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 South Sudan can be expensive, stressful, and time-consuming. It's not for the faint of heart.
To set up a subsidiary in South Sudan, 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 South Sudan.
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 South Sudan is not the same as paying workers in your own country. Employees have to be paid using South Sudan’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 normal working hours for every employee are eight hours a day and 40 hours a week.
The working hours of an employee engaged in shift work must not exceed 40 hours when averaged over 3 weeks. However, an employee may agree to work more than 3 hours of overtime per day or 10 hours of overtime per week.
A worker may work up to 3 hours overtime in a day and 10 hours in a week.
The employer is required to pay overtime at the rate of one and a half times the normal rate of pay (150% of normal wage rate) when overtime work is performed on working days.
If employees are required to work overtime on a weekly holiday, they are paid two times the rate of normal pay (200% of the normal wage rate).
Employees in South Sudan receives their salary in monthly basis.
Employees must receive at least 21 days of paid leave for their first three years of service.
After three years, they must earn 25 days, and after 15 years, 30 days. Workers also receive paid days off for public holidays.
There are 16 public holidays.
Workers earn 12 days of paid sick leave.
Employees must notify employers about sickness absence as soon as possible, and employers may request a medical certificate for confirmation of sickness.
Female employees are entitled to at 90 days of fully paid maternity leave as well as 45 days for breastfeeding while working half days.
The employee has to take at least 90 days of the maternity leave immediately following childbirth.
The worker must give her employer at least a 14-day notice.
Paternity leave is for the new fathers around the time of childbirth and is usually of shorter duration.
An employee is entitled to two weeks of paternity leave on full pay, to be taken within three days after the birth of his child or immediately following miscarriage by his wife.
In South Sudan, there is no provision in the law on paid or unpaid parental leave, but according to Recommendation (No. 165), provides for parental leave as an option available to either parent to take long leave of absence (paid or unpaid)without resigning from work.
Parental leave is usually taken once the maternity and paternity leave have been exhausted.
For working parents, laws may define the portion of parental leave that has to be compulsorily taken by fathers or mothers
Grounds for termination by the employer in South Sudan include:
Employers are required to provide a written statement to employees explaining the reason(s) for their termination.
The notice period in South Sudan is:
Severance pay is provided to employees with six months of service or more in a sum decided by the employer and employee in the employment contract.
Employers are not required to provide severance pay for employees who are summarily dismissed due to gross misconduct or leaving their jobs for seven days without justification or notice.
Probation period is not exceed 3 months.