- Overview: Tunisia
- Global PEO and payroll
- Global HR Compliance
- Expand without a company set up
- Contractor vs. employee: which is better?
Global HR Compliance in Tunisia
If you hire international workforce, or plan to hire, then Hiring and Firing Workforce in Tunisia 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 Tunisia 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 Tunisia, 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 Tunisia.
Hiring and Firing Workforce in Tunisia Guide
# Employment Contracts
Employers may enter into an employment relationship with their employees either by orally spelling out the terms of the employment or by providing a written contract of employment. As a standard practice, employers enter into employment agreement for an indefinite period. Employers may only employ for a specified period (fixed-term) under the conditions specified by law. The total duration of fixed-term contracts, including extensions is fixed at 4 years. Fixed-term contracts can automatically translate into indefinite contracts if the holders continue with their work for the employers after the agreed date of expiration.
# Minimum statutory employment rights
# Hours of work – Employees are restricted to work more than 8 hours per workday and 48 hours per workweek. Employees are entitled to a complete rest day taken either on Friday, Saturday or Sunday during every workweek.
# Probation period – The maximum duration an employee may be placed on probation is usually determined by the collective agreement or individual employment agreement. Based on the Collective Framework Agreement, the maximum probation period for employees who are execution oriented is 6 months; the maximum probation period for technicians 9 months; the maximum probation period for executives is 1 year. Both parties of employment have a right to agree to extend or reduce the initially agreed period of probation.
# Annual leave – Employees are entitled to paid day off in New Year’s Day, Independence Day, Labor Day, Tunisian Republic Day, Eid Al Fitr, Eid Al Adha and Hegire holidays. Apart from these holidays, employers are obliged to allow their employees who have completed one year of service to take 12 days of paid leave annually. When employee has been working less than a year, the annual leave is calculated as 1 day of annual leave per month of work.
# Parental leave – All female employees are eligible for 30 days of maternity leave paid by the health insurance fund. Employees have the right to ask for an extension of their maternity leave by up to 15 days. Employees on maternity leave are entitled to receive 66, 7 percent of earnings if the mother has worked at least 80 days during a year preceding the delivery. Fathers are entitled to take a fully paid day off within the first 7 days of new arrival.
# Sick leave – To be eligible for a sick leave an employee must have at least 50 days of insured employment in the last two quarters or 80 days in the last four quarters before the incapacity began. Long-term sickness (for a period greater than 180 days) must be certified by the medical commission. 66.7% of the insured’s average daily wage is paid after a five-day waiting period for up to 180 days a year for the first three years; 50% for up to 180 days a year for each next year.
# Overtime – The total number of hours employees are legally allowed to work must not exceed 10 hours per day, 60 hours per week. All overtime work must be compensated additionally to the base salary as:
- for the full-time work of 48 hours per week: 75%;
- for full-time work of less than 48 hours per week: 25% up to 48 hours and 50% beyond this period;
- for part-time work: 50%
# State minimum salary – Employees who work a regular 40 hours per workweek are entitled to a minimum salary of 290 Tunisian dinar per month. Employees whose regular working time is 48 hours per workweek are entitled to a minimum salary of 340 Tunisian dinar per month.
# Employment termination – Fixed-term contracts may naturally terminate at the end of the specified period agreed in the contracts. In that case, neither of the employment parties is required to fulfill any termination formalities. On the other hand, unilateral termination of employment contracts must be done according to the reasons and procedures provided by the law. Employers or employees who unilaterally decide to end employment contracts must first notify their other parties with one month ahead of time.
Employees who are dismissed for any just reasons other than misconduct are entitled to receive a severance pay that is calculated thusly: one day’s pay for each year of service in the company up to 3 months’ pay. This payment must be made at the time of termination. Employees who are dismissed with unjust cause are entitled to severance pay that is equivalent one/two months’ pay for each year of service in the company up to 3 years’ pay.
Acumen International can help you fast-track your possibilities of entering and expanding your business in Tunisia 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.