You, Your Caregiver & The Employment Act
Where the relationship can be so personal, it is easy to forget that the Caregiver is an employee.
She is most often seen as an extension of the family, a sister, a close friend, particularly if she lives
in. Under Bermuda law, she is an employee and as such, entitled to certain rights and privileges
as any other worker in Bermuda.
In our role as a provider of domestic staffing, par-
ticularly Nannies & Housekeepers, we routinely counsel
on the provisions of the Employment Act. We highlight
here a few provisions of the Act and more recent conven-
tions that are particularly topical which deserve special
attention by those looking to employ or who currently
employ a Caregiver / Nanny: •
• •
Statement of Employment. The Act mandates
that there be a written contract (“Statement of
Employment”) setting out the fundamental terms of
the employment relationship. If the contract contains
more favourable terms than the Act, then the Con-
tract prevails. A contract that polices a Filipino nanny
relationship will typically include exceptional clauses
such as treatment of air fare costs for the annual vaca-
tion, a food allowance, and repatriation expenses.
•
The typical work week according to the Act is
Monday – Friday 9am to 5pm, with an hour for
lunch. The Act states that Employer’s can contract
out of the requirement for 1.5X (ie. Pay regular rate
by agreement) via the Statement of Employment /
Employment Contract.
• Benefits. The Act provides that the Employer pay
Itemised Statement of Pay. The Act imposes
his share of Payroll tax, Social Insurance, a private
pension plan (for Bermudian employees) and he
must provide a health insurance plan for each
employee and each employee’s (locally resident)
uninsured spouse.
Probation. The Act provides that either side can
terminate the contract for any reason and without
notice during the contractual probation period.
•
Work Permit Cost / Transportation to Bermuda
Expenses. Who pays?
Although somewhat frowned upon, the Employer
is not prohibited from accepting a contribution from
the Employee for Work Permit and/or transportation
to Bermuda costs.
Dismissal. Unless there is material breach of the
contract or a case of serious neglect, the Employer
cannot fire an employee at will. The Act provides for
a process with specific steps should an employee be
failing in her role. We should note that most contracts
are of fixed term. Therefore, finding cause for non-
renewal of a contract, particularly one dependent on
the issuance of a work permit is not necessary.
an obligation upon the Employer to provide an ite-
mised pay statement detailing relevant pay period,
hours, rate of pay, deductions etc.
•
Overtime Pay at 1.50X is NOT mandatory.
•
Rest Days / Time Off. The Act provides that at
least 24 hours of consecutive rest must be provided
to the Caregiver each week. A seven day work week
is illegal and grounds for a complaint. This condition
cannot be contracted out of nor does the payment of
overtime make it acceptable under the Act. Further,
the Act provides that an employee shall be entitled
to public holidays, and these shall be enjoyed and
paid, over and above the mandatory rest day.
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