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How to hire remote employees in
Hiring abroad is notoriously 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 Djibouti (and the one we prefer).
If you want to successfully hire in
Djibouti
, you have two options:
Laws about hiring contractors are significantly more simple in
Djibouti
. 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
Djibouti
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
Djibouti
.
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
Djibouti
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
Djibouti
, 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 Djibouti 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 Djibouti.
Employees are eligible for paid leave after completing 12 months of employment. It is calculated at 2.5 days per month amounting to 30 days of annual paid leave.
Annual leave can be split into 2- batches of 14 days each. Employees are also eligible for 12 days of unpaid leave that is not deducted from the annual leave.
There are 9 public holidays.
Employees receive 29 days of sick leave paid at 50% of the basic rate by social security. For any additional day exceed in 29 days, the employee receives 75% of the basic salary.
Employees receive maternity benefits, equally split between the employer and Social Advancement Organization. Female employees receive 14 weeks of paid maternity leave.
It is divided into two batches with 8-weeks before delivery and 6-weeks post-delivery. The leave period can be extended in case of complications with the pregnancy.
Male employees receive three days of paid paternity leave after the child’s birth.
There are no statutory provisions for parental leave.
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Employment in Djibouti can be terminated by either party by giving a minimum notice period.
An employment contract can also be terminated due to non-performance or inability to perform following the demands of the job. It can also include reasons related to health, lack of professional skills, and even misconduct.
For all such cases, a 48-hr notice is provided to the employee.
The minimum notice period in Djibouti:
Employees may be entitled to damages in the event of an unjust dismissal. Damages cannot exceed:
The probation period in Djibouti:
The standard working hours in Djibouti is 47 hours for a six-day week, 8 hours per day.
Employees in Djibouti overtime is paid as per convention or an agreement between both parties. Overtime should not exceed 4 hrs a day and cannot cross 60 hrs per week.
Any additional overtime beyond the defined hours requires authorization from the inspector of labor.
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