Employer Of Record In The Republic Of Cameroon

Employer of Record in Cameroon

Skuad’s Cameroon Employer of Record solution helps expand your business operations in Cameroon by taking charge of employee onboarding, payroll, documentation, and legal compliance. You are not required to set up an entity in Cameroon with Skuad as your employer of record. Contact Skuad to know about our exceptionally innovative solutions that make your entry into a foreign territory simple.

Cameroon at a Glance

Estimated Population: 26,545,864

Currency: Central African CFA Franc

Capital: Yaounde’

The number of officially recognized languages spoken: eight

Languages frequently used: French, English, Cameroonian Pidgin, Fula, Ewondo, Chadian Arabic, Igbo and Camfranglais

GDP: $101.950 billion (GDP PPP) (2021)

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Employment in Cameroon

Without the right talent, you can't achieve your business objectives on Cameroonian soil. Looking for and recruiting the best employees can be challenging because you must hire people as per the labor laws of Cameroon. Employment in Cameroon is a crucial aspect that ensures the smooth running of your business. Navigating through the complex Cameroon labor laws can be daunting.

The table below discusses the entitlements under Cameroon employment laws in brief.

Title Explanation
The major legislative laws of employment in Cameroon
  • The Constitution of Cameroon 1972
  • Penal Code 1967
  • Labour Code 1992
  • Decree on Deviations of Legal Working Hours
  • Social Security Profile for Cameroon 2017
  • Civil Status Registration Ordinance
Some of the laws that govern various aspects of the employment relationships are:
  1. Work and Wages Regulation is the Labour Code 1992
  2. Compensation regulations are governed by:
    • Labour Code 1992
    • Decree No. 95-677 dated 18th December 1995
    • Act 73-05 dated 7th December 1973
    • Act for Public Holidays in the United Kingdom of Cameroon.
  3. Annual leaves and holidays are regulated by the
    • The Labour Code, 1992
    • Act 73-05 dated 7th December 1973
    • Act for the regulation of Public Holidays
  4. Family Responsibilities Law is the Labour Code, 1992.
Cameroon Employment Laws
  • The law determines the relations between employers and wage earners and apprentices.
  • The law does not include employees covered by the general rules and regulations of judicial and legal service, public service, governing service members, national security, prison administration civil servants, and auxiliary staff.
  • In Cameroon, every citizen has the basic right to work.
  • Any forced labor in the country is banned.
Individual contracts of employment
  • The contract is an agreement between the employer and the worker and can be negotiated freely.
  • Written contracts in Cameroon are exempted from registration fees and stamps.
  • The contract can be for an unspecified or specified duration.
  • Contracts with a specified duration are one in which the termination clause is fixed beforehand by the parties.
  • Contract with unspecified duration is one in which the termination is not fixed beforehand. The employer or the worker is free to terminate the contract at any time.
  • For foreign workers, the employment contract needs to be endorsed by the minister heading the labor department. The application for endorsement needs to be forwarded by the employer.
  • An employment contract for a specified duration greater than three months needs to be written.
Minimum Wage
  • The minimum wage in Cameroon is 36,270 CFA Francs.
  • It is equivalent to 55 EUR.
  • If there is a collective bargaining agreement, this is the minimum wage that will prevail in all sectors.
  • CBAs or Collective bargaining agreements are not very common in Cameroon.
  • The responsibility of ensuring minimum wage compliance in Cameroon lies with the Labour Inspectors.
  • If an employer is found to be infringing on the Minimum Wage Decree, he can be penalized with a fine of 100,000 to one million francs.
Restrictions to workers' compensation in Cameroon. To offer compensation to workers in Cameroon, the business needs to be established in the country.
Working time
  • The working hours in Cameroon are 40 hours.
  • In the agriculture industry, the total working hours can be 2400 hours every year, limiting 48 hours of work every week.
Overtime
  • Employers should avoid working overtime.
  • Only in unavoidable circumstances should workers be made to work overtime.
As per ILO Convention 1, overtime pay should be at least 125% of the standard wage.
Payment of wages
  • The wages need to be paid in legal tenders
  • If monthly payments are made, it should not be later than the eighth day of the next month.
  • No deductions are permissible from the wages.
  • Wage payments need to be mandatorily made on a working day and in a place that is near to the workplace.
Night Work
  • The timing for night work is between 10 pm to 6 am.
  • If women and children are employed for night work, the rest period should be 12 consecutive hours.
  • Women and children working in industries are prohibited from night work.
  • Only women in executive duties and working in positions that do not involve manual work can do night duties.
Rest day
  • Sunday is generally the weekly rest day.
  • As per the Labour Code, a weekly off is compulsory and needs to be for at least 24 consecutive hours.
  • Workers that work on a rest day or a public holiday need to be compensated at 140% of the standard hourly rate.
  • Workers who work on a religious holiday are entitled to 200% pay of their standard wage rate.
Public holidays in Cameroon
  • New Year’s Day (1st January)
  • Youth Day (11th February)
  • Good Friday (2nd April)
  • Easter Sunday (4th April)
  • Labor Day (1st May)
  • Djoulde Soumae (13th May)
  • Lailat al Miraj (13th May)
  • Ascension Day (13th May)
  • National Day (20th May)
  • Sheep Festival (21st May)
  • Tabaski (20th July)
  • Assumption (15th August)
  • Milad un Nabi (19th October)
  • Christmas (25th December)
Vacations
  • Employees can take a minimum of 21 days of paid annual leaves.
  • Employees can take ten days of paid leaves in Cameroon for personal events
  • Employees can accrue 1.5 days monthly.
  • Once an employee completes five years in service, they can take up to two additional days every month.
  • Workers with 12 days or more of accumulated leave have the right to split the leaves.
Sick Leave
  • Workers are entitled to five days of sick leave every year. These leaves are paid.
  • If the worker is injured at the workplace or gets sick due to employment, the employer needs to fill in the medical bills
Maternity leaves
  • In total, new or would-be mothers can take up to 14 weeks of paid leaves in Cameroon.
  • Of these, four weeks need to be taken before the baby is born. If the doctor advises confinement, the mother can take 6 weeks of paid leaves before the baby's birth.
  • Employed lady workers are entitled to receive 1,400 CFA francs for medical expenses during childbirth and 200 CFA Francs for medical examination of the child and mother till six months from the employer.
  • Termination of employment during maternity leave is not allowed.
  • Social Security offers cash benefits to mothers before and after the birth of their child.
  • Mothers are also allowed nursing breaks for fifteen months from the birth of the child. The nursing break is for one hour daily.
Paternity Leave New fathers are entitled to about ten days of paid leaves.
Employee health benefits Maternity leave is paid by the National Social Insurance Fund. The community-based health insurance program targets the economically poor people of the country. The government is making efforts to improve the condition of the universal health care system.

The clauses mentioned here are just the tip of the iceberg. There are hundreds of intricacies with each clause, law, and regulation. For employers who wish to work smoothly without getting involved in the nitty-gritty of the Cameroon Labour Law, it is ideal to seek professional help from EOR experts like Skuad. To know more, call us.To ensure 100% compliance with the Cameroonian employment laws, contact Skuad today.

Contractors Vs. Full-time Employees

An employee in Cameroon is either classified as a full-time employee or an independent contractor. Employers are responsible for establishing the employment type according to the Cameroonian employment laws.

The key difference between a contractor and a full-time employee is that full-time employees are entitled to social benefits such as statutory sick pay, parental leaves, health insurance, legal protection from unfair dismissal, and flexible work requests. 

On the other hand, Contractors in Cameroon are solely responsible for their benefits and work benefits. They work on a project-to-project basis, pay their taxes, and work for multiple clients simultaneously.

Cameroonians mostly prefer full-time employment. The reason for this is, full-time employment provides financial security in comparison to being a contractor. Also, they receive benefits which will cost a lot if they had to provide them for themselves.

To know more about Employment in Cameroon, contact Skuad today.

Hiring in Cameroon

Hiring in Cameroon involves utilizing some of the top job portals in Cameroon such as Njorku Cameroon, Jumia, Cameroon Jobs, Glassdoor, iCubeFarm, and more.

Once the employee is shortlisted, the employment agreement is drawn up as per the labor laws in Cameroon. It must include details like wages, working time, overtime, overtime pay, bonus, leaves, taxation, employee health benefits in Cameroon, and other benefits.

When a new business starts its operations in Cameroon, it needs to comply with the statutory legislative corporate and labor laws. The employment laws in Cameroon are complex and usually pose as an obstacle for new organizations. Also, new organizations must set up a subsidiary in Cameroon before hiring employees. 

However, with an Employer of Record in Cameroon like Skuad, Organizations can hire employees and begin business operations without setting up a subsidiary. 

To know more about hiring with Skuad, book a demo today.

Probation and Termination

Statutory probationary period Cameroon
  • The standard probation period in Cameroon is six months for workers. Even though the period is not mandatory, it must be in writing and included in the employment agreement.
  • Managers and executives usually are put on about eight months probation.
Termination of employment Cameroon
  • Termination of employees in Cameroon depends on the type of employment contract.
  • For an indefinite term period, contracts can get terminated by either party, employer, or employee.
  • The notice period is mandatory and depends on the policy of the Minster, Ministry of Labour.
  • Employees who have worked for 24 consecutive months with the employer are entitled to severance pay. The amount of the same is determined by the Ministry of Labour.
  • The contract can get terminated for fixed-term employment contracts on specific grounds like force majeure and gross misconduct.
  • The termination can be forwarded by either party and needs to be in writing.

EOR Solution

The Employer of Record EOR is an established business entity offering professional support in the HR domain to foreign companies wishing to establish their presence abroad. The corporate legal requirements in a foreign land are complex, with most countries having strict regulations expecting the new business to adhere to the same thoroughly. The Employment and labor laws can be quite complex and could take time for the new business entity to get accustomed to. Compliances are mandatory, with most laws having zero tolerance towards non-compliance.

In such a scenario, hiring an established employer of record services takes off many burdens, especially the HR functionalities. Without workers and employees, your company operations cannot take off in Cameroon. But, interviewing, hiring, recruiting, and managing the payroll and taxation can tax your resources and time.

Skuad is one of the leading employers of record companies in Cameroon, characterized by superior-quality HR services acting as your one-stop and centralized platform. We have designed our EOR solutions innovatively to handle hire-to-retire HR functionalities. All you need to do is get in touch with us mentioning your business requirements, and we will handle the rest. To know more, contact Skuad today.

Types of Visas In Cameroon

If you have foreigners working for your business in Cameroon, you need to know your duties and responsibilities as an employer. Foreign workers can come and work on a Cameroon work visa.

Types of work visas
  • A temporary visa has a validity of 3 months.
  • Long-stay visas have validity for six months.
  • A tourist visa is valid for 30 days.
  • Short-stay visas for business travelers and valid for three months
  • Transit visas for valid for 1 to 5 days where the passenger transits through Cameroon.
  • A diplomatic visa is meant for diplomats and valid for six months.
Cameroon work visa requirements The requirements for getting a work visa include an employment contract with a detailed JD and other documents mentioned below under work permit requirements.

Work Permits

When recruiting foreign employees for living and working in Cameroon, the employer has to apply for a work permit in Cameroon. Also, work visas and work permits are mandatory for foreign employees. Since the employer initiates the work permit, it is impossible to get a Cameroon work permit without a job offer.

Cameroon work permit for foreigners The requirements for getting a work permit for a foreign worker includes:
  • The permit application
  • Employment contract with JD
  • Resume
  • Residence permit
  • Latest medical certificate
  • Certified copies of professional certificates
  • Articles of Association & Memorandum of Understanding
  • The organizational chart and profile
  • Company's activities details
  • Original passport of the employee
  • Completed visa applications
  • Passport-sized photos.
  • Recent bank statement
  • Up to dated vaccination report
  • Payment proof of visa fees.

Payroll & Taxes in Cameroon

Payroll outsourcing Cameroon The different Cameroon payroll tax rates for the employers are as follows:
Tax head % tax rate
VAT 19.25%
Excise Duty 25%
Company Tax

33% for turnover of 3 billion +

30.8% for turnover below 3 billion.

Social security taxes 11.2% by employer
National Social Insurance Fund Between 1.75% to 5 of the total wages
Cameroon employer payroll taxes 2.5% of the total wages

There are many more classifications and sub-division under payroll taxation. To know more about payroll in Cameroon, contact Skuad today.

Incorporation

To incorporate a business in Cameroon, you can choose to form a limited liability company, open a branch office, or incorporate a holding company in Cameroon. Cameron offers exceptional investment opportunities to foreigners. With increasing business opportunities in Cameroon, the economy is upbeat, and the business atmosphere looks favorable. The human resources are bilingual; political stability with its strategic location can boost your business.

Establishing a subsidiary in Cameroon is a challenging and time-consuming process. Skuad's Employer of Record solution is a better means to build a team in Cameroon without setting up a subsidiary. Skuad’s Global HR platform handles all employment lifecycle enabling you to scale business operations in Cameroon without worrying about compliances, payroll processing, and HR management. Connect with Skuad to know more!

Professional Employer Organization (PEO)

A Professional Employer Organization (PEO) partners with your business and provides payroll services, compliances, tax filings, recruitment, and more. In comparison, EOR is a system in which a company offers all types of payroll solutions, tax filings, and compliances by becoming a full legal employer of the payroll employee. As EOR is a legal employer, they hold the liabilities and responsibilities of the workers. 

The core difference between a PEO and an EOR can be understood through an example of insurance. In PEO Cameroon, your company carries on insurance and has to opt to pay coverage under their plan while under EOR services, your employees are covered by the EOR insurance and compliances. 

Organizations planning to expand into new territories are better suited with a global EOR, which becomes the legal employer on behalf of the organization. Instead of associating with a PEO, a co-employment partner, organizations have more to gain by utilizing the services of an EOR solution. 

The EOR solution safeguards organizations from unexpected policy changes, loss of control, and potential risks as the EOR bear every legal liability for the organization. In addition to these, the EOR handles payroll, tax, and employment law compliances. To know more about Skuad's EOR solution, contact Skuad today.

Conclusion

Cameroon showers a plethora of lucrative commercial opportunities on its investors. Partnering with Skuad in Cameroon will help simplify your processes by taking away the hassle. Skuad’s global HR platform enables organizations to set up a remote team in Cameroon and hire employees, full-time or contract-based. 

Book a demo with Skuad to set up your remote team in Cameroon.

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