Bermuda Labour and Employment Law Handbook

Bermuda Labour AND Employment LAW I. Hiring A. At-Will v Just Cause Until the Employment Act 2000 ( EA 2000 ) came into force in March 2001, the employer was entitled to terminate an employee s Employment on whatever basis the employer deemed appropriate, provided that sufficient notice of termination was given and human rights legislation was not violated. The employer s right to terminate was constricted only by the terms of the contract. Of course if the employer terminated the employee summarily for cause, the employer had to justify the summary termination by showing proper cause. The effect of section 18 of the EA 2000 is that, in addition to giving proper notice, the employer must have a qualifying reason before it terminates the contract (see paragraph 2 below). 1. Common Law Claims Contractual terms agreed to between the parties may, of course, restrict the circumstances under which an employer may terminate an Employment contract. Written terms may be contained either directly in the contract or they may exist separately ( , in the letter of engagement, a staff memo, the employee Handbook , on the Intranet or in a collective agreement).

the employee to terminate the contract by reason of constructive dismissal. The conduct must be sufficiently serious in nature such that it is not reasonable to expect the employee to continue working for the employer. 2. Statutory Claims In addition to common law claims, the employee can now file a statutory complaint if the employer breaches the

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