Doing business in France offers a strategic advantage within one of the largest economies in Europe and a gateway to the European single market. Renowned for its strong infrastructure, skilled workforce, and supportive business environment, France is home to leading industries such as technology, manufacturing, and aerospace. The government’s commitment to fostering innovation is evident through initiatives like tax incentives for research and development, as well as the creation of tech hubs such as Sophia Antipolis. France’s rich cultural heritage and global influence also make it a prime location for industries like luxury goods, gastronomy, and tourism. With a pro-business climate, comprehensive social benefits for employees, and strong intellectual property protections, France continues to attract entrepreneurs and investors from around the world.

The traditional method has always required the establishment of a subsidiary in France. However, our solution allows you to start the operations in France within days hence saving time and money. WeHG would hire candidates on your behalf while you maintain full operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf.

An Employer of Record (EOR) can significantly streamline the process of doing business in France by handling complex administrative, legal, and compliance tasks on behalf of companies. Navigating France’s intricate labor laws, tax regulations, and social security requirements can be daunting for foreign businesses. An EOR ensures full compliance by managing payroll, employment contracts, tax filings, and social contributions, reducing the risk of errors or penalties. Additionally, an EOR simplifies onboarding and workforce management, allowing companies to quickly establish a local presence without the need to set up a legal entity. By offering expert guidance on regulatory changes and providing localized HR support, an EOR empowers businesses to focus on strategic growth while ensuring their operations align with French labor standards and employee expectations.

France fast facts

Population: 67, 413, 000
Land area: 640,679 km²
Capital: Paris
Local currency: Euro (€) (EUR)​, CFP franc (XPF)​

GDP per capita: $50, 876
GDP in currency: $3.322 trillion

France is a relatively advanced country located in northwestern Europe. Historically and culturally among the most important nations in the Western world, she has also played a highly significant role in international affairs, with former colonies in every corner of the globe. Bounded by the Atlantic Ocean and the Mediterranean Sea, the Alps and the Pyrenees, France has long provided a geographic, economic, and linguistic bridge joining northern and southern Europe. It is Europe’s foremost agricultural producer and one of the world’s leading industrial powers.

Hiring, Negotiating and Doing Business in France

Necessity of written employment contract

Foreign employers in France are to note that there is no ‘standard French employment contract’. Before a contract can be drafted, the applicable Collective Bargaining Agreement ought to have been determined. This appropriate agreement is based on your business’ activity in France. 

Employers must use the relevant CBA when drafting employment contracts, as failure to do so could result in significant financial or legal fines in the future. It’s also vital to consider the classifications of your employee’s role, as well as their job level within that capacity, before establishing a French employment contract. 

Experience, age, credentials, and responsibilities of employees must all be properly evaluated, confirmed, and documented in the contract. Given the complications discussed above, we strongly advise consulting with a labour law professional knowledgeable of French labour regulations before forming your team in France to ensure compliance with local law.

Different forms of engagement: employment, contracting, work with private entrepreneur

Citizens of any European Union or European Economic Area Member State, or of Switzerland, can work in France without a work permit. 

A work permit may take various forms: 

• A long-stay visa equivalent to a residence permit (VLS-TS) authorizing the holder to take up paid employment, like the Talent Passport permit as well as the ‘Intra-company transfer’ residence permit. These residence permits are equivalent to a work permit. No additional steps are necessary. 
• A specific work permit is requested by the employer before arrival in France for people. This work permit is required to obtain a visa and a residence permit. It is thus necessary for particular for the procedures for the introduction of employees on permanent contracts (excluding the Talent Passport), temporary workers on fixed-term contracts and posted workers excluding intra-group mobility. 

Certain residence permits valid as work permits and special work permits allow their bearer to work as an employee: 

• For any employer or for a specific employer only; and/or
• In one or more set geographical areas. 

A work permit issued in an overseas department or region (Guadeloupe, French Guiana, Martinique, Mayotte and Reunion) is valid only in that department. Foreign talents holding such a permit and who wish to move to mainland France to engage in paid employment must obtain a new work permit. 

A work permit issued in mainland France does not entitle its bearer to work anywhere else than in mainland France. Foreign talents wishing to work in one of the overseas territories must have their employer request another work permit. 

The requirement to seek a new work permit does not apply if the bearer holds: a European Blue Card Talent Passport; a resident card; or a private and family residence permit issued in the overseas territories.

France Employment Contract

Types of employment agreements

Like other countries, France has a number of different types of employment contracts to suit various working arrangements and projects. Among them, 2 types stand out: the CDI and CDD. 

• CDI 

Despite the fact that France lacks a “standard employment contract,” the CDI is widely regarded as one. The CDI is a permanent contract with no expiration date, which means it does not need to be reevaluated under normal circumstances. Employment with a CDI usually begins with a 2-4 month probationary period (also known as a trial period), which can be extended if it is allowed in writing in the employment contract. Although the employee must be informed of their responsibilities in writing, unless the “Convention Collective” (CBA) states otherwise, a verbal agreement for a full-time CDI is sufficient. The contract for a part-time CDI, on the other hand, must be in writing. It’s worth noting that the CDI contract’s goal is to help people.

The contract for a part-time CDI, on the other hand, must be in writing. It is important to note that the CDI contract is intended, in theory, to provide a contractual foundation for stable and long-term employment.

• CDD 

A CDD is a fixed-term employment contract that can only be used for certain reasons, like the temporary replacement of an absent employee, dealing with increased demand, or seasonal work. A CDD has a maximum duration of 18 months and can be renewed twice during that time. The length could be longer than 18 months in some cases, but only if specified in the CBA. If you want to keep the employee after this period, you must change their contract to a CDI. A CDD contract, unlike a CDI contract, must be written in French and signed by both parties. If one of these conditions is not met, the CDD will be automatically converted into a CDI.

It is also important to note that a CDD contract should include the following information: 

• Start and end date 
• Length of the probation period 
• Reason for hiring (as mentioned above) 
• Job title 
• Salary 
• Convention collective
• Supplementary pension fund (Caisse de retraite complémentaire)

If the employer fails to give the employee a copy of the contract within two working days, they have a right to demand 1-month compensation.

France working hours

In France, the legal working hours (Temps de travail) are set at 35 hours per week. Except for those with special working conditions, such as sales representatives, executives, limited liability company managers, caretakers in residential buildings, and domestic staff, the 35-hour rule applies to all employees. There are many other exceptions, so blue-collar workers and those in large organizations are the main beneficiaries, but even these people work more than 35 hours per week. French workers work an average of nearly 40 hours per week. Monday through Friday is the working week. The working day varies according to the company, its industry, corporate culture, size, and location in France. Working hours are generally from 8:30 a.m. to 9:30 p.m. and 17:30 a.m. to 19:00 p.m. Lunch is usually an hour-long, but it isn’t compulsory.

Overtime

Labour conditions in France require that the first eight hours of the extra work hours should attract a 25% premium in addition to the normal pay rate. Overtime for more than 8+ hours attracts a 50% premium.

Vacation leave in France

Vacation days are accumulated annually from the 1st of June to the 31st of May, to be used in the following period. Officially, this means that if you start working on April 1st, you can only take 5 days off between June 1st and May 31st (i.e. 2.5 days each for April and May). During the first 14 months of employment, you are entitled to five days of vacation! Some employers are flexible on this, and knowing this ahead of time can be helpful when negotiating employment terms. Customarily, ‘flexibility’ refers to days taken ‘in advance’ (par anticipation), i.e. they are deducted from your entitlement in the following period. The following count as working period: paid leave, leave to compensate for overtime, leave for family reasons, suspension of work due to occupational accidents or illnesses, maternity or paternity leave, adoption leave, training leave and periods of military service.

Certain constraints on how leave can be taken are imposed by employment legislation, such as the: the number of days of leave has a cap 24 working days, and the employee must take at least 12 working days of the main vacation at the same time. The employer may split up a major holiday that lasts more than 12 working days with the permission of the employees, and they are given at least one month’s notice. The fifth week of leave must be taken in addition to the primary holidays (usually August),

Also, the employees may receive some extra day(s) of leave in case of taking a fraction of the main vacation outside the period between 1 May-31 October: one extra day if this fraction lasts 3-5 days and two extra days if this fraction lasts 6 or more days.

France Maternity Leave

All mothers have the right to a minimum of sixteen weeks of paid maternity leave. Up to six weeks of the allowance may be taken as prenatal leave ( repos prenatal) which is taken before the estimated birth date ( la date présumé) and the remainder as postnatal leave ( repos postnatal). Workers can choose to shorten their leave, but eight weeks of maternity leave (six of which are postnatal) are compulsory. 

After the third child, employees are entitled to 26 weeks on leave: 8 weeks before the date of birth and 18 after. If the birth date is after the estimated date, the prenatal leave is automatically extended, but the postnatal leave entitlement remains the same. 

During maternity leave, employees receive payments from the French social security system. Most companies also have collective agreements ( conventions collectives) concerning continuing payment of the salary by the employer during the period of maternity leave.

All new fathers have the right to paternity leave of 11 days (18 days for twins or more). The leave must be taken on consecutive days within four months of the birth. The employer must be informed at least one month in advance. This can be combined with the three days of leave given for the birth of a child.

France Severance Laws

Before being fired or discharged employees are entitled to notice. The length of time between the notice and termination of the contract depends on what the employee and employer agreed to in the employment contract, but it is usually one to three months. Immediate firing may be justified in circumstances of gross wrongdoing.

Any employer that wants to terminate the employment contract of an employee must show just cause and follow dismissal procedures. Reasons for dismissal must be convincing. In view of this, the two primary reasons for firing an employee that is considered justified: personal (in the case of misconduct) and economic (e.g bankruptcy).

Employees with eight months of seniority or more on an open-ended contract are legally entitled to severance compensation in case of dismissal on economic grounds. However, employees are not eligible for severance compensation in case of dismissal for misconduct or negligence. Even though regulated, the law only establishes a minimum threshold for severance payments. The latter are calculated upon the gross monthly salary of the employee before the termination of the employment contract. Accordingly, they cannot be lower than the following amounts: 25% of the gross monthly salary times years of seniority, for employees with up to 10 years of seniority; 33.33% of the gross monthly salary times years of seniority, for employees with 11 years of seniority or more. The gross monthly salary of reference for the calculation above corresponds to the most advantageous formula for the employee between the following: The monthly average of the 12 months prior to the termination of the contract or the monthly average of all months prior to the termination if the length of service is less than 12 months; A third of the monthly salary for the three months prior to the termination of the contract. In the last case, any annual or exceptional bonus paid to the employee needs to be considered only up to an amount calculated in proportion to the period for which the bonus is paid. Moreover, the severance payment is calculated in proportion to the length of time the employee worked full-time and part-time. Severance compensation is not cumulative with any other indemnity of the same nature.

France Tax

Salary payments do not have income tax deducted, therefore employees are to make tax declarations and pay their income taxes (unlike in many counties where the employer makes deductions automatically)

Health Insurance Benefits in France

A doctor may prescribe sick leave for an employee by issuing a sick leave form ( un avis d’arrêt de travail). The employee must complete it and send within 48 hours to:

• the social security agency
• the employer, or the Pole Emploi office in the case of unemployment

Employees on sick leave are obliged:

• to stop working while receiving sickness benefits
• to comply with authorised times for leaving the house (specified by the doctor; usually 10:00-12:00 and 16:00-18:00 on all days)
• to ask for authorisation if wishing to stay in a different residence

Payments during periods of sick leave depend on the length of employment with the company and the length of the period of absence.

Additional Benefits in France

Social Security provides coverage for:

1) illness, maternity, paternity,  disability and death;

2) occupational accidents and diseases;

3) old-age benefits; and

4) family allowances.

It is composed of various schemes involving the insured according to their professional activities, chiefly:

• the general scheme: it includes workers, students, recipients of certain benefits, and residents;
• special schemes: they cover employees who are not in the general scheme (e.g. civil servants, SNCF and EDF-GDF agents…);
• the schemes for non-agricultural employees: they separately cover the artisans, merchants or manufacturers and liberal professions to the pension insurance, the “sickness” risk is subject to joint management;
• the agricultural scheme: it ensures the welfare of farmers and farm employees. This social security system does not depend on the Ministry of Social Affairs, but on the Ministry of Agriculture.

Complementary Plans contribute supplementary coverage to the risks afforded by Social Security. Some are mandatory (supplementary pension for private sector employees) and others optional (mutual health organisations, insurance companies, pension funds).

UNEDIC (National Employment Union Industry and Commerce) administers the unemployment insurance programme.

State Welfare provides support to the poorest.

General market practice benefits/additional allowances

• Investment climate

France is a business-friendly country, with one of the largest markets in Europe, and access to the European single market. It’s capital, Paris, is an important financial center in the region and the European leader in venture capital.

France also has a talented workforce, innovative business leaders, a high-quality transportation infrastructure, and strong intellectual property protections. In recent years, the French government has expanded their policies to continue attracting foreign interest and investment.

• Technology and innovation

Technology plays an important role in the French economy and its government invests heavily in R&D, creating a favorable foundation for innovation. The Sophia Antipolis technology park in Paris has the highest concentration of technology engineers outside Silicon Valley. Major global technology players have established a presence in the park including companies like Accenture, Cisco, Intel, IBM, Air France, and Orange.

• Manufacturing

France is an industrial powerhouse and despite a decline in overall output, manufacturing remains one of the country’s largest economic sectors. The country is home to leading automobile manufacturers (Peugeot and Renault) and the world’s leading aircraft manufacturer (Airbus). With an increased focus on technology and innovation and the country’s strong entrepreneurial culture, the French government continues to support the manufacturing sector in order to increase its competitiveness.

• Tourism

As with many European countries, tourism plays a key role in the country’s economy. France receives over 85 million visitors per year – representing nearly 10% of the country’s GDP. France is one of the most visited countries in the world, and its popularity can be attributed to its history, cultural influence, culinary experiences, and renowned attractions, including UNESCO world heritage sites located throughout the country.

France Holidays

There are eleven national public holidays in France:

• 1 January, New Year’s Day (Nouvel an, Jour de l’An)
• Easter Monday in March or April (Lundi de Pâques)
• 1 May, Labour Day (Fête de travail)
• 8 May, aVictory Day – End of Second World War 1945 (Fête de la liberation)
• Ascension Thursday, the sixth Thursday after Easter, usually in May (Ascension)
• Whit Monday (Pentecost) , the Second Monday after Ascension, in May or June (Pentecôte)
• 14 July, Bastille Day (Fête Nationale)
• 15 August, Assumption (Assomption)
• 1 November, All Saints’ Day (Toussaint)
• 11 November, Armistice 1918 Day (Fête de l’Armistice)
• 25 December, Christmas Day (Noël)

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.

The post France first appeared on WeHireGlobally.

Bolivia PEO & Employer of Record

Companies looking to enter the Bolivian market or engage local or expat workers in this country may take advantage of WeHG’s international PEO and global Employer of Record services in Bolivia. A Bolivian subsidiary must be established according to the traditional approach. While everything is going on, our technology enables you to begin business activities in Bolivia within days, saving you both time and money. On your behalf, WeHG would appoint people, but you would retain complete operational control over their work. They would therefore be our local payroll staff, 100% compliant, and working on your behalf.

Bolivia fast facts

Population: 12.08million (2021)
Land area:  1.099 million km²

Capital: La Paz (Executive and Legislative) and Sucre (Constitutional and Judicial)

Local Currency: Bolivian Boliviano (BOB)

GDP per capita:$9,933
GDP in currency:$118.8billion

Bolivia is a country in west-central South America. Bolivia, which extends 950 miles (1,500 km) north-south and 800 miles (1,300 km) east-west, is surrounded by Brazil to the north and east, Paraguay to the southeast, Argentina to the south, Chile to the southwest and west, and Peru to the northwest. Lake Titicaca, the second-largest lake in South America (after Lake Maracaibo), is shared by Bolivia and Peru. Since Chile won the War of the Pacific (1879–1844), the nation has remained a landlocked one, but agreements with its neighboring countries have given it indirect access to the Pacific and Atlantic oceans. The Supreme Court is established in the ancient city of Sucre, which serves as the country’s administrative capital, while the executive and legislative arms of government are housed in La Paz.

Hiring, Negotiating and Doing Business in Bolivia

Necessity of written employment contract

In Bolivia, employment contracts must be in writing and registered with the labour ministry.  (They can be for a specified or an indefinite term.)  While foreign employees do not need work permits, they must register their employment contracts with the Bolivian labor authorities within 90 days of signing them. To sign the contract and carry it out, the workers require a special purpose visa and a one-year resident visa.

Different forms of engagement: employment, contracting, work with private entrepreneur

“Workers” and “employees” are distinct in accordance with the General Labour Law. While employees often work in an office on a set schedule and special circumstances and primarily perform intellectual work, workers provide material or manual services. Although each category is covered in detail by the General Labour Law and other labor rules, they have evolved over time to become more standard, mostly to prevent imbalances. As a result, the terms “employees” and “workers” are used interchangeably throughout this Q&A.

Independent contractors and self-employed people are not considered to be workers or employees for labor law purposes. However, it is normal practice to exploit these ideas to cover up a working relationship and avoid some responsibilities (such as taxes, social security affiliation, and entitlement to labor rights). The misclassification of a worker as an independent contractor is punishable under the principle of material reality.

Bolivia Employment Contract

Types of employment agreements

In Bolivia, indefinite contracts are the most common and effective way to control working conditions. Any labor agreement, whether in writing or verbally, shall be regarded as endless. The only agreement that may give the employee a trial term of 90 days is this one. Employees can utilize this time to get used to the workplace and the employer has the right to end the relationship at any time during this time without having to pay a termination fee.

A fixed-period contract is one that due to its conditions establishes a determined period of validity. The fixed period contract must be written and must state the duration period of employment. According to Bolivia’s labor laws, this type of contract can apply under the following conditions:

• Workers with a fixed-period contract cannot perform direct company activities. This type of contract can be used only for persons who support activities not related to the main activity of the company
• If a regular employee of the company is temporarily unable to work, companies can hire a temporary worker with this type of contract until the employee can return to their contracted activities. The employer cannot hire the same work more than once using this mechanism
• If a company needs extra support and resources during a certain period of the year, it may hire fixed-term workers for that surge period to cover all company needs. If the company requires additional human resources in the long term following this period, they must hire through an indefinite labor contract
• An employee can only be hired with this type of contract two times. Otherwise, a third fixed-period contract will be automatically considered an indefinite
• Each fixed-period contract has a maximum length of one year
• According to Bolivia’s labor laws, a fixed-period contract requires the approval of the Ministry of Labor to be validated; if this requirement is not fulfilled by the employer, the contract will be considered indefinite.

In both types of contracts, employees have rights and obligations of the employment relationship, including the contributions to social security made by the employer.

Bolivia working hours

Starting with male workers, are not to work more than 48 hours per week, and women have a 40-hour cap. Working hours during the daytime start at 6 am and end at 8 pm. and the working time per day is limited to eight hours. Employees can only work eight hours each day. Working hours for shift workers can be longer, so long as the average doesn’t exceed the maximum over a three-week period.

Hours worked between 8 PM and 6 AM qualify as night work. Employees may only work seven hours per night, and they must receive a 25 percent to 50 percent salary increase for hours worked during the night period. The scale of the salary increase should reflect the nature of work and the employee’s circumstances. If a day shift is over five hours, workers must receive a break every two hours. Night workers may take a break after three and a half hours.

Overtime

Work done in emergencies or to meet the employer’s needs is referred to as overtime. Overtime is treated as extraordinary working hours which must be compensated accordingly.  They must be compensated with 100% extra pay, and must not exceed a total of two hours per day. Extra payment of 100% also applies to work done during public holidays.

For working on Sundays, workers must be compensated by three times the daily salary, or, in some situations, by granting a leave of one working day to the employee (to be determined by management).

Vacation leave in Bolivia

• An employee is entitled to 15 days of paid annual leave after one year of service.
•  A worker who has been with the company for at least five years is entitled to 20 days of paid yearly leave.
• An employee who has worked for the company for at least ten years is entitled to 30 days of paid yearly leave.

Bolivia Maternity Leave

Mothers are to be granted a total of 90 days, which are divided into 45 days prior to the anticipated due date and 45 days following the baby’s delivery. A mother on maternity leave receives compensation equal to 100% of the federal minimum wage. Yet, the employer is entitled to a 90% social security refund.   

The mother is eligible for a prenatal subsidy starting in the fifth month of pregnancy and a nursing subsidy up until the kid turns one. Each of the subsidies equals one month’s salary per month of pay.  

Mothers are given a year for job protection starting on the day the kid is born.

Bolivia Paternity Leave

For the birth of a child, fathers are entitled to 3 days’ pay. From the date that the child is born, fathers receive job protection for 1 year.

Bolivia Severance Laws

• Termination Process

Justified dismissal: Under Article 16 of the General Labor Code, an employer has the right to terminate an employee for one of the reasons on the list of grounds that are regarded to be just.  

Unjustified dismissal: An employer has the right to fire a worker at any time for unjustified reasons. Yet, if this is the case, the employee may claim severance pay or a job reinstatement from the ministry of labor. 

• Notice Period

The notice periods for blue-collar employees are 7 days for one month of service, 15 days for six months of service, and 30 days for one year of service; for white-collar employees, the notice time is 90 days for employment of more than three months. 

• Severance Pay

Severance for unjustified dismissal is equal to one month’s pay for each year of service.  

Employees also receive their Christmas bonus, holiday pay, and bonus. 

Bolivia Tax

An individual resident in Bolivia is liable to pay income tax at the rate of 13% of his salary. Employers must deduct income tax from their employee’s wages and submit them to the National Service of Internal Revenue. To maintain ongoing compliance, employers must make compulsory social security contributions of 3% of the employee’s gross salary, and pay a ‘joint risk’ prime of 1.7%.

To varying degrees, employers also contribute to several other national funds:

The health fund covers illness, maternity, and short-term occupational hazards. The employer’s contribution is 10% of the employee’s gross salary.
The social fund covers the construction, enlargement, and repair of schools and hospitals. The employer’s contribution is 2% of the employee’s gross salary.
The labor formation and training fund is optional and covers staff education and training. Employer’s contribution is usually 1% of gross salary.
Foreign employees are subject to the same taxes as local employees but are exempt from social security contributions. For businesses, company profit tax is chargeable at 25% on the company’s net profits and a 12.5% withholding tax is payable when Bolivian source income is paid to foreign beneficiaries. A 3% transaction tax 3% and applies to the transfer of ownership of movable assets, property, or the rights resulting from the exercise of a trade, industry, profession, or business, among other things.

Health Insurance Benefits in Bolivia

Employees are entitled to sick leave starting on the fifth day of their illness for a total of 26 weeks over the course of a year. The employee must present a medical document attesting to their illness. The sick leave may be extended for an additional 26 weeks if medical treatment can be shown to avoid permanent disability.  

Every employee is entitled to 100% pay for common illnesses. Yet, the employer is allowed to get a 75% social security reimbursement.

Additional Benefits in Bolivia

The following bonuses must be paid to employees:

• Profit bonus (Prima). When a company makes annual profits, all workers must receive one additional monthly salary, subject to a cap of 25% of the company’s profits (if this is not sufficient to pay all workers, they will receive a pro-rated payment).
• Seniority bonus (Bono de Antigüedad). This is a monthly payment made to employees who have completed two or more years of continuous work. The base of the bonus is three times the national minimum wage, and is calculated as follows:
  • two to four years of continuous service: 5%;
  • five to seven years of continuous service: 11%;
  • eight to ten years of continuous service: 18%;
  • 11 to 14 years of continuous service: 26%;
  • 15 to 19 years of continuous service: 34%;
  • 20 to 24 years of continuous service: 42%;
  • 25 or more years of continuous service: 50%.
• Christmas bonus (Aguinaldo). Employees are entitled to an additional monthly salary at the end of each year (or to a pro-rated payment if they have worked for less than a year). The Christmas bonus is not subject to tax and social security contributions. A unique payroll must be prepared and filed to record payments of Christmas bonuses.

General market practice benefits/additional allowances

Bolivia is willing to increase its attractiveness as a country full of new opportunities for doing business, as it is showing interest in foreign investments and partnerships in strategic sectors such as hydrocarbons, mining, natural resources exploitation, transport, and communication. Lately, the acting president of Bolivia, Jeanine Añez, announced the initiation of removing Bolivian agro-industrial exportation restrictions set up by Morales.

Bolivia currently lags behind some neighboring countries in terms of development and entrepreneurship. However, Bolivia is bouncing back on the World Bank Doing Business 2020 ranking, sitting at 150 (improving 6 places from 2019).

There is great potential for foreign entrepreneurs to step into the gaps in this developing country’s unsaturated market.

Bolivia is rich in non-renewable natural resources. Bolivia’s largest export sectors are mining and hydrocarbons. There is still a lot of potential in this market to grow. Next to the already mined minerals such as silver, lead, zinc, natural gas, and tin, Bolivia possesses the largest lithium reserve in the world, which is not currently being used to its maximum benefit.

Doing business in Bolivia is made easier for Northern American companies as Bolivian consumer perceptions of North American products are generally high-quality and innovative. The American brand, therefore, carries a lot of influence in the Bolivian market.

Local governments use products and services from the United States because they are viewed as reliable due to warranties, high customer service standards, and maintenance plans.

Bolivia provides low-cost labor for foreign companies doing business in the country. Bolivia’s workforce maintains an average salary of BS 2,122 (around US$310). Bolivia’s main labor cost advantages can be found in sectors such as manufacturing and customer service.

Bolivia Holidays

Listed here are the 2023 public holidays in Bolivia;

• New Year’s Day        January, 1
• Plurinational State Foundation Day      January, 23
• Candlemas February, 2
• Carnival                February, 20 – 21
• Good Friday, April, 7                                                                 
• Labor Day               May, 1
• Corpus Christi        June, 8
• Willkakuti               June 21
• Agrarian Reform Day           August 2
• Independence Day                August 6
• National Dignity Day           October, 17
• All Souls Day                         November 2
• Day of the Dead                   November 2
• Christmas Day                    December 25

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.

The post Bolivia first appeared on WeHireGlobally.

Nigeria PEO & Employer of Record

WeHireGlobally provides international PEO filings and global recruiting service in Nigeria to companies considering entering the Nigerian market or hiring local/foreign employees in Nigeria. The conventional approach requires setting up a subsidiary in Nigeria. However, our solution allows you to start operating in Nigeria within days, saving you time and money. WeHireGlobally will hire candidates on your behalf while retaining full operational control over their work. So legally they would be our employees, on our local payroll, 100% compliant but working on your behalf.

Nigeria fast facts

Population: 215 million
Land area: 923,769 km²
Capital: Abuja
Local currency: Naira (₦) (NGN)

GDP per capita: $2,432
GDP in currency: $514 billion

Nigeria is geographically diverse with climates ranging from arid to humid equatorial. However, Nigeria’s most diverse feature is its people. Hundreds of languages are spoken in the country, including Yoruba, Igbo, Fulani, Hausa, Edo, Ibibio, Tiv, and English. The country has rich natural resources, including large oil and natural gas fields. Lagos, the former capital, retains its status as the country’s leading commercial and industrial city. Modern Nigeria dates back to 1914 when British protectorates in northern and southern Nigeria were unified. The country gained independence on 1 October 1960, and in 1963 adopted a republican constitution but chose to remain a member of the Commonwealth.

Hiring, Negotiating and Doing Business in Nigeria

Necessity of written employment contract

An employment contract is defined in section 91 of the 2004 Labor Act as “an agreement, oral or written, express or implied, by which a person agrees to hire another person as a worker and that person agrees to serve the employer as a worker”. In Nigeria, as required by the law governing the employee/employer relationship, an employment contract must be signed and accepted by the parties, once signed it becomes binding to the parties. In the event of non-performance or breach, the injured party can assert its rights before the National Industrial Court in the jurisdiction of the injured party.

Different forms of engagement: employment, contracting, work with private entrepreneur

There is no clear statutory distinction between different types of workers in Nigeria. The Employees Compensation Act and the Labor Act use the words “employee” and “workers” respectively to refer to any person employed. However, apprentices, domestic workers, and young people are classified as special workers under labor law. Youth and female employees are not allowed to work at night, subject to some exceptions set out in labor law. Under the Companies and Allied Matters Act, employees who own shares are referred to as employee-shareholders. An independent contractor is a person who is involved by an employer to perform a specific kind of job. An independent contractor is not under the control of the employer and performs its professional work. On the other hand, an employee is committed to providing services under the control of employers. An employee who is misclassified as an independent contractor loses all the rights and privileges of an employee. However, a person who actually performs their work as an employee will be considered an employee under the law and not an independent contractor.

Nigeria Employment Contract

Types of employment agreements

Generally, employments in Nigeria fall within three categories and are: 

• Employment which is governed by statute

 This is employment with statutory flavor. Employment is said to have a statutory flavor when the appointment and termination are protected by statute or laid down regulations made to govern the procedure for employment of an employee. The rules and regulations are part of the terms and conditions of the employees’ employment which gives it statutory flavor. 

• Employment by a written contract of employment 

A contract of employment is defined as any agreement, whether oral or written, express or implied whereby one person agrees to employ another as a worker and that another person agrees to serve the employer as a worker.  An employer must give an employee a written contract within 3 months of the commencement of the employment. The contract must have certain key terms namely; the name of employer and employee, nature of employment, duration, wages, termination, etc. The provisions of the contract regulate the relationship between the employer and the employee

• Employment at will or servant holding an office at the pleasure of employer or Master and servant relationship 

Employment at will is when the employee holds an office at the pleasure of the employer. As the name suggests, this is a form of employment held at the will and caprices of the employer. Unlike employment with statutory favor, the continuous engagement of the employee is at the discretion of the employer. For example, a Minister of the Federal Republic of Nigeria is employed by the President and therefore he or she holds that office at the pleasure of the President.

Nigeria working hours

Normal working hours can be fixed by any of the following: 

• Mutual agreement.
•  Collective bargaining agreement within the organization or industry concerned.
•  An industrial wages board, where there is no collective bargaining procedure available.

The hours that an employee works in excess of the normal fixed working hours constitute overtime. A worker can opt-out of the working hours individually if their normal working hours are fixed by mutual agreement. A worker cannot opt-out individually where their working hours are fixed by a collective bargaining agreement. Any change must be agreed on collectively through the union and the organization or industry.

Overtime

As specified under the National Minimum Wage Act, Normal full-time working hours are forty hours per week. However, the Labor Act does not specify general working hours; rather these are fixed by the mutual agreement or collective bargaining within the enterprise or industry. Where there is no machinery for collective bargaining, the general working hours may be fixed by an industrial wages board. If the worker has to work more than the fixed normal working hours, it is considered overtime. There is no statutory provision on the overtime work limit and overtime pay. Overtime compensation is entirely a matter of mutual agreement (employment contract), collective bargaining agreement, or an order by the industrial wages board.

Vacation leave in Nigeria

A worker with a 12-month continuous period of employment is entitled to the following minimum annual paid holiday: Six working days, for persons under the age of 16 years (including apprentices). 12 working days. This excludes all public holidays. 

Annual leave must be taken at the end of the year in which it is earned however it can be deferred by mutual agreement provided that the holiday earning period must not exceed twenty-four months and the earned and deferred leave must be taken within 24 months.

Nigeria Maternity Leave

A pregnant employee is entitled to 16 weeks(4 weeks before birth and 12 weeks after birth) maternity leave if she provides a written medical certificate from a medical doctor stating that she should not or cannot work. Pregnant employees are entitled to at least 50% of their normal wages, provided that they have been employed for at least six months. Nursing mothers are allowed half an hour twice a day to attend to their babies. The Labour Act does not contain provisions on paternity leave. However, in Lagos State, civil servants are entitled to two weeks of paternity leave within the first two months from the birth of the baby.

Nigeria Severance Laws

Notice periods

Notice periods to be given by employees and employers are as follows:

Where the employee has been employed for less than three months, either party can terminate the contract by giving a minimum one-day notice. 

Where the employee has been employed for three months but less than two years, either party can terminate the contract by giving a minimum one-week notice.

Where the employee has been employed for two years but less than five years, either party can terminate the contract by giving a minimum of two-week notice. 

Where the employee has been employed for five years or more, either party can terminate the contract by giving a minimum of one-month notice. A notice of one week or more must be in writing.

Severance payments

Severance pay is often regulated by the contract of employment and sectoral collective agreements. Severance pay is generally calculated based on the worker’s length of service and last salary. There is no general statutory severance pay, although the Minister of Labour can enact regulations providing for severance pay to redundant workers.

Nigeria Tax

Foreign nationals who enter the country under a temporary work permit (that is, a permit granted to expatriates who intend to stay in Nigeria for a period not exceeding three months (see Visa)) and spend less than a cumulative period of 183 days per year in Nigeria are not liable to pay income tax on a pay as you earn (PAYE) basis. This is provided that their salaries are not recharged to the Nigerian employer company. Non-resident foreign nationals must pay withholding tax at rates of 5% to 10% on income received in Nigeria. The social security contributions that are deducted from workers’ salaries in Nigeria are as follows: National Housing Fund contribution. National health insurance scheme contribution. Life assurance premium. National pension scheme contribution. An employer must also pay a 1% social security contribution on its total payroll costs to the Industrial Training Fund and toward the employees’ compensation scheme.

Health Insurance Benefits in Nigeria

Sick pay must be paid by the employer. However, where the employer fails to pay or is insolvent, the employee can recover sick pay from the Nigeria Insurance Trust Fund Management Board, which manages the Employment Compensation Fund. Employees have the right to take time off in the case of illness or injury. The contract of employment may include specific provisions on sick pay. If not, an employee is entitled to the payment of wages for up to 12 working days in any calendar year during an absence from work caused by a temporary illness certified by a registered medical practitioner (Labour Act). The Employees Compensation Act makes provision for the payment of compensation to employees who suffer from work-related injuries or illnesses.

Additional Benefits in Nigeria

In the private sector, it is common to reward employees through either contractual or discretionary bonuses. These bonuses can take any of the following forms: 

Performance bonus. 

Overtime bonus. 

Christmas bonus. 

13th-month bonus. 

Sales bonus. 

Leave allowances. 

Study allowances.

Persons who work in the public sector are not entitled to bonuses, but only to benefits either for hard work or long-term commitment to public service.

General market practice benefits/additional allowances

A Rapidly Expanding and Young Population Already Africa’s most populous country by a long, long way with approximately 215 million inhabitants, the number of Nigerians is set to rise rapidly for the foreseeable future, with experts predicting that it will be the world’s third most populous country by 2050. Nigeria’s middle class is also growing. Today 23% of the total population are considered middle class and this is projected to increase. For businesses looking to expand into Nigeria, this of course means a large (and growing) consumer base with increased spending power.

• A Booming Economy

Nigeria also tops the list for Africa’s largest economy, largely thanks to its production levels of oil and gas, which are also the highest in the continent. Over the last ten years, the country has enjoyed average GDP growth of 6.9% and is now the biggest beneficiary of Foreign Direct Investment in Africa.

• A Surge in the Use of Technology

A recent report by Internet World has shown a huge increase in ‘Googling’ throughout the country, with Nigeria coming out the top. With IT and Software companies experiencing major growth, and Media and Professional services closely behind – it seems every sector is being well represented across this diverse country as it continues to develop at a very fast pace.

• Strong Links to the UK

Part of the British Empire until 1960, Nigeria and the UK still maintain strong ties and share a common language. Today Britain is one of the largest investors in Nigeria and enjoys investment incentives such as free trade zones and tax holidays. A large number of well-known British companies, including HSBC, Barclays, PZ Cussons, Cadbury, and Unilever, have already taken advantage of these.

Nigeria Holidays

There are about 11 public holidays in 2022:

New Year’s Day – Sat, 1 Jan 2022

Good Friday – Fri, 15 Apr 2022

Easter Monday – Mon, 18 Apr 2022

Labour Day – Sun, 1 May 2022

Eid al-Fitr – Likely 2–4 May 2022*

Democracy Day – Sun, 12 Jun 2022

Eid al-Adha – Likely 9–11 Jul 2022*

Nigerian Independence Day – Sat, 1 Oct 2022

Prophet’s Birthday – Likely 7–8 Oct 2022*

Christmas Day – Sun, 25 Dec 2022

Boxing Day – Mon, 26 Dec 2022

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.

The post Nigeria first appeared on WeHireGlobally.

Kenya PEO & Employer of Record

WeHG provides an International PEO and global Employer of Record service in Kenya to companies willing to enter the Kenyan market or seeking to hire local/expat employees in the country.

A widespread approach requires establishing a subordinate in the country (Kenya). However, our services enable you to initiate the processes in Kenya within days thus saving time and money.  WeHireGlobally would contract prospects based on your interest but you will have complete operational supervision of their work. So legally they would be our job-seekers, on our local payroll, 100% acquiescent but will work on your behalf.

Kenya fast facts

Population: 55 Million
Land area: 580,367 km²
Capital: Nairobi
Local currency: Kenyan shilling (KES)

GDP per capita:$ 5,274
GDP in currency:$ 250.854 billion

Kenya, a country in East Africa famed for its scenic landscapes and vast wildlife preserves. It is the 29^th most populous country in the world. Its Indian Ocean coast provided historically important ports by which goods from Arabian and Asian traders have entered the continent for many centuries. Along that coast, which holds some of the finest beaches in Africa, are predominantly Muslim Swahili cities such as Mombasa, the oldest and first capital city. Kenya’s western provinces, marked by lakes and rivers, are forested, while a small portion of the north is desert and semi-desert. The country’s diverse wildlife and panoramic geography draw large numbers of European and North American visitors, and tourism is an important contributor to Kenya’s economy.

Hiring, Negotiating and Doing Business in Kenya

Necessity of written employment contract

Employment contracts are regulated under Employment Act 2007. A contract of employment is a treaty, that can either be oral or written, whether expressed or implied, to employ or to serve as a worker for a certain period of time. It includes a contract of internship and indentured internship but does not include a foreign contract of service. Employment with a duration of more than three months should have a written contract. This must be given to the employee within two months of the commencement of the employment.

Different forms of engagement: employment, contracting, work with private entrepreneur

A foreign company that wishes to get a work license for one of its employees must first set up its Kenyan subsidiary/branch/representative office. Afterward, this Kenyan entity may then apply for the work permit.

An applicant may make an application directly or indirectly. When making an indirect application, such an individual can choose an agent such as a law firm or consultancy. However, it is important to point out that direct applications take a longer time.

Foreign nationals wishing to be employed by a Kenyan entity are required to apply for a Kenyan work permit. The different classes will depend on the specific circumstances of the applicant. Generally, the success rate depends on whether skilled labor for the position is available locally i.e. employers are required to justify the employment of the foreign national instead of a local.

All work permits are generally valid for 2 years, with renewals permitted for an extra 2 years at a time. The number of renewals is unlimited. Renewals need to be done at least 3 months before its due date.

Kenya Employment Contract

Types of employment agreements

The two basic types of employment contracts are open-ended and fixed-term contracts. Most of the employment contracts are open-ended and the employee is hired for an indefinite duration. Employees are also employed for a specified period of time under fixed-term contracts. These contracts mention a definite end date and the employment relation no longer exists after that date.

The other two types of employment contracts are individual employment contracts and collective bargaining contracts. An individual employment contract is endorsed between an employer and employee and both parties can concede to any conditions, however subject to certain constraints like paying minimum wage, allowing workers to form unions, not hiring forced or child labor, etc.

Collective bargaining agreement is signed between an employer and a representative union at an enterprise or industrial sector. The agreement reached between employee representatives i.e. union officials and employer(s) is subject to a ratification vote by the employees.

Kenya working hours

General working hours in Kenya are 52 hours per week, but normal working hours usually consist of 45 hours of work per week. For example, this could be eight hours from Monday to Friday, and five hours on Saturday.

A person employed for night work may not work for more than 60 hours a week. Working hours can be modified by collective agreements.

Overtime

If a worker exceeds the normal hours weekly, the extra hours are treated as overtime. Overtime shall be paid at the rates of one and one-half occupations on weekdays and at the rate of twice the basic hourly rate on Sundays and public holidays. Employers can schedule overtime for their employees. Some occupations might require an employee to work overtime such as nursing.

Vacation leave in Kenya

An employee is entitled to an annual leave of twenty-one working days during which the employee is to be paid in full, without working and it is exclusive of public holidays. This provision is made for workers who have worked for 12 consecutive months.

An employee can amass leave but it must be taken within 18 months. Not doing so will force the employee to forfeit the accumulated leave.

Kenya Maternity Leave

According to the Employment Act 2007, female workers are entitled to three months (91 calendar days) of fully paid maternity leave on the birth of a child.

A written notice of at least 7 days, prior to beginning a maternity leave must be given by the employee, on a specific date and must return to work after the completion of 3 months.

When on maternity leave, the mother will receive her salary in full.

The maternity leave can be extended with the consent of the employer or a worker may proceed to sick leave or any other kind of leave with the employer’s approval.

A female employee who takes maternity leave shall not incur any loss of rights.

An employer is not allowed to terminate a woman working as a result of her absence from work due to pregnancy.

Kenya Severance Laws

Termination of employment is regulated under the Employment Act. A worker may be dismissed after serving due notice or paying in lieu of notice. The length of the notice period depends on the kind of employment contract.

• The notice period is not provided for a worker that is hired on a daily basis; the contract may be terminated at the end of the working day without any prior notice.
• at least seven days notice for workers during the probationary period (or payment in lieu of notice)
• For workers who get paid periodically for durations shorter than one month (e.g. on a weekly or fortnightly basis), a notice of equivalent period (a week or 15 days) may be served prior to contract termination

If workers are paid on a monthly basis or longer intervals, a 28-day notice must be served before contract termination

The duration of the notice period may be stated in the employment contract by mutual consent of both the employer and worker, provided that the period exceeds what is provided by the Act. Notice should be written in a comprehensible language that can be understood by the worker, otherwise, someone has to explain it to the worker, orally, in a language that he/she can comprehend.

Severance pay, paid by the employer, in Kenya is synonymous with 15 days basic wages for each completed year of employment.

The employment Act also contains provisions pertaining to service pay. It is paid at each completed year of employment in the case of cessation by notice in specific conditions and its terms are fixed in the employment contract. A worker is not entitled to service pay if he/she is a member of the Registered Pension Fund (RPF), gratuity or service pay scheme established under a collective agreement, or any other scheme provided by an employer whose terms are more favorable.

Kenya Tax

In Kenya, 30% stands as the personal income tax rate. The National Social Security Fund (NSSF) is a statutory savings scheme aimed at providing for retirement. Both employers and employees contribute 5% (up to KSH 200) per month.

Non-residents are also subject to income tax. An individual earning more than KSH 1,000 per month must make a monthly payment to the National Hospital Insurance Fund (NHIF) and this entitles the individual to a deduction in certain hospital charges.

Kenya is a member of the International Social Security Association.

Monthly donations are also to be made to the authorities for social security payment by the 15th of the following month.

Health Insurance Benefits in Kenya

Section 34 of the Employment Act stipulates that an employer is obligated to provide medical treatment to his/her employees.

In accordance with the Employment Act, every worker is entitled to paid sick leave (sickness benefit) lasting up to 14 days per year, after the completion of 2 months of service with an employer. An employer may provide fully paid sick leave for the first 07 days after which half wages are paid for the remaining 07 days.

Additional Benefits in Kenya

Guaranteed benefits in Kenya are imposed by law and must get allocated to all employees. It is best to add these benefits to your Kenya benefits management plan first before including any supplemental benefits. Kenya celebrates 10 national holidays that employees should get time off for. Employees are also entitled to 1.75 days of paid annual leave that they accrue each month they work for the company. You can also provide 21 days over 12 months.

Employees also usually care about maternity and paternity leave, which is another statutory benefit. Female employees should get three months of paid maternity leave but a written notice must be given before going on the leave and a medical certificate has to be presented. Two weeks of paid paternity leave is granted to Fathers.

Instead of using a national minimum wage, Kenya’s compensation laws vary by position and city. For example, cleaners, gardeners, etc. in Nairobi, Mombasa, and Kisumu should make at least 115.50 KES an hour. Cooks, waiters, miners, stone cutters, logger line cutters, and others also in Nairobi, Mombasa, and Kisumu must make at least 125.80 KES an hour.

General market practice benefits/additional allowances

There are plenty of reasons to regard Kenya as an investment target, some of these reasons include:

• Economic potential: Kenya embodies a sensational economic environment of doing business across a wide range of sectors, including agriculture, manufacturing, transport, energy, communications, and more. Innovative, creative entrepreneurs will discover tons of opportunities to gain a foothold in the country.
• International gateway: Kenya is a gateway to continental Africa, and enjoys privileges from numerous international trade relationships. Beyond its membership of the EAC, Kenya is part of trade schemes within the Africa Growth and Opportunity Act, the WTO, and COMESA.
• Business reform: Kenya’s economic outline is trending in a progressive manner. The growth of the country’s financial sector is thriving – and in 2016 it was ranked 42 (out of 140 countries) for ‘Financial Maturity’, by the World Economic Forum. Over 44 international banks are registered in Kenya, and it has the most advanced stock market in the East and Central Africa provinces.
• Transport infrastructure: Kenya is operated by an extensive network of road, rail, sea, and air links, which connect domestically and internationally. Jomo Kenyatta International, and the port of Mombasa, are respectively the busiest air and seaports on the African continent.
• Market strength: Kenya is a growing consumer market and has the second-largest population in the EAC. The country’s middle class is expanding. A young, digitally-connected population (with an average age of 18) is driving a spirited consumer culture.

Kenya Holidays

There are12 public holidays in Kenya in 2022:

• New Year’s Day – Sat, 1 Jan 2022
• Good Friday – Fri, 15 Apr 2022
• Easter Monday – Mon, 18 Apr 2022
• Labour Day – Mon, 2 May 2022
• Eid al-Fitr – Likely 2–3 May 2022*
• Madaraka Day – Wed, 1 Jun 2022
• Eid al-Adha – Likely 9–10 Jul 2022*
• Huduma Day – Mon, 10 Oct 2022
• Mashujaa Day – Thu, 20 Oct 2022
• Jamhuri Day – Mon, 12 Dec 2022
• Christmas Day – Mon, 25 Dec 2022
• Utamaduni Day – Mon, 26 Dec 2022

Why Choose WeHireGlobally

WeHG takes control of all the onboarding complexities, payroll, salary and privileges, tax filing, and termination of employment. Our Employer of Record solution entitles you to oversee your foreign crews efficiently while minimizing expense and threat.

The post Kenya first appeared on WeHireGlobally.

Gambia PEO & Employer of Record

WeHG provides an International PEO and worldwideEmployer of Record service in Gambia to companies willing to enter the Gambian market or hire local/expat employees in this country.

Common approach requires establishing a subsidiary in Gambia.  However, our solution allows you to start the operations in Gambia within days hence save resources.  WeHG would hire employees on your behalf while you preserve all-embracing operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf.

Gambia fast facts

Population, million: 2
Land area: 10,689 km²
Capital: Banjul
Local currency: Dalasi (GMD)

GDP per capita:$ 2,240
GDP in currency:$ 5.420 billion

The Gambia, country in western Africa situated on the Atlantic coast and surrounded by the neighbouring country of Senegal. It occupies a long narrow strip of land that surrounds the Gambia River. The land is flat and is dominated by the river, which is navigable throughout the length of the country.

The peculiar shape and size of the country are the result of territorial compromises made during the 19th century by Great Britain, which controlled the lower Gambia River, and France, which ruled the neighbouring colony of Senegal. Periodic talks in the 20th century to unite The Gambia and Senegal led to the short-lived Senegambia confederation (1982–89).

Hiring, Negotiating and Doing Business in Gambia

Necessity of written employment contract

In Gambia, employment contracts can be oral or written, but it is best practice to put a strong, written contract in place, in English, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Gambia should always state the salary and any compensation amounts in Gambian Dalasi rather than a foreign currency.

Different forms of engagement: employment, contracting, work with private entrepreneur

There are several types of visas available to foreign nationals who intend to visit the Republic of Gambia. Foreign employees and any other foreign nationals who plan to live in Gambia will need to apply for a residence permit. The Gambian government issues three categories of residence permits:

• Type A: International students and retired foreign citizens are eligible to apply for Type A permits.
• Type B: This category of residence permit is available to citizens of the Economic Community of West African States (ECOWAS) and other foreign nationals who are working in skilled employment.
• Type C: Skilled workers and small traders fall under the Type C residence permit category.

Your employees will most likely need either a Type B or a Type C residence permit. Since these permits are issued on the basis of employment, they also function as work permits for foreign nationals.

Foreign employees should initiate the visa application process by reaching out to the Gambian embassy or consulate in their country of residence. The diplomatic officials will be able to provide an updated list of visa requirements.

Applicants should obtain the necessary immunizations and gather all necessary documents to support the residence and work permit application. After completing the application, they should submit it to the embassy and wait in their country of residence for approval.

Once the appropriate Gambian officials issue the permit, prospective employees may travel to Gambia. Upon arrival in the Republic of Gambia, foreign nationals should visit their local police department to obtain an Alien’s ID card. To do so, they’ll need to submit their passport as well as a valid ID from their country of residence. After obtaining this card, foreign nationals can legally live and work in Gambia.

Gambia Employment Contract

Types of employment agreements

A contract of employment shall be in such forms:

• a contract for an unspecified period of time
• a contract for a specified period of time
• a contract for a specific task

Gambia working hours

The standard work period is 40 hours a week, eight hours a day.

Overtime

Overtime work must be paid at no less than 1.5 times the normal hourly rate, or time off (equivalent to 1.5 times), or partially paid and partially paid time off.

Vacation leave in Gambia

An employee is entitled to accumulate days of annual leave provided for by Jount Industrial Council agreement, collective agreement, or otherwise by his or her contract of employment.

Wherever a period of annual leave entitlement is specified by reference to a period of more than one month, appropriate proportion of the entitlement is deemed to accrue for each month of employment.

Gambia Maternity Leave

Over the last 6 years, Gambia length of paid maternity leave (days) remained stable at around 180 days.

Gambia Severance Laws

The Labor Act of 2008 requires employers to provide severance pay to an employee with a contract of unlimited duration dismissed for economic, organizational, climatic, or technical reasons, including mechanization or automation, or if the place of employment moves more than 40 kilometers and the employee declines an offer of employment. The benefit is six months of the employee’s earnings.

Gambia Tax

• Rental income

Rental income earned from leasing residential property is taxed at a flat rate of 8%. In computing for taxable income, repair and maintenance costs, interest on associated borrowings, and depreciation are deductible from the gross rent.

• Capital gains tax

Capital gains are assessed and taxed under special rules. Capital gains may be taxed in two ways, with the option that results in higher tax liability as the applicable method: net gains are taxed at 15%, or the 5% tax is levied on the selling price.

Capital gains realized from the following transfers of property are exempt from taxation:

Transfers of properties as a gift or inheritance.

Transfers of real property for a consideration of GMD7,500 (US$188) or less (excluding properties valued at over GMD20,000 or US$500). There’re no social contributions in Gambia.

Health Insurance Benefits in Gambia

The healthcare system is made up of a three-tier structure:

• Primary

Primary healthcare focuses on villages with relatively low populations. A local health worker and midwife provide out-patient care and health education. They are also responsible for ensuring medical supplies are maintained at adequate levels and assisting mothers to be in giving birth at home.

• Secondary

Secondary healthcare is provided by nineteen health care centers, that are both publicly and privately run. They provide in-patient and out-patient care, pharmaceutical services, and each center has its own resident medical staff.

• Tertiary

Tertiary healthcare services are delivered by the four main hospitals: the Medical Research Council (MRC), private clinics and NGO-operated clinics. The main referral hospital is in the capital, Banjul, with the remaining three hospitals located in Bansang, Farafenni, and Bwiam.

Additional Benefits in Gambia

Sickness benefit: 100% of the employee’s earnings is paid for a maximum period defined by collective agreements or Joint Industrial Council Agreements.

Maternity benefit: 100% of the employee’s earnings is paid for six weeks before and six weeks after the expected date of childbirth.

Old-age pension (social insurance): 75% of total employer contributions is paid as an annuity; the remaining 25% is paid as a lump sum.

Early pension: Calculated in the same way as the old-age pension but with a reduction based on age at retirement.

General market practice benefits/additional allowances

According to the Vision 2020 of Gambia’s government , that prescribes employment development with involvement of a well-educated, trained, skilled, healthy, self-reliant and enterprising population to facilitate the transformation of Gambia into a financial center, a tourist paradise, a trading, export-oriented, agricultural and manufacturing nation, thriving on free market policies and a vibrant private sector.

Such changes may lead to international cooperation with Acumen International in the personnel administration and it helps companies solve the problems of functioning and development in a market economy by reducing costs, accelerating adaptation to external conditions, improving the quality of products and services, reducing risks.

Businesses of all sizes face a devastating lack of information and support on global employment, taxation, and immigration in the Gambia. There’s a common and significant gap between what’s required to be 100% compliant and what most organizations actually have at their disposal.

Gambia Holidays

There’re 13 public holidays in Gambia:

• New Year
• Independence Day
• Good Friday
• Easter Monday
• Labour Day
• Africa Day
• Lailat al-Qadr
• Eid al-Fitr
• Assumption of Mary
• Eid al-Adha
• Ashura
• The Prophet’s Birthday
• Christmas Day.

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.

The post Gambia first appeared on WeHireGlobally.

Gabon PEO & Employer of Record

WeHG provides an International PEO and global Employer of Record service in Gabon to companies willing to enter the Gabonese market or hire local/expat employees in this country.

Common approach requires setting a subsidiary in Gabon.  However, our solution allows you to launch the operations in Gabon within days hence save time and money.  WeHG would hire job-seekers on your behalf while you maintain full operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf.

Gabon fast facts

Population, million: 2
Land area: 267,667 km²
Capital: Libreville
Local currency: Central African CFA franc (XAF)

GDP per capita:$ 18,647
GDP in currency:$ 38.280 billion

Gabon, country lying on the west coast of Africa, astride the Equator. A former French colony, Gabon retains strong ties to France and to the French language and culture. The capital is Libreville.

Gabon is bordered by Equatorial Guinea and Cameroon to the north, the Republic of the Congo to the east and south, and the Atlantic Ocean to the west; the islands of Sao Tome and Principe are situated off the coast.

Hiring, Negotiating and Doing Business in Gabon

Necessity of written employment contract

It is best practice to put a written employment contract in place in Gabon, in French, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Gabon should always state the salary and any compensation amounts in Central African CFA francs rather than a foreign currency.

Different forms of engagement: employment, contracting, work with private entrepreneur

Gabon offers several different visa types, including:

• Business
• Missionary/humanitarian
• Student
• Official/diplomatic
• Tourist
• Official

These visas also come in e-visa types that your employees can pay for and receive when they arrive in Gabon. Keep in mind that employees with an e-visa should not travel until the arrival date on the registration, or they will face fines or penalties.

Your employees must apply for all visas at the Gabon foreign ministry or find a Gabon embassy in their country of residence. The most common route people take is to apply for a business visa, then fill out the special pass form upon arrival. Your employees will then need to apply for a temporary work visa and make all the necessary payments.

All foreign employees need a work permit in addition to other necessary documents. It’s easier for you, as the employer, to apply for the work permit on behalf of employees since you will act as the sponsor. First, submit documents to the Ministry of Labor and Human Resources showing that you will sponsor the worker. Then, apply for the work permit with the Work Department in the Ministry of Labor and Human Resources along with a copy of the applicant’s passport, a company invitation letter, and the necessary fees.

The Work Department will then approve or deny the application and send a copy to the Department of Documentation and Immigration. That department will prepare the work visa and send a copy to the Gabon embassy in the applicant’s home country. There, the applicant can get their work permit, pay the appropriate fees, and begin working in the country.

Gabon Employment Contract

Types of employment agreements

• A fixed-term employment contract

The permanent employment contract may only be terminated early at the wish of one party solely under the situations specified in the contract, or in one where there is serious fault as judged by the competent authorities.

Cancellation of employment contract for carrying out a particular task or project. The employment contract for a particular project or task ends when the work for which it was concluded has been completed. The employee must however be given notice according to the periods specified in article 68 of the Labour Code.

During execution of the contract, this may be broken by the employer if the employee is at fault, or by the worker at will; in either case, unless there is a serious fault, the notice period must be respected.

• A permanent employment contract

The permanent employment contract may terminate following: dismissal; resignation; retirement; death of the worker.

• A probation period contract

The probation period contract may be broken at any time by either party, without notice unless otherwise agreed. If the contract is cancelled during or at the end of the probation period by either party, the employer pays for the return trip from the workplace for the person recruited.

Gabon working hours

The workday in Gabon is 8 hours with a 5 day work week.

Overtime

Hours worked after the legal working limit shall be considered overtime, and additional wages must be paid for them. In all farming and similar businesses, working hours are based on 2400 hours a year. Within this limit, the working time will be set by decree following a proposal by the employment minister. This decree will also determine procedures for payment of overtime.

Exemptions may however be agreed by decree following a proposal from the employment minister. These decrees will determine procedures for application of working time limits for each branch of activity and occupational category, as well as the maximum overtime hours that may be worked in the event of urgent or exceptional work, and for seasonal work.

Vacation leave in Gabon

In general, employees are entitled to 24 days of paid annual leave. Leave time is increased according to the age of the employee, the length of time spent working at the company ,and the employee’s family situation. 10 days of paid leave may be taken for family events.

Gabon Maternity Leave

Female employees are generally entitled to 14 weeks of paid maternity leave: 6 weeks of leave prior to the birth and 8 weeks after.

Paternity leave is covered in the family allowance leave.

Gabon Severance Laws

Probationary periods may not exceed 6 months. Generally, employees must be notified of termination according to the following schedule:

• less than 1 year of service: 15 days
• 1 to 3 years of service: 1 month
• 3 to 5 years of service: 2 months
• 5 to 10 years of service: 3 months
• 10 to 15 years of service: 4 months
• 15 to 20 years of service: 5 months
• 20 to 30 years of service: 6 months

Gabon Tax

Employers contribute 16% of payroll to social security for retirement, work injury, medicine and hospital costs, and family allowances. Employees contribute 2.5%.

Health Insurance Benefits in Gabon

Employees are entitled to up to 6 months of paid sick leave. Gabon has national fee for service health care. While maternity care and medicine are free, employees must pay a portion of other medical services according to a schedule in the employment law.

Additional Benefits in Gabon

One of the most important Gabon compensation laws is the country’s minimum wage. Employees in Gabon must make at least 150,000 CFA francs per month. In addition, government workers should receive a monthly allowance of 20,000 CFA francs a child as well as transportation, housing, and family benefits. These benefits do not apply to private-sector workers.

An easy way to ensure compliance is by adding guaranteed benefits to your Gabon benefits management plan first, including time off for the country’s 11 national holidays and 24 days of paid annual leave. Time off increases as employees age, spend more time working for your company, and go through changes in their family situation. Every employee should get an additional 10 days of paid leave for family events.

Gabon has a generous sick leave policy of up to six months of paid sick leave. Female employees should receive 14 weeks of paid maternity leave — they can take six weeks of leave before birth and eight weeks after. Paternity leave is included in the 10 days of paid leave listed above.

General market practice benefits/additional allowances

• Economy

Despite this current controversy, Gabon stands unique amongst its neighbors as a stable and conflict free country. It is rich in natural resources of oil, timber and manganese though it has been trying to diversify in recent years to avoid the fluctuation of the economy because of oil prices.

Gabon’s economic freedom index has improved by 0.5 points in recent years reflecting modest improvements in the areas of corruption, monetary and fiscal freedom. Despite this improvement, Gabon does not have a good reputation with the International Monetary Fund (IMF) and other financial institutions for fund management and debt. This is due to overspending and poor financial decisions in converting its abundant natural resources into a profitable economy.

• Company Set up

It is relatively easy to set up a business in Gabon especially if you have a French translator as the language of business is French. A company can be set up in as little as three weeks with a minimum paid up share capital of US$2,950. Only one director and shareholder is required and the Director can be of any nationality. There are several advantages to setting up in Gabon such a free zones, VAT advantages and new companies enjoy a 10 year exemption from corporate tax.

• Business Culture

Libreville, the capital of Gabon is a bustling port city with lovely wide avenues and French inspired architecture. Culture is heavily influenced by the west and business attire tends to be a suit for men and suit dresses and skirts for women. Do note that many buildings are not air-conned so bear this in mind when choosing your business outfit.

Note that offices tend to be closed between noon and 3:00 PM as people often go home for lunch.

About a third of the population in Gabon work for the government and there is a definite hierarchy built in to office culture. Seniority carries a lot of weight and thus take extra care when handling more senior staff. Addressing management by their correct title is of utmost importance and shows your respect. As in many developing nations, there is a lot or red tape when dealing with government bodies in Gabon, so having an English/ French speaking native will assist a lot in speeding up business processes.

Gabon Holidays

Gabon celebrates 11 national holidays:

• New Year’s Day
• Easter Monday
• Women’s Rights Day
• Labour Day
• Whit Monday
• Eid al-Fitr
• Assumption of Mary
• Independence Day (2 days)
• Eid al-Adha
• All Saints’ Eve
• Christmas Day

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.

The post Gabon first appeared on WeHireGlobally.

Ethiopia PEO & Employer of Record

WeHG provides an International PEO and global Employer of Record service in Ethiopia to companies willing to enter the Ethiopian market or hire local/expat employees in the country.

The traditional approach requires establishing a subsidiary in Ethiopia.  However, our resolution allows you to start the operations in Ethiopia within days hence saving time and money.  WeHireGlobally would hire candidates on your behalf while you maintain full operational control of their work. So legally they would be our job-seekers, on our local payroll, 100% obliging but will work on your behalf.

Ethiopia fast facts

Population: 117,876,227 (2021 estimate)
Land area: 1,104,300 km²
Capital: Addis Ababa
Local currency: Birr (ETB)

GDP per capita:$ 2,772
GDP in currency:$ 278 billion

Ethiopia is a country in the Horn of Africa. The country lies completely within the tropical latitudes and is relatively compact, with similar north-south and east-west dimensions. The capital is Addis Ababa (“New Flower”), located almost at the center of the country. Ethiopia is the largest and second most populated country in the Horn of Africa. It is a multi-ethnic state having over 80 different ethnic groups.

Hiring, Negotiating and Doing Business in Ethiopia

Necessity of written employment contract

An Individual employment contract may be oral or written. A contract of employment is deemed to have been concluded for an indefinite period except for the contracts of a definite period or piecework. The employment contract must be defined clearly and must not be deduced for the accomplishment of unlawful or immoral activities. It must comprise provisions that are more favorable for the worker than those provided by the law, collective agreement, or work rules. In a situation where a written contract of employment is not available, the employer is expected to provide a written statement of employment particulars within 15 days of the conclusion of the employment contract. 

A written employment contract (or a statement of particulars in the absence of employment contract) must stipulate the following: the name and address of the employer; the name, age, address and the work card number of the worker; the type of employment; workplace; rate of wages as well as the method of their calculation; manner and interval of wage payment; and period of the contract.  It must be endorsed by both parties.

Different forms of engagement: employment, contracting, work with private entrepreneur

• Probation period

A person may be employed for a probation period with the aim of assessing the individual’s suitability for a post to which he/she is expected to be assigned on the basis of a contract of employment. A worker re-employed by the same employer for the same job shall not be subject to probation.

Where the parties agree to have a probation period, the agreement shall be made in writing. In such a case, the probation period shall not exceed 45 consecutive days. 

Unless this Proclamation or work rules or collective agreement provides otherwise, during the probation period, the worker shall have the same privileges and responsibilities as a worker who has completed the probation period.

If the worker proves to be incapable of the job during his probation, the employer can annul the contract of employment without being compelled to pay severance pay or compensation. A worker on probation may terminate his contract of employment without notice.

If the worker continues to work after the expiry of the probation period, a contract of employment for the intended period or type of work shall be deemed to have been concluded from the beginning of the probation period.

• Formation of contract

There shall be a homework contract when a person habitually performs work for an employer in his home or any other place freely chosen by him in exchange for wages without any direct supervision or guidance by the employer. 

An agreement for the sale of raw materials or tools by an employer to a homeworker and the resale of the products to the employer or any other similar arrangements made between the employer and the homeworker shall be deemed a homework contract. 

The contract concluded between a homeworker and an employer shall be deemed to be made for a definite period or piece-work. 

The Minister shall, in consultation with the concerned organs, prescribe by directives the provisions of this Proclamation that shall apply to homeworkers and the manner of their application. 

An employer who employs a worker on the basis of a homework contract shall keep a register containing the following and other relevant particulars: 

• full name, marital status, age, and address of the worker; 
• the location of the place where the work is to be carried out; 
• the model, cost, quality, and quantity of material supplied by the employer to the worker;
•  the type of work, quality, and quantity ordered;
•  the time and place of delivery of the product or material; 
• amount and manner of payment.

Ethiopia Employment Contract

Types of employment agreements

Contract for an indefinite period. Any contract of employment shall be deemed to have been concluded for an indefinite period except for those provided for under section 10 hereunder.

Contract for a definite period or piece work. A contract of employment may be concluded for a definite period or for piece work in the case of: 

• the enactment of specified piece work;
•  the replacement of a worker who is temporarily absent due to leave or sickness or other causes;
•  the performance of work in the event of odd pressure of work;
•  the performance of pressing work to deter damage or catastrophe to life or property, to rectify defects or breakdowns in works, materials, building, or plant of the undertaking;
•  erratic work which relates to a permanent part of the works of an employer but is performed at irregular intervals; 
• seasonal work which relates to the permanent part of the works of an employment but is performed only for a specified period of the year which is regularly repeated in the course of a number of years;
•  occasional work which does not form part of the permanent activity of the employer but which is done intermittently.

Ethiopia working hours

The normal hours of work are 8 hours a day and 48 hours a week. The Labour Proclamation defines “normal hours of work” as the period during which a worker precisely performs work or avails himself for work in congruence with law, collective agreement, or work rules. Working hours may be reduced without a reduction in workers’ wages, on Minister’s directives, for economic sectors, industries, or occupations where there are special conditions of work. Hours of work are spread equally over the working days of a week. However, if the nature of work is so demanding, some of the working days can be reduced while on other days, working time can be increased to the limit of 10 hours a day. Normal working hours are not relevant to commercial travelers or representatives unless otherwise specified in a collective agreement or work rules.

Overtime

Overtime is the work done outside of one’s regular hours. A worker may not be obliged to work overtime except in case of an accident (actual or expected), force majeure, urgent work, or substitution of absent workers assigned on work that runs continuously without interruption. Overtime work may not exceed 4 hours in a day or 12 hours in a week. If a worker works beyond the stipulated working hours during the weekdays, i.e., 8 hours a day and 48 hours a week, he/she is qualified for an overtime premium as follows: 

• 150% of a normal hourly rate for overtime work between 06 a.m. to 10 p.m.;
•  175% of a normal hourly rate for overtime work between 10 p.m. to 06 a.m.; 
• 200% of the normal hourly rate for work on a weekly rest day; and
•  250% of the normal hourly rate for work on a public holiday.

Vacation leave in Ethiopia

Workers may be required to perform work on a weekly rest day or public holiday to avoid serious interference caused by accident (actual or expected) or force majeure or urgent work. 

A worker is reimbursed monetarily if his/her contract of employment ends before the compensatory holiday is granted. There is no provision for a compensatory holiday for the workers working on a public holiday.

 Workers may be required to work on weekly rest days and public holidays. In such circumstances, they are entitled to receive wages at a premium rate of 200% of the normal hourly wage rate. Nonetheless, there is no premium pay for the workers working on weekly rest days.

In Ethiopia, workers are entitled to 16 working days of paid annual leave on completion of one year of service plus one working day for every additional year of service. For a worker with 5 years of service, the period of paid annual leave is 18 working days (one day extra for every two additional years of service).

Ethiopia Maternity Leave

In accordance with the Constitution of Ethiopia and Labour Proclamation, female workers are entitled to fully paid maternity leave of 120 working days (30 days antenatal and 90 days postnatal) on the recommendation of a medical doctor.

Ethiopia Severance Laws

A worker may terminate the employment contract by serving 30 days prior notice to the employer. On the other hand, an employer may terminate the employment contract of a worker by observing a notice period as follows:

• One month for workers who have completed their probation and have a maximum of 1 year service period;
•  Two months for workers who have a period of service from one to nine (1-9) years; 
• Three months for workers with more than 9 years of service; and 
• Two months for workers who have completed probation period but whose employment is terminated due to the reduction of workforce.

The Labor Proclamation provides for severance pay for a worker who has finished his probation. A worker is entitled to severance pay on contract termination by the employer because he/she has halted its operations permanently due to bankruptcy or some other reason, or if the worker’s employment contract is terminated against the provisions of law, or if the worker is part of the reduced workforce; or if the employer has done something unlawful that hurts the right of the worker; or if his employer has not taken any action to secure the health & safety of workers even after being informed about the dangers in the workplace; and if the employment contract is terminated because of partial or total disability. 

The amount of severance pay depends on the duration of service and is payable at the following rates:

• 30 days’ wages for one year (as well as first-year) of service (severance pay for workers with less than 1 year of service is calculated in proportion to the period of service); 
• 10 days’ wages for every additional year of service after the first year (however, the total severance pay must not exceed 12 months’ wages);
•  60 days’ wages in addition to the above payments for workers who are terminated on grounds of redundancy.

Ethiopia Tax

Company Tax: 30%

Tax Rate For Foreign Companies: Resident entities are taxed on worldwide income; whereas non-residents are taxed on Ethiopia-source income. Foreign companies are taxed at the same rate as national ones. If a resident taxpayer has foreign taxable income on which he has paid taxes abroad, the taxpayer will be entitled to a tax credit equal to the lesser of the income tax paid or the tax payable in Ethiopia in respect of the foreign income. A company is considered resident for tax purposes if it is registered according to Ethiopia’s law on commercial registration or if its effective management is in Ethiopia.

Capital Gains Taxation: Capital gains are taxed at a rate of 15%, however capital gains derived from transfers of shares of companies and bonds are subject to tax at a rate of 30%. Capital losses may be carried forward indefinitely and offset against capital gains of the same class.

Health Insurance Benefits in Ethiopia

An employee is entitled to a maximum of 6 months of sick leave within 1 year of service. An employer will only be obligated to grant paid sick leave for the first months, whereas the wage is reduced to 50 % for the second and third month, and reduced to zero for the third to the sixth month of sick leave within a year.

Additional Benefits in Ethiopia

Work injuries are divided into four categories: permanent total incapacity, permanent partial incapacity temporary incapacity and  fatal injury leading to death of a worker.

In the case of permanent incapacity/disability, 47% of an insured worker’s monthly salary is paid if the insured has at least a 10% loss of work capacity and is unable to work.. If the disability pension is less than or equal to the old age pension, then the old age pensions up to 70% of the insured monthly basic salary is paid to the worker. A lump sum of 47% of the insured’s basic salary before the disability began multiplied by 60 months and by the assessed degree of disability is paid in case of permanent partial disability provided that the insured worker has at least a 10% loss of work capacity but is able to work.

In the case of temporary disability, for private-sector workers, 100% of the employee’s average earnings is paid for first three months; 75% for the following three months; and at least 50% for the remaining six months. The benefit is paid for 12 months or until full recovery or certification of permanent disability. For civil servants, 100% of the employee’s average earnings is paid until the employee recovers and resumes work or is medically certified as permanently disabled.

In the case of fatal injury, dependents (widow/widower, children under the age of 18 years and any parent being supported by the deceased worker) receive survivors’ pension. 50% of the pension a deceased worker would have received, if assessed with permanent total disability, is paid to the widow(er). 20% of a deceased worker’s pension is paid to each eligible orphan and 30% for each full orphan. 15% of the pension is paid to the each of the deceased worker’s parent supported by him; 20% if there are no other eligible survivors.

The maximum combined survivor benefit is 100% of the disability pension the deceased received or was entitled to receive.

General market practice benefits/additional allowances

Ethiopia is one of the fastest growing economies in the world. In 2013, the country’s GDP amounted to USD 46.87 billion, with a growth rate of 10.4 per cent that same year. Ethiopia has maintained an average growth rate of 10.9 per cent since 2004. The World Bank and the International Monetary Fund forecast continued average growth of 8.5 per cent in 2015 and approximately 7.5 to 8 per cent over the next five years (U.S. Department of State, 2015).

Investors can employ duly qualified expatriates required for business operations. A foreign investor can employ expatriates for top management positions without any restrictions. A foreign investor or a domestic investor who wishes to employ an expatriate for non-top management positions must prove that the required expertise is not available in the domestic labour market.

If the local labour market can supply the required profiles and expertise, the law gives priority to the employment of Ethiopian nationals. In addition, the right to employ expatriates for non-top management positions is limited by the legal requirement that foreign investors should replace, within a limited period, such expatriate personnel by Ethiopians by arranging the necessary training thereof.

Ethiopia Holidays

There are 15 public holidays in Ethiopia:

• Ethiopian Christmas 
• Orthodox Epiphany
• Timket 
• Adwa Victory Day
• Siklet 
• Labour Day
• Ethiopian Good Friday 
• Ethiopian Easter Sunday
•  Patriots’ Victory Day
•  Eid al-Fitre
•  Derg Downfall Day
•  Eid al-Adaha 
• Ethiopian New Year
•  Meskel 
• Prophet Muhammad’s Birthday

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.

The post Ethiopia first appeared on WeHireGlobally.

Eritrea PEO & Employer of Record

WeHG provides an International PEO and global Employer of Record service in Eritrea to companies attempting to enter into the Eritrean market or hire local/expat employees in this area.

Overall approach requires establishing a subsidiary in Eritrea.  Anyhow, our solution allows you to set up the operations in Eritrea within days hence save time and money.  WeHG would hire candidates on your behalf while you maintain full operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf.

Eritrea fast facts

Population, million: 6
Land area: 117,600 km²
Capital: Asmara
Local currency: Nakfa (ERN)

GDP per capita:$ 1,797
GDP in currency:$ 11.263 billion

Eritrea, country of the Horn of Africa, located on the Red Sea. Eritrea’s coastal location has long been important in its history and culture—a fact reflected in its name, which is an Italianized version of Mare Erythraeum, Latin for “Red Sea.” The Red Sea was the route by which Christianity and Islam reached the area, and it was an important trade route that such powers as Turkey, Egypt, and Italy hoped to dominate by seizing control of ports on the Eritrean coast. Those ports promised access to the gold, coffee, and slaves sold by traders in the Ethiopian highlands to the south, and, in the second half of the 20th century, Ethiopia became the power from which the Eritrean people had to free themselves in order to create their own state.

Hiring, Negotiating and Doing Business in Eritrea

Necessity of written employment contract

A contract of employment concluded for more than a year shall be made in writing.

Different forms of engagement: employment, contracting, work with private entrepreneur

Elements of contract:

• A contract of employment shall, inter alia, specify the duration of the contract, the date of employment, the type of work, the place of work, the rate of wages and other remuneration and the payment methods.
• A contract of employment shall stipulate clearly the respective rights and obligations of the parties.
• Conditions of work laid down in this Proclamation and in collective agreements, which are advantageous to the employee, shall be deemed to be an integral part of the contract of employment.
• Terms in a contract of employment, which do not conform with the provisions of this Proclamation or provide less favorable conditions than those provided by law, shall be null and void.
• Work rules in force in an undertaking shall be specifically mentioned in the contract of employment as part thereof.
• Inventions made by an employee during the work done by him in the service of his employer shall belong to him, unless the employee has been expressly engaged for conducting research or making inventions. Inventions made by an employer shall however, belong to the employer

Work Permits for Non- nationals:

• Non-nationals may not work in Eritrea without a valid work permit issued in accordance with guidelines issues by the Ministry. The conditions of employment of non-nationals shall be determined by directives issued by the Ministry.
• A work permit issued to a non-national shall clearly show the type of work he is engaged in, the duration of his employment in Eritrea and such other details as may be required by the Ministry.
• The Ministry may order the termination, cancellation or renewal of permits issued to non-nationals and may introduce in permits new conditions to be complied with.
• The Eritrean government may amend the provisions of this chapter to harmonize them with bilateral agreements, international treaties or conventions it accedes to or ratifies.

Eritrea Employment Contract

Types of employment agreements

The duration of a contract of employment may be:

• for an indefinite period; or
• for a definite period; or
• for a period required to carry out a definite piece of work; or
• for intermittent periodical work.

If the work is of a continuous nature, a contract employment made for a definite period shall be deemed to be a contract made for an indefinite period.

Eritrea working hours

Regular hours of work may not exceed eight hours a day and forty-eight hours a week.

The Minister may issue directives reducing regular hours of work for any economic sector, industries or occupations where there are special conditions of work.

Such reduction may not entail reduction of the wages of an employee.

Overtime

An employer may make an employee work overtime, provided he may not make the latter work overtime for more than two hours without the latter’s consent.

Notwithstanding the provisions of sub-article hereof, an employee shall be compelled to work overtime in the following instances:

• during an accident, actual or threatened;
• where there is urgent work;
• where force majeure occurs; or
• to substitute an absent employee assigned on work which runs continuously.

An employee who works overtime between six o’clock in the morning and ten o’clock in the evening shall be paid at the rate of one and a quarter (2/2) multiplied by the regular hourly rate. For overtime work from ten o’clock in the evening up to six in the morning, he shall be paid at the rate of one and one half (1.5) multiplied by the regular hourly rate.

An employee who works overtime on weekly rest clay shall be paid at the rate of two (2) multiplied by the regular hourly rate.

An employee who works overtime on public holidays shall be paid at the rate of two and one half (2 1/2) Multiplied by the regular hourly rate.

Payment for overtime work shall be effected together with the payment of wages.

Vacation leave in Eritrea

All public holidays recognized by law shall be paid public holidays. Where more than one public holidays fall on the same day, payment shall be made for only one holiday. An employee who works on a public holiday shall be paid for each hour of work at the rate of two and a half (2 1/2) multiplied by the regular hourly rate.

Where a public holiday falls on a rest day designated by this Proclamation or any other special law, the employee who works on such a day shall only be entitled payment for a public holiday.

An employee shall, at the time he takes leave, be paid wages due to him for the period of leave. An employee shall be entitled to annual leave with pay amounting to:

• fourteen working days for the first year of se and
• fourteen working days plus one working each additional year of service.

Annual leave may not exceed thirty-five working. No postponement of annual leave shall be permitted. May, however, be postponed to for unforeseen shortages or breakdowns. An annual leave postponed under sub-article shall be taken after the cause of its postponement ceases to exist. An employee may take his leave in parts if his agrees. Where an employee falls sick during his annul the provisions of this Proclamation on sick apply.

Unless there is an agreement to the contrary for each annual leave, annual leave shall be taken at a time convenient to the employee. An employee whose contract of employment has been terminated under this Proclamation shall be paid wages in lieu of annual leave not taken. Where the employee has completed his probation period but not a year of service, he shall be paid wages in lieu of leave not taken proportionate to the length of time lie has worked during the year. Unless otherwise provided in this Proclamation and except with the consent of the employee, wages may not be paid in lieu of annual leave.

Eritrea Maternity Leave

A pregnant employee shall be granted leave with pay for medical examination connected with her pregnancy provided, however, that she is obliged to present a medical certificate of her examination to employer.

A pregnant employee shall be entitled to sixty consecutive days of paid maternity leave beginning from the next day of-her delivery. She may, however choose to take her maternity leave in two parts, one preceding her presumed confinement and the other after her delivery.

Eritrea Severance Laws

An employee whose contract of employment has terminated according to the provisions of this Proclamation shall be entitled to severance pay.

An employee who has completed a year of service or more shall, upon the termination of his employment, be paid severance pay by the employer as follows:

• two weeks’ wages for each of the first five years of employment;
• three weeks’ wages for each year of employment after the fifth year up to and including the tenth year; and
• four weeks’ wages for each year of service after the tenth year.

 The severance pay of an employee who has served for less than a year shall be calculated at the rate of two weeks’ wages per annum.

Eritrea Tax

Sales tax: General service tax, with rates between 5% to 12%.

Company Tax: Corporate tax: 30% + 4% municipal tax.

Petroleum Company: 35%.

Withholding Taxes: Dividends: 0%, Interests: 10%, Royalties: 5% (paid to mining companies)/10%.

Social Security Contributions Paid By Employers: Eritrea has not introduced a social security system yet.

Health Insurance Benefits in Eritrea

Where an employee, after having completed his probation, is rendered incapable to work owing to sickness resulting other than from an employment injury, lie shall be entitled to sick leave.

The leave referred to in sub-article of this Article may not exceed six months counted consecutively or separately in any twelve-month period starting from the first day of the employee’s sickness.

Where the employee absents himself from work on grounds of sickness, he shall, except where the employer is in a position to be aware of the sickness, notify the employer the day following his absence.

Unless otherwise provided in the collective agreement, the employee may exercise his right of sick leave provided he presents a valid medical certificate at the beginning of his sickness or subsequently thereafter.

The period of sick leave provided for in this Article shall be grated in the following manner:

• the first one month with 100% of his wages;
• the next two months with 50% of his wages;
• the next three months without pay.

Additional Benefits in Eritrea

In addition to the fiscal and financial incentives, Investment Proclamation No. 59/1994 provides guarantees for investors against political risks: “Investment and/or expansion allowed under this Proclamation and all property on such investment and/or expansion shall:

• not be nationalized or confiscated; and,
• not be attached, seized, frozen, expropriated, or put under custody by the government except for public purposes and with the due process of law.’

In the event of expropriation the government is obliged to pay full and fair compensation.

General market practice benefits/additional allowances

• Employment in Eritrea

Many ambitious professionals are making the move to Africa and taking advantage of the huge economic growth the continent is experiencing. Eritrea in particular has made huge strides, and has many exciting prospects for young businessmen and women.

• Economic Overview

Eritrea is bouncing back after the economic slump of the Eritrean-Ethiopian War years, and in 2011 had one of the fastest growing economies in the world. Growth has slowed of late; however, there was still a year on year GDP increase of 2.1% in 2015.

Mining, particularly of gold, has received a lot of foreign investment and is one of the country’s major employers. Eritrea has an abundance of valuable natural resources including copper, granite and marble, which has attracted investment from Australia, Canada, France, South Korea and the US.

The oil industry is also on the up; the US has been involved in drilling operations in the Red Sea and there are thought to be many more untapped sources. Renewable energy is also attracting investment and wind and solar energy projects are now underway.

Major Eritrean exports of food, livestock and textiles are mainly shipped to the six markets of China, Egypt, UK, Italy, Saudi Arabia and Sudan.

• Work Permits for Eritrea

To work in Eritrea you will require either a business visa or, if you will be residing in the country, an employment visa. In order to be issued with an employment visa you will first need to get a work permit from the Eritrean Ministry of Labor and Human Welfare (MLHW). Your employer needs to verify your educational qualifications and work experience to the MLHW, and you must be able to show a passport that is valid for at least another year.

You should receive your work permit card within three months of your successful application; this card must be renewed every year. Be sure to carry this with you whenever you travel within the country, as you may be required to show this to the relevant authorities.

• Income Taxation in Eritrea

All expats will have to pay income tax to the Eritrean government; the rate varies greatly depending on your income and circumstances but is anywhere between 2% and 30% of your earnings. You will also need to pay social security tax, which funds the state welfare system and pays out pensions and unemployment benefits.

The likelihood is that you won’t need to worry about how your taxes are paid as your employer should handle everything under the pay-as-you-earn (PAYE) system. Your tax contributions will be calculated as a percentage of your monthly earnings and you will receive a net wage.

Eritrea Holidays

The major public holidays include:

• January 1 – New Year
• January 7 – Orthodox Christmas
• January 8 – Eid-al-Fitr
• January 19 – Timket (baptism of Christ)
• March 8 – International Women’s Day
• March 5 – Eid el-Alha
• April 28 – Good Friday (determined by Easter)
• April 30 – Easter
• May 1 – International Labor Day
• May 24 – Independence Day
• June 17 – Eid Mawleed el-Nabi (Prophet’s birthday)
• June 20 – Martyr’s Day
• September 1 – Start of the Armed Struggle
• September 11 – Orthodox New Year
• September 27 – Meskel/Festival of Timket (Finding of the True Cross)
• December 25 – Christmas

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.

The post Eritrea first appeared on WeHireGlobally.

DRC PEO & Employer of Record

WeHG provides an International PEO and global Employer of Record service in Democratic Republic of Congo to companies willing to enter the Congo market or hire local/expat employees in this region.

Traditional approach requires establishing a subsidiary in DRC.  However, our solution affords you to start the operations in DRC within days hence save time and money.  WeHG would hire job-seekers on your behalf when you maintain total operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf.

DRC fast facts

Population, million: 106
Land area: 2,345,409 km²
Capital: Kinshasa
Local currency: Congolese franc (CDF)

GDP per capita:$ 843
GDP in currency:$ 77.486 billion

Democratic Republic of the Congo, country located in central Africa. Officially known as the Democratic Republic of the Congo, the country has a 25-mile (40-km) coastline on the Atlantic Ocean but is otherwise landlocked. It is the second largest country on the continent; only Algeria is larger. The capital, Kinshasa, is located on the Congo River about 320 miles (515 km) from its mouth. The largest city in central Africa, it serves as the country’s official administrative, economic, and cultural centre. The country is often referred to by its acronym, the DRC, or called Congo (Kinshasa), with the capital added parenthetically, to distinguish it from the other Congo republic, which is officially called the Republic of the Congo and is often referred to as Congo (Brazzaville).

Hiring, Negotiating and Doing Business in DRC

Necessity of written employment contract

Necessity of written employment contract

Any employment contract should be evidenced in writing, mention certain details, and in absence of a written contract the employee may prove by all legal means including witnesses the existence and scope of the contract.

Different forms of engagement: employment, contracting, work with private entrepreneur

The Labor Code stipulates that every employment contract can be accompanied with a probation period as long as this period is evidenced in writing and does not exceed a period of 1-6 months depending on the specialization of the employee.

The probation period may not exceed 1 month for an unskilled laborer without specialization, and 6 months for the other employees. Any stipulated longer duration will be automatically reduced to the allowed maximum.

Any employer willing to hire an expatriate is to file with the regional Employment office a dossier consisting of:

• the application for an expatriate “carte du travail” i.e. work card;
• a draft employment contract;
• the CV of the contemplated expatriate employee;
• evidence of the professional skills and expertise of the applicant;
• the job description;
• a list of the company’s expatriate employees;
• the training, advance training and professional adjustment programs;
• and copy of the letter of application for the expatriate work card.

After submitting this dossier, the expatriate worker must apply for an expatriate work card, upon which the National Commission of Hiring Expatriate Workers, Commission Nationale de l’Emploi des Etrangers in French will decide. Once the work card is granted, the expatriate worker can obtain a visa for settlement with employment purpose as laid down by current employment regulations. If granted, the visa is issued for the same duration as the work card. In case of termination of the employment contract, the expatriate worker must be repatriated or find another job that would provide proof of holding the work card.

DRC Employment Contract

Types of employment agreements

Four categories of employment contract are envisaged:

• Daily contracts, which will apply to employees recruited for daily casual-labour requirements. The contract may not exceed 22 working days in a two-month period. If it does, the agreement will become an open-ended contract with associated obligations.
• Fixed-term contracts, which will apply to a specified term.
• Defined-scope contracts; FQM has defined scope contracts with Labour brokers within Indonesia and the Philippines for the employment of the estimated 400 Filipino’s and Indonesians who will be hired for the construction phase. When the scope is completed the artisans will be moved by their agency to another job. If the scope changes along the way, i.e. if construction continues past the agreed date, or if additional work is added the labour broker company is notified well in time and agreed.
• Open-ended contracts, which will be the typical form of contract for Congolese staff hired on a permanent basis. The minimum age is 18 years. A probation period will apply to all open-ended contracts.
• Independent Contracts are simplified contract agreements specifying the task and the payment due on completion. Independent contractors are not KMT staff, and apart from contractually agreed provisions, there will be no benefits.

All safeguards in DRC law and international best practice are applied to contracts, including provisions relating to child and forced labour. The contracting arrangements described above ensure the full documentation of working arrangements. Contractual arrangements will always be clearly communicated.

DRC working hours

Normal working hours will not exceed nine hours per day or 45 hours per week. Normal working hours and a duty-shift schedule will be established and made known to employees. Key elements of the working hour’s policy are the following:

• Standard office hours for non-shift duty will be 8h00 to 5h00 Monday to Friday, with a lunch break between 12h30 and 13h30. Times may vary from department to department.
• Shift duty will be defined in duty rosters. A three-shift system will apply, and employees should not work less than an average of 43 hours per week. The maximum number of hours per week should not exceed 60, including overtime. A 48 hour off-duty period must be allowed for every 7 days of work. Night shift duty will be compensated.

Overtime

Overtime is work done outside the normal daily and shift hours, or on the weekly rest day or public holidays. A supervisor must request overtime. Overtime compensation will vary between +30% (normal overtime) and +100% (work on the weekly rest day).

Construction workers hired via labour brokers (Indonesians, Filipino’s and Congolese) will work 13 days on and 1 day off in a two week cycle.

Vacation leave in DRC

Paid leave includes annual leave, sick leave, maternity leave and compassionate leave. The general provisions in the four cases are:

• Staff at all levels is entitled to annual leave days for each full year worked. The period will vary between 24 and 30 working days per full year of service (for different employment categories) and will be increased by two days for every five years worked.
• Staff with fixed-period contracts of more than six months and staff with open-ended contracts are entitled to sick leave after three month’s continuous service. The first 10 days will be at full basic salary, reducing in ten-day increments thereafter. If the employee is unable to resume work after 30 continuous working days, the contract will be suspended for temporary leave of absence. If the suspension is work-related, two thirds of the wage and the full child care allowance will be paid for a period not exceeding six months.
• After three months of continuous service, fixed and open-ended contractees are entitled to between two and five days of compassionate leave per annum, depending on circumstances.

DRC Maternity Leave

A woman employee who has become pregnant and who has been employed for a continuous period of no less than six months is entitled to maternity leave. If not employed for six months at the expected date of birth, the woman will be entitled to leave without pay. A woman employee will be entitled to a maximum of 14 consecutive weeks, with a maximum of 8 after childbirth.

DRC Severance Laws

Termination of employment contracts are governed by strictly enforced procedures, in compliance with DRC laws and international best practice. Termination may occur in the following situations:

• At the end of a fixed-term contract.
• At the will of the employee, for example in cases of retirement and resignation.

In one of the following situations: dismissal during or at the end of the trial period; dismissal by issue of notice of termination or payment in lieu of notice; dismissal due to disciplinary reasons; dismissal due to economics, reduction of activities, restructuring, or closure. The last situation is one of redundancy / retrenchment.

Targeted training will prepare employees for redundancy, addressing topics such as life and entrepreneurial skills. All employees with six-month or more fixed contracts or open-ended contracts will be eligible for severance pay. This will be calculated according to a formula which is based on salary at the time of severance and length of service.

DRC Tax

National insurance fund (Institut National de Sécurité Sociale or INSS): The Prime Minister of the Democratic Republic of the Congo signed the Decree n°18/041, dated 24 November 2018, fixing the rates of social contributions. These rates of social contributions are applicable to the branches of family benefits, pensions, and occupational risks. The said rates are set as follows:

• 1.5% borne by the employer (branch of occupational risks).
• 5% borne by the employer (pension branch).
• 5% borne by the worker (pension branch).
• 6.5% exclusively borne by the employer (family benefits branch).

National office for professional training (Institut National de Préparation Professionnelle or INPP): INPP contribution is paid only by the employer at:

• 3% for state-owned companies and private companies with up to 50 employees.
• 2% for private companies with 51 to 300 employees.
• 1% for private companies with over 300 employees.

National office of employment (Office National de l’Emploi or ONEM): ONEM contribution is paid only by the employer at 0.2%.

The deadline to file INSS, INPP, and ONEM returns is the 15th day of the month following the month where the salary has been paid.

Health Insurance Benefits in DRC

DRC will provide employees and their family’s access to medical and health care facilities and services. The main provisions of the medical and health care policy are the following:

• Access to Kolwezi clinic and hospital facilities for DRC employees and their family members, upon presentation of a medical ID card. This will entitle the holder to free medical and dental attention and prescribed drugs. Yearly limits based on Ministry of Health tariffs will apply for spectacles, orthopaedic devices and prostheses.
• New Employees or potential employees living with HIV / AIDS will work or pursue work without discrimination. Confidentiality will be respected. Voluntary counselling and testing will be promoted among all DRC employees. DRC will bear the cost of treatment in Kolwezi for employees, if the employee has completed probation and six months of services, and if the employee and/or immediate family have undergone voluntary testing and counselling, and have disclosed HIV status to the DRC doctor
• A health dispensary within the plant will provide first aid and emergency care as well as preventative care for all employees. In acute situations, the patient will be transferred to hospital. Severe and life-threatening situations may require evacuation to a larger medical centre.
• Employees and family members with conditions that cannot be treated in Kolwezi may be referred to a Lubumbashi hospital.

Additional Benefits in DRC

The benefits to be made available are either taxable or non-taxable:

• Taxable benefits will include an annual gratuity, severance pay , a salary adjustment in case of temporary incapacity, an indemnity in case of death and salary advances. The latter will only be granted in exceptional circumstances.
• Non-taxable benefits will include the following allowances: family and child care; housing; transport and child education.

Details of all benefits (including eligibility) are clearly laid out in the KMT HR policy and procedure guideline.

General market practice benefits/additional allowances

Companies that attract the most investors are private limited liability companies (sociétés à responsabilité limitée) (SARL).

The DRC has a wealth of natural resources. The country has more than 80 million hectares of arable land and a range of more than 1100 minerals and precious metals, including iron, aluminium, copper, lead, zinc, chrome-nickel, wolframite, manganese, vanadium, cobalt, beryllium, monazite, lithium, colombite, tantalum, gold, silver, platinum, diamond, oil, limestone, bituminous shale and methane gas.

DRC is expected to be one of Africa’s future growth engines and richest countries. The main sources of DRC’s economic performance include:

• A very active extractive industry (mining and forestry).
• Growing demand for, and favourable pricing of, raw materials.
• Activity in the industries of telecommunications, agro-business and housing and construction.
• Public investment, mainly in infrastructures (such as the building of roads and electricity facilities) also contributed to stimulate growth.

It is anticipated that, in the medium term, economic activity will grow at a steady pace, with a growth rate estimated of about 7% to 8%. The economic prospects look positive as the factors that have contributed to economic development are expected to be maintained and consolidated.

DRC Holidays

There’re 9 public holidays:

• New Year’s Day
• Day of the Martyrs
• Heroes Day. Remembrance of Laurent Kabila
• Heroes Day. Remembrance of Patrice Lumumba
• Labour Day
• Liberation Day
• Independence Day
• Parents’ Day
• Christmas Day

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.

The post DRC first appeared on WeHireGlobally.

Ghana PEO & Employer of Record

WeHG provides an International PEO and global Employer of Record service in Ghana to companies willing to enter the Ghanaian market or hire local/expat employees in this country.

Traditional approach requires establishing a subsidiary in Ghana.  Meanwhile, our solution provides you with the beginning of the operations in Ghana in several days, therefore, save your resources.  WeHG would hire candidates on your behalf when you maintain all-embracing operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf.

Ghana fast facts

Population, million: 31
Land area: 239,567 km²
Capital: Accra
Local currency: Ghanaian cedi (GHS)

GDP per capita:$ 2,266
GDP in currency:$ 69.757 billion

Ghana, country of western Africa, situated on the coast of the Gulf of Guinea. Although relatively small in area and population, Ghana is one of the leading countries of Africa, partly because of its considerable natural wealth and partly because it was the first black African country south of the Sahara to achieve independence from colonial rule.

Hiring, Negotiating and Doing Business in Ghana

Necessity of written employment contract

Contracts of employment may be in writing or may be verbal. An understanding between the parties resulting in quid pro quo (something for something) as in Pay for Labour service will normally constitute a binding employment contract whether in writing or not. It is the parties’ intentions that determine the contract.

Different forms of engagement: employment, contracting, work with private entrepreneur

Employment contracts regulate interactions between employees and employers in an employment relationship. Our Labour laws (LL) require that within 2 months of employment every permanent employee should be given a contract stating the particulars of conditions and terms of the contract. Contracts are negotiable and so when an employee is made an employment offer, they can negotiate the contract offer.

In Ghana, no foreigner shall employ or accept employment unless that person is granted a work permit or immigrant quota. Work permit or Immigrant quota is an authorization granted to an employer or employee to engage in lawful and gainful employment in Ghana. The work permit or immigrant quota specifies the job title. It indicates the employer by whom that person is employed, and the holder cannot engage in any other employment, business, profession or occupation in Ghana for reward than what is specified by the work permit or Immigrant quota.

Ghana Employment Contract

Types of employment agreements

Three basic types of contracts exist: permanent employment ( Continuous until 60 yrs) Casual Employment (seasonal and intermittent work for not more than six months) and temporary employment (project based with fixed duration).

Ghana working hours

The normal working hours are 8 hours a day and 40 hours a week. Worker may work for longer hours, provided that the average working hours do not exceed the normal working hours, i.e., eight hours per day and forty hours per week. Where shorter hours of work are fixed on some days of the week, the hours of work on other days of the week may be proportionately longer than eight hours but shall not exceed nine hours per day and forty hours per week.

Overtime

A worker cannot be compelled to do overtime work. However, under certain circumstances, if the viability of the undertaking or enterprise requires overtime then a worker may be compelled to do overtime. Also a worker may be required to engage in overtime work in order to prevent or avoid threat to life and property. 

A worker may be required to work beyond the fixed hours of work without additional pay in certain exceptional circumstances, including an accident threatening human lives or the very existence of the undertaking.

Vacation leave in Ghana

A worker is entitled to at least 15 working days fully paid annual leave, after completion of 12 months of continuous service. Continuity of service is not interrupted by mere change of ownership or management of the undertaking. The worker must have worked for at least 200 days in the particular year to fulfill the requirement for continuous service, in case of irregular work throughout the year. If a worker is absent from work with permission of employer, this period is not considered as interruption.

Ghana Maternity Leave

Female workers are entitled to 12 weeks (84 days) of maternity leave with full pay. Pregnant worker has to provide medical certificate issued by a medical practitioner or mid- wife, indicating the expected date of her confinement.

The maternity leave can be extended by two additional weeks in case of caesarean delivery/abnormal birth or twin (or more) births. Extended leave are granted in case of illness due to pregnancy or confinement, certified by the medical practitioner. Maximum limit of extended leave is not mentioned in the law.

Ghana Severance Laws

Under Act 651, a contract of employment may be terminated by either party at any time. However, where the contract of employment is for three (3) years or more, it may be terminated upon a month’s notice or a month’s pay in lieu of notice. Where the contract of employment is less than three years, two weeks’ notice or two weeks’ pay in lieu of notice is required. In the case of contract from week to week, seven days’ notice is required to be given to the employee. In the event that the contract of employment is determinable at will by either party, it may be terminated at the close of any day without notice.

Under the law however, termination maybe deemed to be unfair where the termination is only by reason of the fact that the worker intends to join a trade union or has ceased to join a trade union; that the worker has participated in proceedings against the employer: of race, colour, religion; or in the case of a pregnant woman as a result of the pregnancy or absence of work on maternity leave; that the worker has a disability; that the worker has refused to perform duties normally required of him as a result of a lawful strike among others .Additionally, a worker’s termination would be deemed unfair where it is as a result of ill-treatment of the worker by the employer or where the employer has failed to take action on repeated complaints of sexual harassment of the worker at the workplace.

Ghana Tax

The First Tier is the Basic National Social Security Scheme for all workers in Ghana. It is a defined benefit scheme and mandatory for workers to have 13.5% contributions made on their behalf. The contribution is managed by SSNIT.

Corporate Tax: This is the tax paid by companies on their profits in the year. The tax rate is 25%. Mining and upstream petroleum companies pay corporate tax at a rate of 35%, while companies principally engaged in the hotel industry pay a reduced rate of 22%. The CIT rate for companies engaged in non-traditional export is 8%, while bank lending to the agricultural and leasing sectors pay a CIT rate of 20% on income from those business.

Health Insurance Benefits in Ghana

There is no mention in the labour act about the medical care however medical benefits are provided under the National Health Insurance Program.  It provides range of healthcare services free of charge, including inpatient and outpatient services, emergency care, eye treatment, and dental and maternity care. The program does not cover costs for rehabilitation (other than physiotherapy), prostheses, certain surgeries (including organ transplants and cosmetic surgeries), antiretroviral treatment for HIV, dialysis, and cancer treatment (other than cervical or breast cancer).

There is no provision in the above act that a worker’s job is secure during the first 6 months of his/her illness. According to the Labour Act, an employer can’t dismiss a worker during his/her period of sickness (only if it is temporary and for short period), pregnancy or disability.

Additional Benefits in Ghana

State benefits are granted by the government of Ghana to all employed, self-employed and unemployed persons and their dependents residing in the country.

Private benefits are granted by employers to employees, over and above state and compulsory benefits.

A new contributory three-tier pension scheme, under the National Pensions Act 2008, was implemented in 2010.

State and compulsory benefits encompass a set of benefits such as old-age pension, death and long-term disability pensions, short-term sickness benefits, redundancy benefits, occupational accidents and diseases, maternity benefits, benefits in the case of medical emergencies, fair treatment and compensation.

General market practice benefits/additional allowances

Ghana has attracted the attention of international businesses investing in all sectors of the economy. The main sectors of investment within Ghana include agricultural and agro-processing sectors. The financial services and telecommunications sectors are growing rapidly. Further opportunities exist in manufacturing, ICT, tourism, gold, diamonds, and oil and gas.

It is not mandatory to make payments to employees or the authorities from an in-country bank account.

Generally, banks are open to the public from 8.30AM to 4.00PM Monday to Friday. Some banks are open on a Saturday from 8:00AM to 1:00PM.

Ghana Holidays

There’re 13 public holidays in Ghana:

• New Year’s Day
• Constitution Day
• Independence Day
• Good Friday
• Easter Monday
• May Day (Workers’ Day)
• Eid-Ul-Fitr
• Eid-Ul-Adha
• Founders’ Day
• Kwame Nkrumah Memorial Day
• Farmer’s Day
• Christmas Day
• Boxing Day

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.

The post Ghana first appeared on WeHireGlobally.