- Overview: Cape Verde
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Contractor vs. employee: which is better?
Global HR Compliance in Cape Verde
Successful cooperation with major international companies, focusing on a narrow area of specialization and clear market positioning allowed Acumen International to develop effective models for managing personnel administration and payroll processes in companies of various profiles and be in line with legislation changes in Cape Verde.
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 Cape Verde, 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 Cape Verde. 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 Cape Verde, 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 Cape Verde will help you:
- Navigate legislation and local nuances of Cape Verde. You need to know what is acceptable and what can expose you to employment litigation as well as employee / independent contractor misclassification risk in Cape Verde.
- 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 Cape Verde. 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 Cape Verde.
- Manage expatriate immigration and visa support nuances in Cape Verde. 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 Cape Verde.
Hiring and Firing Workforce in Cape Verde Guide
# Employment contracts
As a general rule, employment agreements do not need to take any particular form and therefore they may be oral or written. However, the legal exceptions to this general rule are apprenticeship agreements, promissory agreements, occasional assignment, maritime agreements, fixed term employment agreements, and in certain cases of hiring foreign employees. Also, any of the parties may request from the other that the employment agreement is produced in writing, in which case it must contain the identity of both employer and employee, the date of admission, the place where the work must be performed, the job title and the remuneration.
Regardless of the form of the agreement, the key terms referred to above constitute the essential elements of the employment agreement. Such evidence can be given in writing, by witnesses or confession. Therefore, there are several advantages to having a written agreement – it allows both parties to agree upon and confirm in writing the main aspects of the employment relationship. Although as a general rule, employment agreements do not have to be written, there are several advantages to having a written agreement – it allows both parties to agree upon and confirm in writing the main aspects of the employment relationship.
Employment agreements may be for an indefinite term, and this is the general rule, or for a term which is fixed either by time or by the completion of a task. Fixed term employment agreements may only be executed to satisfy temporary needs of the employer and only during the period strictly required for that purpose, and may not exceed 5 years (or even less, depending on the justification for their execution), otherwise they will be deemed as an indefinite term employment agreement.
Furthermore, companies incorporated under the Labour Code are allowed to conclude fixed-term employment agreements during the first five years of activity. This rule also applies to companies which create new job posts. There are also temporary assignment agreements, port labour agreement, maritime labour agreement and part-time agreements.
# Minimum (Statutory) Employment Rules and Regulations in Cape Verde
# Hours of work:
Under statute, the normal maximum permitted working period is 8 hours per day and 44 hours per week. These maximum number of hours may be increased or reduced in certain situations, for example, the English week, according to which the normal period of daily work can be extended up to an hour as long as, in return, the employee is given a half weekly rest day in addition to the weekly rest period. Also, the government can extend the normal working hours in the case of employees whose activity is markedly intermittent or of mere presence.
By unilateral decision of the employer, a special single schedule from July to September of seven hours starting at 6 a.m. until 3 p.m. on the same day can be permitted. A Spouse, parent, child and brother of the employer, those who perform management, control or supervision functions, as well as those who by virtue of special skills or knowledge are considered indispensable to the employer, may be exempted from the work schedule. This implies entering into an agreement between employer and employee stating the name and the job position of the latter and the entitlements inherent to such special regime, such as the remuneration in excess that cannot be lower than 20% of the common one.
# Probation period:
The duration of the probation period depends on the type of employment agreement and/or of the employees’ positions/job responsibilities.
In case of a non-fixed term employment agreement, the probation period can be extend up to six months if the functions to be performed imply technical complexity and responsibility and if such larger period of time is deemed necessary to evaluate the employee’s capacity to carry out the job. With employees performing management and/or senior functions a probation period up to twelve months can be agreed upon.
In fixed term agreement, a two-month probation period may be reduced as it can’t be larger than ¼ of the duration of the agreement. The probation period can also be reduced or extended by means of applicable collective agreement. In this case, the length of the probation period shall not exceed the length provided as a general rule.
# Annual leave:
In general, all employees are entitled to a minimum of 22 working days paid holiday per year, though there are some exceptions to this general rule depending on the type of employment agreement. In cases of non-fixed term agreements, employees are entitled to take their annual leave after 6 months of effective work, except if the admission occurs in the first semester of the year, in which case the employee is entitled to 7 business days paid holiday to be taken during the same year at a date agreed by both parties.
Concerning fixed-term agreements, the general rule will apply, unless its duration is less than one year, in which case the employee is entitled to a holiday period proportional to its length, which can be used after half of such term has elapsed.
Generally, the parties are free to agree between themselves when holiday should be taken. If this is not possible employers may schedule them after consulting the delegates of the unions or, in their absence, the affected employees. Holidays may be cumulated up to the maximum of 44 days by agreement of both parties, or whenever the annual leave causes damages to the employer or the employee.
# Parental leave:
There are several statutory rights granted to pregnant women, puerperal women and nursing women, as well as to parents or adoptive parents or candidates of adoption. Female employees are entitled to take up to 60 consecutive days of initial parental leave where they are entitled to a subsidy equal to 80% of their remuneration.
Male parents are entitled to parental leave equal to the mother in the event of the death of the mother or mental and physical incapacity of the mother and as long it remains.
# Sick leave:
Inherent subsidy is granted by the Cape Verdean Social Security System (INPS) to eligible employees.
Employees maintain all rights and obligations where they are ill, except the rights concerning remuneration.
The conditions to be granted are the registry of remunerations during the previous 6 months of the absence and 15 days of registry of remuneration for effective work in the previous 4 months. Employees are entitled to a maximum of 30 days of absence from work due to illness, subject to issuance of a medical certificate. If illness lasts for more than 30 days, the employee shall be subject to an examination by the Health Board.
A temporary impediment not attributable to the employee, lasting more than 30 days determines the suspension of the employment agreement until the end of the impediment, except if a termination cause occurs. In the case of fixed-term contracts the labour relationship expires on the date on which the agreement expires.
The Employer is allowed to suspend the employment agreement only if the impediment due to illness lasts more than 90 days. The suspension is limited to a maximum of 36 months, after which the employment agreement expires.
# State minimum salary:
The Cape Verde minimum wage is 11,000 Cape Verdean escudos per month in the private sector. 12,000 Cape Verdean escudos per month for an entry-level worker in the public sector. Cape Verde’s minimum wage was last changed in January 01, 2014.
# Employee dismissal:
Depending on the length of service and on the type of agreement in force, prior notice should be given by the employee, in the minimum of 15 days prior notice per year of seniority, to a maximum of 2 months. If the required notice period is not provided, the employee should indemnify the employer in the amount correspondent to such period of time and having in mind the salary that the employee would receive plus, if applicable, the amount correspondent to the damages/losses caused to the employer due to such employee’s behavior.
Only fixed term employment agreements can be terminated by the employer on notice. Termination can be mutually agreed upon between employer and employee at will and under the correct conditions.
Severance payments are calculated according to the seniority of the employee, the ground for dismissal and, if more favorable, the terms of the agreement. It should be noted that termination with just cause does not entitle the employee to a severance payment.