How to stay compliant

Employer-of-Record (EOR) in Bermuda: Do You Need One?

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How to stay compliant

Employer-of-Record (EOR) in Bermuda: Do You Need One?

So you want to hire someone in Bermuda. Problem is, your company is located somewhere else. 

If you’ve done some research, you’ve probably been told you should be using an Employer-of-Record (EOR). Why? Well, if your company isn’t located in Bermuda, using an EOR can help you bypass the traditional obstacles to hiring full-time employees. 

But there’s a catch: EOR solutions in Bermuda are expensive—usually at least $500 per month per employee—and can take time to set up. And because you’re complying with a different set of labor laws, logistics and benefits can end up costing you lots of time and money. While they will save you time from setting up your own Bermudan entity, they’re rarely cheap or fast.

The good news? There’s another way to hire remote workers in Bermuda, and it doesn’t involve forking out huge amounts of money for an EOR. 

The solution: Hire your teammates in Bermuda as contractors. If you’re hiring remotely and your teammates have autonomy, there’s a good chance you can make compliant contractor hires. You still have to use locally-compliant contracts, but the process is a lot easier, more affordable, and faster.

We built Thera to help you make contractor hires, in 150+ countries (like Bermuda). So you can hire the people you want on your team, without paying thousands for an EOR. You can get set up in a couple of clicks—and you’ll only pay $49 per contractor per month. 

It’s just as easy as it sounds. No catch. Here’s what Thera looks like vs. an EOR in Bermuda:

Everything you should know about using an EOR in Bermuda

Are you considering hiring independent contractors in Bermuda? As an employer, you may be wondering about the best way to manage your workforce in a foreign country. One option is to use an Employer of Record (EOR) service. In this post, we'll break down what an EOR is, how it works in Bermuda, and the legal and regulatory conditions you should be aware of. We'll also explore the benefits and drawbacks of using an EOR versus hiring independent contractors.

What is an EOR?

An EOR is a third-party service provider that acts as the legal employer of your workers. This means that the EOR takes care of all the administrative tasks related to employment, such as payroll, taxes, benefits, and compliance with local laws and regulations. As the client, you retain control over the day-to-day work of your employees, but the EOR handles all the legal and administrative aspects of their employment.

How do EORs work in Bermuda?

Bermuda is a popular destination for international businesses due to its favorable tax and regulatory environment. However, there are several legal and regulatory conditions that you should be aware of when using an EOR in Bermuda. For example, the EOR must be licensed by the Bermuda government and comply with the Employment Act 2000. The EOR must also register with the Bermuda Immigration Department and obtain work permits for any non-Bermudian employees.

In addition, Bermuda has strict rules around the classification of workers as employees versus independent contractors. If your workers are classified as employees, you must use an EOR or establish a local entity to employ them. If your workers are classified as independent contractors, you may be able to hire them directly without using an EOR.

Benefits and drawbacks of using an EOR

Using an EOR can be a convenient and cost-effective way to manage your workforce in Bermuda. The EOR takes care of all the administrative tasks related to employment, which can save you time and money. In addition, the EOR is responsible for ensuring compliance with local laws and regulations, which can help you avoid legal and financial risks.

However, there are some drawbacks to using an EOR. For example, you may have less control over the day-to-day work of your employees, as the EOR is the legal employer. In addition, using an EOR can be more expensive than hiring independent contractors directly, as the EOR charges a fee for its services.

Why you might want to hire independent contractors instead

If you decide not to use an EOR, you may be able to hire independent contractors directly. This can give you more control over the work of your employees and may be less expensive than using an EOR. However, you will need to ensure that your workers are properly classified as independent contractors under Bermuda law. If your workers are misclassified as independent contractors when they should be employees, you may be subject to legal and financial penalties.

Hiring contractors? Thera can save you a ton of time

If you’re hiring contractors, you’re probably spending too much time on their payroll, contracts, and tax documents. Which is why we built Thera, which saves you 90% the time you spend on contractor paperwork each month.

With Thera, you can compliantly hire your contractors in 150+ countries, onboard them in minutes, and pay them all at once (in a click). It’s global contractor payroll, finally simplified.

Sound interesting? Click here to book a demo and see the platform firsthand

Run your global workforce on autopilot with Thera

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