Tunisia

Employer of Record in Tunisia

The foremost step toward starting a business in another country is to understand its labor laws, which can often be a complicated process. However, expanding the business into another country and building an efficient team of workers can be trouble-free through an effective EOR solution.

Skuad’s strong global network and automated human resource (HR) platform ensure quick onboarding of remote teams, managing payrolls, and formalizing contracts in compliance with the local laws. Learn more about Skuad’s solutions and how you can outsource all HR responsibilities in the country of your choice.

Tunisia at a Glance

Population: 11,818,618 people (2020)

Currency: Tunisian dinar

Capital city: Tunis

Languages spoken: Arabic, Tunisian Arabic/Darija

Gross Domestic Product (GDP): USD 39.196 billion (2019)

GDP growth: 4% (2021)

Employment in Tunisia

Tunisian employment laws apply to both foreign nationals and citizens. To hire in Tunisia, it is essential to understand the policies related to employment contracts, recruitment, payroll, working hours, holidays, and termination rules. A brief overview of entitlements is given below.

Statutory Working Hours

The workweek is capped at 48 hours. However, this may be reduced to 40 hours, depending on the applicable labor policy at the time.

Overtime Eligibility

If employers want their employees to work overtime, explicit permission must be obtained from the Labor Inspector. 

The overtime pay depends on whether the employee is working a 48-hour workweek or a 40-hour week. 

Regardless, the total work hours inclusive of both the regular and overtime work hours cannot exceed 10 hours a day, and therefore, 60 hours a week. 

Paid Public Holidays

• New Year’s Day (January 1)
• Revolution and Youth Day (January 14)
• Independence Day (March 20)
• Martyr’s Day (April 9)
• Labor Day (May 1)
• Eid Al-Fitr (varying dates in May)
• Eid Al-Adha (varying dates in July)
• Republic Day (July 25)
• Islamic New Year (varying dates in August)
• Women’s Day (August 13)
• Evacuation Day (October 15) 
• Mawlid (varying dates in October, November)

Holiday Pay

Sick Leave: The number of days for sick leave has not been defined in the Labor Code, however, sickness benefit is paid after a five-day waiting period for up to 180 days a year. 

Note: This sick leave is paid through social security and the employees are required to inform the employer within 48 hours of the illness. The employee is also required to provide a medical certificate. 

Weekly Rest Days: Employees are entitled to 24 consecutive hours of rest per week.

Vacation Leave: On the completion of one month of service, every employee is entitled to paid vacation leave. Employees are entitled to one day of vacation leave per month. Therefore, annually they are entitled to 15 calendar days of paid vacation leave. This period increases with an increase in the length of service.

Maternity Leave

On the birth of a child, female employees are entitled to 30 days of paid maternity leave in the private sector, and 60 days of paid maternity leave in the public sector. 

In case any health-related complications arise, then the female employee is entitled to 15 extra days of paid maternity leave. 

Additionally, in the public sector, post-natal leave can be extended to an optional four months. 

Paternity Leave

On the child’s birth, male employees are entitled to a paid paternity leave. 

Private sector employees are entitled to one day of paternity leave that must be availed within seven days of birth. 

On the other hand, public sector employees are entitled to two days of paid paternity leave which must be availed of within 10 days of the child’s birth.

Employment Termination/Severance

Severance pay cannot exceed three months of the employee’s salary. Every employee is entitled to a severance allowance on the termination of the employment contract. The only exceptions to this are if the termination of the contract has taken place because of serious misconduct.

An employment contract can be terminated depending on the nature of the contract. 

• A fixed-term contract is terminated, either at the end of its term or when the specific work under the contract is completed. 
• An employment contract of indefinite duration can be terminated by (a) mutual consent, (b) the application of force majeure, or (c) the employee's death. 

Employment Contracts

Under Tunisian law, employment contracts are not required to be written. Employment contracts can be for an indefinite period or a limited duration. 

A fixed-term contract is required to be written, and one copy must be furnished to each party. 

Health Insurance Benefits/Medical Care

If the employee is insured, then he/she is entitled to 50 days of covered employment for the previous two quarters or 80 days of covered employment for the previous four quarters before the incapacity commenced. Medical benefits are also provided to the insured person’s spouse and dependent minor children. 

Employee Protection and Anti-discrimination Rights

The Labor Code (1966) of Tunisia contains very general provisions about occupational safety and health. It has defined the basic terms and conditions for work. The Code aligns with the ILO Conventions that Tunisia is a party to. 

Confidentiality of Personal Information

Tunisia 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. 

As your EOR firm, Skuad takes over the burden of all HR-related activities such as onboarding employees, handling their payroll, and managing employee life cycles, while ensuring compliance with the local employment laws. To expand your business in Tunisia and tap into its growing economy, connect with Skuad experts today.

Contractors vs. Full-time Employees

Hiring contractors or full-time employees both come with their own sets of pros and cons. It is pertinent to keep these aspects in mind during the hiring process. For instance, as a company, you must consider how long you want a certain position to be filled. If it is a permanent position that would benefit your company throughout all projects that you undertake, it is advisable to hire a full-time employee. However, if it is a temporary position that you only need for a certain period for a specific project, hiring a contractor would be more practical. 

Similarly, hiring a contractor or a full-time employee also has differing effects on the costs to the company. This is because a full-time employee will have to be paid for a longer period, whereas a contractor would not. 

However, in deciding the cost-effectiveness, one must also look at the talent that they are employing. If paying for a prolonged period ultimately benefits the employer because of the work being done, you will profit either way.

 It is necessary to note the various challenges in hiring a freelancer.

• A distinctive process of the interview, 
• A large number of job applicants,
• Payment issues,
• Cultural differences, and
• Lack of dedication.

Similarly, the various challenges in hiring a full-time employee are:

• The cost, 
• Attracting the right employees, 
• Engaging qualified employees, 
• Hiring speed, and
• Building a strong employer brand.

An employer must keep all these conditions in mind before deciding to hire a contractor or a full-time employee. Skuad can help employers hire and onboard both full-time and contractual employees. For further queries, connect with Skuad experts.

Hiring in Tunisia

Tunisia is an upcoming destination for various global companies because of its pool of young, talented graduates and various employment prospects. As per the Labor Code in Tunisia, the same rights must be provided to both local and non-resident employees. These must be in line with the international standards of labor protection, such as providing adequate wages, not indulging in forced labor, adhering to the legal working age, protecting workers against harassment, and providing professional training where needed. 

To hire employees in Tunisia, the employer must have an understanding of the Tunisian laws that govern this process. For instance, the employment contract can be both written and/or oral. The contracts can be both for a fixed term or an indefinite period. However, a fixed-term contract cannot exceed four years.

The hiring processes of both full-time employees and independent contractors in Tunisia can be handled entirely by Skuad. Skuad’s unified HR platform takes care of the onboarding procedure and payroll management. 

Companies that are looking to hire often go to popular job search platforms to find the right candidates. Some job portals in Tunisia are,

• Bayt.com
• NaukriGulf.com
• Careers in Africa
• TimesJob.com

In addition to this, LinkedIn is also popular in Tunisia. While using any of these job search platforms, we encourage you to do your due diligence regarding the authenticity of the applicants. 

Skuad can ease the process of hiring for its clients and ensure that pre-vetted candidates with exceptional talent are remotely onboarded into your team. To know more about how Skuad can help ease the hiring process for your company in Tunisia, get in touch with Skuad experts today.

Probation & Termination

Probation Period

The probation period in Tunisia is capped at six months for workers as per the labor laws in Tunisia. However, it is nine months for first-line supervisors and one year for executives. 

Termination of Service

A fixed-term contract cannot be longer than four years, including renewals. If the period exceeds four years, then the employee is automatically made a permanent worker. Workers’ salaries cannot be discriminated against, based on the type of employment.

To terminate the indefinite term employment contract, the Labor Code requires a written notice to the other party at least one month before termination.

Employee contracts can be terminated when,

• The work for a specific project is complete
• For misconduct
• At the end of a fixed-term contract
• By mutual consent

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

EOR Solution in Tunisia

Establishing a successful enterprise in a different country requires expert intervention, as it is nearly impossible to know the varied compliance policies of the country. EOR services can simplify your task of expanding your business globally. Industry experts’ extensive research on the country’s laws and HR policies ensures business expansion at a faster pace. An effective EOR service manages the entire life cycle of the employees. They handle complex HR-related matters and let you focus on your core task, facilitating hassle-free business expansion for growing companies.

Hire talent from all over the world and improve your business prospects with Skuad’s unified HR platform for managing globally distributed teams. Skuad’s team of well-informed professionals will handle the arduous task of managing global payroll, compliance, and taxation. We also ensure that the entire scaling-up process is extremely user-friendly. We provide a single invoice where the employer can track all necessary details in one place.

General Employer of Record Service Terms

Currency accepted

British pounds (GBP), US dollars (USD), and euros (EUR) are widely and readily accepted. In Tunisia, the currency is Tunisian dinars (TND).

Required details & documents

It is pertinent to note the requirements for a Tunisia work visa in this case would most likely apply to most of your employees. Tunisia also provides the service of an eVisa that can be obtained online. The requirements are as follows.

• A signed original passport that is valid for at least six months
• A copy of the first page of the passport
• A Tunisian visa application form, complete with the applicant’s signature
• A recent passport-size photo
• Official Business Invitation Letter from a Tunisian host

It usually takes around five to 20 business days for the Tunisian visa to be processed.

Outsourcing Employment Through An Employer of Record

When you decide to expand into Tunisia, 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 firm to manage payroll and employee lifecycle.

Skuad can assist you with this and provide remote services, allowing you to focus on your core business activities while its unified platform takes care of the entire lifecycle of every employee, from hire to fire. To avail yourself of our bespoke Tunisia EOR solution, book a demo!

Types of Visas in Tunisia

The following types of visas exist in Tunisia.

Business Visa

A business short-stay visa is valid for stays up to 90 days. 

Business long-stay visas are valid for stays longer than 90 days. These are also called work visas and are necessary for anybody who wishes to work in Tunisia.

Tourist visas 

Tourist short-stay visas are valid for 90 days and tourist long-stay visas are valid for a period longer than 90 days. 

However, an employee cannot work in Tunisia based on a tourist visa; it is only for travel purposes.

Transit visa

A transit visa is granted if Tunisia is the middle destination between two countries, and one needs to cross Tunisia to reach their destination. 

An employee cannot work in Tunisia based on a transit visa.

Visa on arrival

This is a special service available only for foreign nationals who have a resident permit for any member state of the Gulf Cooperation Council.

Feel free to connect with us to solve any queries that you might have about work visas in Tunisia.

Work Permit

All individuals planning to work in Tunisia will need a work permit to stay compliant. This is in addition to the requirement of a business visa. Skuad’s local partner in Tunisia can sponsor foreign workers for work permits.

Securing work permits is an essential task of Skuad’s EOR services. Partner with us today to expedite your expansion in Tunisia. To learn more, book a demo. 

Payroll & Taxes in Tunisia

Things You Must Know To Set Up Payroll In Tunisia

To set up payroll and manage taxation in Tunisia, you need to be aware of the rules, which vary from one category to the other. The foremost thing you must consider is whether you want to employ foreign professionals or locals. 

As a foreign company, you must adhere to the local tax laws like income tax, business tax, withholding tax, employee compensation insurance, and social security costs. It is important to decide whether you want to set up an in-house team to manage the payroll in Tunisia or hire the services of a local payroll specialist, who will not only make the management simpler but also ensure complete compliance with laws in Tunisia. 

There are four primary payroll options in Tunisia. These include: 

• Internal Payroll: This method of payroll is only applicable in cases wherein a company has a subsidiary office that can take care of the accounting. 
• Remote Payroll: In this system, no physical setting up of a subsidiary is necessary and all employees’ payroll is handled under one remote setup. 
• Local Payroll Processing Company: This payroll is applicable if you prefer to keep the money in the local economy through local outsourcing; however, you may still have to handle the required compliances following the local law.
• Globally Outsourced Payroll: A global EOR service like Skuad can handle all your company’s payroll needs while the company itself focuses on its core business activities. We will also ensure compliance with local laws. 

Taxes in Tunisia

The following taxes are levied in Tunisia.

Income tax

Salary Range (TND) and Tax Rate (%) are mentioned below:

• Up to 5,000 - 0
• 5,001 to 20,000 - 26
• 20,001 to 30,000 - 28
• 30,001 to 50,000 - 32
• Above 50,001 - 35
  

Financial year-end date

March 25; June 25 for PLCs and LLCs

Corporate tax

15%

Employer contribution toward Social Security

16% of the 25% share; the rest is paid by the government

Employee contribution toward Social Security

9% of the 25% share; the rest is paid by the government 

Value-added tax (VAT)

19%

Payroll taxes

There are no payroll taxes.

It is essential to note that since Tunisia follows a “Pay As You Earn” system, employers cannot employ any taxes on the monthly salaries of the employees. The profits subjected to corporate tax in Tunisia are calculated by giving due regard given to the profits earned by the businesses. 

Skuad has expertise in the management of payrolls and taxes in Tunisia and can help you drastically reduce the time required for this activity. To learn more, contact Skuad experts today. 

Incorporation: How to Set Up a Subsidiary in Tunisia

Since all of Skuad’s operations are remote, your company is not required to set up a legal entity in Tunisia. However, if your company wishes to do so for operational purposes, the following are the details that you need to be aware of. 

1. Firstly, the location for the subsidiary needs to be determined, for which the considerations that you will have to take are as follows.

• For cost-effectiveness, one must look at regions with flexible laws.
• If the subsidiary is going to be commercially active, one must look at the commercial nature of each location, that is, which location is a commercial hub. 

2. In addition to this, the structure for the subsidiary needs to be decided. The various options available are, 

• A limited liability company (LLC)
• A public limited company
• A representative office
• A branch office

The structure will depend on the type of business activities that you wish to run in Tunisia through this subsidiary. The Tunisian subsidiary laws differ according to the subsidiary structure that you have chosen. For instance, if a company chooses to establish an LLC, the parent company is not made liable for the subsidiary company’s actions, and this becomes an advantageous factor for a company.

Setting up a subsidiary can be made easier with the help of EOR solutions. EOR services such as Skuad will take care of all the compliance needed to form a subsidiary in Tunisia. You can learn more here.

Professional Employer Organization (PEO)

A professional employer organization (PEO) 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. 

A PEO can be considered 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. 

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. The EOR firm handles worker’s compensation and unemployment claims. It also allows for a lower minimum employment requirement than a PEO. A company with less than five employees cannot opt for a PEO but can opt for an EOR service.

Further, 

• EOR companies become the legal employers of employees instead of the co-employers. An EOR firm has all the liabilities and responsibilities of the employees. A PEO retains your organization as the legal employer. 
• With EOR solutions, the employees are covered under the insurance plan of the EOR firm. With a PEO, you will have to opt for a plan by yourself. 
• With an EOR firm, you need not register your company in the country. You can have employees in the country without setting up an entity. The same is not true for a PEO. 

Skuad provides EOR solutions. It is an all-in-one platform that manages employees, takes care of compliance, hires employees, and handles all payments. Learn more about Skuad here.

Conclusion: What Gives Skuad’s Tunisia Solutions an Edge?

A promising economy like Tunisia is the perfect spot for expanding your business. However, understanding the laws about employment and taxation in a new country is a major hurdle for most companies. 

Skuad’s EOR Tunisia can help you hire from Tunisia without setting up an entity. However, if your business needs it, Skuad can also help you with setting up a subsidiary. Skuad can help you manage your employees, their payments, payroll taxes, and other associated matters in both cases.

Skuad has an extensive network in 150+ countries across the globe and provides a single interface to onboard and manage employees and contractors. It offers consistent prices irrespective of the location and manages the payment of your team through a single invoice. It also ensures that your IP, invention rights, and sensitive employee details are fully protected wherever you operate. For more details, contact Skuad experts!

FAQs

1) What is an employer of record in Tunisia?

An Employer of Record (EOR) in Tunisia legally hires employees for clients without setting up a local entity. An EOR, like Skuad, manages payroll, taxes, benefits, and compliance with Tunisian labor laws for legal and efficient recruitment.

2) What is the severance law in Tunisia?

In Tunisia, severance pay is calculated based on the length of service and is usually equivalent to one day's pay for each month of service, up to a maximum of three months' salary.

3) What is the notice period in Tunisia?

The notice period in Tunisia varies depending on the employee's length of service and the terms of their contract. Generally, it ranges from one month for employees with less than five years of service to two months for those with more than five years of service.

4) What is the minimum wage in Tunisia?

The minimum wage in Tunisia is set by the government and varies by sector. For non-agricultural sectors like industrial and commercial, the minimum wage is approximately TND 459.264 per month for a 48-hour workweek and TND 390.692 for a 40-hour workweek.

5) What is the Labor law in Tunisia?

The Labor Law in Tunisia governs employment practices, including hiring, working conditions, wages, benefits, and termination procedures. It ensures the protection of workers' rights and outlines the obligations of employers, aiming to promote fair and safe labor practices in the country.