How to Hire Remote Employees In 

Gabon

The Basics

Currency
Central African CFA Franc
Employer Taxes
16%
Payroll Frequency
Monthly
Official Language
French

Employment in 

Gabon

Hire Independent Contractors

Independent contractors or freelancers are self-employed individuals who provide services to companies as a non-employee. This is one of the most common ways companies tend to hire non-local designers, engineers, support reps, etc.

For legal and tax purposes, independent contractors are not classified as employees. They may work for multiple clients, set their own work hours, negotiate their pay rate, and decide how a job gets done.

For example, the IRS says that if an independent contractor or freelancer does work that can be controlled (what will be done and how it will be done) by an employer then they are, in fact, classified as an employee.

As you can imagine, hiring someone as an independent contractor versus an employee is a fine line to tread.

While there are benefits when you choose the contractor route, there are quite a few drawbacks to consider and you’ll need to weigh them carefully to determine the best fit for your company.

Benefits of Hiring Independent Contractors
Reduced overhead: Lower cost in expenses, payroll, benefits, and more.
Greater flexibility: Contractors can be brought on as-needed. If not a good fit, you simply don’t have to move forward with the contract.
Reduced legal risk: Contractors aren’t usually protected by employment anti-discrimination and workplace safety laws.
Disadvantages of Hiring Independent Contractors
Risk of Misclassification: Not only does this deny workers their proper protections, it can also result in steep penalties and damage to your company. If the IRS determines that employee misclassification has occurred, you will be liable for a percentage of the employees wages, FICA contributions, penalty fines, unpaid taxes, up to a year in prison, and more.
Lack of Control: Contractors are drawn to being independent because it gives them greater control over the work they perform and who they work with. Because they’re not employees, you can’t tell them what to work on and how it should be done.
Lack of Loyalty: Contractors come and go as-needed. Many companies hire contractors for short-term work, which makes it difficult to cultivate loyalty.
Increased Scrutiny: Using Independent Contractors typically leads to an increased risk of being audited.

Set up a subsidiary in 

Gabon

A foreign subsidiary is a company that operates overseas as part of a larger company who’s HQ is in another country.

Establishing a foreign entity is great for having an international presence and accessing new markets. Though, setting up a subsidiary in Gabon can be expensive, stressful, and time-consuming. It's not for the faint of heart.

To set up a subsidiary in Gabon, you have to:

  1. Register your business name and file articles of incorporation
  2. File for local bank accounts
  3. Learn and keep track of the local employment laws
  4. Set up local payroll
  5. Hire local accounting, legal, and HR people

If you're lucky, this process can take months. If you're not so lucky, it can take up to a year. And on average, it costs about $50k-$80k, all-in-all, to get setup. And that's just for Gabon.

Use an Employer-of-Record (EOR)

An employer-of-record (EOR) is a company that hires and pays an employee on behalf of another company.

An EOR is typically used to overcome the financial and regulatory hurdles that often come with employing remote workers.

Each country has its own payroll, employment, and work permit requirements for non-resident companies doing business in their jurisdiction. Meeting those demands can be a huge obstacle when it comes to hiring remotely.

At Panther, we help companies employ and pay people in over 160 countries, without having to set up a foreign subsidiary. Payroll, benefits, taxes, compliance, and more are all handled by us, at a fraction of the cost.

Outside of saving you months and tens of thousands of dollars, other advantages of using Panther are:

  • Ability to attract talented and motivated employees from all over the world.
  • Full legal compliance: There is no risk of violating local employment laws.
  • Transparency: Employees are still your employees. All the work, processes, operations and day-to-day business belong to you, the company, just like with any other employee. Panther just takes on all of the responsibilities, obligations and admin work related to your team's employment.
  • No risk of misclassification

Because you no longer have to set up your own subsidiary, you’ll save a ton of time and tens of thousands of dollars using Panther.

Paying Remote Employees

Paying employees in Gabon is not the same as paying workers in your own country. Employees have to be paid using Gabon's employment and payroll standards.

This means that you have to know, understand, and keep up with 1) fluctuating currency changes, and 2) local payroll and tax laws in the countries you’re looking to hire in.

Outside of the laws and regulations around payroll, there may be different conditions surrounding leave, overtime, termination, and more. As you can imagine, maintaining this kind of regulatory knowledge can be challenging. But it is crucial and necessary to follow local legislation.

After, you’ll have to determine the best way to pay your international employees. This can be done in a number of ways, including but not limited to:

Pay through a local entity

One of the most challenging (and expensive) parts of paying international employees is setting up the infrastructure to do so.

Before you start to run payroll, you have to register your company as the local employer in the country the worker resides in. As you can see in the “Set up a subsidiary” section, this is a multi-step process that can take up to a year and put you on your way to bankruptcy.

Work with an EOR

Outside of EORs acting as the full admin employer, many also provide remote payroll.

For example, at Panther, in just 1-click, you’re able to pay your entire global team, anywhere in the world. We send you an invoice each month, charge you in US Dollars, and pay your employees the same amount in their local currency.

We factor in currency fluctuations and use the mid-market rate plus any applicable fee passed on by our provider at cost at the time of billing.

Gabon

 Specific Information

Working Hours

The standard working hours in Eritrea is 48 hours for 8 hours a day.

Overtime

Overtime work may not exceed two hours unless there is written consent of the employee.

Employees are entitled to at least one day, 24 hours, of rest per week. This is generally a Sunday but can be a different day.

Payroll Tax

Employer

Employer

     Social Security

        - Retirement

       - Work injury

        - Medicine

       - Hospital costs

        - Family allowances


Minimum Wage

Gabon's minimum wage is 150,000 CFA francs per month.

Payroll

Pay Cycle

The typical payroll cycle in Gabon is in monthly basis.

13th Salary

Employers in Gabon may receive bonuses in form of a 13th month payment is common but not mandatory.

Leave

Paid Time Off (PTO)

Employees receive two days of paid annual leave a month after a year of service. Those younger than 18 years old receive two and a half days of leave per month.

Annual leave can increase depending on the age of the employee, their length of service with a company, and an employee’s family situation.

Public Holidays

There are 11 public holidays.

Sick Days

Employees in Gabon are entitled to up to six months of paid sick leave which is covered by the employer. After six months of illness, social security covers the sick leave pay

Maternity Leave

Female employees receive 14 weeks of fully paid maternity leave where six weeks are to be taken before the birth. This can be extended by three weeks in the event of a pregnancy related illness and two weeks in the event of multiple births.

Paternity Leave

Male employees receive no statutory paternity leave, but emergency family leave can be used.

Parental Leave

There are no statutory provisions for parental leave.

Other Leave

No Info.

Marriage Leave

No Info.

Bereavement Leave

No Info.

Termination

Termination Process

Employment contract can be terminated for poor performance or misconduct.

The employer must write to the employee and ask for an interview to discuss the reasons for dismissal. If the employer decides to terminate the contract, they must write a letter including the reason for dismissal.

Notice Period

Notice periods in Gabon depend on the employee’s length of service:

  • Less than 1 year of service: 15 days
  • 1 to 3 years of service: 1 month
  • 3 to 5 years of service: 2 months
  • 5 to 10 years of service: 3 months
  • 10 to 15 years of service: 4 months
  • 15 to 20 years of service: 5 months
  • 20 to 30 years of service: 6 months

Severance Pay

Severance pay in Gabon depends on the length of service.

Probation Period

The probation period in Gabon is 6 months.