- Overview: Algeria
- Global HR Compliance
- Global PEO and payroll
- Visa, work permit & immigration support
- Expand without a company set up
- Contractor vs. employee: which is better?
Global HR Compliance in Algeria
The war for global talent has never been tougher. Attracting and keeping sought-after international employees requires knowledge. Whether your company is already engaging or planning to engage global workforce in Algeria, you need to trust that your operations are executed without flaw and without any unnecessary risks.
Businesses of all sizes face a devastating lack of information and support on global employment, taxation, and immigration in Algeria. There’s a common and significant gap between what’s required to be 100% compliant and what most organizations actually have at their disposal.
Acumen International can fill the gap in fragmented Global HR Compliance knowledge
We are experts in global workforce employment in Algeria, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.
We act as an information service for corporate clients, agencies, and independent contractors and freelancers. Our Global HR Compliance service in Algeria will help you:
- Navigate legislation and local nuances of Algeria. You need to know what is acceptable and what can expose you to employment litigation as well as employee / independent contractor misclassification risk in Algeria.
- Avoid areas of possible risk. Certain areas and activities can create unnecessary risk, such as employer-employee relations. We can help you with worker classification, payroll and tax calculations, and social cost contributions.
- Handle currency exchanges and local invoicing in Algeria. We save you time and effort, freeing you from having to understand complicated regulations and tax calculations written in the local language and subject to frequent changes.
- Create employment contracts and handle compliant engagements. Our objective is to assist you with international HR compliance issues and offer you the best payment and taxation options in Algeria.
- Manage expatriate immigration and visa support nuances in Algeria. Acumen International provides information about the best scenarios of expat immigration and employment.
- Handle global recruitment issues. We can help you select the person and then employ him with our help. We advise you on local employment laws and implied compliance risks to determine the most cost-effective, compliant, and risk-free solution for you.
- Withdraw from the region in the least risky and most cost-effective way. If you choose to do so, we can help you withdraw from the region as simply as possible.
Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.
With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Algeria.
A Guide to Hiring & Firing in Algeria
Two types of employment contracts are permitted in Algeria, limited (fixed) term contracts and unlimited term contracts.
Permanent employment contracts
The open-ended contract is the common law recruitment method which can be written or oral and no special formalities are required.
A fixed term contract must expressly state the duration of the contract (and the justification for its duration) and is only permitted in the following circumstances:
- When the employee is recruited for the performance of an agreement relating to the achievement of a project or services that are not ongoing
- When the employee replaces a jobholder who is temporarily absent and whose job is to be preserved by the employer
- When the employee is to perform periodic and discontinuous work
- When a supplementary load of work, or seasonal reasons make it necessary
- Where the employment relates to fixed term work/activities or when such works or activities are temporary by nature.
The Algerian Labour Law does not provide for a maximum duration for a fixed term contract. However, the courts have commonly held that more than one renewal of a fixed term contract will result in the contract being deemed to be for an unlimited term.
Fixed-term contract is only valid if it is written down. Otherwise, it is presumed concluded for an indefinite period. It must include mandatory information and the precise definition of its reason, which it is up to the employer to prove.
# Severance payments
No statutory severance pay in the Labour Relations Act.
However, an employee is entitled to severance pay if he/she is dismissed for reasons not connected with the commission of a serious misconduct and if he/she has at least 2 years of service with the same employer.
The amount of severance pay cannot be less than 15 days’ wages per year of service, calculated on the basis of the last salary.
# Employee Benefits and Contributions
- Annual leave
- Public holidays entitlement
- Sick leave
- Maternity and paternity leave
- Mandatory social insurance contributions by employer (sickness, maternity, disability and death).
# Probationary period
An employee may be employed on probation for up to six months, although highly qualified individuals may be subject to a probationary period for up to 12 months. The permitted duration of the probationary period is also specified for each category of employee through collective bargaining agreements. During the probationary period, both the employer and employee may terminate the employment contract with immediate effect without notice or compensation.
Employees may only be required to work overtime by their employer in exceptional circumstances, for example where it is crucial to ensure the completion of a piece of work or project. Overtime hours must not exceed 20% of the maximum working hours (i.e. eight hours per week) and an employee must not be required to work more than a total of 12 hours per day.
Where an employee is required to work additional hours, they are entitled to overtime pay, of a minimum of 150% of the normal hourly wage.
The working week typically runs from Sunday to Thursday and the maximum prescribed working hours for an employee is 40 hours per week (based on a five-day week) and eight hours per day (exclusive of a one hour break). Friday is the statutory day of rest each week.
Women are not permitted to work between 9pm and 5am unless specific exceptions are granted by the Labour Inspectorate where the nature of the activity/job role requires.
# Annual Leave
The Algerian Labour Law provides employees a minimum entitlement to 30 calendar days’ paid annual leave.
# Sick Leave
Employees are entitled to 15 days paid sick leave at half salary; and full salary from the 16th day of sickness onwards. Sick pay and the reimbursement of medical expenses are funded by the National Fund of Social Security, based on the mandatory social contributions paid by the employed and the employee (whether Algerian or foreign national).
# Parental Leave
Maternity rights and leaves
Provided that the employee has worked at least either 15 calendar days / 100 hours during the three months preceding the date of the first medical acknowledgment of pregnancy or 60 calendar days / 400 hours during the 12 months preceding the first medical acknowledgment of pregnancy, a female employee is entitled to 14 weeks’ fully paid maternity leave. This includes a compulsory period of leave before the expected date of birth and following delivery of not less than six weeks. Maternity pay is borne by the National Social Security Fund.
Paternity rights and leaves
The employee is entitled to 3 days of absence without loss of remuneration, for the following: worker’s marriage, birth of the worker’s child, marriage of one of the worker’s descendants, death of one of the worker’s parents, children or brother/sister (as well as of spouse), death of the spouse, circumcision of one of the children. The employee who intends to take this leave shall justify and notify the employer.
# Voluntary Employee Benefits
Performance-based bonuses, private health insurance.
Acumen International can help you fast-track your possibilities of entering and expanding your business in Algeria by providing you with our Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any need to set up a legal entity first or afterwards.