Gabon

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.

FAQ Gabon

  • Working hours in Gabon

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

  • What are the main holidays in Gabon?

    • 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
  • What are payroll taxes in Gabon?

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

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