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 Seychelles can be expensive, stressful, and time-consuming. It's not for the faint of heart.
To set up a subsidiary in Seychelles, 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 Seychelles.
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 Seychelles is not the same as paying workers in your own country. Employees have to be paid using Seychelles ’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 work week may not exceed 60 hours or 12 hours per day.
Overtime is allowed of up to 60 hours per month, or 15 extra hours per week.
Employees in Seychelles is paid in monthly basis
The 13th month pay is equal to the basic salary and therefore does not include allowances, service charge or any other benefits.
All employees are generally entitled to 21 days of paid annual leave, or 1.75 days per month worked.
There are 12 public holidays.
Employees are entitled to 30 days of paid sick leave per year, or in cases of hospitalization, 60 days.
Female employees are generally entitled to 14 weeks of paid maternity leave.
Female employees receive an additional four weeks of unpaid leave that can be taken either before or after birth.
Employees must provide three months' notice to employers of the expected due date.
A male employee under a contract of continuous employment or for a fixed term or a part-time male worker, is entitled to paid paternity leave of 10 consecutive working days.
An employment contract can be terminated by an employer with notice following disciplinary procedures.
The employee must be informed in writing if it is a serious offense and given the opportunity to respond.
An employer and employee can terminate an employee contract with notice in the following cases:
The notice period in Seychelles is:
Employers are required to give notice of termination to employees who are under fixed-term contracts, as well as to employees who are reaching the legal age of retirement.
This notice period must be at least one month.
Employers are responsible for compensation and wages upon termination, except in cases where an employee is dismissed for disciplinary reasons.
Employees are also entitled to compensation upon resignation (other than while on suspension or following disciplinary proceedings) or upon retirement after at least five years of service.
Probation period is 7 days for employee. One month for all other workers, other than non-Seychelles employees.