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 Gabon can be expensive, stressful, and time-consuming. It's not for the faint of heart.
To set up a subsidiary in Gabon, 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 Gabon.
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 Gabon is not the same as paying workers in your own country. Employees have to be paid using Gabon'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 Eritrea is 48 hours for 8 hours a day.
Overtime work may not exceed two hours unless there is written consent of the employee.
Employees are entitled to at least one day, 24 hours, of rest per week. This is generally a Sunday but can be a different day.
- Work injury
- Hospital costs
- Family allowances
The typical payroll cycle in Gabon is in monthly basis.
Employers in Gabon may receive bonuses in form of a 13th month payment is common but not mandatory.
Employees receive two days of paid annual leave a month after a year of service. Those younger than 18 years old receive two and a half days of leave per month.
Annual leave can increase depending on the age of the employee, their length of service with a company, and an employee’s family situation.
There are 11 public holidays.
Employees in Gabon are entitled to up to six months of paid sick leave which is covered by the employer. After six months of illness, social security covers the sick leave pay
Female employees receive 14 weeks of fully paid maternity leave where six weeks are to be taken before the birth. This can be extended by three weeks in the event of a pregnancy related illness and two weeks in the event of multiple births.
Male employees receive no statutory paternity leave, but emergency family leave can be used.
There are no statutory provisions for parental leave.
Employment contract can be terminated for poor performance or misconduct.
The employer must write to the employee and ask for an interview to discuss the reasons for dismissal. If the employer decides to terminate the contract, they must write a letter including the reason for dismissal.
Notice periods in Gabon depend on the employee’s length of service:
Severance pay in Gabon depends on the length of service.
The probation period in Gabon is 6 months.