Employer of Record in New Caledonia

An Employer of Record, or EOR, is a company that legally hires employees on your behalf in New Caledonia. This lets you build a team in the country without setting up a local legal entity. The EOR handles all the legal and HR tasks that come with employment, like payroll, taxes, and benefits. While the EOR is the legal employer, you still manage your team's day to day work. For companies looking to hire in New Caledonia, an EOR provider like Rivermate can simplify the process.

How an Employer of Record (EOR) Works in New Caledonia

Using an EOR to hire in New Caledonia follows a straightforward process. You find the talent, and the EOR handles the legal and administrative side of employment.

• You find the candidate. You are in charge of recruiting and selecting the person you want to hire in New Caledonia.
• The EOR hires your candidate. The EOR becomes the legal employer and creates a locally compliant employment contract.
• The EOR manages HR and payroll. They handle all administrative tasks, including payroll, taxes, and social security contributions, making sure everything follows New Caledonian law.
• You manage your employee. You direct their daily tasks and responsibilities, just like any other member of your team.

Why use an Employer of Record in New Caledonia

Using an EOR in New Caledonia allows you to hire employees quickly and legally without the cost and complexity of setting up a local entity. This means you can focus on your business goals while the EOR handles the complexities of local employment laws.

Here are some key benefits:

• Faster market entry. You can hire employees in days, not the months it can take to establish a legal entity.
• Reduced costs. Avoid the significant expenses tied to setting up a company in a new country.
• Compliance with local laws. EORs are experts in New Caledonian labor laws, which minimizes your risk of non compliance.
• Simplified HR. The EOR takes care of payroll, benefits, taxes, and other HR tasks, freeing up your time.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in New Caledonia includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in New Caledonia.

Hiring in New Caledonia comes with its own set of rules. The local labor code, influenced by French law, shapes how you bring people on board. The economy has leaned on nickel mining and tourism, but it's branching out. This shift creates new job opportunities. To hire successfully, you need to understand the local work culture and legal landscape. For many roles, you'll find skilled local candidates. For highly specialized positions, you might look for international talent, which involves work permits and visas.

Employment contracts & must-have clauses

When you hire an employee in New Caledonia, a written contract is essential. The local Labour Code governs these agreements. There are two main types of contracts.

• Indefinite-Term Contract (CDI): This is the standard, open-ended contract for permanent positions.
• Fixed-Term Contract (CDD): You can use this for specific, temporary jobs, like covering for an employee on leave or a short-term project. A CDD can only be renewed twice and cannot exceed a total of two years.

Your employment contracts must include several key details to be compliant.

Probation periods

A probationary period allows you and your new hire to see if the job is a good fit. This trial phase must be stated in the employment contract to be valid. During this time, either party can end the contract with a shorter notice period.

The standard lengths for probation periods vary by the employee's role.

• Workers & Employees: Typically one month, with the option to renew once.
• Technicians & Supervisors: Often two months, which can also be renewed once.
• Executives: Can be up to three months, renewable once.

Working hours & overtime

The standard workweek in New Caledonia is 35 hours. Any time worked beyond this is overtime. The law limits daily work to a maximum of 10 hours.

Overtime work requires higher pay.

• First 8 hours (36-43 hours): Paid at 125% of the regular hourly rate.
• Beyond 43 hours: Paid at 150% of the regular rate.

Employees are also guaranteed rest periods. This includes a minimum of 11 consecutive hours between workdays and a 24-hour rest period each week, usually on Sunday.

Public & regional holidays

Your team in New Caledonia is entitled to time off for public holidays. Here are the observed holidays for 2025.

Hiring contractors in New Caledonia

You can also hire independent contractors for specific projects. This offers flexibility, but it's important to get the relationship right. Unlike employees, independent contractors are self-employed. They are not covered by labor laws that provide benefits like minimum wage, paid leave, or overtime.

A clear service agreement is crucial. It should detail the scope of work, deliverables, payment terms, and project timelines.

A major risk is misclassifying an employee as a contractor. If a contractor's work relationship looks too much like an employee's—for example, if you control their work hours and methods—they could be reclassified as an employee. This can lead to legal trouble and financial penalties, like paying back taxes and benefits.

An Employer of Record (EOR) can help you avoid this risk. An EOR acts as the legal employer for your workers. This means they handle all the legal requirements of employment, ensuring you stay compliant with local labor laws. By managing contracts, payroll, and benefits, an EOR removes the risk of misclassification and lets you focus on your business.

Understanding compensation and payroll in New an Caledonia requires a grasp of its unique system, which blends French principles with local adjustments. Your payroll responsibilities include navigating social security contributions and income tax for your employees. This ensures you operate in compliance with local regulations.

Payroll cycles & wage structure

In New Caledonia, the standard payroll cycle is monthly. You will typically pay employees once a month, often near the end of the month. The most common payment method is a direct transfer to the employee's bank account.

You must provide a detailed payslip with each payment. This document should break down the employee's gross salary, all deductions like social contributions and taxes, any allowances or bonuses, and the final net pay.

Beyond the base salary, many employees in New Caledonia receive additional compensation. A 13th-month salary, paid at the end of the year, is a common practice though not legally required for all.

Overtime & minimums

The minimum wage in New Caledonia is known as the SMIG (Salaire Minimum Interprofessionnel Garanti). As of 2025, the minimum wage is approximately 170 XPF per hour. There is also a specific minimum wage for agricultural workers.

Employer taxes and contributions

As an employer in New Caledonia, you are responsible for contributing to several social security funds for your employees. These contributions cover health insurance, retirement, family benefits, and unemployment. The rates are applied to the employee's gross salary.

Note: These rates are approximate and can change.

Employee taxes and deductions

Employees also contribute to social security from their gross salary. These contributions are typically deductible from their gross income for tax purposes.

In New Caledonia, your employee benefits and leave are a mix of French and local laws. This means you get strong worker protections. You can expect generous paid time off. You also get solid social security benefits. This guide breaks down what you need to know.

Statutory leave

You are entitled to several types of paid leave in New Caledonia. The law sets the minimum amount of time off for each.

• Annual Leave: You get 2.5 working days of paid leave for each month you work. This adds up to 30 working days, or five weeks, per year.
• Sick Leave: If you are sick or injured, you can take paid time off. You need to give your employer a medical certificate within 48 hours. Social security pays for some of your sick leave. Your company may pay the rest, depending on your employment agreement.
• Maternity Leave: Mothers get 16 weeks of paid maternity leave. This is usually six weeks before the due date and 10 weeks after. Social security pays for this leave.
• Paternity Leave: Fathers can take paid leave when their child is born.
• Family Events Leave: You can take paid time off for certain family events. This includes your own wedding or a funeral for a close family member.

Public holidays & regional holidays

You get paid time off for public holidays. If you have to work on a public holiday, you may get paid extra.

Typical supplemental benefits

Your benefits package includes both required and extra benefits. The extras can change depending on your employer.

How an EOR can help with setting up benefits

Setting up employee benefits in a new country can be tricky. An Employer of Record (EOR) makes it simple.

An EOR already knows the local laws. They handle all the details of your benefits administration. This includes everything from enrolling you in health insurance to making sure you get the right amount of paid leave.

Using an EOR means you get competitive benefits without the headache. They manage the paperwork and compliance. You can focus on your job. An EOR ensures you get a complete and correct benefits package from day one.

Ending a working relationship in New Caledonia requires clear steps and communication. The process, known as termination or offboarding, is guided by local laws that protect both you and your employee. It’s about handling the exit process correctly and respectfully. This involves giving proper notice, calculating final pay, and making sure all legal requirements are met to ensure a smooth transition.

Notice periods

When you end an employment contract in New Caledonia, you must provide a minimum notice period. This period is determined by the employee's length of service and their job category. While the law sets minimums, your employment contract or a collective bargaining agreement might require a longer period.

Here are the minimum notice periods set by law:

During this notice period, employees are typically allowed paid time off to look for a new job.

Severance pay

In addition to a notice period, you are generally required to pay severance to a departing employee. The exact amount depends on their length of service and the terms of any applicable collective agreement. This payment is a key part of a compliant termination process. Specific rules may apply in cases of serious misconduct, which could affect the requirement for severance pay.

How Rivermate handles compliant exits

When you use an Employer of Record like Rivermate, we manage the entire offboarding process for you. We make sure every step follows New Caledonia's labor laws.

Here’s how we handle it:

• Legal Compliance: We ensure that all termination procedures, from notice periods to severance calculations, are fully compliant with local regulations. This reduces the risk of legal issues for your business.
• Clear Documentation: We prepare all necessary paperwork, including the termination letter and final pay documents.
• Final Payroll: We process the employee’s final salary, including any outstanding leave, benefits, and required severance pay.
• Smooth Transition: We handle the administrative tasks of removing the employee from payroll and benefits systems, ensuring a clean and complete exit.

By managing these complexities, we let you focus on your core business while we ensure the offboarding process is handled professionally and correctly.

Getting the right visas and work permits in New Caledonia can seem complex. As a French overseas territory, it has its own rules, blending French immigration law with local labor market needs. This guide breaks down what you need to know, keeping it simple and straightforward.

Employment visas & sponsorship realities

If you want to hire someone to work in New Caledonia for more than three months, they will likely need a long-stay visa that acts as a residence permit, along with a separate work permit.

An Employer of Record (EOR) can be your legal partner on the ground to sponsor these documents. Here’s what that looks like:

• The main route: The most common path is the Long-Stay Visa equivalent to a Residence Permit (VLS-TS). An EOR can sponsor an employee for this visa, which is typically valid for one year and can be renewed.
• Local market first: Before hiring a foreign national, the employer (or your EOR) must prove that they couldn't find a suitable candidate from the local labor market. This is a key step and a common reason for application rejection.
• The process: The employer or EOR applies for the work authorization first. Once that's approved, the employee can apply for their long-stay visa at the French consulate in their home country. After arriving in New Caledonia, they must validate their visa.

What an EOR can do:

• Act as the legal employer for your team member.
• Sponsor the necessary work permits and long-stay visas.
• Manage the application process with local authorities.
• Handle payroll, taxes, and local compliance.

What an EOR can't do:

• Guarantee approval: The final decision always rests with the New Caledonian and French authorities.
• Bypass labor market tests: The requirement to prioritize local talent is mandatory.
• Speed up government timelines: While an EOR can ensure a smooth process, government processing times are out of their control. Applications can take several weeks to months.

The most practical route for hiring in New Caledonia without setting up your own legal entity is to partner with an EOR. They navigate the complexities for you, ensuring everything is done by the book.

Business travel compliance

For short-term visits, the rules are much simpler. Many nationalities can visit New Caledonia for business or tourism for up to 90 days without a visa.

This visa-free travel is suitable for activities like:

• Attending business meetings.
• Going to professional conferences or conventions.
• Negotiating contracts.
• Participating in short-term training.

It is important to remember that you cannot work on a business visa or visa-free entry. If the purpose of the trip involves paid work, a work permit is required. Always check the specific requirements for your nationality before you travel.