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.
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 Central African Republic can be expensive, stressful, and time-consuming. It's not for the faint of heart.
To set up a subsidiary in Central African Republic, 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 Central African Republic.
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 Central African Republic is not the same as paying workers in your own country. Employees have to be paid using Central African Republic’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 Central African Republic is 40 hours a week.
In Central African Republic ,overtime work cannot exceed 48 hours a week. Work conducted from 10:00 p.m. to 5:00 a.m. is considered night shift work. Nightshift and overtime pay are both determined in the employment contract.
In Central African Republic the employees receive their salary in monthly basis.
Individual and collective agreements can provide for greater amounts of leave. After one month of service, employees accrue two days of leave per month for up to 30 days a year.
There are 14 public holidays.
Employees are entitled to sick benefits through the social security system in the Central African Republic. The number of sick leave is generally agreed on mutual basis in the employment contract.
Female employees receive 14 weeks of maternity leave with six weeks before the birth, and eight weeks after.
The leave is extendible in cases of complications that arise at delivery.
Free healthcare can be availed for 14 months after childbirth, sponsored by the Central African Republic under its program related to social security.
Employment contracts in the Central African Republic can be terminated at the end of the contract period (if for a fixed term), by the employer or by the employee.
In the event of termination of the contract during the probation period, the journey of the recruited worker from their usual place of residence and legally dependent family is the responsibility of the employer.
The contract of employment of indefinite duration can cease in the following cases.
During the notice period, the employee is permitted to take one day off every week to look for work. The notice period is determined by the Minister of Labor.
The contract of employment during the trial period may be terminated at any time by either party without notice unless otherwise decided.
In the latter case, the termination of the employment contract entitles them to a notice allowance corresponding to that of their job profile and seniority.
The probation period is capped at eight days for laborers who are paid on a daily basis, one month for general employees and three months for executive level employees.
The probation period can be renewed only once, which means that a probationary period cannot be more than six months.