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Chad EOR & PEO

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Hire in Chad

Chad’s economy showed stronger-than-usual growth in 2023, with GDP up by 4.1%. Oil production is the driving force behind this success, but agriculture is also expected to contribute significantly to future growth after recovering from flooding in 2022.

From a youthful population of 19 million, Chad is estimated to have an available labor force between five and six million. Average monthly income varies greatly by sector and location but is low in comparison to the global average. This allows cost-effective hiring from a pool of talent with a strong work ethic, many of whom speak both official languages of Arabic and French with a significant percentage also proficient in English. Those hiring in Chad have the opportunity to unlock the untapped potential of a resilient and enthusiastic workforce.

Through Horizons’ Chad Employer of Record (EOR) service, you can hire employees in Chad at a fraction of the usual cost of hiring. 

Facts & Stats

EOR Platform

Hire in Chad, and pay employees through our platform or app.

EOR Cost

Our Chad EOR solution is the most affordable on the market.

Time-to-hire

Fast Chad onboarding, hire in as little as 24 hours.

Contracts

We draft compliant Chad labor contracts.

Local benefits

We manage all Chad mandatory benefits.

180+ Countries

It doesn’t stop with Chad — we hire employees globally.

hire employees in Chad

What Is a Chad EOR?

Hiring local workers in Chad comes with challenges for any foreign business. An Employer of Record (EOR) helps create a clear path to building a workforce by serving as the legal employer on behalf of third-party businesses outside the country. As with all Africa Employer of Record services, an EOR takes full responsibility for every aspect of an individual’s employment, from contracts and documentation to compensation, rights, benefits, and taxes. Most importantly, an EOR assumes legal liability should any complications arise.

The terms Chad EOR and Chad Professional Employer Organization (Chad PEO) are usually used interchangeably

Save Money And Time with A Chad EOR

What Are the Benefits of a Chad EOR?

As mentioned above, the primary benefit of using a Chad EOR is removing the need to set up a local entity within the country. This can be costly, complex, filled with risk, and cause significant delays to the process of hiring. With an EOR, recruitment can begin within days of signing an agreement, rather than what could potentially be months without one.

There are also several other benefits to using an EOR in Chad:

  1. Cultural fluency. As a specialist with experience operating within Chad, an EOR can smoothly negotiate language barriers and cultural sensitivities to ensure the most efficient recruitment processes. Understanding local habits and expectancies will improve retention and workforce contentment while helping minimize issues and complications during service.
  2. Legal liability. By taking full responsibility for adhering to local laws and regulations, an EOR in Chad will not only help ensure all processes and contracts are efficient and compliant but will also protect the client company from risk should any challenges or disputes occur.
  3. Cost savings. By understanding both legal obligations and cultural expectations, an EOR has the knowledge and experience to generate the highest efficiencies at the best value. This allows foreign employers to be confident they are getting the best possible return on their investment in Chad.
Horizons is Best IN Class

Why Choose Horizons?

Horizons stands out as a Chad EOR through:

  1. A strong hiring presence in Africa, meaning local account managers are on the ground to deal with any issues.
  2. Client-focused infrastructure. Horizons won’t oversell you on products and services you don’t need. Horizons offers the easiest platform to compliantly hire and pay people worldwide.
  3. Cost-effective solutions. At $499 per employee, per month, Horizons is the most cost-effective Chad EOR. The cost is 100% transparent (onboarding, offboarding, deposit, no extra charges).
  4. A customer-first culture. Horizons is an efficient bootstrapped company. It is not an externally-funded company burning investor cash to aggressively acquire new clients. Horizons is the only EOR that grows with its customer, reflecting the level of care and personal attention provided to each customer. Horizons will carefully advise on the best setup in each country: the type of contract needed, how to structure benefits in Chad, and how to offboard a person while minimizing the risk of conflicts and extra cost
  5. A long-term partnership. Horizons is the only EOR platform with a recruitment arm — a direct response to client demand. If any employee is leaving, or if our clients want to explore a new country, Horizons can recruit new candidates directly for the client.  Horizons is:
    • The only EOR doing this in-house — no subcontracting
    • The only EOR doing this without a retainer — clients are only charged upon success
    • The only EOR charging just a 2% fee per month
Step-by-step Chad EOR

How Does a Chad EOR Work?

An EOR in Chad works by establishing a triangle of relationships between itself, local workers, and foreign clients looking to hire. It then arranges and manages these relationships through each stage of the employment process, from the initial recruitment to the end of each contract. The main aspects of this service are as follows:

  1. Hire your employees. The foreign client company enters an agreement with an EOR to begin recruiting in Chad. Once this is in place, the EOR will either approach individuals from an existing pool of talent or advertise for applications to fill the client’s workforce requirements.
  2. Manage employment contracts and onboarding. Once the successful applicants have been identified, the EOR negotiates terms and draws up contracts to be signed by both themselves and the employees. At this stage, the EOR becomes the legal employer for each worker. The EOR takes care of all onboarding processes legally required by the local authorities before assigning each worker to a role within the client company and making all necessary connections to complete the handover.
  3. Process payroll and handle employment taxes. Once the employment is underway, the EOR will assume responsibility for completing payroll and fulfilling tax obligations. While the bill will ultimately be picked up by the client company, all payments to workers, along with taxes and social security contributions, will be made directly by the EOR.
  4. Administer benefits. In addition to wages, the EOR will ensure any required or agreed benefits are arranged for individual workers throughout their employment. This can include pension contributions, bonuses, health plans, annual leave, and more. The client company will then compensate the EOR for any costs incurred.
  5. Take care of exit procedures. When the employment of a worker ends, whether due to the completion of a contract, voluntary resignation, redundancy, termination, or any other reason. The EOR will ensure all legal processes and obligations are fulfilled so both they and the client company are fully compliant and protected. Should replacement workers be required, the process of hiring will restart.
stay compliant with Chad labor laws

Labor Laws

The rules that govern employment are different in every nation. Learning and navigating their complexities is one of the major challenges when hiring in an unfamiliar region. Working with an EOR allows companies to outsource this task to a local expert with the knowledge and experience needed to ensure all local laws are followed and respected.

As a former French colony, Chad employment law has significant similarities with French labor law. We explain the key elements of Chad employment law below. 

Employment contract types

While verbal contracts are sometimes permitted in Chad, it is recommended that written contracts are always used between employers and employees to avoid any misunderstandings or disputes. Contracts should clearly define all terms and conditions of employment, including job responsibilities, working hours, duration of employment, compensation, and benefits.

Project-based

Probationary period

No probationary period.

Termination

At completion of the project.

Severance

Not applicable

Fixed-term

Probationary period

No probationary period.

Termination notice period

Not applicable

Severance

Not applicable

Indefinite

Probationary period

Typically up to 3 months.

Termination notice period

30 days

Severance

1 month salary per year of service

Working hours in Chad

As dictated by Article 194 of the Labor Law (Code du Travail), the maximum working week in Chad should be no more than 39 hours. The arrangements of these hours across the week can be flexible but no employee should work more than eight hours in a single day without an overtime agreement. Some contracts offer workers reduced daily hours of just 6 hours and 40 minutes before overtime is required.

Overtime must be compensated in the following way:

For a regular workday:

125% of the standard hourly rate

For a rest day:

150% of the standard hourly rate

For a statutory holiday:

200% of the standard hourly rate

Employees in Chad are entitled to time off for 11 public holidays in a typical year. If those dates fall on a Sunday, the following day must be offered as a replacement. Four of Chad’s public holidays – New Year’s Day, Labor Day, Independence Day, and Freedom and Democracy Day – are paid. The remaining seven, which are largely built around celebration dates in the Islamic and Christian calendars, are unpaid unless otherwise agreed.

DateHoliday name
1 Jan, 2024New Year’s Day
8 Mar, 2024International Women’s Day
1 Apr, 2024Easter Monday
10 Apr, 2024Eid al-Fitr
1 May, 2024May Day
6 May, 2024Presidential Election Day
16 Jun, 2024Eid al-Adha
11 Aug, 2024Independence Day
12 Aug, 2024Independence Day observed
16 Sep, 2024The Prophet’s Birthday (Tentative Date)
1 Nov, 2024All Saints’ Day
28 Nov, 2024Proclamation of the Republic
1 Dec, 2024Freedom and Democracy Day
2 Dec, 2024Freedom and Democracy Day observed
25 Dec, 2024Christmas Day

 

Paid time off

The typical entitlement ranges from 15 to 30 days of paid leave per year, depending on the industry, collective agreements, and individual employment contracts.

Chad workers should also be given paid leave for various family events, including two days for their own wedding, one day for the wedding of their child or sibling, and four days for the death of a spouse or direct descendent.

Under 1 year of employment

Pro-rata basis

1-10 years of employment

30 days of paid leave annually

10-20 years of employment

35 days of paid leave annually

20+ years of employment

40 days of paid leave annually

Sick leave in Chad

For permanent workers in Chad, standard sick leave entitlement begins at five days each year. For longer-term absences, providing a doctor’s certificate can be presented; workers may take up to one month at full pay during their first year and up to six months after that. The longer an employee is in service, the greater their sickness entitlement becomes.

Less than 6 months of sick leave

Under 1 year of employment

5 days of paid leave annually

1-10 years of employment

5 days of paid leave annually

10-20 years of employment

5 days of paid leave annually

20+ years of employment

5 days of paid leave annually

Over 6 months of sick leave

Under 1 year of employment

no legal mandate (unless otherwise specified in the contract or policies)

1-3 years of employment

no legal mandate (unless otherwise specified in the contract or policies)

3+ years of employment

no legal mandate (unless otherwise specified in the contract or policies)

In order for employees to receive the full wages due to them, workers must present a valid medical certificate from a certified doctor to their employer.

Maternity leave in Chad

New mothers in Chad are entitled to 14 weeks of paid maternity leave for each child. This usually begins around six weeks before the birth. When necessary, due to complications with the birth, maternity leave can be extended by up to three more weeks. Paternity leave for fathers is two weeks following the birth.

Annual leave in Chad

According to Article 133 of the Labor Code, permanent employees in Chad are entitled to 24 days of annual leave each year. This is accrued at a rate of two days for each full month completed. Leave cannot be rolled over and is lost if not taken during the working year.

Termination & severance in Chad

Except in situations of serious misconduct, force majeure, or mutual agreement, employees in Chad should be given statutory notice of termination. This amounts to 15 days during the first year, one month during the second and third years, and two months after three years or more. Severance pay depends on the circumstances of termination and length of service.

Chad's compulsory social security contributions

Compulsory social security system primarily covers contributions to the National Social Security Fund (CNPS – Caisse Nationale de Prévoyance Sociale). The combined contribution totals approximately 10.5% of the employee’s gross salary.

Chad social security for foreigners

Compulsory social security contributions in Chad apply to both Chad nationals and foreign workers employed in the country. The combined contribution of 10.5% also applies. 

Individual income tax

Chad’s income tax system applies progressive rates to residents meaning rates increase with higher levels of income.

Health insurance

Health insurance and healthcare services is managed primarily through the National Health Insurance Fund (CNAM – Caisse Nationale d’Assurance Maladie).  This includes essential healthcare services, including hospitalization, consultations, medications, and surgical procedures. Private health insurance options also supplement coverage for those seeking additional benefits or specific medical needs. 

hassle-free Chadian compensation & benefits

Compensation & Benefits

Chad compensation laws

Chad has no statutory minimum wage or payment method, and compensation is agreed directly with each individual employee.

13 month salary in Chad

No 13th-month salary or similar benefit is required to be paid in Chad.

Social security for Chadian nationals

Employers in Chad are expected to contribute 16.50% of a worker’s wage to their social security benefits. Additional living expenses, benefits, and bonuses may be offered but are not legally required.

Hire borderless talent with Horizons

Hire in Chad in 24h without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

Frequently asked questions

Complying with local labor laws is one of the primary functions of any EOR operating in Chad. It is an EORs responsibility to be fully aware and up to date regarding all regulations and expectations for the employment of local workers. This allows them to accept full liability for all aspects of recruitment and human resource management.

When working with an EOR in Chad, companies from anywhere in the world can enjoy the benefits of recruiting a reliable workforce quickly, without the costly and time-consuming requirement of setting up a local entity. Not only does this save resources and allow uncomplicated processes, but it also ensures compliance with all local laws is maintained while outsourcing liability should complications arise.

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