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How to hire remote employees in
Hiring abroad is difficult: New labor laws, entities, a lot of words you’d rather not hear again. But we’ve got good news. It doesn’t need to be that way. Below, we’ll break down your two main options for hiring in Cape Verde (and the one we prefer).
If you want to successfully hire in
Cape Verde
, you have two options:
Laws about hiring contractors are significantly more simple in
Cape Verde
. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Thera for.
This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in
Cape Verde
is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.
Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in
Cape Verde
.
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
Hiring contractors in
Cape Verde
means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
If you’re hiring contractors in
Cape Verde
, you can pay them with Thera in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Cape Verde than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Cape Verde.
Fixed-term contract employees are eligible for annual leave, which is proportional to the length of service once the period contracted is halfway complete.
Employees receive 22 days of paid annual leave.
This leave must be taken in the year it was given unless there was a specific agreement between the employee and employer regarding transferring unused annual leave.
There are 9 public holidays.
Employees in Cape Verde must have made at least four months of contributions, including 30 days in the three months before leave.
Employees receive up to 1,095 days of paid sick leave.
The first three days are paid at 100% by the employers. Starting on the fourth day, pay is provided to eligible employees through Cape Verde’s social security program.
Employees are eligible for maternity benefits through social security if they have made at least four months of contributions, including 30 days in the three months before leave.
Female employees in Cape Verde are entitled to 60 days of paid maternity leave. If the employee is not eligible for social security benefits, the employer pays the employee’s entire amount.
A male employee is entitled to paternity leave only if, within 120 days of the birth, the mother is unable to take care of the child due to physical or mental incapacity or the mother dies.
A minimum of 30 days’ leave is provided to the father if the mother dies.
There are no statutory provisions for parental leave.
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The termination of employment in Cape Verde is different for each case. an employer has the right to terminate the employee’s contract due to acts of misconduct, such as:
In case of termination due to misconduct, the employer must send 40 days of notice before terminating the employee.
The employee has five days to respond to the notice.
The reason for termination must be provided if the employer still wants to terminate the employee.
Employees must provide notice to employers prior to terminating an employment contract. The notice period is 15 days, increasing by an additional 15 days per year of service up to two months.
The expiry of a fixed-term contract, severance pay is not provided.
Employees are entitled to receive severance pay (pay in lieu of notice) if the notice is late.
The probation period is 6 months.
The standard working hours in Cape Verde is 44 hours.
In Burkina Faso, employees are allowed overtime work of up to two hours a day. Overtime is provided only at the cost of not hiring new employees or if there’s urgent work.
The standard overtime limit is 160 hours per annum, but if employees agree, it can be extended up to 300 hours.
The annual limit is increased to 300 if there is written consent from the employee.
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