The Employment Amendment (No. 2) Act 2026 came into force in Bermuda on 1 November 2026 and makes important changes to the Employment Act 2000. It restricts when employers may discipline or dismiss employees who are on leave or off duty, clarifies what constitutes disciplinary action, and strengthens the case management and enforcement powers of the Employment and Labour Relations Tribunal.
The changes have immediate practical implications for Bermuda employers, HR teams and managers.
What are the key Bermuda employment law changes for employers?
1. No dismissal during leave or off duty periods
Employers were already prohibited from giving notice of termination while an employee was on vacation, maternity, paternity, parental or bereavement leave, or during sick leave lasting no more than six weeks. The restriction now also applies while an employee is on any other leave authorised under an agreement or contract of employment, or while they are off duty.
2. No disciplinary action during leave or off duty periods
Equivalent restrictions also now apply to any other disciplinary action, meaning that employers must not ordinarily take disciplinary action while an employee is on vacation, maternity, paternity, parental or bereavement leave; sick leave lasting no more than six weeks; any other authorised or contractual leave; or while the employee is off duty.
There is a limited exception where employers may take immediate disciplinary action where there is a documented and urgent risk, such as fraud, theft, violence, harassment, misuse of confidential information, or a workplace safety risk.
Where an employer relies on this exception, it must provide written reasons for the action to the employee, the Department of Labour and any relevant trade union or other employee representative within seven days.
3. Broad meaning of disciplinary action
“Disciplinary action” is defined broadly and goes beyond dismissal or issuing a disciplinary warning. It includes a verbal or written warning, a disciplinary notice, notice of a disciplinary meeting or suspension, a dismissal notice, and a formal allegation of misconduct or similar correspondence, whether delivered physically or electronically.
The statutory restriction may therefore apply from the earliest stages of a disciplinary process. For example, an action as apparently routine as sending an email to an employee to invite them to a disciplinary meeting could create a compliance risk if it is sent while the employee is on leave or off duty.
4. Public register of unpaid Tribunal awards
The Act establishes a 'Naming Register for Unpaid Tribunal Awards' on which an employer may be named if they fail to pay an Employment and Labour Relations Tribunal award or civil penalty on time.
The register therefore creates a clear reputational risk for employers that do not pay Tribunal awards or civil penalties promptly.
5. Greater powers for the Employment and Labour Relations Tribunal
The Tribunal’s case management and enforcement powers have been strengthened, including in relation to setting hearing dates, deciding adjournment requests, and issuing civil penalties. The period for issuing Tribunal decisions has increased from 30 calendar days to 30 business days.
What should Bermuda employers and HR teams do now?
The timing of a disciplinary or dismissal process is now a significant legal issue. Starting a process at the wrong time, including emailing a formal allegation or an invitation to a disciplinary meeting while an employee is on leave or off duty, could breach the Employment Act 2000.
Bermuda employers should now:
• update disciplinary, dismissal, suspension and workplace investigation procedures to reflect the new restrictions;
• establish an employee’s leave and working status before taking action;
• establish a process for documenting urgent disciplinary situations;
• train managers and HR personnel on the expanded meaning of disciplinary action; and
• ensure any Tribunal awards and civil penalties are paid promptly.
How can Walkers help Bermuda employers?
Our Bermuda office's Employment team advises local and international employers on disciplinary procedures, dismissals, workplace investigations, employment disputes and day-to-day HR matters. We can help employers update policies and procedures, assess whether proposed action can lawfully be taken while an employee is on leave or off duty, and respond to Tribunal proceedings.
For advice on the Employment Amendment (No. 2) Act 2026 or its implications for your organisation, please contact a member of our Bermuda Employment team.
