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Barbados is an island republic in the West Indies' Lesser Antilles, in the Americas' Caribbean area, and the most easterly of the Caribbean Islands. It has a population of roughly 287,000 people and a land area of 432 km2 (167 sq mi) (2019 estimate). Bridgetown is its capital and major city.
Barbados has been inhabited by the Kalinago people since the 13th century, and previous to that by various Amerindians. In the late 15th century, Spanish navigators acquired control of the island, claiming it for the Crown of Castile. In 1511, it initially appeared on a Spanish map. The Portuguese Empire seized the island between 1532 and 1536, but abandoned it in 1620, leaving only an importation of wild boars to ensure a plentiful supply of meat whenever the island was visited. On 14 May 1625, an English ship, the Olive Blossom, landed in Barbados and gained control of the island in the name of King James I. The first permanent English immigrants arrived in 1627, and Barbados became an English and then British colony. During this time, the colony relied on the labor of enslaved Africans who toiled on the island's plantations to run its economy. The slave trade to the island persisted until the Slave Trade Act 1807 prohibited it, with the full liberation of the enslaved people of Barbados coming during a five-year period after the Slavery Abolition Act 1833.
Barbados became an independent state and Commonwealth realm on November 30, 1966, with Elizabeth II as Queen of Barbados. Sandra Mason was chosen as Barbados' first President by Parliament in October 2021. Mason succeeded Queen Elizabeth as head of state on November 30, 2021, and Barbados became a republic within the Commonwealth of Nations.
Barbados is a prosperous and peaceful nation with a good standard of living. The majority of Barbados' people are of African heritage. While officially an Atlantic island, Barbados is strongly linked with the Caribbean and is one of its most popular tourist destinations.
After a year of employment, employees are entitled to 15 days of paid annual leave, which increases to 20 days after five years. The dates for yearly leave are set by the employer, and it must be taken in one continuous time.
The following holidays are observed in Barbados:
New Year’s Day
Errol Barrow Day
National Heroes’ Day
If a public holiday occurs on a Sunday, it is moved to Monday.
There is no such thing as paid sick time. Employers, on the other hand, frequently provide a number of paid sick days.
After one year of work, female employees are entitled to 12 weeks of paid maternity leave. Expectant moms often take six weeks off before their due date, with the remaining weeks of maternity leave taken after the baby is born. In the event of a pregnancy-related sickness, maternity leave might be extended by six weeks.
Paternity leave is not required by law.
Other than the already mentioned terms for maternity and paternity leaves, there are no other provisions in the Barbados law regarding parental leave.
Barbados labor laws provide the idea that an employee's employment for an indefinite period of time may not be terminated unless there is a valid cause for doing so that is related to the employee's ability or behavior or to the enterprise's operational requirements. This concept also applies to an employee's employment for a defined amount of time prior to the contract's stipulated expiration date.
The notice period varies between one and ten weeks, based on the employee's length of service. Additional regulations apply to redundancy and disciplinary dismissals.
There is currently no statutory provision governing probationary periods.
Severance pay should be 2.5 weeks' pay for each year of service up to ten years; 3 weeks' pay for each year of service over ten years and twenty years; and 3.5 weeks' pay for each year of service over 33 years. The employer of a pensioned employee may reduce severance pay to the extent of the employee's pension benefits due.
Barbados' typical workweek is 40 hours, divided into eight hours each day. Every employee is entitled to two weekly rest days, which are usually Saturday and Sunday. These rest days, on the other hand, can be scheduled on any two days at the employer's choice.
Overtime is optional and is defined as any time spent outside of the contracted working hours. Employers are not permitted to compel overtime work at any time. On a weekday, workers should be paid 150 percent of their regular pay rate. On a public holiday, they should be paid 200 percent. Younger employees are subject to different rules.
Employers are not required to pay bonuses to their employees, but may do so as part of their overall compensation package. Barbados is accustomed to performance-based bonuses.
As of April 2021, the country's national minimum wage is 8.50 Barbadian Dollars (4.23 USD) per hour. Employees may be paid on an hourly, daily, weekly, biweekly, or monthly basis as long as all arrangements result in a minimum hourly wage of BDD 8.50.
Barbados has a well-developed health-care infrastructure, both commercially and government funded. All workers are obliged to pay National Insurance and Social Security payments, which entitles them to free public health care.
Employers are not obliged to provide private health insurance plans, although they do have the choice to do so. Individuals with private health insurance may be able to visit a doctor sooner than those without and get better treatment. In most cases, public health care is an outstanding service provided by a well-established health-care system.
The country's labor regulations do not include any incentives or extra perks. Employers may opt to offer their own set of benefits to assist their workers.
For companies with profits not over Bds$1 million, the corporate tax rate is 5.5%.
For companies with profits over Bds$1 million but not over Bds$20 million, the corporate tax rate is 3.0 percent.
For companies with profits over Bds$20 million but not over Bds$30 million, the corporate tax rate is 2.5 percent.
For companies with profits over Bds$30 million, the corporate tax rate is 1.0 percent.
Individuals in Barbados are imposed an income tax rate that ranges from 25 percent to 38 percent. The actual percentage varies depending on the income tax bracket the individual belongs to.
The standard value-added tax rate in Barbados is set at 17.5 percent. For hotel services, the VAT is 7.5 percent.
It is important to note that Barbados is not a party to any trade agreement in and of itself. It has signed some trade treaties with other countries in the hemisphere and further afield under the auspices of CARICOM. In other words, because this country is not a member of a specific visa agreement, it is very easy to enter and stay within its borders for a short period of time.
Barbados does not offer a wide range of visas because most countries are free to enter without a visa for a short-term stay. However, because of the coronavirus pandemic, there are some restrictions in place, such as quarantine and health declarations.
Furthermore, the maximum stay permitted in visa-free countries varies. Most countries can stay for 90 days, but others can stay for shorter or even longer periods of time.
The start date, job title, job description, work hours, probation term, notice period, workplace location, and yearly leave entitlement must all be included in a formal employment contract.
Employers may utilize fixed-term contracts for short-term projects and indefinite contracts for long-term labor.
Barbadian Dollar (BBD)
You must prepare for the application before beginning the subsidiary formation procedure. It is important to create your company's structure, which includes forming a board of directors and locating a physical place for doing business. You may buy a building or develop your own office space, but creating your own property would need permits.
The subsidiary creation procedure include submitting an application to the proper government authorities. While other nations need many government permissions, in Barbados, you only need to engage with one agency to establish your organization – the Corporate Affairs and Intellectual Property Office.
You must submit at least two firm names to this office in order of choice, and they will provide you what is available. You must also provide information such as your official address, business data, and the names and addresses of your shareholders. Your incorporation will be complete after the Corporate Affairs and Intellectual Property Office verifies these things.
Then, depending on the sort of business you wish to operate, you must legally register your company. In general, the procedure entails:
1. Making any needed capital payments.
2. Providing a lawyer's statement of conformity.
3. Receiving a Certificate of Good Standing from the Office of Corporate Affairs and Intellectual Property.
The subsidiary rules differ depending on the kind of business you establish, but there are a few restrictions that apply to all sorts. Your firm must have at least one director and a maximum number of directors. You must also meet any investment capital criteria for your business type.
The need for articles of organization is one of the most prominent subsidiary laws. These papers explain your company's operations and contain the following:
1. The procedure for naming directors.
2. The daily proceedings.
3. Financial management and filing