- Overview: Madagascar
- Global HR Compliance
- Global PEO and payroll
- Contractor vs. employee: which is better?
Global HR Compliance in Madagascar
If you hire international workforce, or plan to hire, then Hiring and Firing Workforce in Madagascar Guide below will help you understand the nuances of labor legislation in the country.
There are two main reasons for companies hiring foreign workforce:
- Expanding into foreign markets to sell company product or products there. In this case, companies hire sales representatives who would exclusively represent their product in the target market and sell it to their local client base.
- Hiring the right foreign talent with a unique expertise, often related to IT sphere that cannot be found in the home country or that costs less compared to local specialist with similar skills.
After you have found the right candidate, the question is how to hire and provide compensation to this person so you as a business remain 100% compliant when working with global workforce. Another thing to consider is whether you want to keep the talent long-term and how you can do that.
If you need to hire foreign workforce in Magadascar so you can expand there, then our Global Employer of Record solution may be of help. We help you legally hire and reward your foreign workforce by making them employees via a global employment outsourcing service. This is simple as employ your in-house workforce with the only difference that workers can live anywhere in the world and Acumen International would be their legal employer on your behalf. This means we would bear all employment risks, not you. Also, we manage bonuses, vacations, sick leave and can rent the office and a car for your foreign sales representatives if that is what you need.
With our solution, you can test new foreign markets before deciding whether you are going to get established there. You gain flexibility and expand with reduced costs, and easily withdraw from the unattractive countries.
We are experts in global workforce employment in Magadascar, 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.
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 Madagascar.
See the guide below for a general overview of labor rules and regulations in Madagascar. Or contact us if you need to employ workers in Madagascar or would like to get more details.
Hiring and Firing Workforce in Madagascar Guide
# Employment contracts
Contracts of employment are passed freely subject to the respect of the provisions of order public. They are subject to the rules of common law, in particular, the consent of the parties, the ability to contract, a certain object and a lawful cause.
It is noted, at the time of the hiring, by a writing specifying at least the function, the category the minimum classification index, the worker’s salary and the effective date of the contract. It is written in Malagasy or French.
It is drawn up in duplicate:
- The first being held by the employer;
- The second must be delivered immediately to the worker after signature of both parties.
In the absence of a written contract, the existence of the employment contract can be proved by all means. The employment contract is free of any stamp duty and registration. The employment contract can be concluded for an indefinite duration or a duration determined.
A fixed-term contract is a contract of employment characterized, at the time of its conclusion, by the existence of a term fixed by the parties or linked to an event whose future occurrence is certain even if it does not depend on the will of the parties. The fixed-term contract can not exceed two (02) years.
The following may be the subject of a fixed-term contract:
- do not last more than two (02) years;
- do not enter the normal activities of the establishment;
- relate to a specific work whose realization is the end of the contract.
The fixed-term employment contract of a minimum duration of six (06) months is transformed automatically on an open-ended employment contract after two renewals.
Re-employment in the same position of a worker bound by a fixed-term contract after a interruption not exceeding one (01) month is considered a renewal of the contract.
# Minimum (Statutory) Employment Rules and Regulations in Madagascar
# Hours of work:
The legal duration of the work of the employees or workers of either sex, of any age, working on time, on the job or on parts may not exceed one hundred and seventy-three decimal three-three (173.33) hours in a month. In all agricultural enterprises, working hours are based on two thousand two hundred (2,200) hours a year. Within this limit, the duration of work is fixed by a decree which also fixes the regulation of overtime and the terms of their remuneration.
# Probation period:
Probationary periods of up to 6 months are allowed with a one-time renewal.
# Annual leave:
In general, employees are entitled to 2.5 days of paid leave per month.
# Parental leave:
Any pregnant woman whose incapacity to work is ascertained by the doctor of the inter-company or company medical service or, in the absence of a licensed physician, may terminate her contract without notice and without thereby having to pay a termination indemnity contract.
On the occasion of her confinement and without this interruption of service being considered as a cause of breach of contract, any woman has the right to suspend her work for fourteen (14) consecutive weeks, including eight (08) weeks after the birth. deliverance. This suspension may be extended by three (03) weeks in case of duly ascertained illness resulting from the pregnancy or the diapers.
During this period, the employer cannot give him leave. It is entitled during this period, at the expense of the National Social Welfare Fund or, failing this, at the expense of the employer, the reimbursement of childbirth costs and, where appropriate, medical care, within the limits of the fees of the health facilities, as well as half (1/2) of the salary she received at the time of the suspension of work; it retains the right to benefits in kind.
# Sick leave:
Employees are entitled to at least 5 paid sick days per year.
# State minimum salary:
Madagascar’s minimum wage is 133,013.40 Malagasy ariary per month or 767.40 ariary per hour for non-agricultural workers; 134,920.00 ariary per month,674.60 ariary per hour for agricultural workers. Madagascar’s minimum wage was last changed in January 2015.
# Employee dismissal:
The employment contract is broken for four (04) causes:
- by reason of the employer, by the dismissal;
- because of the worker, by resignation;
- by agreement of the parties;
- in case of force majeure left to the discretion of the competent court.
The fixed-term employment contract cannot cease before term by the will of a only in the cases provided for in the contract and in cases of gross negligence provided for in Internal Regulations or, failing this, left to the discretion of the competent court.
The contract of indefinite duration may cease by the will of one of the parties. This termination is subject to notice given by the party taking the initiative of the breach.
Breach of a contract of indefinite duration can intervene without notice in case of gross negligence provided for in the rules of procedure or, failing that, left to the discretion of the competent court.
Except in case of gross negligence, any breach of contract of indefinite duration without notice or without the period of notice has been fully complied with, entails an obligation for the party responsible for failure to pay to the other party an indemnity the amount of which corresponds to the remuneration and benefits of any kind that would have been received by the worker during the notice period will not have been effectively respected.
Acumen International can help you fast-track your possibilities of entering and expanding your business in Madagascar 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.