Independent contractors or freelancers are self-employed individuals who provide services to companies as a non-employee. This is one of the most common ways companies tend to hire non-local designers, engineers, support reps, etc.
For legal and tax purposes, independent contractors are not classified as employees. They may work for multiple clients, set their own work hours, negotiate their pay rate, and decide how a job gets done.
For example, the IRS says that if an independent contractor or freelancer does work that can be controlled (what will be done and how it will be done) by an employer then they are, in fact, classified as an employee.
As you can imagine, hiring someone as an independent contractor versus an employee is a fine line to tread.
While there are benefits when you choose the contractor route, there are quite a few drawbacks to consider and you’ll need to weigh them carefully to determine the best fit for your company.
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A foreign subsidiary is a company that operates overseas as part of a larger company who’s HQ is in another country.
Establishing a foreign entity is great for having an international presence and accessing new markets. Though, setting up a subsidiary in Burkina Faso can be expensive, stressful, and time-consuming. It's not for the faint of heart.
To set up a subsidiary in Burkina Faso, you have to:
If you're lucky, this process can take months. If you're not so lucky, it can take up to a year. And on average, it costs about $50k-$80k, all-in-all, to get setup. And that's just for Burkina Faso.
An employer-of-record (EOR) is a company that hires and pays an employee on behalf of another company.
An EOR is typically used to overcome the financial and regulatory hurdles that often come with employing remote workers.
Each country has its own payroll, employment, and work permit requirements for non-resident companies doing business in their jurisdiction. Meeting those demands can be a huge obstacle when it comes to hiring remotely.
At Panther, we help companies employ and pay people in over 160 countries, without having to set up a foreign subsidiary. Payroll, benefits, taxes, compliance, and more are all handled by us, at a fraction of the cost.
Outside of saving you months and tens of thousands of dollars, other advantages of using Panther are:
Because you no longer have to set up your own subsidiary, you’ll save a ton of time and tens of thousands of dollars using Panther.
Paying employees in Burkina Faso is not the same as paying workers in your own country. Employees have to be paid using Burkina Faso’s employment and payroll standards.
This means that you have to know, understand, and keep up with 1) fluctuating currency changes, and 2) local payroll and tax laws in the countries you’re looking to hire in.
Outside of the laws and regulations around payroll, there may be different conditions surrounding leave, overtime, termination, and more. As you can imagine, maintaining this kind of regulatory knowledge can be challenging. But it is crucial and necessary to follow local legislation.
After, you’ll have to determine the best way to pay your international employees. This can be done in a number of ways, including but not limited to:
One of the most challenging (and expensive) parts of paying international employees is setting up the infrastructure to do so.
Before you start to run payroll, you have to register your company as the local employer in the country the worker resides in. As you can see in the “Set up a subsidiary” section, this is a multi-step process that can take up to a year and put you on your way to bankruptcy.
Outside of EORs acting as the full admin employer, many also provide remote payroll.
For example, at Panther, in just 1-click, you’re able to pay your entire global team, anywhere in the world. We send you an invoice each month, charge you in US Dollars, and pay your employees the same amount in their local currency.
We factor in currency fluctuations and use the mid-market rate plus any applicable fee passed on by our provider at cost at the time of billing.
The standard working hours in Burkina Faso is 40 hours.
In Burkina Faso, employees employed in transportation services may exceed the 8 hours limit of work per day if the work is scheduled in shifts.
Individual employment contracts or collective agreements typically define work hours and days, including provisions related to overtime. Special rules and limitations apply to young workers.
Employer
In Burkina Faso, generally the payroll cycle in Burkina Faso is twelve months. Employees are typically paid on a monthly basis.
Employers in Burkina Faso commonly pay bonuses employees at the end of the year.
Employees are entitled to a paid time off:
Annual leave entitlement increases progressively after twenty years of service.
There are 13 public holidays.
Employees in Burkina Faso are entitled to paid sick leave, the length of which depends on their years of service.
An employer cannot end the contract of an employee in case of absence from work due to illness for up to 1 year.
All employees are also entitled to receive a part of their income during their period of illness.
Female employee can avail 14 months of paid maternity leave.
They become eligible anytime after completing 3 months of service. In case of any complication during delivery, they can extend leave by 3 weeks.
Male employees at Burkina Faso are eligible to take up to 3 days of paid paternity leave.
There are no statutory provisions for parental leave.
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An employment contract may be terminated by either the employer or the employee for misconduct, for social or economic reasons or at the end of the contract term.
Initiating termination requires a written notice period of eight days for part-time definite contracts, one month for full-time regular employees, and three months for managers, supervisors, and technicians.
As per Burkina Faso labor laws, all affected employees should get a written notice. This written notice should also state the reason for termination. The term of notice depends on the category of worker.
3 month's notice is mandatory for all regular employees working as supervisors, technicians, executives, or similar roles. For all other regular employees, it has to be 1 month's notice.
Employees are entitled to severance payments upon termination, unless in the case of gross misconduct.
Severance for termination of employment to employees who have worked for more than 1 year.
The probation period is 3 months.
