Employer of Record in Eritrea
Skuad’s Employer of Record Eritrea (EOR) solutions make business expansion to Eritrea easy and hassle-free. Our unique HR platform allows companies to hire exceptionally talented employees in Eritrea, without having to set up a separate legal entity. It streamlines the process of hiring and onboarding a remote team by handling payroll management, taxation, and other legal compliances. To learn more about Skuad, Book a demo today.
Eritrea At A Glance
Currency: Nakfa (ERN)
Capital city: Asmara
Languages spoken: Tigrinya, English, Arabic
GDP: $6.46 billion (2024)
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Employment In Eritrea
The labor law in Eritrea is known as the "Labor Proclamation of Eritrea (No. 118 of 2001)." Besides, Eritrea has also ratified the International Labor Convention and is a member state. This factor reinforces confidence in the state concerning labor welfare and maintenance seeing through the lens of humanitarian values, principally. To understand the nuances involved, we must comprehend the essential aspects of Eritrean law. Understanding the law will help us resolve the convoluted strings in this regard and this is made easier with Skuad. Talk to us and learn more!
To ensure your expansion endeavors are in compliance with the Eritrea employment laws, Contact Skuad today.
Contractors vs Full-Time Employees
Another major decision-making process for our clients after familiarizing themselves with the intricacies of the Eritrean law involves the question, ‘who is better than whom’ between contractors and full-time employees. They are the two sides of the same coin with their peculiar pros and cons. Contractors have the inherent advantage of being flexible. Owing to the same factor, they have a better experience than full-time employees who own exposures confined within a company. Since the target of contractors is to find more clients, they'll always be cost-conscious. They can afford that because of being independent. On the flip side, full-time employees will have an upper hand in matters conventional to a particular company. They get it with their long-term experience. They assure certainty in what they do like the contractors but the degree is more intense with full-time employees. Considering these and checking the compatibility aspect of your company, you can decide which one to choose. Come what may, you will have us holding your back, talk to Skuad Experts!
Hiring in Eritrea
Companies look for resources online using popular employment sites. Professional sites like LinkedIn also play a significant role in hiring employees at a global level. Other local job search sites careersinafrica.com help companies in scouting for the best talent. The recruiters engage in several rounds of testing to analyze and understand the candidate’s potential and choose the best fit for the role.
The process of handling recruitment from scratch can be extremely tiring for companies. With Skuad, you can hire employees with much more ease and convenience. Skuad takes care of all the steps involved in the recruitment process so that you can focus on the other essential aspects of your business.
Probation & Termination
Article 12 of the Labor Proclamation of Eritrea (No. 118 of 2001) law deals with the probation period. It mandates that the probation period cannot exceed 90 days. It is further directed that all conditions of work apply to employees on probation except the following: Article 29 - Compensation for unjustified termination; Article 31 - Termination, which Requires no Notice; and Article 56(8) - Annual leave. If an employee on probation is found to be incompetent of the job then the said employee can be dismissed from the same by the employer without notice and severance pay. This is noted under clause 4 of Article 12. Furthermore, if an employee continues to work even after the expiry of the probation period, such an employee is deemed to have completed it and can carry on with it by having an employment contract in place. Lastly, under clause 6, it is provided that an employee on probation can terminate their employment without notice. Learn more about it at our website.
Termination Of Service
The Labor Proclamation of Eritrea (No. 118 of 2001) Of Eritrea has an exclusive chapter dedicated to 'termination of contract employment.' To be precise, chapters 1 and 2 under Title IV provide an exhaustive list of the matter at hand. A few of the important aspects are highlighted in the table below.
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EOR Solution in Eritrea
Business expansion is a long-drawn process that calls for extensive planning, especially when expanding to a foreign country. It is complicated and can take up to several months to complete but by choosing the EOR route for hiring employees in Eritrea, you can fast-track the expansion process. Employer of Record Eritrea (EOR) solutions by Skuad can make expansion to Eritrea much simpler and a lot quicker for business. Our global outreach and a tech-enriched HR platform ensure compliance with local labor laws by managing employment responsibilities such as monthly payroll, work permits, employment contracts as well as taxation for your employees in Eritrea.
Outsourcing Employment Through An Employer Of Record
Outsourcing of employment in itself requires a third party, but undertaking the same with an employer of record is truly a game-changer. The setbacks in this area would be issues related to visas and work permits. If we can sort that out, the world is ours.
Types of Visas In Eritrea
Eritrea will welcome you only if you have a visa from one of the Eritrean diplomatic missions. However, this does not apply if you are either from a visa-exempt country or from a country eligible for a visa on arrival. There are four important types of visas:
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For nationals of other countries, a work permit is compulsory to be employed in Eritrea. It requires paperwork but once that is done, you can get approval from the Ministry of Labor and Human Welfare in Asmara, Ethiopia. Finding the right consulate could be the secret sauce here. Talk to us to know more!
Payroll & Taxes In Eritrea
Things You Must Know To Set Up Payroll In Eritrea
Eritrea devotedly follows the Pay-As-You-Earn (PAYE) system. Employee's pay is an exemption to the income tax revenue. Although employee's incomes are exempted from tax, employers are required to pay 4% municipal tax on behalf of employees. Payroll methodology in Eritrea can be overly complicated without us. Book a demo at Skuad and learn more!
Incorporation: How to Set Up A Subsidiary In Eritrea
Expansion of business to Eritrea involves a leviathan amount of work. To set up subsidiaries in Eritrea, the normal procedures required for setting up companies are to be followed. It calls for a rigorous 11 stages process and the same is given below:
- Depositing share capital - The minimum requirement is ERN 15,000 for a private limited liability company and ERN 50,000 for a share company.
- Choosing the name for your company - Business License Office is the authority that looks into the company names.
- Attesting the statutes of the company - The articles of association and memorandum are signed by the shareholders and stamp duty is paid. The process of attestation costs ERN 715.2.
- Registering with the Commercial Registry - Registration is done at the License Department of the Ministry of Trade and Industry without any charges.
- Announcing company’s incorporation - The incorporation of the company is published in the official journal, Hadas Eritrea in both Arabic and English.
- Applying for a Tax Identification Number (TIN) - The company must register at the Inland Revenue Department for TIN. Furthermore, they must also procure tax clearance from the same Department.
- Applying for a business license - this would cost between from ERN 500 to ERN 1,000.
- Receiving inspection from the Ministry of Trade and Industry - this procedure will take a week for its completion.
- Obtaining approval - Approvals are to be obtained at the local municipality.
- Creating a seal for the company - A seal in this parlance means tax code.
- Applying for tax receipts - Tas receipts are to be applied from the Inland Revenue Department.
Nothing can be more hectic than this, but you cannot let worries settle in while having us. Talk to Skuad experts anytime now!
Professional Employer Organizations (PEOs)
The National Association of Professional Employer Organization (NAPEO) defines Professional Employer Organizations as an entity enabling “clients to cost-effectively outsource the management of human resources, employee benefits, payroll, and workers’ compensation.” Going by the definition, it is understood that PEOs provide a channel for governance by emphasizing HR-related aspects. An Employer Of Record (EOR), on the other hand, is an entity enabling a flexible avenue for outsourcing remote teams. The major benefit of EOR is that it allows for a diverse workforce because it involves international networks. It eliminates the complications arising out of numerous registration processes that have unique protocols in different countries. Furthermore, EORs provide a blanket cover over issues relating to employee contracts, payroll, compliances, and benefits. None of these are taken care of by PEOs. Skuad’s EOR solution is the need of the hour! We effortlessly provide EOR facilities using our tech-enriched system. We are just one call away, talk to us and learn more!
Do you think you are ready to expand your company’s business operations in Eritrea? Skuad’s Employer of Record Eritrea services can make the process fast and easy by handling your HR requirements in compliance with the local labor laws. If you want to discuss how Skuad’s payroll management services can help you, please get in touch with us today!