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 Chad can be expensive, stressful, and time-consuming. It's not for the faint of heart.
To set up a subsidiary in Chad, 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 Chad.
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 Chad is not the same as paying workers in your own country. Employees have to be paid using Chad'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 Chad is 39 hours per week
In Chad, employees overtime is 94 hours annually. The conditions for working overtime will be determined by a decree enacted by the relevant Ministry applicable to the kind of work performed.
In Chad, employees are typically paid on a monthly basis.
Employers in Chad bonuses are not required.
Employees receive between 24 and 26 days of paid annual leave. Those with 10+ years of service are entitled to 26 days of paid leave.
There are 11 public holidays.
Employees in Chad are generally entitled to at least five paid sick days per year.
Female employees in a company receive fourteen (14) weeks of half-paid maternity leave.
This increases up to three weeks for a pregnancy-related illness. They are eligible for an hour of rest a day for breastfeeding for up to 15 months after the birth.
Female employees can extend their maternity leave if the childbirth is before the expected date.
Male employees receive two weeks of paid paternity leave.
There are no statutory provisions for parental leave.
Emergency Family Leave - Employees are entitled to ten (10) days of leave in order to tend to any family emergencies.
Fixed-term contracts cannot be renewed more than once and the duration cannot exceed twenty four (24) months.
Employees can be terminated when the work contract for a specific project is complete, for misconduct, the end of a fixed-term contract or by mutual consent.
The notice period is 8.67 weeks for those with at least five years of service.
Severance pay is 5.42 weeks for those with more than five years of service.
Those with 10 years of service receive 11.9 weeks of severance pay.
The probation period is 3 months.