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 Zimbabwe can be expensive, stressful, and time-consuming. It's not for the faint of heart.
To set up a subsidiary in Zimbabwe, 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 Zimbabwe.
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 Zimbabwe is not the same as paying workers in your own country. Employees have to be paid using Zimbabwe’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 model Collective Bargaining Agreement recommends a minimum of eight hours per day, subject to the nature of the work, and 40 hours per week.
For breakdown, continuous work, emergency and for every hour or part thereof worked by an employee in excess of his/her ordinary hours of work, the employer shall pay the employee not less than one and a half times his/her ordinary rate.
For every hour or part thereof worked by an employee between midnight on Saturday and midnight on Sunday, or midnight of the day before their day off, the employer shall pay the employee not less than twice their ordinary rate.
An employee can only be required to work a maximum of 10 hours per day.
“13th month payment” is not mandatory.
PTO is calculated by the:
There are 14 public holidays.
The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer:
Female employees are granted maternity leave for a period of 98 days on full pay.
A female employee may proceed on maternity leave not earlier than the forty-fifth day and not later than the twenty-first day prior to the expected date of delivery.
Paid maternity leave is granted only once during any period of twenty-four months calculated from the day any previous maternity leave granted.
Law also limits the number of times (to three only) when maternity leave can be availed by a worker while working with a specific employer.
There is no paternity leave.
There is no parental leave.
According to the Code of Conduct, a contract of employment can be terminated if the employer and employee mutually agree to it in writing.
This is also the case if an employee is engaged in a fixed-term contract or for performance of a specific task and the
contract has expired after the mandated period or the task is completed.
Employers CAN terminate contracts on the following grounds:
If an employee:
The notice period in Zimbabwe is:
Notice of termination of the contract of employment to be given by either party shall be:
In accordance with the Labor Act, severance pay is available only for collective dismissals for economic reasons, i.e., retrenchment.
Although Retrenchment Board fixed the severance pay differently depending on the ability of the organization to pay, the most usual is 03 months’ pay for one year of service.
Labor Act, 1985 specifies maximum probationary period (single, non- renewable probationary period) as: