In Somalia, various employment agreements are utilized to cater to different work arrangements. These include fixed-term contracts, indefinite-term contracts, and oral versus written agreements.

Fixed-Term Contracts

Fixed-term contracts are agreements that outline employment for a predetermined period. These contracts are stipulated in the Federal Republic of Somalia Draft Labour Code.

Indefinite-Term Contracts

Also known as permanent contracts, indefinite-term contracts don't have a pre-defined end date. They continue until terminated by either party with proper notice.

Oral vs. Written Agreements

Somali law recognizes both oral and written agreements for employment contracts. However, written contracts are mandatory for employment exceeding three months. This requirement is in place to protect both parties by providing a clear record of the agreed terms and conditions.

Employment agreements in Somalia, although not obligatory, are highly recommended for both employers and employees. A well-drafted agreement sets clear expectations and helps avoid future disputes. Here are some essential clauses to consider:

Basic Information

• Parties: The employer and employee should be identified by name and title.
• Commencement Date and Term: The start date and duration of employment should be specified.
• Job Title and Description: The employee's job title, duties, and responsibilities should be clearly outlined.

Compensation and Benefits

• Salary: The employee's gross salary, payment frequency, and method (cash, bank transfer, etc.) should be stated.
• Overtime: The policy for overtime pay, including rate and calculation method, should be outlined.
• Benefits: Any benefits offered, such as health insurance, paid leave (annual, sick, maternity/paternity), and allowances (housing, transportation) should be specified.
• Bonuses: Any bonus structure or commission scheme, if applicable, should be outlined.

Working Hours and Conditions

• Working Hours: The standard work week, including daily working hours and breaks, should be defined.
• Place of Work: The primary work location (with the possibility of remote work if applicable) should be specified.
• Leave of Absence: Procedures for requesting and taking various types of leave (annual, sick, etc.) should be outlined.
• Termination: Grounds for termination by either party, notice periods, and severance pay (if applicable) should be established.

Confidentiality and Intellectual Property

• Confidentiality: Expectations regarding the protection of the employer's confidential information should be outlined.
• Intellectual Property: Ownership of any intellectual property created by the employee during their employment should be clarified.

Dispute Resolution

• Governing Law: The legal jurisdiction that governs the interpretation and enforcement of the agreement (usually Somali law) should be specified.
• Dispute Resolution Mechanism: A process for resolving any disagreements arising from the agreement (e.g., mediation, arbitration) should be established.

Additional Considerations

• Compliance with Somali Labor Law: The agreement should align with Somali labor laws regarding working hours, minimum wage (if applicable), and leave entitlements.
• Language: Consider the preferred language(s) for the agreement. While Somali is the official language, Arabic and English are also spoken in business contexts.

In Somalia, probationary periods are a standard part of employment agreements. They provide a trial period for both the employer and the employee to evaluate suitability before entering into a full-fledged employment relationship. These probationary periods are regulated by Somalia's labor laws to ensure fairness for both parties.

Legality and Duration of Probationary Periods

The Draft Labour Code of Somalia acknowledges "probationary contracts". These are employment contracts with a specific duration, explicitly stated as probationary. There seems to be a discrepancy regarding the maximum duration. Some sources suggest a general maximum of 6 months, with a possible extension of another 6 months at the employer's discretion. However, the Draft Labour Code defines a probationary period of "not more than twelve months' duration". It's advisable to consult with a legal professional to confirm the most up-to-date interpretation. There is no mention of a mandatory minimum duration for probationary periods in Somalia.

Termination During Probation

Both the employer and the employee have the right to terminate the employment contract during the probationary period. However, specific notice periods apply depending on the employee category:

• For manual workers, ten days written notice is required.
• For non-manual workers, thirty days written notice is required.

Importance of Written Agreements

While Somali law allows for oral employment contracts, it's crucial to have a written contract, especially when a probationary period is involved. This written document should clearly outline the probationary period clause, expressly stating that the contract is for a probationary period and specifying the duration.

In Somali employment agreements, confidentiality and non-compete clauses are not explicitly addressed by the labor law. However, general principles derived from contract law can be applied to these clauses.

Confidentiality Clauses

Confidentiality clauses are used by employers in Somalia to protect their confidential information, such as trade secrets, customer lists, and proprietary techniques. When drafting these clauses, several factors should be considered:

• Scope: The clause should clearly define what is considered confidential information. This can include both tangible materials like documents and prototypes, and intangible information like customer data and marketing strategies.
• Permitted Use: The clause should specify how the employee is allowed to use the confidential information during and after their employment. This could include only using it for job duties and prohibiting personal use or disclosure to third parties.
• Duration: The clause should define how long the confidentiality obligations last. This could extend for a reasonable period after the termination of employment, depending on the sensitivity of the information.

Non-Compete Clauses

Non-compete clauses limit an employee's ability to work for a competitor or start a competing business after leaving the company. These clauses are generally disfavored in Somalia as they can restrict an employee's ability to earn a living. However, there may be limited enforceability for non-compete clauses in certain situations:

• Senior Employees with Unique Knowledge: For high-level positions with access to highly sensitive information or trade secrets, a non-compete clause might be enforceable if it is limited in timeframe and geographical area.
• Protection of Goodwill: To protect the company's reputation and goodwill, a non-compete clause with narrow limitations might be upheld.