Your employees are an integral part of your company. They help you secure new clients, offer different products, and build your company. It’s important to learn how to hire Madagascar employees and stay compliant while finding top talent that will give you a competitive edge. However, you have to worry about meeting Madagascar’s employment compliance laws while building a new company location and running your parent company.
Globalization Partners is a global PEO that will help you expand without the hassle of compliance. We’ll act as the Employer of Record to handle employment compliance on your behalf and hire employees who work for you. When you choose us, you’ll only have to focus on running your company — not worrying about the risk of recruiting and hiring.
Recruiting in Madagascar
If you plan on staffing your company with expats, you’ll need to understand the additional regulations that apply to them. For example, foreigners can make up only 30% of your workforce and their appointment must be approved by the Minister of Employment. For you to hire them, they must:
- Be the appropriate age
- Have special technical or scientific qualifications
- Have physical and mental abilities not met by candidates from Madagascar
- Not have a criminal record
When you’re hiring expats, you can only employ them for a set period. The government expects nonresident workers to pass their knowledge and technical skills to Angolan employees so that residents can have the advantage when expats leave. The overall process is meant to push the country toward an “Angolanization” of human resources.
Labor Laws for Recruiting
Staffing and recruiting in Madagascar require an understanding of the different labor laws that can affect who you hire and what you offer. For example, the General Labor Law says you must set the same criteria and standards when determining salary. You’ll also need to give employees an equal opportunity for training and career progression. For instance, a woman would need to have equal rights as a man regarding salary and progression at work.
The country’s constitution and labor laws also prohibit all forms of discrimination based on:
- Political party affiliation
- Philosophical beliefs
- Education level
- Trade union membership
If you fail to comply with these laws, such as refusing someone’s employment or punishing or firing workers for a discriminatory reason, you could be punished with up to three years in prison or a hefty fine.
How to Hire Employees in Madagascar
You must hire all Madagascar employees using a written employment contract in Malagasy or French. The contract should include compensation, benefits, termination requirements, working hours, and similar factors. If your offer letter or employment contract includes salary or compensation amounts, they should be in Malagasy ariary instead of another currency. After your employee signs the contract, you need to give them a copy, then keep another for your records.
Madagascar allows fixed-term contracts of a minimum duration of six months, but no more than two years. These contracts do not enter the normal activities of the establishment and should relate to specific work that will get done by the end of the contract. If you renew the contract twice, it will transfer automatically to an open-ended employment contract.
Madagascar’s Employment Compliance Laws
Learning how to hire Madagascar employees isn’t the end of your compliance obligations. You have to ensure employees are meeting the terms of their employment contract, including working hours. The workweek in Madagascar is typically 40 hours, with five eight-hour days. If your employees work eight hours of overtime, they should get 30% their normal rate. Any additional overtime should get paid at 50% an employee’s normal rate.
Best Ways to Onboard Employees
You’re free to onboard employees using a process that works best for your business. If you’re not sure where to start, we recommend reviewing the Madagascar employment compliance laws outlined in an employment contract during your new hire’s first day. You should also provide job training and opportunities to build a positive team atmosphere among all new employees.
Benefits of Madagascar Hiring Outsourcing
Companies cannot hire employees in Madagascar until they incorporate in the country. However, it can take a few months to set up a subsidiary, leading the employees you want to hire to look for new positions. Globalization Partners can help you get the employees you need through Madagascar hiring outsourcing. We can onboard your preferred candidates using our existing subsidiary and even source new talent for you using our recruitment services. You won’t have to incorporate, and you’ll have peace of mind knowing that Globalization Partners is building a team you can trust.
Contact Globalization Partners to Learn More
If you’re ready to expand to Madagascar, we can help. Contact us today to learn more about Madagascar hiring outsourcing.