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Employer of Record in Chad

Employer of Record in Chad

Skuad’s Chad EOR (Employer of Record) is a unified and automated global HR platform that allows your business to focus on its core business activities, while Skuad helps your organization expand into Chad. With Skuad’s integration, your business is not required to set up a physical legal entity. Skuad handles the talent-search process, onboarding, payroll, compliances with local laws, etc. and all other needs of your company. With Skuad’s presence in over 150 countries, we help you streamline the global expansion process, in a user-friendly remote setup.

To expand your business in Chad and tap into their growing economy, Contact Skuad today.

Chad at a Glance

Population: 15946876 - 15.94 Million

Currency: Central African CFA Franc

Capital city: N'Djamena (formerly Fort-Lamy)

Languages spoken: French and Modern Standard Arabic

Annual GDP growth: 3.247%

Employment in Chad

Chad employment laws apply to both foreign nationals and their citizens. Understanding employment laws in every country that a business chooses to expand itself to, is a complex task. However, Skuad simplifies the organizations employment needs and ensures that all local laws are complied with while taking , but it takes care of the entire procedural requirements as well.

Entitlements Explanation
Statutory working hours The workweek is capped at 39 hours per week in Chad. However, this may be exceeded when rules of overtime apply.
Overtime Eligibility Overtime is capped at 94 hours annually. The employer is required to inform the inspectorate and display it at the workplace. The conditions for working overtime will be determined by a decree enacted by the relevant Ministry applicable to the kind of work performed.
Paid Public Holidays
  • New Year’s Day (1 January)
  • National Holiday (13 April)
  • Easter Monday (Differing Dates in April)
  • May Day (1 May)
  • Korité Holiday (25 May)
  • Pentecost Monday
  • Eid al-Fitr (first day of the Islamic month of Shawwal)
  • Eid al-Adha
  • Independence Day (11 August)
  • The Prophet’s Birthday
  • All Saints’ Day (1 November)
  • Proclamation of the Republic (28 November)
  • Freedom and Democracy Day (1 December)
  • Christmas Day (25 December)
Holiday Pay

Sick Leave: Employees are entitled to at least five (5) paid sick days annually.

Emergency Family Leave: Employees are entitled to ten (10) days of leave in order to tend to any family emergencies.

Vacation Leave: Employees receive between 24 to 26 days of paid annual leave for vocational purposes. Those with 10+ years of service are entitled to 26 days of paid leave.

Maternity Leave Female employees in a company receive fourteen (14) weeks of half-paid maternity leave. This is credited six (6) weeks before birth. If however, there is a pregnancy-related illness, the female employees can increase the said half-paid maternity leave for up to three (3) weeks. After the birth, female employees are eligible for one (1) hour of rest every day during their working hours, for breastfeeding for up to fifteen (15) months. In the scenario that the childbirth takes place before the expected date, female employees are entitled to extend their maternity leave.
Paternity Leave Male employees receive two (2) weeks of paid paternity leave.
Employment Termination/Severance

The probation period for employees in Chad cannot exceed three (3) months annually. Fixed-term contracts cannot be renewed more than once and the duration cannot exceed twenty four (24) months.

For those employees that have at least five (5) years of service, the notice period is 8.67 weeks. For those employees that have at least ten (10) years of service, they receive 11.9 weeks of severance pay.

Termination of an employment contract can take place if (a) there is mutual consent, (b) it is the end of a fixed-term contract, (c) for misconduct, and (d) if the work for a specific project is completed.

Employment Contracts

Employment contracts in Chad are required to be written. These must include the workplace location(s), the address of both the employer and the employee, the salary that the employee will be entitled to, the benefits that the employee will be entitled to, the work hours that the employee is required to work for, the start and end date of the employment, if applicable. As per the laws of Chad, a fixed contract term cannot be more than two years long.

On the contrary, employers can use full-time contracts. These are required to include a start date but not necessarily an end date. The fixed-term contracts, however, are capped at two years and need to display both the start date and the end date and these contracts can be renewed. Furthermore, the terms of renewal must be included in the employment contract.

If an employee is hired only to perform a specific task then employers can also use specific work employment contracts. The contract would then finish once the specific project is complete. This type of employment contract can include seasonal and replacement work as well.

Health Insurance Benefits The health insurance is paid within the social security tax itself. The employment contract is required to mention all the benefits provided to the employees and this includes within its ambit, health insurance benefits as well.
Employee Protection and Anti-Discrimination rights The Labour Code (1996) of Chad contains very general provisions about occupational safety and health. It has defined the basic terms and conditions for work. A person is considered a worker for this act, regardless of nationality or sex, where he or she has undertaken to place his or her professional activity, for remuneration, under the direction and authority of another person named the employer as defined in Article 4.
Confidentiality of Personal Information Chad has organized the protection of personal data. The purpose of the law is to ensure a mechanism to protect private as well as professional life. Rest assured, all details shared with Skuad remain extremely safe as we understand your digital privacy concerns.

To expand your business in Chad and tap into their growing economy, Contact Skuad today.

Contractors vs Full-Time Employees

Skuad allows you to convert a contractor into a full-time employee seamlessly. It is your choice to hire either, taking into consideration how sure your business is about the talent of the said candidate, the payroll process, taxation, and other compliances. The payroll process as well as the other compliances are handled by Skuad entirely and your company need not worry about the same. The taxation process is also handled by Skuad, however, it is pertinent for your company to know that taxes are applied differently in Chad for both contractors and full-time employees.

For any further queries, connect with Skuad experts.

Hiring in Chad

Hiring processes for both full-time employees and independent contractors in Chad are handled entirely by Skuad. Skuad’s unified platform takes care of the onboarding procedure as well as the payroll followed by it. It has a pre-vetted list of candidates that allows you to hire a whole team within 24 hours as well.

Certain job search platforms that can be found relevant to Chad are - https://careers.wvi.org/job-opportunities-in-chad

https://www.visahunter.com/articles/how-to-find-a-job-in-chad-as-a-foreigner/

https://www.jobnetafrica.com/search/expat-jobs-in-Chad

https://afringa-africa.com/jobseeker-chad/

In addition to this, LinkedIn serves as a platform that can always be resorted to while looking to hire talent for a job in Chad. While using any of these job search platforms, however, we encourage you to do your due diligence regarding the authenticity of the same. Skuad can ease this process for its clients and ensure that vetted candidates with exceptional talent are remotely onboarded into your team.

To know more regarding how Skuad can help ease the hiring process for your company in Chad, get in touch with Skuad experts today.

Probation & Termination

Probation Period

The probation period in Chad cannot exceed three months as per the labor laws in Chad. Get in touch with Skuad experts today, to enquire further.

Termination of Service

Fixed-term contracts are capped at 24 months and are not to be renewed more than once.

The notice period is 8.67 weeks for those with at least five years of service. Severance pay is 5.42 weeks for those with more than five years of service. Those with 10 years of service receive 11.9 weeks of severance pay.

Employees can be terminated when the work contract for a specific project is complete, for misconduct, the end of a fixed-term contract, or by mutual consent. Get in touch with Skuad experts today, to enquire further.

EOR Solution in Chad

The Employers of Record (EOR) model is a smart solution for companies seeking to enter and expand in Chad fast and agilely. With the help of Skuad's Employer of Record solution, business entities abroad can quickly source and hire the right professionals as per the organization's requirements. Hired employees get onboard seamlessly, helping your business save up a huge percentage of hiring and onboarding costs. Skuad’s End-to-end solutions help manage employment contracts, process payroll and income tax, blend statutory benefits, and manage overall administration of the backend HR processes. Our platform works as a unified employment platform with automated workflows, digital signatures, employee payroll, contractor payout, and all types of compliance solutions. Book a demo today.

To expand your business in Chad and tap into their growing economy, request a proposal with Skuad experts today.

General Employer of Record Service Terms

Currency accepted The Central African CFA franc (XAF) is the official currency of Chad. It is divided into 100 smaller units called centimes. Chad is a cash economy and credit cards are seldom accepted.
Required details and documentsRequired documents It is pertinent to note the requirements for a Chad work visa in this case which would most likely apply to most of your employees. The requirements are as follows:
  • A signed original passport that is valid for more than six (6) months beyond the stay period.
  • This passport must contain two (2) blank passport pages for visa stamp purposes.
  • An application form with the applicant’s signature.
  • A recent passport-size photo in accordance with Chad’s visa requirements.
  • A letter of invitation is required from either the employer or another local sponsor, to explain the applicant’s purpose of travel.
  • A vaccination certificate for yellow fever is mandatory.
  • The applicant is required to furnish proof of accommodation, time period of stay, and the contact information of the host.
  • An offer letter or any other letter (for example, transfer letter) on the company’s letterhead that clearly depicts the employment status of the applicant.
  • Any proof that indicates who is financially responsible for the applicant.
  • A copy of the airline tickets or any proof of the flight itinerary.
While it usually takes about four business days to process such a Chad work visa, an additional fee can be paid for a rush or emergency service.

To expand your business in Chad and tap into their growing economy, request a proposal with Skuad experts today.

Outsourcing Employment Through An Employer of Record

When as an organization you decide to expand into Chad, you also need to decide the route you want to take. Whether you want to build an in-house team or take the services of an EOR to manage payroll and employee lifecycle. Skuad can assist you with the same and provides remote services allowing you to focus on your core business activities while our unified platform takes care of the entire lifecycle of every employee- from hire to fire.

Feel free to connect with us, to solve any queries that might arise.

Types of Visas in Chad

It is pertinent that all foreigners have a passport as well as a valid visa to enter Chad. The exceptions to this rule are if the potential entrants are citizens from Benin, Gabon, Burkina-Faso, The Republic of Central Africa, Cameroon, Niger, Congo or Equatorial Guinea. Citizens from any of these nations are legally allowed to enter Chad without a valid visa. Their stay would be permitted for up to ninety (90) days. Another exception to the general rule is that if individuals have previously obtained an Entry Authorization letter issued by Chad authorities then they would be allowed to obtain visas on arrival.

The two broader kinds of visas are - Business Visas and Tourist Visas. Since this is an employer-on-record platform, we will be providing you the information about business visas. Business visas are further broken down into single-entry and multiple entry visas. Single-entry visas are valid for one month. Multiple-entry visas are valid for three months. It is pertinent to note that you can extend the duration of the visa and additionally also obtain a work permit depending on the employment contract between the employer and the employee.

Feel free to connect with us, to solve any queries that might arise.

Work Permit

All individuals planning to work in Chad will need a work permit to stay compliant. Skuad’s local partner in Chad can sponsor foreign workers for work permits. As an EOR in Chad, Skuad takes care of all the requirements and responsibilities related to employment. On Skuad’s HR platform, the client company can manage their employees’ daily activities and operations.

Work Permit Explanation
Can Skuad Sponsor Work Permit in Chad Yes
Passport submission This is required to obtain a work permit. It is necessary so that the Chad authorities can verify the employee’s identity.
Work Permit Validity It cannot exceed one year.
Where is the application processed? National Office for Employment Promotion (ONAPE)
Work Permit Restrictions The documents required for a work permit are:
  • A resident card
  • A long-term visa and a return visa
  • A labor contract with a limited duration
  • You will also need to register for tax and social security on behalf of your employees.
However, please note that Skuad will take care of all of these requirements.
When Can Employee Travel to Chad Once the visa is available and valid.
What’s The cost of a business visa

Standard Business Visa (Single-Entry)= $279.00

Standard Business Visa (Multiple-Entry)= $329.00

Expedited Business Visa (Single-Entry)= $369.00

Expedited Business Visa (Multiple-Entry)= $419.00

Duration of business visa processing Normally takes around 4 business days but can be expedited upon payment of a fee.
Switch Business Visa to Work Permit? No, this is not permitted

To be more cognizant of the platform that you will be integrating your business with, you may always read up on the features that Skuad has to offer.

Things You Must Know To Set Up Payroll In Chad

To set up payroll and manage taxation in Chad, you need to be aware of the rules, which vary from one category to the other. The first and the foremost thing you must consider is whether you want to employ foreign professionals or locals. As a foreign company, you must be aware and adhere to the local tax laws like income tax, business tax, withholding tax, employee compensation insurance, social security costs, etc. There are two ways of doing it - a) you set up an in-house team to manage the payroll in Chad. b) you take the services of a local payroll specialist, who will not only make the management simpler but also ensure complete compliance with Chad laws.

Employers pay social security contributions equal to 16.5% of the total wages. Employees contribute 3.5% of their total wages. Incomes are taxed at rates between 0% and 30% depending on income and source. Therefore, it depends on a case-to-case basis.

The profits that are subjected to the corporate tax in Chad are determined with sole regard given to profits earned by businesses carried out or transactions conducted by businesses in Chad.

It is pertinent to note that the corporate tax rate in Chad as of 2021 is 35%. There are 3 different tax regimes applicable to companies in Chad- the normal tax regime, the simplified tax regime, and lastly, the flat tax regime.

In all of these tax regimes, the criteria that are applied by the taxation authorities is based on the turnover generated by companies. Therefore, the simplified tax regime is applicable for companies with a turnover of between 50 million and 500 million Central African CFA francs (XAF). The normal tax regime is applicable for companies with a turnover exceeding XAF 500 million. Lastly, the flat tax regime is applied to all taxpayers whose annual turnover is less than XAF 50 million. No local or regional taxes are applicable in Chad.

To be more cognizant of the platform that you will be integrating your business with, you may always read up on the features that Skuad has to offer.

Incorporation: How to Set Up A Subsidiary In Chad

Since all of Skuad’s operations are remote, your company is not required to set up a legal entity in Chad.

To be more cognizant of the platform that you will be integrating your business with, you may always read up on the features that Skuad has to offer.

PEO

A PEO or a Professional Employment organization partners with small and medium scale organizations to provide comprehensive HR services such as training and development, regulatory compliance, payroll processing, tax filing, recruitment, and other services. It can be considered as an outsourced HR department. It provides access to affordable yet expert services to the company that opts for it.

There are, however, various drawbacks of using a PEO. These include a loss of control, unexpected changes, potential risks, and cash flow changes. EOR, therefore, comes as a replacement of a PEO that companies should opt for. Skuad is an EOR service. The benefits of choosing an EOR service over a PEO are that it allows companies to move to a different state or country without setting up a legal entity. Employment of Record handles worker’s compensation as well as unemployment claims. It also allows for a lower minimum employment requirement than a PEO. A company with less than 5 employees cannot opt for a PEO but can opt for an EOR service like Skuad. However, if any doubts persist in your mind regarding which remains the better option for the specific needs of your company, then please feel free to talk to an expert.

Conclusion

Skuad, an EOR platform, would be the perfect choice for all your company’s needs and can handle all your HR needs remotely. Feel free to connect with us, to solve any queries that might arise.

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