Globalization Partners provides employer of record services for customers that want to hire employees and run payroll without first establishing a branch office or subsidiary in Eritrea. Your candidate is hired via Globalization Partners’ Eritrea PEO in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. The individual is assigned to work on your team, working on your company’s behalf exactly as if he or she were your employee to fulfill your in-country requirements.
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Our solution enables customers to run payroll in Eritrea while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As a Global PEO expert, we manage employment contract best practices, statutory and market norm benefits, and employee expenses, as well as severance and termination if required. We also keep you apprised of changes to local employment laws in Eritrea.
Your new employee is productive sooner, has a better hiring experience and is 100% dedicated to your team. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. Globalization Partners allows you to harness the talent of the brightest people in more than 185 countries around the world, quickly and painlessly.
Basic Hiring Facts in Eritrea
Eritrea is located in Africa and has a population of 6.3 million. The capital city of Eritrea is Asmara which has a population of 805,000. Eritrea doesn’t actually have an official language, however, Tigrigna, Arabic and English are the most commonly spoken.
When negotiating terms of an employment contract and offer letter with an employee in Eritrea, it may be useful to keep the following in mind:
Eritrea Holidays
- New Year
- Orthodox Christmas Day
- Women’s Day
- Good Friday
- Easter Day
- International Workers’ Day
- Independence Day
- Martyrs’ Day
- Eid al-Fitr
- Commencement Day of Eritrean Armed Struggle
- St. John the Baptist Day
- Geez New Year
- Eid al-Adha
- Meskel
- The Prophet’s Birthday
- Christmas Day
Employment Contracts in Eritrea
In Eritrea, employment contracts can be oral or written, but it is best practice to put a strong, written contract in place, in Tigrigna, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Eritrea should always state the salary and any compensation amounts in Eritrean Nafka rather than a foreign currency. The employment contract template is part of the service with Globalization Partners; no need to draft a separate template if you use our employer of record and PEO service in Eritrea.
Working Hours
The standard workweek is 40 hours at eight hours a day excluding overtime. Every worker is entitled to a 24-hour rest period on Sundays unless otherwise noted by the Minister of Labor.
An employer can require two hours of overtime without the employee’s consent. Beyond two hours of additional work in a day, employees must agree to overtime hours. Wages during these hours vary according to the time of day.
For overtime hours worked between 6 a.m. and 10 p.m., employers must pay 125 percent of regular wages. Between 10 p.m. and 6 a.m., wages should equal 150 percent of standard pay. If an employee must work on their rest day, the employer must provide double their regular wages.
Vacation Leave
All employees are entitled to annual leave with pay based on the number of years they’ve served their employers. Every worker must receive 14 days of annual leave for their first year of service. They must gain at least one additional day of vacation for every following year. Annual leave allowance must cap off at 35 days total.
Sick Leave
Employees are entitled to six months of sick leave, either consecutively or broken up throughout the year. A worker must provide a medical certificate when they wish to take sick leave. For the first month of absence, they should receive 100 percent of their regular wages. For the following two months, they should earn 50 percent. Workers do not earn wages for the latter three months of sick leave.
Public Holidays
Employees must receive a paid day off for any holiday recognized by the Eritrean government. The current holidays in the country are:
- New Year
- Orthodox Christmas Day
- Women’s Day
- Good Friday
- Easter Day
- International Workers’ Day
- Independence Day
- Martyrs’ Day
- Eid al-Fitr
- Commencement Day of Eritrean Armed Struggle
- St. John the Baptist Day
- Geez New Year
- Eid al-Adha
- Meskel
- The Prophet’s Birthday
- Christmas Day
If a public holiday falls on a weekly rest day, workers should receive their regular wages, but the law does not require a make-up day for the time off. If an employee must work on a public holiday, they should receive 250 percent of their standard pay.
Maternity Leave
Employed women may take up to 60 consecutive days of paid maternity leave after delivering a child. They must present a medical certificate with a doctor’s confirmation of the delivery date. Employees have the option to split their 60 days before and after delivery if they prefer.
Termination and Severance
Employers or employees may terminate a contract on legitimate grounds. These grounds include the following scenarios:
- The employee commits theft or breach of trust.
- The position becomes redundant.
- The employee misses work due to a disease that lasts longer than six months.
- The period of employment expires.
- The employee is not interested in the undertaking any longer.
- The employee falsified documents to receive the job.
- The employee cannot execute the work properly.
- The employer ceases operation due to natural disaster, bankruptcy, or other causes.
- The employee dies.
- The employee is absent without reason for five consecutive days.
Notice requirements for termination depend on the length of employment. They are as follows:
- Seven days for less than one year of service
- 14 days for one to two years of service
- 21 days for two to five years of service
- 30 days for service longer than five years
An employer may choose to provide payment equal to the notice period in place of notice. All forms of termination require severance pay, which is calculated based on the length of employment.
Tax
The country has a progressive tax system based on monthly income. Tax percentages range from 2 to 38 percent.
Health Insurance
Employment regulations do not require health insurance schemes for employees. Employers may choose to offer these plans at their discretion.
Bonuses and Additional Benefits
The country’s employment laws do not specify any required bonuses for workers. Employees are entitled to additional leave beyond standard sick and annual leave provisions. Workers may take leave without pay for family matters, including marriage and death of relatives, and this leave may last up to five consecutive days for severe cases.
Association leaders are also entitled to association leave with pay. This time off applies to labor disputes, collective agreement negotiations, seminars, and training courses.
Expand Business to Eritrea With Globalization Partners
Establishing a branch office or subsidiary in Eritrea to engage a small team is time-consuming, expensive and complex. Eritrean labor law has strong worker protections, requiring great attention to detail and an understanding of local best practices. Globalization Partners makes it painless and easy to expand into Eritrea. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws, without the burden of setting up a foreign branch office or subsidiary. Our Eritrea PEO and Global Employer of Record solution provides you peace of mind so that you can focus on running your company.
If you would like to discuss how Globalization Partners can provide a seamless employee leasing or PEO solution for hiring employees in Eritrea, please contact us.
