Expanding your business to a new country can be an effective strategy for increasing profitability. When you find success at home, it’s a natural next step. When you’re ready to take your company overseas, you’ll face a variety of obstacles, from new labor laws to language barriers. Globalization Partners can help you confront these challenges as your Employer of Record.
Our Employer of Record services consider every facet of global hiring and employee management. Our extensive team of HR and legal professionals offers their expertise for international employment, from hiring and onboarding to termination and entitlement.
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We’ll hire your employees through our subsidiary in your country of choice, allowing us to take on all the associated legal risks of being an employer. We’ll also help you create compliant employment contracts, manage benefits and distribute paychecks. With our support, you’ll know your employees are getting the terms they deserve while your business remains completely legal.
Take a look at our employment information on South Sudan and how we’ll use this knowledge to guide your expansion.
Doing Business in South Sudan
South Sudan became an African country in 2011. Since then, its economy has developed around the land’s natural resources. The majority of the country’s gross domestic product (GDP) comes from oil and agriculture.
With abundant resources and increasing infrastructure development, this country provides a solid foundation for starting a company. As an international business owner, you’ll need to understand the nation’s labor laws and how you should support your workers.
South Sudan labor laws permit both written and verbal employment contracts for definite periods, appropriate periods, and specified tasks. If an employer renews a definite contract for two years, it becomes an indefinite contract.
Contracts must include essential information about the employment terms, including:
- The name and information of both parties
- Nature and duration of employment
- Pay rate and calculation
- Termination policy
- Any provisions included with employment
- Repatriation policy when relevant
Employees should receive a copy of a written contract. If an employer uses a verbal agreement, they must provide written documentation of these policies for the employee. If employment terms are the same for all workers, the employer can post a copy of the contract somewhere in the workplace for reference.
The normal working hours for every employee are eight hours a day and 40 hours a week. Employers can request a nine-hour day from an employer without overtime if they maintain the 40-hour week. Every worker is entitled to one 24-hour rest day on the weekend.
Overtime is any amount of time over the standard 40 hours, and workers must earn 150 percent of their usual wages for these hours. Employees can work up to three overtime hours a day and 10 hours a week. They may also opt to receive leave for overtime in lieu of payment.
The limitations on overtime do not apply in emergencies where employees must prevent disaster or damage to the workplace or its products. Overtime regulations can also be disregarded for acts of vital public importance.
Employees receive vacation days based on how long they’ve worked for an employer. The leave regulations are as follows:
- 21 days for one to three years of service
- 25 days for three to 15 years of service
- 30 days for over 15 years of service
Employers must provide full wages during annual leave, and employees may accumulate these days from year to year. If a worker collects two years of unused leave, they can request financial compensation for half of their available vacation time.
In addition to annual leave regulations, employees also earn three days for compassionate leave. Workers qualify for this leave when they’ve served for at least three months and they work at least four days a week. Compassionate leave is reserved for injury, illness, or death in the family, and it cannot accumulate from year to year.
With a year of continuous service, workers earn 12 days of paid sick leave. Employees must notify employers about sickness absence as soon as possible, and employers may request a medical certificate for confirmation of sickness.
There are 11 public holidays in South Sudan, and they are:
- New Year’s Day
- Good Friday
- Holy Saturday
- Easter and Easter Monday
- Labor Day
- Eid al-Fitr
- SPLA Day
- Eid al-Adha
- Martyrs’ Day
- Christmas Day
Employees are entitled to a day off with full pay during public holidays. If an employee works on a public holiday, they must receive double their standard wages or normal wages with an additional paid day off.
Mothers are entitled to 90 days of maternity leave upon the birth of their children. They must receive full pay during this time off. In the 45 days following this leave, mothers may take half days off for breastfeeding. In the event of a miscarriage, women receive six weeks off with full pay.
Fathers earn two weeks of paid paternity leave immediately following their children’s births or in the event of a miscarriage.
Termination and Severance
Either party involved in an employment contract may terminate with appropriate notice. Notice periods are as follows:
- One month for one year of service or more
- Two weeks for six months to one year of service
- One week for less than six months of service
An employer may terminate the contract due to:
- Incapacity of an employee to perform their job
- Repeated failure by the employee to perform work
- Gross misconduct
- Changes in operational procedures that the employee cannot meet
If an employee repeatedly fails to complete their duties, the employer must notify the employee first, provide recommendations and give them time to adjust their performance. If the situation does not change after this process, the employer may submit a termination notice.
Severance pay is only required in certain circumstances, including death of the employee, unfair dismissal, and physical incapacity to perform the job.
The country operates on a progressive tax system based on annual earnings. Income taxation is anywhere from 0 to 25 percent on individual earnings.
Employers are not required to provide health insurance options to their employees.
Bonuses and Additional Benefits
The labor laws in South Sudan do not include any required bonuses for employees. However, union members do receive an additional benefit. Employers must provide a paid day off when union members wish to participate in training sponsored by their labor organization.
Expand Business to South Sudan With Globalization Partners
Globalization Partners offers the expertise you need for a streamlined expansion. Our Employer of Record services ensure your company is compliant and organized for as long as you need. Reach out today to learn more.