Employer of Record in Cape Verde
Skuad’s Cape Verde Employer of Record (EOR) services offer a quick solution to grow your business without setting up a physical entity. Our unified and automated global human resource (HR) platform hires the best talent through our subsidiary and fulfills crucial tasks such as onboarding, payrolls, taxes, compliances, employment contracts, legal laws, work permits, and visa proceedings, all in compliance with the local laws. You can leverage our global network and expedite your expansion in Cape Verde. To learn more, book a demo with Skuad.
Cape Verde at a Glance
Population: 5,55,987 people (2019)
Currency: Cape Verde escudo (CVE)
Gross Domestic Product (GDP): USD 1.98 billion (2021)
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Employment in Cape Verde
Before expanding your business, you must be fully aware of all the rules and regulations of employment in Cape Verde. Cape Verde’s employment laws apply to both residents and foreigners. These laws are no different from any other country, but there might be a few differences in the entitlements. Also, it is better to get in touch with a global payroll service provider with extensive knowledge of the labor laws of Cape Verde to minimize risks and simplify your expansion process.
The following table presents the various aspects of employment in Cape Verde.
To learn more about Cape Verde’s employment policies to ensure your expansion efforts fall within the legal requirements, book a demo with Skuad experts today. We can meet all your HR needs while complying with the local laws.
Contractors vs. Full-time Employees
When you decide to expand your entity overseas, you might be confused about whether to hire contractors or full-time employees. The primary differences between a contractor and a full-time employee lie in tax liabilities, payroll, employer–employee relationship, and work benefits.
A contractor is an independent worker who operates separately. On the other hand, a full-time employee works for the organization and receives all company benefits such as insurance and paid leaves. The table below lists the differences between contractors and full-time employees.
Based on the above table, it is clear that both contractors and full-time employees are useful for different projects. Often, hiring contractors and turning them into full-time employees adds to the growth of your company in the long run.
Benefits of Transforming a Contractor into a Full-time Employee
Contractors who become full-time employees can,
- Expand your business within a short time
- Become a long-term employee and stay loyal to the organization
- Get rid of misclassification issues overseas
- Save a lot of time and money
- Be onboarded easily as the recruitment process is simpler
Whether your business requires contractors or full-time employees, Skuad’s EOR solution for Cape Verde can take care of all your hiring needs. To know more, book a demo with Skuad experts.
Employment Contract Law in Cape Verde
The most effective way of recruiting employees is through an employment agreement. Based on Cape Verde’s employment laws, the employment agreement in Cape Verde can be in the written or oral formats. However, it is strongly recommended to opt for a written contract in the local language, Portuguese. Also, it is advised to include various employment terms in the contract such as salary, benefits, daily working hours, maternity leave, public holidays, and termination to avoid miscommunication with the applicants. It is also important to gather social security numbers and tax identification numbers (TIN).
Further, you should decide whether to hire residents or foreign employees. If you decide to hire foreign employees, you should go through the work visa and residence application process. Hence, it is your responsibility as an employer to make your employees understand all the terms before signing the employment contract.
Hiring in Cape Verde
Before you hire employees in Cape Verde, you must have a well-detailed plan regarding the recruitment process as it may affect the company’s success. Designing a professional job description is a key step because it attracts the right applicants for the job position.
Therefore, it is important to state details regarding factors such as educational qualification, job requirements, experience, salary, skills required, daily tasks, and other benefits while creating the job description. Also, include your company’s achievements, goals, and what you can offer to the employee to learn more about your company. Finally, make sure that these factors obey local rules and regulations.
Things to Remember Before You Hire Employees in Cape Verde
The recruitment process in Cape Verde is complicated. Some questions to address before hiring employees are,
- What are the required qualities in an ideal employee?
- How effectively can you advertise for your vacancies?
- How is your interview structured and what is the process?
- How is your interview structured and what is the process?
After the recruitment is completed, the onboarding process will help the employees to get adjusted to their new workplace and conditions. Also, this is the perfect time to go through employment contracts. Providing a training program will ensure that employees acclimatize to their schedule, tasks, and functioning of the company. It is important to educate employees about machinery/software to ensure safety at the workplace.
Best Job Searching Platforms in Cape Verde
Employers use the following websites and portals to post their job openings.
The table below shows the advantages and disadvantages of job searching platforms.
For an international entity, it may be quite difficult to hire employees in Cape Verde due to the time-consuming, detail-oriented process. However, you do not need to worry about compliance as Skuad’s EOR solution for Cape Verde can take care of finding, recruiting, and onboarding the best, most suitable talent from the country. Talk to Skuad experts to learn more.
Probation & Termination
The standard probation period in Cape Verde depends on the type of employment contract.
- In an indefinite contract, employees performing management functions will go through a probationary period of six or 12 months.
- Employees under a fixed contract will have a probation period of two months, provided it is not more than a quarter of the total duration of service.
Termination of Service
For more information about probation and termination, book a demo with Skuad experts and we can clear your doubts.
EOR Solution in Cape Verde
Skuad’s Cape Verde EOR solution is a quick way to grow your business without setting up a subsidiary. Skuad hires exceptional talent and manages their responsibilities, including onboarding, payroll, taxation, work visa, and employment contracts in 100% compliance with the local employment laws.
General Employer of Record Service Terms
Outsourcing Employment through an Employer of Record
As an international company, you must decide whether to recruit in-house or utilize an EOR solution to manage their responsibilities such as employment contracts, payroll, and taxes. Outsourcing employment has various advantages.
- An experienced global HR team will manage all the HR tasks and help in achieving success.
- The EOR organization takes complete responsibility for any legal and administrative issues so that you can focus on your company’s growth.
- Skuad ensures 100% compliance with all the laws and guides you through every process.
Skuad ensures 100% compliance with all the laws and guides you through every process.
Types of Visas in Cape Verde
There are four main types of visas in Cape Verde.
Talk to us and get more information and guidance related to types of visas in Cape Verde. Skuad can handle all your visa requirements and ensure the expansion process is not delayed.
There is no concept of work permits in Cape Verde. The immigration process only involves work visas. The documents required for a work visa for employment in Cape Verde are listed below.
Requirements for a Work Visa in Cape Verde
Connect with Skuad experts to know more about expanding to Cape Verde.
Payroll & Taxes in Cape Verde
Things You Must Know to Set Up Payroll in Cape Verde
Before setting up a payroll, it is important to know about different types of payroll in Cape Verde. set up a physical entity in Cape Verde. Establishing an entity ensures that you can easily carry out various processes such as recruiting employees, taxes, payrolls, and benefits.
However, this process requires significant time, money, and local government clearance. The table below shows different payroll options in Cape Verde.
You should carefully choose which payroll option suits you depending on your company and expansion plans. Also, it is required to register with Cape Verde’s tax authority and collect tax IDs and social security numbers of your employees to deduct income tax..
Taxes in Cape Verde
The table below shows the payroll tax rates in Cape Verde.
To manage payroll and taxes while expanding in Cape Verde, it is prudent to partner with an EOR service. Skuad’s Cape Verde EOR solution can take care of all HR-related tasks for you while ensuring compliance with the local laws, including those on taxation and payroll. To learn more, get in touch with Skuad experts.
Incorporation: How to Set Up a Subsidiary in Cape Verde
There are endless business opportunities in Cape Verde. However, setting up an entity in Cape Verde is cumbersome as each region has its own set of subsidiary laws. Therefore, it is important to choose a region with favorable laws. It is advised to hire a global expert to get familiar with the rules and regulations.
Steps For Setting Up an Entity in Cape Verde
- Choose your company name.
- Register your company through an online registration system.
- Publish incorporation notice on the Commercial Registry Department website.
- Acquire the Tax Identification Number (TIN).
- Apply for a municipal license.
- Register your employees with the Social Security Office.
- Submit a notice to the labor inspectorate.
- Start the employment operations.
Any misstep while expanding can cause you to veer off your timeline for getting your business running in Cape Verde. Skuad offers an easy alternative to all your HR needs by taking over the HR tasks of establishing a subsidiary as your EOR partner. To learn more, book a demo with us today.
Professional Employer Organization (PEO)
A professional employer organization (PEO) is a third-party company that offers HR services such as taxation, payroll, work visas, hiring, onboarding, compensation, and so on, to small- and medium-sized organizations.
However, a PEO is slightly different from an EOR service.
- A PEO becomes the co-employer of the organization and manages administrative tasks. On the other hand, an EOR firm acts as the legal employer of the organization and takes full responsibility for administration and liable activities.
- An EOR firm does not require an entity set up in the country to which you wish to expand. A PEO cannot operate without an existing subsidiary in place.
You can decide between hiring a PEO or an EOR service based on your business, needs, and goals. Skuad’s EOR solutions help companies seeking to expand their business internationally to do so without having to deal with the hassle and liability of complying with the local labor and employment laws. If you already have an entity set up in Cape Verde, you can avail yourself of our EOR services. Talk to Skuad experts to learn more.
Conclusion: What Gives Skuad’s Kosovo Solutions an Edge?
Businesses looking to expand their workforce in promising regions may find Kosovo an attractive destination especially if you have an employer of record like Skuad as a partner. Its one-of-a-kind EOR solution lets you streamline and expedite your global expansion process. Book a demo with Skuad experts to know more.