How to Hire Remote Employees In 

Haiti

The Basics

Currency
Gourge
Employer Taxes
Monthly
Payroll Frequency
11%
Official Language
Haitian creole

Employment in 

Haiti

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 

Haiti

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 Haiti can be expensive, stressful, and time-consuming. It's not for the faint of heart.

To set up a subsidiary in Haiti, 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 Haiti.

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 Haiti is not the same as paying workers in your own country. Employees have to be paid using Haiti'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.

Haiti

 Specific Information

Working Hours

The standard working hours  is 48 hours a week, or eight hours a day over six days.

Overtime

Generally, employees in Haiti has a maximum overtime allowed is two hours a day, 80 hours every quarter of the year or 320 hours per year.

Payroll Tax

Employer

Employer

      Sickness & Maternity Insurance

      Occupational Accident Insurance

      National Old Age Insurance

Minimum Wage

The minimum wage of Bermuda is based on the following: segment A industries: 225 Haitian gourdes per day; Segment B Industries: 240 Haitian gourdes per day; Segment C industries; 260 Haitian gourdes per day; Servants: 125 haitian gourdes per day (8 hr work day);225 Haitian gourdes per day for companies with piece work that re-export;300 Haitian gourdes per day for companies with piece work that export.

Payroll

Pay Cycle

Employees in Haiti are generally paid on a monthly basis.

13th Salary

In Haiti, 13th month salary is mandated by law and is paid as a bonus in December of each year.

Leave

Paid Time Off (PTO)

Employees in Haiti receive 15 days of paid leave, including 13 working days and two Sundays. Vacation days are not cumulative.

Employees with less than one year of service are entitled to annual leave that equals 1.25 times the number of months worked.

Public Holidays

There are 12 public holidays in Haiti.

Sick Days

In Haiti, employees receive 15 days of paid sick leave a year after one year of service.

Employees with less than one year of service are entitled to sick days on a prorated basis.

Employees must provide a medical certificate.

Maternity Leave

Female employees are entitled to 12 weeks of paid maternity leave. A minimum of four weeks must be taken before birth.

Six weeks is paid by the Office of Occupational Accident Insurance, Sickness, and Maternity (OFATMA), provided the employee registers.

The remaining six weeks are paid for by the employer.

Paternity Leave

There are no statutory laws for paternity leave in Haiti.

Parental Leave

No Info.

Other Leave

No Info.

Marriage Leave

No Info.

Bereavement Leave

No Info.

Termination

Termination Process

Employment may be terminated at the end of a fixed term contract, by mutual consent, by the employer (with or without cause) or by the employee.

Employers can terminate an employee without providing notice for threatening or abusive conduct, damage to property, unauthorized absence for three consecutive days or four days in a month, failing to follow accident prevention measures, lying about qualifications, imprisonment for more than one month or breach of contract.

Notice Period

Notice is only required for employees with over three months of service and varies depending on the length of service.

Severance Pay

Severance pay is not required by law in Haiti.

Probation Period

Employees may be dismissed without notice within the probation period.