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Employer of Record in Haiti

Employer of Record in Haiti

Skuad’s Haiti Employer of Record (EOR) solution is perfect for companies looking to expand into Haiti without setting up an entity.

Skuad’s EOR services are the way to go if you’re looking to grow your business in Haiti. An EOR is a third-party entity that recruits and pays employees on behalf of another company and handles all official employment duties. Skuad’s global human resource (HR) platform enables you to expedite onboarding remote teams, managing their payroll, probation, termination, and taxation, and ensuring compliance with the local laws. Talk to Skuad experts today to learn more!

Haiti at a Glance

Population: 11.47 million people (2021)

Currency: Haitian gourde (HTG)

Capital: Port-au-Prince

Languages spoken: Haitian Creole and French

Gross Domestic Product (GDP): USD 14.33 billion (2019)

GDP growth: 1% (2021)

Employment in Haiti

Haiti’s Labor Code, 1961 was amended in March 1984 to bring it in line with the norms of the International Labor Organization (ILO). The Caribbean Basin Initiative (CBI—see Appendix B) adopted by the United States Congress in 1983 made compliance with ILO criteria a requirement for certification.

In the 1980s, organized labor was dominated by three main trade unions. The Federation of Union Workers (Fédération des Ouvriers Syndiqués—FOS) was the most recent of the three. The FOS was connected with the American Federation of Labor-Congress of Industrial Organizations (AFL-CIO) and the International Confederation of Free Trade Unions in Brussels.

Here are some of the rights and benefits of employees in Haiti.

Tax Explanation
Income Tax Rates Peru follows a progressive system of taxation. The tax slabs range from 8% to 30%.
Income Tax for Expats Expat employees who stay in Peru for not more than 183 days are required to pay 30% income tax.
Employee’s contribution towards Pension Plan Employees contribute 13% towards a pension through the National Pension System, or 12.5% if affiliated with a Private Pension System .
VAT 18% of gross income.

To learn more about Haiti’s employment policies to ensure your expansion efforts fall within the legal requirements, book a demo with Skuad experts today.

Contractor vs Full-time Employees

Contract workers are more prevalent than full-time employees in Haiti. To design an agreement that fits your recruiting needs as an employer, you may choose from three types of employment contracts.

  • Fixed-term or temporary contract: Before signing the contract, the employer and the candidate will agree on the length of their work. When the contract ends, the employer has the option of renewing it for a certain period or permanently.
  • Permanent or open-ended contract: This is a contract for long-term work. Either party has the right to discontinue employment at any time. If you extend a temporary employee’s contract for an unlimited period, it becomes an open-ended contract with extra-legal advantages and benefits.
  • Apprenticeship contract: It specifies an arrangement in which a contractor conducts labor for a firm while another person offers professional training in a trade or occupation. Apprenticeship contracts must be written and registered with the Manpower Directorate, who will decide the apprenticeship’s duration. Apprentices must be 14 years old or older and earn at least 40% of the minimum salary.

Whether your organization requires contractors, full-time employees, or apprentices, Skuad’s Haiti EOR solution can cater to all your hiring requirements. Learn more by talking to Skuad experts.

Hiring in Haiti

While there are certain differences to be aware of, the process of finding and hiring personnel in Haiti can be similar to that in your home nation. Effectively hiring an international workforce involves the following steps.

1. Recruiting candidates

The recruiting process begins by creating a detailed job description that provides a clear image of the job to the candidates. A good job description should include information such as,

  • An overview of the duties
  • Relevant skills
  • Education, training, or experience required

Here are some popular job posting websites for Haiti.

2. Conducting interviews with the candidates and selecting an employee

After you’ve received applications, you will need to sift through the potential candidates through interviews. The onboarding process establishes the tone for a new employee’s engagement with your organization.

Hiring Through Skuad’s EOR Services for Haiti

The do-it-yourself technique of incorporation, registration, and operating a local payroll may be useful if a firm has ties with a nation. However, for many businesses that are just entering a new market or have limited HR resources, an EOR solution might be a great option.

Skuad’s Haiti EOR solution makes overseas employment straightforward for businesses of all sizes. Because it complies with all host country rules, it is equally successful for both residents and ex-pats. When an EOR solution is accessible in nearly any country, there is no need to risk breaking labor, tax, or employment rules. Talk to Skuad to know more.

Probation & Termination

Probation Period

Termination of Employment

Employment can be ended in the following circumstances.

  • By mutual consent
  • By the employer (with or without cause)
  • By the employee, after a fixed-term contract empires
  • As a matter of law, such as upon the death of the employee

Employers can fire an employee without notice for threatening or abusive behavior, property damage, being absent without prior authorization for three or more days in a month, failing to follow accident prevention measures, imprisonment for more than one month, lying about their qualifications, or breach of contract. Employers must notify the Labor Department and explain why such employees are being fired. If a disagreement arises, the Labor Department will investigate the termination and refer the matter to arbitration. Damages and compensation may be awarded if the termination is determined to be unlawful.

An employment contract can also be ended without notice by mutual consent. If the job contract is in writing, the mutual agreement must also be in writing. If the employment contract is verbal, approval to terminate may be given in writing or verbally in the presence of two witnesses.

During the probation period, employees may be fired without cause.

Employers must have a legal basis to terminate employment under a legitimate employment contract. Employment contracts can be lawfully terminated for the following reasons.

  • An employee attacks or verbally threatens others at the workplace, damages company property, or causes significant disruptions,
  • An employee skips work without cause or permission four times in a month or for three days in a row,
  • An employee refuses to comply with safety measures or other procedures after receiving one written warning or two verbal warnings,
  • An employee who has worked for less than four months is ineligible to undertake operations for which they have forged references or certificates,
  • An employee is sentenced to more than one month in prison, or
  • A contract is contravened by an employee.

To ensure your expansion endeavors adhere to the laws regarding termination of service in Haiti, talk to Skuad experts and book a demo today.

EOR Solution in Haiti

The Employers of Record (EOR) model is a smart solution for companies seeking to enter and expand in Haiti 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

Payroll Outsourcing in Haiti through an Employer of Record

Skuad’s Haiti EOR services simplify compliance and shoulder the burden of HR tasks for expansion. Skuad serves as your in-country entity, allowing your firm to employ internationally without having to set up a subsidiary. Furthermore, we have an integrated, high-tech global HR platform to hire and onboard employees and manage their payroll, taxes, termination, and compensation.

Skuad's experienced team of experts ensures full compliance with the local laws. Talk to us to learn more.

Types of Visas in Haiti

Citizens of most other countries visiting Haiti do not require visas. They can stay in Haiti for up to three months, provided their passports are valid for at least six months.

A visa is required for people who belong to the following countries.

  • Dominican Republic
  • Panama
  • Columbia
  • Cuba
  • Syria
  • Libya
  • Iran
  • Vietnam
  • Yemen

The visa requirements for the aforementioned countries are,

  • A filled and signed application form
  • Two passport-size photographs
  • A letter stating the duration and reason for stay
  • Details of the hotel where the applicant will be staying, or otherwise, details of the Haitian residents with whom the applicant will be staying
  • A valid passport copy
  • Travel booking details and photocopies
  • A letter from the applicant’s current place of employment

However, for long-term stay, resident and work permits are required. To know more, get in touch with Skuad experts.

Work Permits

Employees who wish to work using a non-Haitian travel document must first get a work permit. This requirement applies to non-citizens who wish to work in Haiti, including businesspeople, instructors, students, and other non-citizens. They can apply for a work permit at the Ministry of Social Affairs (Ministry of Labor and Social Affairs).

Employees must apply for a residence permit in addition to a work permit if,

  • They are at least 21 years old
  • They have a non-Haitian travel document with them when they enter the nation
  • They will be in Haiti for more than three months

The Direction de l'Immigration (Department of Immigration) in downtown Port-au-Prince is where applicants must apply for their residence permits.

An employee must gather the following documents to obtain a permit in Haiti.

  • The completed and signed application form
  • Two full-color passport pictures
  • A letter outlining the rationale for their visit as well as any in-country recommendations
  • Their current address and contact details
  • A valid passport or other travel documents
  • A letter from the employer

Non-nationals must apply for their work permit directly with the Ministry of Labor and Social Affairs. A work visa generally takes two to six months to process. Failure to provide any of the essential documents may cause the procedure to be delayed or result in a rejection.

A work permit is valid for one year, and an employee can renew it up to five times in a row. A work permit holder’s permission to work in Haiti might be revoked under specific situations. If an employee fails to meet the requirements of their job or loses certificates or other paperwork that qualifies them for employment, the Ministry of Labor and Social Affairs can cancel their work permit.

To know more about work permits in Haiti and how Skuad can secure them for you, speak to our experts today and kick-start your expansion.

Payroll & Taxes in Haiti

Payroll in Haiti

When you recruit a worldwide workforce, you have a few options for remunerating your personnel. You can set up payroll in Haiti in one of the following ways.

Remote: Delegating global payroll to your parent company’s in-house personnel is more cost-effective. Keep in mind that handling complex payroll on your own puts a huge administrative load on your team. Additionally, you must keep track of all payroll obligations or risk suffering penalties.

Payroll processing firm: If your company has a subsidiary in the nation, you may engage a payroll processing company to handle your salary. In principle, this solution relieves the burden of compliance, but any breaches or errors will still be your company’s responsibility.

Internal: Payroll can also be handled by a subsidiary’s internal workforce. Building your own payroll facilities takes time and money, and it is more expensive than alternative solutions.

Global EOR service: Working with an EOR service places your staff on the EOR’s payroll. Your workers’ wages will be covered by the EOR’s monthly invoice, and all compliance is managed by the EOR on your behalf.

Employers must register employees with the Office of Occupational Accident Insurance, Sickness, and Maternity (OFATMA) and the National Office of Old Age for insurance and social security, regardless of the payroll management method they use. In addition, recruits who relocate for the job must apply for a work visa with the Manpower Directorate.

Setting up your business organization might take many months if you opt to manage payroll internally. Choosing a payroll processing business in Haiti can take some time as well because you’ll still be responsible for the compliance.

Working with Skuad for your company’s payroll needs is a cost-effective and risk-free outsourcing solution. Skuad’s services are supported by a top-notch staff who will handle such responsibilities on your behalf, leaving you to focus on the growth of your business. Contact us today to learn more.

Taxes in Haiti

The personal income tax rates in Haiti are as follows.

Tax Brackets Tax Rate
HTG 1.00 to 60,000.00 0%
HTG 60,001.00 to 240,000.00 10%
HTG 240,001.00 to 480,000.00 15%
HTG 480,001.00 to 1,000,000.00 25%
More than HTG 1,000,000.00 30%

Other taxes are as follows.

To understand how payroll and taxes are managed in Haiti and expedite your expansion process, talk to Skuad experts.

Incorporation: How to Set Up a Subsidiary in Haiti

Entrepreneurs, both domestic and foreign, who want to start a business in Haiti have a variety of choices.

  • Sole Proprietorship
  • Registered Partnership
  • Limited Liability Company
  • Corporation
  • A subsidiary of a foreign company

For international investors to establish a subsidiary in Haiti, the subsidiary should be registered with the Ministry of Commerce and Industry’s registry and with all of Haiti’s key tax and social agencies. To establish a subsidiary, it is necessary to engage a lawyer to handle all aspects of the company’s registration.

To incorporate a subsidiary of your business in Haiti, you will need to legalize your company’s bylaws and supply a French copy as well. To legitimize your bylaws, you’ll need the Secretary of State’s seal, which you may get from a Haitian Consulate. After receiving this authorization, you must send those papers to your EOR provider to begin the registration procedure.

The EOR will get it notarized by a Public Notary. The EOR will send the statutes to the MIC (Ministry of Commerce and Industry) once they have been notarized.

When the MIC registration is complete, the Statutes are forwarded to the Monitor (Official Gazette) for publication, and the business receives its Authorization to Operate certificate. The EOR firm will handle the entire procedure if you provide the necessary documentation, as follows.

  • Bylaws that have been legalized
  • A copy of the shareholders’ identification card (Passport)

Within 15 days after opening, the business must register with (OFATMA) for worker’s health and accident insurance. Additionally, the business also needs to register with the Retirement Insurance Office (ONA).

There are several business opportunities in Haiti. However, it is essential to know the various laws for incorporation. Learn more about setting up a subsidiary in Haiti with Skuad’s tailor-made EOR solution.

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