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 Guinea can be expensive, stressful, and time-consuming. It's not for the faint of heart.
To set up a subsidiary in Guinea, 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 Guinea.
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 Guinea is not the same as paying workers in your own country. Employees have to be paid using Guinea 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 work week in Guinea is 48 hours.
Female employees and those younger than 18 years old cannot work between 8 p.m. and 6 a.m. and they receive at least 12 hours of rest between a shift.
Female employees cannot work in mines or quarries.
Overtime work is capped at 100 hours a year and full-time employees cannot reject overtime.
Overtime can be extended beyond 100 hours a year with the labor inspector’s permission.
Most employees receive Sunday as a mandatory rest day.
In accordance with the Labour Code, an employer is obliged to pay wages at least once a month to the workers and beneficiaries of collective labour agreement.
Employees are generally eligible to accrue paid leave at a rate of 2 1/2 days per month worked.
The right to annual leave is acquired after one year of effective service.
According to art. 156 of the Labour Code, the following days shall be paid holidays in the territory of the Republic of Guinea:
Employees are generally entitled to up to 26 weeks of paid sick leave.
Female employees are entitled to 14 weeks of paid maternity leave.
This increases to two weeks for multiple births.
This is fully paid and split evenly between the employer and social security.
Female employees who work 18 days or 120 working hours a month qualify for a prenatal allowance if they have a medical certificate within three months of the pregnancy.
There is no statutory paternity leave in Guinea.
Female employees they receive nine months of unpaid parental leave.
When terminating a contract, employers must provide written notice.
A fixed-term contract can be terminated by mutual agreement or at the end of the contract.
For indefinite contracts, either party can terminate by providing notice unless there is misconduct, in which case the employer must provide a reason such as the employee’s health, performance or economic grounds.
The employer must wait 2 days after the interview before dismissing the employee.
Such dismissal must be made by hand-delivered letter within three days of the interview. Unless the employee is dismissed for serious misconduct, she or he is entitled to the following notice on dismissal:
Employees under an indefinite term contract who have completed at least 12 months of service are generally entitled to receive severance pay of at least 50 hours worth of wages for hourly workers and 25% of one month’s wage for monthly paid workers.
The probation period is of 90 days for those in managerial and executive level positions, and 30 days for other employees.