The Bahamian severance system has a feature that catches many people out: managerial and supervisory staff are paid on a different formula from everyone else.
Non-managerial employees
Two weeks' pay for each year of service, capped at 24 weeks — reached at 12 years.
Managerial and supervisory employees
One month's salary for each year worked, capped at 48 weeks.
Managers and supervisors employed for 12 years or more reach that cap. With a month is calculated as four weeks, and with one month's pay in lieu of notice on top, an employee at that point receives roughly a full year's salary.
The qualifying period
Employees with at least 12 months of continuous service are entitled to severance upon termination, unless dismissed for cause.
Some guidance refers to six months of service for redundancy entitlement, so if you are between six and twelve months, it is worth checking your specific circumstances.
Published sources differ. Some describe severance for the first ten years at two weeks per year, then three weeks per year beyond the tenth, with a combined maximum of 60 weeks.
Given the variation, ask the Department of Labour which formula applies to your category before accepting a figure.
Pay in lieu must include the full package
This is a common and expensive error. Payment in lieu of notice must include the full wage package — base salary, housing allowance, vehicle allowance and regular benefits.
An employer paying base salary only and skipping the allowances is making a short payment, and it will be challenged.
Notice periods
Generally two weeks for employees with less than two years of service and one month for longer service. Managerial and supervisory staff receive one month's notice or one month's pay in lieu.
The 2017 amendment
Worth knowing: the 2017 Employment Amendment closed a loophole. If an employer re-engages a former employee as an independent contractor within 12 months of redundancy, doing the same work, the arrangement is deemed employment unless the terms are more favourable to the worker.