Employ Candidates Compliantly in Monaco

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  1. Overview: Monaco
  2. Global HR Compliance
  3. Global PEO and payroll
  4. Work permit for hiring expats via PEO
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Global HR Compliance in Monaco

If you hire international workforce, or plan to hire, then Hiring and Firing Workforce in Monaco 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 Monaco 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 Monaco, 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 Monaco.

Hiring and Firing Workforce in Monaco Guide

# Employment contracts
A written contract is not mandatory in Monaco, either for non-fixed term or fixed-term contracts. Only a work permit is required. This authorisation to work in Monaco only mentions the identity of the worker (name, address, date of birth), the start date, the title of the position and the employee’s coefficient.

A written contract may be helpful in order to secure the employment relationship with, for example, a non-compete clause or condition of exclusivity.

# Minimum (Statutory) Employment Rules and Regulations in Monaco

# Hours of work:
The legal working time is 39 hours per week. At the request of the employer, an employee can work more hours than the legal limit. These working hours are counted as overtime.

Furthermore, hours worked must not exceed the maximum amount of hours stipulated by law:

  • 10 hours a day;
  • 46 hours over any period of 12 consecutive weeks;
  • 48 hours per week, subject to conforming with the average duration set out above; or
  • 60 hours per week in some companies in exceptional circumstances and for short periods with the agreement of the Labour Inspector.

These restrictions are binding for both employer and employee, which means that an employee cannot give a valid consent beyond these limitations.

# Probation period:
The duration of a probationary period is limited by law to three months. The parties are allowed to contract for a shorter duration, with renewal at the case may be, subject to the maximum limit of three months.

# Annual leave:
All employees have a right to paid leave once they have worked at least one month during the reference period (which runs from 1 May of the previous year to 30 April of the current year). Employees are then entitled to two-and-a-half working days’ leave for each month worked (ie, five weeks of paid leave per year worked).

In principle, only periods actually worked are taken into account when determining the entitlement to paid leave. Periods of absence from work are not counted except for periods considered as valid periods of employment (excluding maternity leave).

Paid leave dates are decided by mutual agreement between the employer and the employee, regarding the needs of the business activity.

# Sick leave:
Active employees are entitled to benefits from daily allowances from the Social Security Department (CCSS) in case of sick leave. The amount of the daily sickness benefit is in most cases equal to half the average gross daily salary received by the employee over the 12 previous months within a limit fixed annually. In addition, according to the Monaco National Collective Agreement Convention and after two years of seniority, employees must receive a replacement income paid by the employer.

# Overtime:
All employees are entitled to overtime pay should they work beyond 39 hours a week following the employer’s request.

This overtime, which is calculated by calendar week, entitles the employee to the following wage increases:

  • 25 per cent for the first eight hours;
  • 50 per cent for any subsequent hours.

Collective agreements may provide for higher overtime payments.

# State minimum salary:
Monaco’s minimum wage is €10.15 per hour (the same as the French minimum wage for full-time work,plus a 5% adjustment. Monaco’s minimum wage was last changed in January 2016.

# Employee dismissal:
Monaco law provisions do not provide a general procedural requirement to dismiss an employee. Nevertheless a prior interview is highly recommended to reduce the judicial risk and is required by case law for dismissals under article 6 of Law No. 729 (see question 35).

A specific procedure is required should an employee be under a particular protection given by law resulting whereby the required prior approval from a commission chaired by the Labour Inspector must be obtained (see question 40). Also, collective layoffs have to be implemented following a specific procedure (see question 41). In addition, collective agreements often mention a required formalism to dismiss an employee. In this case, these collective agreement provisions are binding for the employer.

Acumen International can help you fast-track your possibilities of entering and expanding your business in Monaco 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.

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