Chad

Chad PEO & Employer of Record

WeHG provides an International PEO and vglobal Employer of Record service in Chad to companies willing to enter the Chad market or recruit local/expat employees in this country.

The general approach requires establishing a subsidiary in Chad.  Meanwhile, our solution allows you to start the operations in Chad within days hence save time and money.  WeHG would hire applicants 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.

Chad fast facts

Population, million: 16,425,864
Land area, sq. km: 1.284 million km²
Capital: N’Djamena
Local currency: Central African CFA Franc (XAF)

GDP per capita:$639.85
GDP in currency:$ 9.95 billion
Economic growth percentage: 5.5%
Inflation rate (consumer prices): 2.8%
Volume of export: $ 1.69 billion
Import of goods and services: $ 4.28 billion
Total population: 16,425,864
Population of working age (15-64): 69.3%

Chad, landlocked state in north-central Africa. The country’s terrain is that of a shallow basin that rises gradually from the Lake Chad area in the west and is rimmed by mountains to the north, east, and south. Natural irrigation is limited to the Chari and Logone rivers and their tributaries, which flow from the southeast into Lake Chad. The capital, N’Djamena (formerly Fort-Lamy), is almost 1,000 miles (1,600 km) by road from the western African coastal ports.

Hiring, Negotiating and Doing Business in Chad

Necessity of written employment contract

The contract of employment may be concluded for definite or an indefinite period. It may be drawn up in written or oral form. 

Written contracts are exempted from all stamp duties and registration. The existence of an employment contract is proved by all means. At the end of probationary period when the employment is confirmed, the employment contract is established in writing specifying the employment and position of the worker. 

A copy of this document is provided to the employee. Before the end of the probationary period, the worker must produce an extract from the criminal record dating from less than three months, a declaration of habitual residence, his copy of birth certificate or document in lieu and possibly previous certificates of employment in order to be definitively engaged. In addition, every worker is subject to a periodic physical fitness test carried out by the company’s doctor in accordance with the regulations in force. 

Any modification to the individual contract must first be notified in writing to the worker. Where the change may result in a reduction in benefits for the employee and is not accepted, it is equivalent to a termination of employment by the employer. 

Chad Employment Contract

Types of employment agreements

The fixed-term employment contract is a contract with a certain term, fixed, in advance and agreed between the parties. It must be concluded in writing and contain all useful information about their term and possible renewal. Its duration may not exceed two years, renewable only once. However, short-term contracts may be concluded and renewed more than once, provided that their total duration does not exceed two years. Any renewal clause only provides the employer with an option to propose a renewal, and for the worker only a faculty to accept it. Thus, the maximum length of a single fixed term contract including renewals is 4 years.

Chad working hours

In general the work week is 40 hours.

Overtime

Overtime work is compensated at a rate that is fixed by a decree enacted by a Council of Ministers, under proposition from the Minister of Labour and Social Security. More favourable rates can be fixed through collective agreements. In accordance with the general collective agreement, overtime work is compensated as follows:

  • 10% surcharge for the first eight overtime hours;
  • 25% increase for overtime worked beyond the 8th hour;
  • 50% increase for overtime hours worked at night;
  • 50% increase for overtime hours worked on weekly rest days and public holidays;
  • 100% premium for night overtime on weekly and public holidays.

Vacation leave in Chad

Workers are entitled to 24 working days of annual leave after one year of service.

Sick Leave

Employees are generally entitled to at least 5 paid sick days per year.

Chad Maternity Leave

The total maternity leave should last at least 14 weeks.

Chad Severance Laws

Any contract of employment may be terminated by reason of the occurrence of an event beyond the control of the parties which renders the performance of the contract impossible, either permanently or for a long period. 

The termination is valid only if it is established in writing and signed in the presence of the Labour Inspector. The fixed term employment contract ceases automatically at the expiry of the contract. The employer may unilaterally terminate the probationary contract before the expiry of the term only by reason of gross negligence committed by the employee and Disciplinary proceedings. 

There can be personal or economic reasons for dismissal. The termination of the contract of employment of indefinite duration becomes effective only after the expiry of a period called prior notice. The period of notice begins on the day on which the letter notifying the dismissal is presented at the employee’s home or on the day on which it is delivered directly to the employee by hand. 

Labour Code provides for the following contract termination notice, depending on the length of employment: 

  • one month for at least one year of service; 
  • two months for at least three years of service; 
  • 15 days in other cases (including less than one year of service and for fixed term contracts) 

Severance Pay 

In accordance with the Labour Code, employers are required to provide severance pay to an employee who was employed for at least two years and his/her employment contract was terminated for reasons other than gross misconduct. 

The amount is a percentage of the worker’s gross monthly salary for each year of service according to the length of service as follows; 

  • • 25% of gross monthly salary per year for two to five years; 
  • • 30% of gross monthly salary per year for five to ten years of service; 
  • • 35% of gross monthly salary per year for more than ten years of service. 

Employers are also required to pay compensation to an employee dismissed due to an assessed work injury or occupational disease, who was employed for at least one year. The payment is a percentage of gross monthly salary for each year of service according to the length of service; 

  • • 30% of gross monthly salary per year for two to five years of service; 
  • • 35% of gross monthly salary per year for five to ten years of service; 
  • • 40% of gross monthly salary per year for more than 10 years of service.

Chad Tax

Income Tax – Individuals 

Taxable income (XAF) Rate 

0 – 800 000 0% 

800 001 – 2 500 000 10%

2 500 001 – 7 500 000 20% 

Over 7 500 000 30%

Social security 

The employer must make social security contributions on behalf of the employee in an amount equal to 3.5% of the gross salary.

Health Insurance Benefits in Chad

There is little access to health care in Chad.

Chad Holidays

  • New Year’s Day
  • Easter Monday
  • May Day
  • End of the Second World War
  • Eid al-Fitr
  • Independence Day
  • Eid al-Adha
  • Proclamation of the Republic
  • 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.

FAQ Chad

  • Working hours in Chad

    In general the work week is 40 hours.

  • What are the main holidays in Chad?

    • New Year’s Day
    • Easter Monday
    • May Day
    • End of the Second World War
    • Eid al-Fitr
    • Independence Day
    • Eid al-Adha
    • Proclamation of the Republic
    • The Prophet’s Birthday
    • Christmas Day
  • What are payroll taxes in Chad?

    Income Tax – Individuals  Taxable income (XAF) Rate

    • 0 – 800 000 0%
    • 800 001 – 2 500 000 10%
    • 2 500 001 – 7 500 000 20%
    • Over 7 500 000 30%
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