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Employer of Record in Guinea

Employer of Record in Guinea

Skuad's Guinea EOR (Employer of Record) solution helps your business expand into Guinea without the need to set up a dedicated entity. Compared to Traditional EOR services, Skuad offers a more efficient and technologically advanced solution through its automated HR platform to onboard, pay, and manage the distributed global talent seamlessly. Contact Skuad to know more about our customized solutions in Guinea.

Guinea at a Glance

What You Should Know Before Employing in Guinea?

All employees employed in Guinea come under the purview of the employment laws in Guinea. The primary laws that govern employment in Guinea are as follows:

  • Labour Code of the Republic of Guinea, 1988 (amended in 1991)
  • Labour Code of the Republic of Guinea, 2014
  • Order on Weekly Rest Periods, 1996
  • Collective Labour Agreement, 1995
  • Social Security Code, 1994
  • Constitution of the Republic of Guinea, 2010
  • Childhood Code, 2008
  • Penal Code 1998
  • Various other conventions to address specific issues.

Companies must establish policies and procedures in compliance with the national laws.

Entitlements Explanations
Statutory Working Hours The official working hours are 40 hours a week. However, for industrial workers, it may extend to 48 hours.
Minimum Wages The minimum wage limit of GNF 440,000 was established in April 2013.
Overtime Eligibility A worker may be required to work overtime. However, the working hours should not exceed 10 hours per day and 48 hours per week. An employer is required to pay overtime premiums at the rates applicable to the company. Even though the Labour Code has prescribed 130% and 160% of the hourly rate, this may vary depending on the company.
Paid National Holidays
  • New Year’s Day
  • Easter Monday
  • Labour Day
  • Africa Day
  • Lailat al-Qadr
  • Eid al-Fitr
  • Assumption of Mary
  • Eid al-Adha
  • Independence Day
  • The Prophet’s Birthday
  • Christmas Day
Paid Leaves Employees in Guinea are usually entitled to leaves of 2.5 days per month paid by the employers. However, it may vary depending on the organization. This is in addition to public/national holidays allowed.
Sick Leaves Paid sick leave is covered under the Collective Agreement, which states that the maximum duration of sick leave shall be six months. The duration of sick leave initially allowed is 13 weeks, but it may be extended up to 26 weeks if a worker had at least 300 days of employment in the last year. After the expiry of six months of sick leave, an employee may be replaced by the employer if he so desires.
Maternity/Paternity Leave Working women in Guinea are allowed 14 weeks of maternity leave that are 100% paid leaves. The source of payment is mixed. Social insurance pays 50%, and the employer pays the rest 50%. Unpaid parental leaves are allowed for up to 38 weeks, but mothers only. No paternity leaves are allowed in Guinea as of now.
Employment Contracts

Employees are usually bound to enter into an employment contract with their hiring organizations. Most Employment contracts are in writing. Proof of employment contract is also a requirement for the grant of approval of visas. Workers of age 16 and above are eligible. The employment contract is subject to common law and in a format agreed upon by the contracting parties. When the parties opt for a written contract, it is free from stamp duty.

Employment contracts may be of the following two types:

Indefinite Contracts:

An indefinite contract is known as "term contract undetermined" where the exact term/period of employment is not determined while entering into the contract. It may be entered verbally although not recommended as such.

Fixed-Term Contracts:

In fixed-term contracts, the workers may be hired for tasks of permanent nature as per Guinean Labour Laws. An employment contract is a fixed-term contract if its terms are fixed by the parties at the time of its conclusion and its maximum duration including renewal is two years. The fixed-term employment contract must be in writing and provided along with the letter of employment before the commencement of work. A fixed-term contract gets converted to an indefinite duration if the period covered under the fixed-term contract gets extended beyond two years or if a worker keeps working after the expiry of the fixed term.

Employee Health Benefits

Free Medical Care

Guinea’s Labour Code is the foremost law when it comes to the protection and health of workers and employees. Employees in Guinea are provided with Employee Health Benefits which are covered as hereunder:

In Guinea, there is a fee-for-use community-based healthcare system providing healthcare services.

Secondly, pregnant insured workers receive maternity-related care during pregnancy and confinement. This also covers the spouses of the insured workers. A pregnant worker is also entitled to free medical care under the Labour Code.

An employer is required to take all necessary steps that may be appropriate as per the operating conditions of the business to ensure and protect the workers and employees from accidents and diseases. The Labour Code requires an employer to conduct a medical examination of its workers at least once a year to ensure their good health and their ability in continuing their work. Also, for establishments with 25 or more workers, there must be established a safety and health committee to study, develop and ensure the implementation of preventive protective measures for health and safety at work.

Contractors Vs. Full-Time Employees

Depending on your requirement, you can either hire a full-time employee or hire someone on contract. Let us understand the difference between the two when you are hiring in Guinea:

Full-Time Employees

Employees that enter into a legal contract of employment with a company and are dedicated exclusively to the company are full-time employees. They do not work on a project basis but exclusively provide their services to the employing company and often their pay is fixed. The burden of compliances for taxation rests on the shoulders of the employer in this case.

Contractors

Contractors provide their services on a freelance basis and are hired by the company for specific projects or purposes. They are not exclusively providing their services to a single company and may have multiple clients. Their pay is usually influenced by the type of projects they are working on or for what purpose they are hired. In this case, employees should themselves handle their tax compliances and returns and responsibility are not on the employer.

Hiring in Guinea

Whether employing a full-time employee or on a contract basis, both involve signing a legal contract that dictates the terms and conditions of the employment. Many companies are conducting their operations at a large scale in Guinea generating more employment opportunities than ever.

Top companies that provide employment opportunities in Guinea include:

Skuad is fully equipped to streamline the hiring and onboarding process for both full-time employees as well as contractual employees

Probation & Termination

In Guinea, a reasonable probation period (ideally lower than or equal to six months) is usually followed so that the employer can assess the suitability and ability of the employee. A newly hired employee may be fired during the probation period without any negative consequences which is usually a standard practice everywhere.

Notice of Termination As required by the Labour Code, a written termination notice should be served before terminating the services of an employee or worker.
  • Fixed-Term Contracts:
  • A fixed-term contract may either be terminated automatically at the end of its term or canceled by either of the parties to the contract. However, the cancellation by either of the parties must be by mutual agreement only.

  • Indefinite-Term Contracts:

An indefinite term contract may be terminated by either of the parties. However, reasons may vary. An employee or a worker may cancel an indefinite term contract for any reason. On the other hand, an employer may cancel an indefinite term contract for valid reasons only that makes it impossible for them to keep and maintain their contractual relationships.

On a positive note, workers on termination of the contract, except in the cases of serious misconduct on their side, shall be entitled to severance pay as determined in an Order issued by the Minister of Labour.

EOR Solution

Skuad’s Guinea Employer of Record solution streamlines the process of hiring and onboarding the employees without the need to establish a separate entity to hire and manage a remote team here. Companies find it easier to outsource complete or specific HR functions to an EOR for it assumes all responsibilities and liabilities from compensation, benefits, claims for unemployment to filing taxes under its ID and payroll funding. You need not worry about a thing.

If you are thinking of collaborating with a trusted EOR that gives you an edge, Skuad’s technologically advanced EOR solution is your best option. Talk to us and we will let you know how we do it for you.

General Employer Of Record Service Terms

Taxes That Apply To Invoices
Minimum Duration Of Service 3 months
Currency Accepted USD/EUR/GBP
Required Details And Documents

Outsourcing Employment Through An Employer Of Record

When as an organization, you decide to expand into Guinea, 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.

Types of Visas In Guinea

Visas And Exemptions Barring a few exceptions, citizens of most countries who want to visit Guinea have to obtain a Guinea visa beforehand. Those exceptional visa-exempt countries include:
  • Algeria
  • Benin
  • Burkina Faso
  • Cape Verde
  • Côte d’Ivoire
  • Egypt
  • The Gambia
  • Ghana Guinea-Bissau
  • Liberia
  • Mali
  • Morocco
  • Niger
  • Nigeria
  • Senegal
  • Sierra Leone
  • Tanzania
  • Togo

Apart from the above countries, those holding diplomatic or service passports from any of the below-mentioned countries do not need a visa to enter Guinea for up to 90 days:

  • China (also includes holders of ordinary passports endorsed “for public affairs”)
  • Romania
  • Russia
  • South Africa
  • Turkey (holders of diplomatic passports only)
  • Zimbabwe

Citizens of all the other countries and territories (except Palestine and Zambia) will require a visa to enter Guinea. However, they can also obtain an electronic visa also known as E-visa. Electronic visas are available in cases where the stay period is up to 90 days. For the citizens of Canada and the United States of America (USA), those who obtain an E-visa can stay in Guinea for up to 5 years.

Types Of Visas in Guinea The government in Guinea issues various types of visas. A brief explanation of the most common visas is as hereunder:
  • Single Entry Guinea Visa (VCS): It is valid for up to 90 days.
  • Long Term Guinea Visa (VLS): It is issued to foreigners who want to stay in Guinea for longer than three months. It has a validity of one year.
  • Multiple Entry Guinea Visa (VESRM): It can be issued for 3 to 5 years, depending on whether Guinea has a treaty or bilateral commitment with your country.
  • Guinea Visa Prorogation (VP): It is issued based on a previous Guinea visa that the applicant was issued.
  • Visa de Transbordement (VTB): Also commonly known as Guinea Transit Visa, it is issued to foreigners who are simply transiting in the territory of Guinea. It is issued for a maximum of three days.
  • Other visas in Guinea include Guinea Service Visa (VS), Diplomatic Visa (VD), and Courtesy Visa (VC), which are issued under the jurisdiction of an approval officer of Guinea.
  • Additionally, categories of Guinea visas are also divided based on the specific purposes for which they are issued such as tourism, business or work, etc.

Work Visas In Guinea Employees who are looking for job opportunities in Guinea for the long term will require a Long-Term Visa. However, this visa is issued to a foreign national only after obtaining an entry visa and having lived in Guinea for 90 days. Also, for obtaining a long-term visa for employment in Guinea, applicants will need to provide employment contracts that have been approved by competent authorities.
Guinea Visa Requirements The documents you need when you apply for a Guinea visa are:
  • Passport of the applicant, which is valid for six months or more
  • Scanned copies of passport’s information page
  • A passport-size picture of the applicant with a white background
  • A Yellow Fever Certificate
  • A confirmed return-flight booked ticket
  • If applying for a diplomatic/service/courtesy visa: An official Letter of Nomination or Appointment
  • Additional documents will be required based on the purpose of the trip.

Work Permit

A direct-hire work permit is the most common type of work permit authorized in Guinea. The factors that influence the work permit are the nature of work, the qualifications of employees, and whether your employer has a local entity here.

Citizens of ECOWAS countries do not require a work permit in Guinea. However, registrations and other formalities must be completed before these citizens start working or residing in Guinea. Many legal and strategic considerations impact work permit authorization, therefore, one must consult experts before applying. Connect with Skuad and get answers to all your queries.

Payrolls & Taxes in Guinea

Income Tax In Guinea Guinea’s taxation regime includes the following major taxes:
  • Regular Corporate Income tax rate: 25%
  • Income Tax Rate for Mining Companies: 30%
  • Income Tax Rate for Telephone Companies, Banks, Insurance and companies importing, storing and distributing petroleum products: 35%
  • Personal income tax rate: 40%
Value Added Tax Standard Rate of 18%

All companies must register for VAT and file monthly returns by the 15th of every month. However, Businesses in exports, basic food commodities, and international freight are exempted from VAT.

Social Security Rate

For Companies: 18%

For Employees: 5%

Withholding Tax
  • Branches of Foreign Companies: Additional 10% withholding tax on top of the standard corporate income tax
  • Dividends and Interests paid to residents and non-residents: 10%
  • Royalties: 15%
  • Technical Services: 15%
  • Management Services: 15%
Carry Forward Of Tax Losses For Businesses Allowed for a maximum of three years
Carry Back of Tax Losses For Businesses Not Allowed
Fiscal Year January-December

Incorporation: How To Set Up A Business (Subsidiary) In Guinea

Factors To Consider Before Setting Up A Business In Guinea Setting up a new business or expanding an existing one in a new county or territory requires finalizing various things as multiple factors are involved in how to set up the business. Those factors include:
  • The location where business needs to be established (which city or region to be specific)
  • Constitution of the business (proprietary, public limited company, private limited company, limited liability company or corporations (LLC), branch office, representation office, etc. Each one of the above formats has its pros and cons which need to be looked into.
Procedural Aspects Of Setting Up A New Business In Case If Company Format Is Adopted The procedural aspects for starting a new business in the form of a company is as hereunder:

Finalization of the number of directors and submit their details, including names, photographs, IDs, identification numbers, and visas.

  • Address proof of the location of the company
  • Draft and signed Bye-laws
  • Incorporation of the company
  • Registration of the company in the Register of economic activities
  • Separate bank account in the name of the company
  • Deposit of initial capital in the bank account of the company
  • Registration and permits under various laws depending upon the business activities of the company
Administrative Tasks

Until the company starts its operations, various trips might have to be conducted to and from Guinea to incorporate and start the company. Various experts need to be hired for looking into legal, accounting, finance, and administrative matters until the company takes off. All these tasks may prove to be cumbersome and will require time, effort, and money. It is well-advised to keep the money aside separately for all the incorporation-related expenses.

In case of expansion of business, many companies decide to use the LLC structure for their subsidiary. This is because it gives the parent company limited liability from the subsidiary. Plus, your subsidiary can choose a different operating structure from the parent company to fit Guinea’s overall culture and its applicable laws.

For establishing a subsidiary, Guinea’s subsidiary laws come into play. In the case of LLCs, these laws require one shareholder and one director, both of whom can be a person of any nationality or corporate body, to register the subsidiary. However, the shareholder and directors cannot be residents of Guinea. Incorporating a company involves paying fees at various stages. The fees will depend on whether the business is started as a company, as an individual, or a corporation.

Professional Employer Organization (PEO)

A Professional Employer Organization (PEO) is an organization that shares the responsibility of managing employees and payroll with your company. Unlike EOR services where the complete responsibility of compliance management lies with the outsourced company, a PEO works jointly with your business.

Responsibilities EOR PEO
Legal employer Yes No. Legal co-employer
Services for a minimum of 1-5 employees 5-10 employees
Local business registration Not required Required
Insurance Workers Compensation provided Not provided

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