BAHAMAS Law and Practice Contributed by: Judith Whitehead KC, Graham Thompson
person is or was a director or an officer of a company; or • is or was, at the request of the company, serving as a director or officer, or in any other capacity is or was acting for another com - pany or a partnership, joint venture, trust, or other enterprises, provided that such person acted honestly and in good faith with a view to the best interests of the company. Also, under the common law of The Bahamas, there is the concept of piercing the corporate veil based on English common law principles. 4. Employment Law 4.1 Nature of Applicable Regulations Employment relationships are governed princi - pally by the implied and expressed terms of the employment relationship. In The Bahamas, these terms (where applicable) may be gleaned from the following sources: • the employment contract; • industrial agreements; • common law (case law); • the Employment Act and the Employment (Amendment) Act; • the Health and Safety at Work Act; • the Minimum Wages Act; and • relevant provisions of the following pieces of legislation: (a) the Industrial Relations Act; and (b) the National Insurance Act. In particular, where an employment relationship has been created by oral agreement, the terms of the employment relationship are espoused principally from English common law (as appli - cable), local common law, and local statute (in
particular, the Employment Act and the Employ - ment (Amendment) Act). The privileges associated with the freedom to contract exist in The Bahamas. This freedom, however, is subject to the relatively inalienable rights of the parties created under the Employ - ment Act. These basic rights represent and dictate the minimum standard of behaviour and expectations between an employer and employee. 4.2 Characteristics of Employment Contracts The termination of employment relations is gov - erned by Sections 26 to 28E of Part VI (redun - dancy, lay-offs, and short-time) of the Employ - ment Act as amended, Sections 29 and 30 of Part VII (termination of employment with notice), Sections 31 to 32 of Part VIII (summary dismiss - al) and Sections 34 to 48 of Part X (unfair dis - missal) of the Employment Act. Although there are no minimum requirements for the duration of an employment relationship, the employer’s duty upon the termination of a con - tract without cause varies depending upon the employee’s tenure of service with the employer. Generally, when terminating the employee with - out cause, the employer is required to give the employee reasonable notice of the termination. The Employment Act establishes the minimum notice requirements and provides the employer with the power to elect whether to give notice or to give a payment in lieu of such notice. For example, an employee who has been employed at least six months but less than 12 months is entitled to one week’s notice or pay in lieu there - of, and an employee who was employed for 12 months or more is entitled to two weeks’ notice or pay in lieu thereof if such employee does not
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