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.
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 Republic of the Congo can be expensive, stressful, and time-consuming. It's not for the faint of heart.
To set up a subsidiary in Republic of the Congo, you have to:
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 Republic of the Congo.
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:
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 employees in Republic of the Congo is not the same as paying workers in your own country. Employees have to be paid using Republic of the Congo’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:
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.
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.
The working hours for most firms and government offices are from 8 a.m. to 5 p.m., Monday through Friday.
Employees are entitled to have a two-hour break taken at some point between noon and 3 p.m.
Employees work beyond the standard workweek at 113% of the average wages.
The employees receive a minimum of 24 hours of leave during a period of seven consecutive days.
Employees in Congo Republic receive their salary monthly.
Every employee needs to receive guaranteed benefits as part of a Republic of the Congo benefits management plan.
Workers must receive, at minimum, 26 days of paid leave per year of service.
The first 10 days will be at full basic salary, reducing in ten-day increments thereafter.
Employee employee that is unable to resume work after 30 continuous working days, the contract will be suspended for temporary leave of absence.
There are 9 public holidays.
Democratic Republic of the Congo includes sick leave for employees after 3 months of continuous service, paid at 100% of their salary.
Pregnant employees receive 14 weeks’ leave (a maximum of 8 weeks to be taken after birth), provided they have been employed for 6 months. Otherwise they will be entitled to leave without pay.
Paternity leave includes 2 days of mandatory paid leave.
Employers can terminate contracts at the end of the term (if for a fixed period), by the employer or by the employee.
Termination of an employment contract must be in writing and state the reason for dismissal.
Employers must generally have a valid reason for terminating employment.
A valid reason exists if it is related to the workplace in some way and can include redundancy dismissals.
The notice period in Congo Republic is 14 days and may increases by seven days for each year of continuous service.
Individual and collective agreements can provide for longer notice periods.
Payment in lieu of notice is required for failing to provide the requisite notice.
Congo republic pay for redundancy is around 6.5 weeks of salary for service up to five years and approximately 14 weeks of pay after 10 years of service or more.
Probation period is 1 to 6 months.