Employer of Record (EOR) in Gabon

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Employer of Record in Gabon

By partnering with Skuad’s Gabon EOR solution, you can expand your business and make the most of Gabon’s employable talent without setting up an entity. Our automated, tech-enabled, unified global HR platform allows the onboarding of your remote team, managing benefits, payroll, taxation, and termination of employment. Additionally, we can also sponsor work permits and oversee your visa process. Our international network ensures that your global expansion process is streamlined in the best possible manner. To hire exceptional remote talent from Gabon with the help of our global HR platform, talk to Skuad experts today!

Gabon at a Glance

Population: 2.2 million people (2021)

Currency: Central African CFA Franc (XAF)

Capital city: Libreville

Languages spoken: French and native languages

GDP: USD 18.36 billion (2021)

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Employment in Gabon

Expanding into Gabon is difficult without sufficient knowledge of the local laws. Skuad’s EOR solution for Gabon can handle all your HR-related needs while ensuring compliance with the labor and employment legislation. To know more, get in touch with Skuad and book a demo.

Entitlements Description
Statutory working hours All employees are expected to work 40 hours a week.
Overtime eligibility Additional wages are to be paid for hours worked after the legal working limit. For farming and similar business, the working hours are set to 2,400 hours a year. However, exceptions can be established post a proposal from the Employment Minister.
Paid public holidays Gabon has 13 paid public holidays in a calendar year, which are as follows.
  • New Year (January 1)
  • Easter (April 4; subject to change each year)
  • Easter Monday (April 5; subject to change each year)
  • Women’s Day (April 17)
  • Labor Day (May 1)
  • End of Ramadan (May 6; subject to change each year)
  • Eid-al-Kebir (May 20; subject to change each year)
  • Pentecost (May 23; subject to change each year)
  • Monday of Pentecost (May 26; subject to change each year)
  • Assumption Day (August 15)
  • National Holiday (August 16 and 17)
  • Toussaint (November 1)
  • Christmas (December 25)
Holiday pay The Gabonese employment rules entitle employees to 24 days of annual paid leave. This duration is directly proportional to the age of the employee, the duration of employment with the company, and the family situation of the employee.
Medical leave Employees are entitled to six months of medical leave. Any medical condition that requires more than six months of leave is managed by the Gabonese Social Security.
Maternity leaves Female employees are entitled to 14 weeks of fully paid maternity leave, where six weeks must be taken before childbirth. They also have the provision of extending their maternity leave by three weeks in case of pregnancy-related complications or illness. Additionally, they can extend their leaves by two weeks in the event of multiple births.
Paternity leave Male employees are not eligible for statutory paternity leave.
Employee protection and anti-discrimination rights As per the Gabonese Labor Code (Article 8), every employee is equal by law and is entitled to the same guarantees and protection. Any discrimination based on color, race, sex, political opinion, religion, natural ascendance, or social origins is prohibited and punishable by law.

Contractors vs. Full-time Employees

As an organization, you have the option of hiring employees on a contractual basis. Opting for this comes with its own set of advantages. Some of these are, 

  • Flexibility in terms of engagement
  • Cost-related benefits as contractors are not eligible for several employee benefits
  • More free time since contractors work independently without close supervision

Additionally, you can also opt to hire full-time employees. Hiring full-time employees remotely comes with several advantages

  • Legal clarity and lower chances of complications arising from employee misclassification
  • Inculcating a sense of loyalty among the employees due to the benefits associated with long-term contracts
  • Retention of precious trade secret and job knowledge in the organization

The decision to hire contractors or full-time employees is determined by your business requirements. 

  • If you are looking for a team for a short duration or a special, time-bound project, we would advise that you opt for hiring contractors. 
  • On the other hand, if your business requires long-lasting and permanent commitment, you would require full-time employees. 

Irrespective of your decision, Skuad experts provide you with tailor-made HR solutions for your business requirements in Gabon. To know more, reach out to us today!

Hiring in Gabon

Employers in Gabon have started to take advantage of technological advancements. Most employers choose to maximize their reach by posting job openings on popular employment sites and portals. Frequently used job search engines in Gabon are,  

Though job search engines can come across as a convenient and easy mode of hiring, one must consider their shortcomings. These portals do not allow the employer to assess the efficiency of the candidate. Additionally, such portals also attract a large number of applicants, burdening the employer with a significant amount of filtering to undertake. 

Skuad’s EOR services make it the ideal partner when you are seeking to expand to Gabon. Our unified employment platform enables your organization to hire and onboard your preferred top talent who will play a critical role in fulfilling your vision to scale up your business and make a mark in Gabon’s growing economy. Talk to Skuad experts to learn more.

Probation & Termination

Probation Period

The probation period in Gabon is set to six months. However, for fixed-term contracts, the probation period can be up to 24 months and can be renewed once. 

Termination of Services

The major reasons for the termination of an employment contract for full-time employees are poor performance or misconduct. The employer must mandatorily write to the employee requesting an interview and discuss the reasons for the termination. Indefinite employment contracts are terminated because of the following factors. 

  • Dismissal due to poor performance or misconduct 
  • Death of the employee 
  • Upon reaching retirement 
  • If the employee resigns 

Further, fixed-term contracts expire upon reaching the predetermined date of release. If either party wishes to terminate the contract before the date of expiry, they must do so in writing. The termination is considered effective on the day after the document for dismissal is submitted. A copy of the letter of termination has to be submitted to a competent employment inspectorate. 

Notice Period

The notice given in case of termination depends on the years spent in employment in a particular company. These details are given in Article 65 of the Gabonese Labor Code.

Years of Service Notice Period
Less than one year of service 15 days
One to three years of service One month
Three to five years of service Two month
Five to 10 years of service Three months
10 to 15 years of service Four months
15 to 20 years of service Five months
20 to 30 years of service Six months
Over 30 years of service A further 10 days per year of service in addition to six months

Skuad’s Gabon EOR solution can take care of your onboarding process and manage employees as per long- and short-term contracts. We can manage their probation and termination in compliance with the local laws. To avail yourself of our services, book a demo with Skuad experts today

EOR Solution

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 Gabon, you can fast-track the expansion process. Employer of Record Gabon (EOR) solutions by Skuad can make expansion to Gabon 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 Gabon. Book a demo today.

General Employer of Record Service Terms

EOR Service Terms Details/Information
Taxes applicable to invoices Sixteen percent of payroll is contributed by the employers to social security for retirement, medicine, work injury, and family allowance, whereas an employee contributes 2.5%.
Currency accepted Central African franc (XAF)

Outsourcing Employment through an Employer of Record

As an organization entering Gabon to establish your business, you need to decide the route of your establishment. You can expand either by creating an in-house team or making use of an EOR service to manage the employee and payroll lifecycle. 

Skuad’s EOR services take care of all HR-related tasks for you, including recruitment, hiring, onboarding, taxation, probation, termination, and securing visas and permits in compliance with the local laws. Talk to Skuad experts today to learn more.

Types of Visas in Gabon

There are several types of visas in Gabon. The details are summarized in the table below.

Visa Types Details
Business Visa Foreign nationals traveling to Gabon for work require a business visa. Business visitors are granted a business visa for 90 days, facilitating a single authorized entry into the country.
Work Visa

Foreign nationals require a work permit and a residence card to work in Gabon. After the work permit is approved, foreign citizens must have access to an entry authorization visa to ensure a single entry into Gabon and opt for employment.

Once within the boundaries of Gabon, they need to proceed toward applying for the Carte De Sejour or a residence card. For the first three months, they are eligible for a single-exit visa every time they leave Gabon.

A work visa requires the following documents.

  • Payment slips
  • A passport that is valid for six months
  • Three recent passport-size photographs
  • A certified copy of the original employment contract
  • An itinerary and accommodation confirmation
  • Proof of vaccination
  • A letter of invitation from your company
  • A letter of motivation for moving to and working in Gabon
Permanent Visa A permanent visa can be issued to a foreign working national after three months of continuous stay from their last date of entry. This visa is valid for up to six months and allows several entries and exits into Gabon.

To apply for and obtain visas for your employees in a simplified, hassle-free process, talk to Skuad experts today.

Work Permits

The Gabonese law makes it easier for the employee to get a work permit if the permission is applied by the employer, who also acts as the sponsor. This involves the following steps.

  • Submitting documents in the Ministry of Labor and Human Resources showing that the employer will sponsor the worker.
  • Applying for the permit with the Gabonese Work Department in the Ministry of Labor and Human Resources, along with a copy of the employee’s passport, company invitation letter, and statutory application fees.
  • Approval from the Work Department, after which a copy is sent to the Department of Documentation and Immigration. 
  • The Department of Documentation and Immigration then prepares the work visa and shares a copy with the Gabon embassy in the applicant’s home country.
  • The embassy will contact the applicant and complete the necessary formalities.

The cost of a Gabonese work permit is USD 1000 and it could take about six months to obtain the work permit once you start the entire process. Connect with Skuad experts to know more about Gabonese work permit rules and regulations.

Payroll & Taxes in Gabon

Payroll in Gabon 

For setting up an effective payroll system in Gabon, any organization must be aware of the payroll rules and taxation system in the country. Additionally, you also must be well-versed in the Gabonese entitlement and termination terms. There are three options available in establishing a payroll mechanism in Gabon, as follows.

  • Internal Payroll System: You choose to have an internal payroll team that will include staff, office space, labor law experts, and other employees that are required to set up an in-house payroll team.
  • Remote Payroll System: You can also opt for a remote payroll system to compensate your employees in Gabon while you ensure adherence to Gabonese employment laws.

Outsourced Payroll System: The third option includes outsourcing your payroll system to free yourself of the hurdles and burdens of the HR process. Skuad’s EOR system can manage your payroll for you in compliance with Gabon’s labor laws.

Taxes in Gabon

Income Tax Progressive rate from 0% to 35%, multiplied by the taxpayer’s family charges (“shares” of up to a maximum of six dependent children): “Q” = ratio determined according to the “shares”
From XAF 0 to XAF 1,500,000 0%
From XAF 1,500,001 to XAF 1,920,000 5% x Q - 75,000
From XAF 1,920,001 to XAF 2,700,000 10% x Q - 171,000
From XAF 2,700,001 to XAF 3,600,000 15% x Q - 306,000
From XAF 3,600,001 to XAF 5,160,000 20% x Q - 486,000
From XAF 5,160,001 to XAF 7,500,000 25% x Q - 744,000
From XAF 7,500,001 to XAF 11,000,000 30% x Q - 1,119,000
Above XAF 11,000,000 35% x Q - 1,669,000
Complementary tax on salaries (TCTS) 5% of the salary, indemnities, and emoluments (the first XAF 150,000 per month are exempt)
Other Taxes Value/Details
Tax year The tax year is the calendar year.
Tax returns Yes, employees and organizations must file tax returns.
Tax documents The required documents are completed and filed income tax registration form, Tax Identification Number (TIN), and identification documents.
Corporate tax The corporate tax rate is 30%.
Tax rate for foreign companies

Foreign companies having a permanent establishment in Gabon are required to pay taxes at the same rate as Gabonese companies. Otherwise, they will be charged a withholding tax at the rate of 20% for incomes generated in Gabon.

Branches of foreign organizations are subject to a 20% tax on repatriated earnings (10% where the foreign company is located in a country that has signed a tax treaty with Gabon) in addition to the corporate income tax.

Withholding tax for non-residents The withholding tax rate for non-residents is 20%.
Sales tax A value-added tax (VAT) of 18% is charged.
Payroll tax The payroll taxes are based on the category of the organization; 30% is charged for standard companies, whereas oil and mining organizations need to pay 35%
Social Security and other national funds The Gabonese law requires all employers to contribute 20% toward the National Social Security Fund (CNSS) and Social Guarantee Fund (CNAMGS).
Public pension The Gabonese public pension scheme covers public-sector workers, hospital personnel, military personnel, and household workers.
Medical insurance A contribution of 2% is deducted from the payroll for medical insurance. Of this, 0.6% goes for medical examinations and 1.5% is for hospitalization.

To expand your business without contravening any Gabonese laws regarding payroll and taxation, get in touch with Skuad experts and book a demo today.

Incorporation

Various Gabonese cities and regions have differing subsidiary laws that impact the ease of business, availability, and costs. This can pose a challenge to someone unfamiliar with the region and economy of Gabon. 

Subsidiary options include setting up a public limited company, a branch office, or a limited liability company (LLC). The economy and level of doing business in Gabon result in organizations favoring an LLC. This includes the clause of having one director and a shareholder of any nationality; these members need not reside in Gabon. An LLC requires USD 1,700 as minimum paid-up share capital to formalize the establishment with the Gabonese Companies Registrar. The law requires you to appoint an auditor to assist in legal compliance in case you have more than USD 17,000 in paid-up capital with more than 50 employees and an annual turnover of over USD 420,000.

Here are the important steps that you need to follow to set up an LLC in Gabon.

  • Place the legally required capital in a bank and secure the deposit evidence.
  • Select and register the company name.
  • Find and vet the transcripts of the company manager’s criminal record, if any.
  • Deposit and register the company’s articles of association with the public notary.
  • Deposit documents with the Investment Promotion Agency (Agence de Promotion d’Investissement).
  • Ensure that you pay the fees and obtain a receipt.
  • Pay for publishing the company formation notice in a legal journal (l’Union ou Hebdo-informations).
  • Inform the Ministry of Labor of the operations’ commencement.
  • Register the employees with the Social Security authorities.

Setting up a subsidiary in Gabon is usually challenging and time consuming. Organizations planning to expand into Gabon are best suited partnering with an Employer of Record like Skuad. Skuad’s global HR platform handles all employment needs on behalf of the organization to enable them scale business operations without setting up a subsidiary and ensuring local legal compliance in Gabon. 

To know more about Skuad, book a demo today.

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. With a PEO Gabon, 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

Starting a business in a new country is no easy task. It comes with a host of prerequisites and challenges. Skuad is your ideal EOR partner in your expansion efforts as we take care of all the necessary conditions and formalities. Our tailor-made EOR solutions save you time, labor, and resources, so you focus on the business side of your expansion.

To know more about Skuad, book a demo today.

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Onboard & pay your contractors for free.

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