Expanding your company internationally is a great opportunity to enter new markets and hire global talent. You’ll face a few challenges, though. Successfully establishing your company in a new country involves complying with that country’s employment laws and business regulations.
When you work with a global professional employer organization (PEO) like Globalization Partners, our Employer of Record services simplify compliance and take the burden off of your shoulders. As an Employer of Record, we act as your in-country entity. This solution lets your company hire globally without launching a subsidiary of your own. What’s more, our skilled lawyers and HR experts are at your disposal.
We also offer convenient payroll services that compensate your employees accurately and on time. Search for talent and generate competitive benefits packages for candidates worldwide. We nestle your hiring and payroll operations under our subsidiary, which means that we take responsibility for any legal risks.
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We understand the nuances of expanding to new countries. Below, we’ll cover the most important elements of your global expansion in Haiti.
Doing Business in Haiti
While the 2010 earthquake impacted Haiti’s economy, the country’s laws encourage international entities to bring business into their borders. The nation’s economy has several sectors, many of which are actively seeking international investments. Plus, international companies enjoy the same protections and incentives as local companies. Fair import and export policies are another benefit of doing business in Haiti.
To hire workers legally, you must draft and sign a comprehensive employment contract. Three types of employment contracts are valid:
- Fixed-term or temporary contracts
- Open-ended or permanent contracts
- Apprenticeship contracts
A compliant contract must contain the contractor’s personal information, including their identity card number and work book number. All contracts must outline agreed-upon details, including compensation, entitlement to leave, and other terms of employment.
Your company must distribute an original copy of the contract to the contracted party in French or Creole.
The standard workweek is six days long, for a total of 48 hours. Night work and working overtime during the night are common practices. Employees who work over 48 hours per week or work at night receive higher wages for those hours. Most employees receive overtime pay 50 percent higher than standard wages.
Haiti observes both legal and national holidays. Employees receive standard pay for each of these resting days:
- Haitian Independence Day/New Year’s
- Heroes’ Day/Ancestors’ Day
- Mardi Gras
- Good Friday
- Labour and Agriculture Day
- Haitian Flag and University Day
- Corpus Christi
- The Assumption
- Death of Dessalines
- All Souls’ Day
- Battle of Vertières Day
- Christmas Day
These holidays do not count against employees’ vacation leave.
After one year of service, employees with a permanent contract are entitled to at least 15 consecutive days of paid leave. Of those 15 days, two must be Sundays and the others must be working days. These employees are entitled to take 1.25 days of paid leave monthly.
Employees with less than one year at their company are entitled to vacation days that equal 1.25 times the number of months they’ve worked at your company.
Public holidays, sick leave, and maternity leave do not count as paid vacation leave.
Workers may take up to 15 days of annual sick leave without experiencing a reduction in pay. To receive pay for sick leave, employees must present a medical certificate from the Public Health Service or a company doctor.
Pregnant women are entitled to 12 weeks of paid maternity leave. They must begin their leave no more than six weeks before delivery. However, the starting date of the maternity leave must be at least four weeks before delivery. If the leave taken before delivery is less than six weeks, mothers can compound that time with the allotted six weeks after delivery.
The employee must register with the Office of Occupational Accident Insurance, Sickness, and Maternity (OFATMA) for maternity insurance, which will pay for six weeks of the leave when it becomes available. The employer is responsible for paying standard wages for the other six weeks.
Termination and Severance
Under a valid employment contract, employers must have a lawful reason to rescind employment. Companies can terminate employment contracts legally on the following grounds:
- An employee assaults or verbally threatens others in the workplace, destroys the employer’s property, or causes major disturbances.
- An employee misses work without cause or permission four times during one month or for three consecutive days.
- An employee refuses to comply with safety measures or other procedures after one written warning or a verbal warning with two witnesses.
- An employee with fewer than four months of service is unable to perform operations for which they’ve falsified references or certifications.
- An employee is sentenced to prison for over one month.
- An employee breaches their contract.
Employees can sign a Temporary Suspension of Labor contract to suspend the employment contract if the employer lacks the materials to continue working or imposes immediate but temporary work stoppage.
Termination notices are only required for workers with over three months of service. Notice periods vary by duration of employment. If the termination is effective immediately, you must pay the employee severance equaling the wages they would have earned during the notice period.
Employees pay income tax based on their wages. Regardless, employers are responsible for withholding two percent of a worker’s wages for payroll taxes. Companies also contribute to their workers’ pensions.
Benefits Packages and Bonuses
Employees receive a compulsory bonus between December 24 and the end of the year. The bonus must equal at least one month of the worker’s annual wages. All employees are entitled to this bonus regardless of the length of their employment.
All employers must register with OFATMA within 15 days of launch. Employers must contribute six percent of each worker’s monthly salary to this insurance. You’re also responsible for registering with the National Old Age Insurance Office to make pension contributions.
Expand Your Business to Haiti With Our Global PEO Services
Globalization Partners offers valuable global PEO services that let your company focus on growth. Under our Employer of Record model, our team handles compulsory tasks and navigates Haiti labor laws. We have the legal resources and in-country expertise to offer support throughout your expansion. Put your team’s effort into growing your company. We’ll handle the rest.
Our global PEO services include:
- Employment contracts: Get the right documentation by generating lawful employment contracts through our software.
- Onboarding: We know where you can find the right candidates for your company. We’ll onboard them to get the best talent on your team quickly.
- Payroll: Our automated payroll eliminates complications surrounding exchange rates, international banking practices, and time zones.
- Benefits packages: We’ll put together country-specific benefits packages that will keep your company compliant and help to attract local talent.
- Compliance: Labor laws change between countries, states, and even municipalities. Ensure full compliance when you trust our experts for global PEO services.
Reach out to our team today to learn more about our Employer of Record model and global PEO services.