Employer of Record in Chad

An Employer of Record (EOR) in Chad is a company that legally hires employees on your behalf, managing payroll, taxes, benefits, and compliance with local labor laws. This means you can build a team in Chad without the need to establish a local legal entity. An EOR, like Rivermate, handles all the HR-related legal and administrative tasks, allowing you to focus on your team's day to day work.

How an Employer of Record (EOR) Works in Chad

Using an EOR in Chad simplifies the process of hiring talent in the country. Here is how it generally works:

1. You Find the Talent: You identify the candidate you want to hire in Chad.
2. The EOR Hires Them: The EOR legally hires the employee on your behalf under a compliant local employment contract.
3. Onboarding and HR: The EOR manages the onboarding process and all HR administrative tasks.
4. Payroll and Benefits: The EOR handles payroll, ensuring compliance with Chadian tax and social security regulations.
5. You Manage Your Team: You manage your employee's daily tasks and responsibilities, while the EOR handles the legal and administrative aspects of their employment.

Benefits of Using an EOR for Hiring in Chad

Partnering with an Employer of Record provides a strategic advantage for companies looking to hire in Chad. It allows you to access new talent and markets quickly and efficiently.

• Avoids Establishing a Local Entity: You can hire employees in Chad without the time and expense of setting up a local company.
• Ensures Legal Compliance: An EOR navigates Chad's complex labor laws, reducing the risk of non-compliance.
• Streamlines HR and Payroll: The EOR manages all aspects of payroll, taxes, and benefits administration.
• Faster Market Entry: It allows you to onboard new employees and begin operations in Chad much faster than traditional methods.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Chad 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 Chad.

Hiring in Chad requires understanding the local labor laws to ensure a smooth and compliant process. The country's legal framework governs key aspects of the employment relationship, from contracts to working hours. Whether you're bringing on full-time employees or engaging independent contractors, knowing the rules is essential.

Employment contracts & must-have clauses

In Chad, you should always use a written employment contract. This helps avoid misunderstandings and legal issues down the road. Contracts can be for a fixed term or an indefinite period.

• Fixed-term contracts are for temporary projects and can last up to two years. They can only be renewed once.
• Indefinite-term contracts are for permanent roles and have no set end date.

Your employment contracts must include several key clauses to be compliant:

• Identification of both the employer and employee.
• The date the contract begins.
• Job title and a description of duties.
• Place of work.
• Working hours.
• Salary and other compensation details.
• Probationary period, if applicable.

Probation periods

A probationary period allows you and the new hire to see if it's a good fit. The maximum length of a probation period in Chad depends on the employee's role:

For fixed-term contracts, the probation period is calculated as one working day for each week of the contract, with a maximum of 15 days.

Working hours & overtime

The standard workweek in Chad is typically 39 to 40 hours for most industries. Any hours worked beyond this are considered overtime. While the specific overtime pay rates are not dictated by law, they are generally compensated at a higher rate and should be outlined in the employment contract or a collective bargaining agreement.

Public & regional holidays

Chad has a number of public holidays that employees are entitled to take off. These include:

• New Year's Day
• Eid al-Fitr
• Easter Monday
• National Day
• Labour Day
• Liberation of Africa
• Eid al-Adha
• Independence Day
• All Saints' Day
• Republic Day
• Freedom and Democracy Day
• Christmas Day

Hiring contractors in Chad

Engaging independent contractors can be a flexible way to get work done, but it's important to classify these workers correctly. Chadian labor authorities look closely at contractor relationships to prevent misclassification. A true independent contractor should operate as their own business, often with multiple clients and control over their work methods.

Misclassifying a worker as an independent contractor when they should be an employee can lead to serious consequences, including fines and back payment of social security and taxes.

An Employer of Record (EOR) can help you mitigate this risk. An EOR acts as the legal employer for your workers in Chad, ensuring they are classified correctly and that all local labor laws are followed. This allows you to focus on the day-to-day management of your team without the legal and administrative burdens of international employment.

Understanding compensation and payroll in Chad is key to keeping your employees happy and your business compliant. When you pay your team, you must do so in the local currency, the Central African CFA Franc (XAF), through a local bank. Beyond the basic salary, employees in Chad often receive allowances for things like housing, transportation, and family expenses.

Payroll cycles & wage structure

In Chad, the payroll cycle is monthly. You should plan to pay your employees once a month, on a date specified in their employment contract. Bank transfers are the most common payment method. You are also required to provide a payslip that details gross pay, all deductions, and the final net pay.

Overtime & minimums

The workweek in Chad is 39 hours. Any hours worked beyond this are considered overtime. The law does not set specific overtime pay rates, so you must define these in your employment contracts or follow any applicable collective bargaining agreements.

Chad's national minimum wage is 60,000 XAF per month. This applies to all full-time employees in non-agricultural sectors.

Employer taxes and contributions

As an employer, you are responsible for contributing to social security on behalf of your employees.

Employee taxes and deductions

Employees also contribute to social security and pay income tax. You must withhold these amounts from their paychecks.

In Chad, your employee benefits package and leave policies are important for attracting and keeping good people. Understanding the local labor laws is key to staying compliant and building a strong team. A good benefits plan shows you care about your employees' well-being, which helps create a positive work environment.

Statutory leave

Chad's labor laws outline several types of required leave for employees.

• Annual Leave Employees are entitled to 24 days of paid annual leave. This increases to 26 days after 10 years of service with the same company.
• Sick Leave Employees can take paid sick leave if they provide a medical certificate. The length of paid sick leave often depends on how long the employee has worked for the company.
• Maternity Leave Female employees get 14 weeks of paid maternity leave. This is typically paid through social security.
• Paternity Leave Fathers are entitled to two weeks of paid paternity leave, which the employer pays for.

Public holidays & regional holidays

Chad has 10 public holidays. If a holiday falls on a weekend, the next working day may be a day off.

Typical supplemental benefits

Beyond the legally required benefits, many employers in Chad offer extra perks to stay competitive.

How an EOR can help with setting up benefits

Setting up employee benefits in a new country can be complicated. An Employer of Record (EOR) simplifies this process for you.

An EOR helps you:

• Stay Compliant They make sure your benefits packages follow all of Chad's labor laws.
• Save Time An EOR handles the administrative work of managing benefits. This frees you up to focus on your business.
• Offer Competitive Benefits They have local knowledge to help you create a benefits plan that attracts top talent in the Chadian market.
• Manage Contributions An EOR takes care of payroll deductions and contributions for social security and other required programs.

Letting an employee go is a difficult process, and in Chad, it is regulated to protect both you and the employee. You must follow specific rules for termination and offboarding to stay compliant with local labor laws. This involves providing proper notice, calculating final pay correctly, and ensuring all required documents are in order. The process ensures a fair and respectful exit for your team members.

Notice periods

When you decide to terminate an employment contract in Chad, you must provide the employee with a written notice. The length of this notice period depends on the employee's job category and how long they have worked for you.

Minimum notice periods can range from 15 days for newer employees to three months for staff with over 10 years of service. It's important to check any collective bargaining agreements, as they might require longer notice periods.

You have the option to pay the employee in lieu of notice. This payment must equal the salary and benefits the employee would have earned during the notice period.

Severance pay

Whether you owe severance pay, and how much, depends on the reason for termination and the employee's length of service. For terminations with just cause, like proven serious misconduct, you may not be required to pay severance.

For other terminations, the amount is calculated based on their time with the company. For example, an employee with over five years of service is entitled to 5.42 weeks of severance pay. An employee with 10 years of service receives 11.9 weeks of pay.

Upon termination, you must provide the employee with their final payslip. This document should detail all final payments, including outstanding salary, accrued leave, and any severance pay.

How Rivermate handles compliant exits

When you partner with an Employer of Record like Rivermate, you don't have to navigate the complexities of Chadian labor law on your own. We handle the entire offboarding process to ensure everything is compliant.

Here’s how we help:

• Compliance: We ensure that every step, from notice periods to final payments, follows Chad's Labor Code and any relevant collective agreements.
• Documentation: We prepare and issue all necessary final documents. This includes the certificate of employment and the final payslip.
• Final Pay: We manage the final payroll, making sure all outstanding salary, unused leave, and severance are calculated correctly and paid on time.
• Guidance: We provide support for you and your employee, answering any questions and making the process as smooth as possible.

Using an EOR simplifies the termination process, reduces your risk of non-compliance, and ensures your departing employees are treated fairly and professionally.

Getting the right visas and work permits in Chad can be straightforward with the right approach. The process is employer-led, meaning you need a job offer before you can apply. Foreign nationals need the proper documents to work legally in the country. This ensures you comply with local immigration laws and helps the government manage its labor market.

Employment visas & sponsorship realities

An Employer of Record (EOR) can sponsor foreign employees for work permits in Chad. To do this, the EOR must be a legally registered entity in the country. They handle the application process on your behalf, making sure all requirements are met.

Here is what an EOR can typically sponsor:

• Full-time foreign employees with a valid job offer.
• Temporary Work Visas for short-term projects.
• Long-Term Employment Visas for ongoing positions.

An EOR cannot sponsor independent contractors for work permits. Contractors must apply for a separate work authorization. The process for obtaining a work permit generally takes two to four weeks.

Your work permit is tied to a specific location. If you need to move to a different city or change jobs, you may need to get approval first.

Business travel compliance

If you are visiting Chad for short-term business, you will need a business visa. This visa allows you to attend meetings, conferences, and negotiate contracts. It does not permit you to work in the country. For any hands-on work, you will need a work permit.

Common activities allowed on a business visa include:

• Attending business meetings and seminars.
• Negotiating business deals.
• Conducting market research.

Business visas can be for a single entry, valid for one month, or multiple entries, valid for three months. Upon arrival, you must register with the local police within 72 hours. Always carry your passport, as authorities may ask for identification.