In Bermuda, employment can be terminated at the end of a fixed-term contract or at the conclusion of a project, by the employer for a legitimate cause, or by the employee. During the probationary phase, an employee may be terminated without cause. Bermuda does not have a mandatory probation term, however one may be stated in the employment contract.
Additionally, an employee may be terminated without notice for significant misbehavior that is so damaging that retaining the person would be unreasonable. When an employee's conduct does not reach to this degree of seriousness or when the employee's performance is substandard, the employer is required to issue a written warning. If the employee's behaviour or performance does not improve after six months, the employer may fire the employee without warning.
Outside of the probationary period and in the absence of grave misbehavior, the employer must have a legitimate basis for terminating the employment and provide written notice to the employee.
Employers may remove roles that are superfluous. Employers are required to notify the union or other representative body of the termination and cooperate with the union to reduce the effect of cutbacks, which may include reassignments.
For weekly employees, the notice period is one week; for biweekly employees, it is two weeks; and for all other employees, it is one month. Employers may substitute remuneration for notice.
Severance pay is payable to employees who have served at least one year. The severance pay is two weeks for each completed year of service up to ten years and three weeks for each subsequent completed year of service. The maximum severance is 26 weeks.
Bermuda does not have a mandatory probation period, but one may be specified in the employment contract.