Djibouti

Employer of Record (EOR) in Djibouti

Only 399 EUR per employee per month

Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Djibouti . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our Employer of Record (EOR) solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Djibouti.

Employer of Record people
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Currency
Djiboutian Franc
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Capital
Djibouti
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Region
Africa
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Language
French
Hire remote employees
Population
988000
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GDP
Line graph
GDP growth
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Ease of doing business
60.5
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World GDP share

1. Grow your team in Djibouti with Rivermate as your Employer of Record (EOR) / PEO

Payroll, benefits, taxes, and compliance can be difficult to manage in Djibouti , particularly if you don't have established local relationships. You can hire employees in Djibouti effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Summary

Djibouti is a nation in the Horn of Africa. Its official name is the Republic of Djibouti. It is bounded on the south by Somalia, on the southwest by Ethiopia, on the north by Eritrea, and on the east by the Red Sea and the Gulf of Aden. Yemen is located across the Gulf of Aden. The nation has an area of 23,200 km2 (8,958 sq mi).

In antiquity, the area was part of the Land of Punt, along with Ethiopia, Eritrea, and Somaliland. The medieval Adal and Ifat Sultanates were based in nearby Zeila, which is today in Somaliland. Following treaties negotiated by the governing Dir Somali sultans with the French in the late nineteenth century, the colony of French Somaliland was founded, and its railroad to Dire Dawa (and eventually Addis Ababa) enabled it to soon replace Zeila as the port for southern Ethiopia and the Ogaden. In 1967, it was called the French Territory of the Afars and the Issas. Djiboutians voted for independence a decade later. This marked the formal founding of the Republic of Djibouti, named after its capital city. On September 20, 1977, the new state became a member of the United Nations. Tensions over government representation erupted into violent conflict in the early 1990s, culminating in a power-sharing deal between the governing and opposition parties in 2000.

Djibouti is a multi-ethnic country with a population of over 921,804 people (the smallest in mainland Africa). The official languages of the country are French and Arabic, although Afar and Somali are national languages. Approximately 94 percent of inhabitants follow Islam, which is the official religion and has been prevalent in the area for over a thousand years. The two main ethnic groups are Somalis and Afar, with the former being the bulk of the population. Both speak a Cushitic language, which is part of the Afroasiatic language family.

Djibouti is strategically placed near some of the busiest maritime channels in the world, controlling access to the Red Sea and Indian Ocean. It is a vital refueling and transshipment hub, as well as the primary marine port for imports from and exports to neighboring Ethiopia. The country is a booming business center and home to many international military sites. Djibouti City also serves as the regional headquarters for the Intergovernmental Authority on Development (IGAD).

Hiring talented employees in a short span is not an easy task. Partnering with an Employer of Record (EOR) like Rivermate in Djibouti is your best option, giving your organization enough time to focus on other aspects of international expansions like project management and inventory management. The EOR takes care of all the compliance and legal issues while helping you speed up hiring using their knowledge of domestic employment practices and virtual onboarding tools. Top EORs also have provisions for the e-signing of documents to enable faster onboarding.

3. Public holidays

4. Types of leave

There is no information about the types of leave for this country.

Paid time off

Within 12 months of service, employees are eligible for regular paid leave. From the first day of employment, they are entitled to two and a half days of paid leave per month, which equates to 30 days of paid annual leave. The boss determines the leave date, which is communicated to workers at least 15 days prior to the start of any leave. Leave can be divided into two 14-day increments.

Public holidays

New Year

Al Isra

Labour Day

Eid-al Fitr

Independence Day

Eid-al Adha

Muslim New Year

Mouloud

Christmas

Sick days

Employees are entitled to 29 days of maternity leave, which is charged at 50% of the basic wage. The employee is paid 75 percent of his or her minimum wage for any day after the 29th.

Maternity leave

Maternity leave is provided for 14 weeks for female workers. Any female employee is entitled to maternity leave that starts eight weeks before the expected due date and ends six weeks after the due date. In the event of complications that necessitate a medical record, the leave time can be prolonged by an extra three weeks. She is entitled to 15 months of breastfeeding rest on workdays until she returns to work. This rest period does not exceed one hour per working day, and it must be taken at the start or end of the day.

When on maternity leave, eligible workers receive maternity benefits, which are divided evenly between the workplace and the Social Advancement Organization. Benefits are earned at a rate of one hundred percent of monthly earnings. To be considered, the employee must have at least three months of covered wages, have a medical card, and contact the employer at least one month prior to leave.

Paternity leave

Employees who are fathers are entitled to three days of paid parental leave.

Parental leave

Other than the already mentioned terms for maternity and paternity leaves, there are no other provisions in the Djibouti law regarding parental leave.

Other leave

5. Employment termination

There is no information about employment information for this country.

Termination process

Employment can be ended jointly or unilaterally by either party if a minimal notice time has been met. Employers and workers who fail to submit the proper notice are obligated to pay the earnings earned during the notice period. Upon separation of service, all accumulated but unused leave is also paid out.

By providing at least 48 hours notice, an employment contract may be ended owing to an employee's incapacity to execute the work duties, for health reasons, for a lack of essential professional abilities, or for misbehavior.

If a pregnant female employee has a medical basis for terminating her position, she may do so without notice. This violation does not constitute a cause of action.

Fixed-term contracts automatically terminate on the contract's expiration date. They may, however, be terminated by either party for cause, including misbehavior, force majeure, economic and financial difficulties, court judgments, mutual consent, or an unjustifiable breach of the contract by one of the parties. Breach of contract occurs as a result of the failure to execute labor or other responsibilities, violence, violation of confidentiality, or persistent unexcused absence, to mention a few.

Unjust dismissal may entitle an employee to compensation. Damages cannot exceed two months' wages for employees in businesses with less than 11 employees; four months' wages for employees in businesses with 11 to 49 employees; or six months' wages for employees in businesses with more than 49 employees.

The employer is expected to notify the Labour Inspectorate in writing within eight days after the employee's termination of employment and to provide the employee with a certificate of work detailing the employee's entry and leave dates, as well as the nature of the job.

Notice period

Regular roles have a one-month notice period, while executive positions have a three-month notice period. The reason for the termination, the employer's name, social security number, address, the employee's name, date of employment, and professional credentials must all be included in the communication.

Probation period

Probationary periods for indefinite-term contracts are allowed as follows. For hourly employees, probation lasts for 15 days. For monthly wage employees, probation lasts for 1 month. For supervisors, executives, and equivalent positions, probation lasts for 3 months. Probationary periods may be renewed once, and the renewal must be in writing.

Severance pay

There are no regulations in Djibouti labor laws regarding severance payment.

6. Working hours

There is no information about the working hours for this country.

General working schedule

Standard work hours are limited to 47 hours per week, divided into six days of eight-hour days. A minimum of 24 hours of rest, which is typically on Fridays, is required. Evening work is defined as work performed between 10 p.m. and 5 a.m.

Overtime

Overtime is limited to four hours per day and sixty hours per week. Any hours worked in excess of the stipulated overtime hours require authorization from the labor inspector. However, the additional hours cannot exceed one-tenth of the weekly hours or the number of daily hours. Generally, overtime is compensated at the rates established by convention or collective bargaining.

7. Minimum wage

There is no information about the minimum wage for this country.

As part of the 2006 Labor Code, Djibouti abolished its national minimum wage in favor of occupational categories. Wages are now set by employers and employees as part of an employment contract. The minimum wage in the public sector is 35,000 DJF, or about $198 per month. The last time this was changed was in 2015.

8. Employee benefits

There is no information about the employee benefits for this country.

Some employers in Djibouti offer health insurance. Both public and private healthcare insurances are available.

9. Taxes

There is no information about the taxes for this country.

Corporate tax

Djibouti is a tax-free jurisdiction. Corporations are not subject to income, capital gains, profit, or other types of direct taxes, regardless of their residency status.

Individual income tax

Djibouti is a tax-free jurisdiction. Corporations are not subject to income, capital gains, profit, or other types of direct taxes, regardless of their residency status.

VAT, GST and sales tax

Djibouti is a tax-free jurisdiction. Corporations are not subject to income, capital gains, profit, or other types of direct taxes, regardless of their residency status.

10. VISA and work permits

There is no information about VISA and work permits for this country.

Djibouti's visa policy regulates who is allowed to visit the Eastern African nation without a visa and which foreign people need a visa for Djibouti.

Whether or not a visa for Djibouti is needed, all visitors must provide a passport valid for at least 6 months from the date of arrival in order to obtain admission. Proof of a confirmed ticket for further or return travel may also be required.

At the moment, only two nations do not need a visa to enter Djibouti. All other foreign nationals, regardless of length of stay or reason for travel, must obtain an authorized visa to enter the African Republic.

Citizens of the vast majority of nations throughout the globe may now apply for an eVisa to Djibouti. To speed admission into the nation for foreign visitors, a simple online Djibouti visa application was created. It removes the need to stand in huge lines at border crossings to apply for a visa on arrival.

A Djibouti eVisa may be obtained for tourist, business, or transit reasons. The online Djibouti transit visa allows for a 3-day stay, while a tourist or business eVisa allows for a single entry stay of up to 31 days.

To visit Djibouti for an extended period of time, or to receive a work visa, student visa, or resident visa for the nation, a travel visa must be obtained through the closest Djibouti diplomatic government office.

There are currently no visa prohibitions in effect in Djibouti.

11. Employer Of Record service terms

There is no information about the Employer of Record (EoR) service terms for this country.

Employment contracts

Name and address of the employer;

Name and address of the employee;

Job description;

Salary, payment method, and payment date within eight days of the beginning of every month;

Benefits; and

Probation period.

With Rivermate being your Employer of Record (EoR) in Djibouti, you do not have to worry about the employment contracts, as we take care of that.

Minimum assignment length

Employment contracts might be indefinite, full-time, part-time, or for a set period of time with an end date. Fixed-term contracts are limited to 12 months, may be based on job completion, and can be renewed only once. An indefinite contract is one that does not have a set term.

Payment currency

Djiboutan franc (DJF)

Euro (EUR)

United States Dollar (USD)

13.Opening a subsidiary in Djibouti

There is no information about the working hours for this country.

How to set up a subsidiary

It is not always easy to establish a subsidiary in Djibouti. Before you begin, you should consider several elements that may affect the incorporation procedure, such as your location, entity, and others. Regions or cities in Djibouti may have their own Djibouti subsidiary laws, much as distinct states in the United States have their own laws. Choosing the appropriate location may either make or break the incorporation process.

Once you've found the ideal location for your physical office, you'll need to choose the kind of subsidiary that best meets your company's objectives. A limited liability company (LLC), a limited company (S.A.), and a limited liability single-member corporation are the three most popular forms of subsidiaries in Djibouti (EURL). The limited liability structure is used by the majority of businesses since it protects both the subsidiary and the parent company.

The following actions are required to establish a Djibouti subsidiary as an LLC:

(1) Opening a bank account in the nation and putting the first capital

submitting a form stating your want to establish a new company

(2) Creating the company's bylaws (either by yourself or with a lawyer)

(3) The laws must be registered with the Direction des Impôts.

(4) Purchasing a one-of-a-kind business name

(5) Become a member of the Chamber of Commerce

(6) Publicize a message indicating you're beginning action.

(7) Obtaining all registration-required paperwork

Subsidiary laws

Because Djibouti's subsidiary rules differ depending on the entity, you must follow the requirements that apply particularly to LLCs. For example, before you can receive your articles of incorporation, you must meet a number of conditions. You'll need all of your colleagues' identification cards, share repartition, and the name, purpose, and location of your organization. Failure to comply with any of Djibouti's subsidiary laws may result in penalties and delays that impede the process.

13. Why choose Rivermate as your Employer of Record / PEO in Djibouti

Establishing an entity in Djibouti to hire a team takes time, money, and effort. The labor law in Djibouti has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into Djibouti simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in Djibouti give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in Djibouti via our Employer of Record (EOR) / PEO solution.

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