Incorporation
The Advantage in Figures
PEO/EOR
Company Incorporation
Price
80% Less Expensive
Market Entry
2-5 Days
6 Months
Advantages of Using an Employer of Record on Barbados
Assured Legal Compliance
EORs in Barbados have local experience and can help you recruit and manage an international workforce while ensuring legal compliance. This prevents costly fines and penalties.
Lower Expansion Costs
Working with a local EOR allows you to expand internationally at a fraction of the cost. Since you don‘t have to establish a new company in that region, you can expand without drastically increasing your operational overheads.
Focus on Growing Your Company
EORs take care of all the HR-related responsibilities for you. This helps streamline your entire organization so that you can focus fully on growing your business internationally.
Fast Market Entry
If you were to set up a new company abroad, the process could take anywhere from 4 to 12 months. Working with a local EOR speeds up your expansion and allows you to launch in a new market in as little as a week.
Manage Your HR Online
INS Global offers you a way to manage your diverse, global workforce online through a single tool. With a modern, cloud-based HR platform, you can keep track of all your employees remotely.
How Does an EOR In Barbados Work?
INS Global’s EOR in Barbados allows your company to expand abroad in 4 simple steps.
1
We work with your business to create an expansion plan that meets all your needs.
2
Our organization provides a legal entity to help recruit and manage staff in Barbados.
3
We handle HR-related tasks such as hiring, contract management, and payroll processing to ensure legal compliance.
4
Your employees focus on your goals while we take care of HR and legal compliance.
The Difference Between PEO And Employer of Record Services in Barbados?
When expanding abroad, you may be considering working with a PEO (Professional Employment Organization) or an EOR (Employer of Record) in Barbados. Here’s what you should know to pick the service type that best suits your needs.
- PEOs offer HR-related services to your employees and can handle tasks such as processing payroll, tax deductions and contributions, and contract management.
- EORs are very similar to PEOs but can legally hire and manage employees on your behalf.
- A PEO arrangement establishes the contract between you and the employee, with the PEO provider acting as co-employer for support purposes.
- In an EOR arrangement, you direct the contract, but it is legally made between the EOR and the employee on behalf of your business.
INS GUIDES
Check Our Labor Law Guides
Labor Law in Barbados
Employment Contracts In Barbados
- Professional employment in Barbados is always accompanied with a written offer of employment.
- Employers can have a probation period, but it is not required by law. In most cases, employers include a 3-month probation period in their contracts.
- The employment contract should specify its nature and describe the employee’s role.
- An employer can end the contract early if the employee violates the conditions of their employment contract.
- Employees are entitled to 1 weeks’ notice if they have been employed for less than 2 years. This expands to 2 weeks if they have worked for less than 5 years, 4 weeks if they have worked for less than 10 years, 6 weeks if they have worked for less than 15 years, and 10 weeks if they have worked for more than 15 years.
- Severance pay is required for employees that have worked for more than 2 years. This amounts to 2.5 weeks for each year up to 10 years. This expands to 3 weeks of pay each year if they have worked for over 10 years but less than 20. Employees who have worked more than 20 years are entitled to 3.5 weeks’ pay for every year of service.
Working Hours in Barbados
- The working week in Barbados runs from Monday to Friday.
- Full-time employees generally work 8 hours per day, 40 hours per week.
- Part-time employees work 20 hours per week.
- Employees are entitled to a higher hourly rate for overtime. This is generally 150% of the normal hourly rate.
Types Of Leave
Annual Leave in Barbados
- Barbados has 13 official national holidays.
- Employees are entitled to a minimum of 3 weeks of paid vacation if they have been with the company for less than 5 years.
- Employees get 4 weeks of paid leave if they have been with the company longer than 5 years.
Sick Leave in Barbados
- There is no legal requirement or guide for sick leave in Barbados.
- Sick leave is dependent on the employment contract for each company and employee.
- In most cases, a CBA will provide some guidelines for sick leave and sick pay.
Maternity / Paternity Leave in Barbados
- According to Barbadian law, female employees are entitled to 12 weeks of maternity leave.
- Maternity leave cannot be taken for less than 12 weeks but can be extended depending on the employment contract.
- Maternity leave cannot start before 6 weeks from the expected date of birth.
- There is no legal requirement for paternity leave in Barbados.
Tax Laws in Barbados
- Employers in Barbados are responsible for withholding all taxes and social contributions.
- Employers contribute the equivalent of 12.75% of their employee’s salary to their employee’s National Insurance Scheme.
- Employees contribute 11.1% to their National Insurance Scheme, but the rate increases to 17.1% if they are self-employed.
- Personal income tax is based on your worldwide earnings. The base rate is 12.5% for the first BBD 50,000 and 28.5% for income over BBD 50,000.
- The corporate income tax rate can vary depending on how much taxable income is generated. The rate is 5.5% for profits under BBD 1,000,000. This rate decreases to 3% for profits under BBD 20,000,000 but more than BBD 1,000,000. The rate further decreases to 2.5% for profits under BBD 30,000,000 and 1% for profits over BBD 30,000,000.
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Frequently Asked Questions
faqs
No, it is necessary to use a local entity abroad to comply with each country labor law.
Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.
The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.
Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.
In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.
PEO services streamline your expansion plan, and the costs typically depend on a percentage of your employee’s salary.
Certainly, working with an Employer of Record in Barbados is a legal and cost-effective solution that streamlines your expansion plans while reducing costs.
Salaries are typically processed on a monthly basis for full-time employees, while part-time workers may prefer weekly or bi-monthly payments. Employers are responsible for deducting taxes and social contributions.
While recruitment in Barbados comes with a range of direct and indirect costs, INS Global simplifies and streamlines remote recruitment, hiring, and staff management, reducing the costs of taking on an international workforce.
Absolutely, an Employer of Record in Barbados can recruit and hire employees from all regions, expanding your talent pool across the country.
Modifications to employment contracts require mutual agreement. A Barbadian PEO ensures compliance with local labor laws.
Yes, employers in Barbados are responsible for deducting taxes and social contributions from employee salaries.
INS Global tailors its services to your specific needs, assisting you in recruiting and hiring as many or as few employees as necessary for your expansion plans.
Severance pay is required for employees that have worked for more than 2 years. This amounts to 2.5 weeks for each year up to 10 years. This expands to 3 weeks of pay each year if they have worked for over 10 years but less than 20. Employees with more than 20 years of experience in a company are entitled to 3.5 weeks‘ pay for every year of service.
In Barbados, you can hire employees for in-person and remote opportunities, ensuring cost efficiency during market entry.
Certainly! Our recruitment experts possess extensive experience in hiring top talent globally. We provide comprehensive support in recruiting, hiring, and managing your workforce, regardless of your location.
Barbados observes 10 public holidays, and most employees are entitled to a paid day off. Working on these holidays usually involves a higher hourly rate.
Employers must adhere to strict labor laws and regulations to avoid penalties and fines. Collaborating with an experienced PEO in Barbados ensures compliance during seamless expansion.
Absolutely! INS Global facilitates the recruitment and management of a diverse workforce remotely, making hiring both Barbadian citizens and foreigners simple.
A Global Employer of Record is an effective solutions for companies like yours that are looking to expand a workforce abroad effortlessly.
This approach allows you to outsource the international hiring process quickly and efficiency, providing access to a global talent pool while still managing payroll compliance in each country.