Discover everything you need to know about Cabo Verde
Here ares some key facts regarding hiring in Cabo Verde
Cabo Verde, an archipelago nation off the western coast of Africa, consists of ten islands with a rugged, volcanic terrain and a dry tropical climate. Initially uninhabited, the islands were discovered by Portuguese navigators around 1456 and became a significant hub in the transatlantic slave trade. After enduring severe droughts and famines, Cabo Verde gained independence from Portugal in 1975.
Today, Cabo Verde is a lower-middle-income country with an economy driven by tourism, services, and fisheries. The population is predominantly of mixed African and European descent, and there is a significant Cabo Verdean diaspora, mainly in the United States and Portugal, whose remittances play a crucial role in the economy. Despite challenges like limited rainfall and vulnerability to climate change, the nation is working towards sustainable development, including ambitions for 100% renewable energy.
Culturally, Cabo Verde is known for its Creole heritage, blending African and Portuguese influences, with music, particularly the genre Morna, playing a central role. Portuguese is the official language, but Cabo Verdean Creole is widely spoken. The country values education, though more skilled workforce development is needed to meet market demands.
In the workplace, Cabo Verdeans prefer a relaxed pace with a focus on relationship-building, often using indirect communication to maintain harmony. The economy is service-oriented, with tourism as a backbone, contributing significantly to GDP. Other important sectors include fisheries, government services, and emerging sectors like renewable energy and ICT.
Understand what the employment costs are that you have to consider when hiring Cabo Verde
Your step-by-step guide to hiring, compliance, and payroll management in Cabo Verde with EOR solutions.
As an Employer of Record in Cabo Verde, Rivermate is responsible for:
As the company that hires the employee through the Employer of Record, you are responsible for:
In Cabo Verde, employers have multiple tax responsibilities including withholding 8.5% of an employee's gross income for social security, with an additional 16% contributed by the employer. Other withholdings include taxes on payments to non-residents such as interest, royalties, dividends, and services, with varying rates. Employers may also face customs duties, special consumption taxes, property taxes, stamp duty, ecologic charges, and tourism taxes based on their business activities.
Employees face mandatory deductions including income tax and social security contributions, with income tax based on a progressive rate structure. Other potential deductions from salaries could include union dues. The standard VAT rate in Cabo Verde is 15%, with certain services exempt, and a "reverse charge" mechanism applies to imported services.
Cabo Verde offers tax incentives to encourage investment, including reduced corporate income tax rates, emigrant investment incentives, and sector-specific benefits for tourism, industrial activities, renewable energy, and IT and communications sectors. Additional incentives include employment creation deductions and foreign tax credits. It's crucial for businesses to consult the latest tax code or a tax advisor to ensure compliance and understand the full scope of tax responsibilities and incentives.
Cabo Verde Labor Laws:
Public Holidays in Cabo Verde:
Other Types of Leave:
In Cabo Verde, employees are entitled to various mandatory benefits including 22 days of paid annual leave, paid national holidays, and up to 60 days of maternity leave with 80% pay. There is no statutory paternity leave, but it may be available through collective agreements. Sick leave is available for up to 30 days with a medical certificate. The social security system provides several benefits such as pensions and disability benefits, funded by employer contributions. Additionally, employers may offer optional benefits like private health insurance, wellness programs, financial bonuses, childcare assistance, and flexible work arrangements to enhance employee satisfaction and competitiveness. The public health system offers basic coverage, while private health insurance, not mandated by law, provides more comprehensive coverage. Retirement planning includes both public social security pensions and optional private pension plans, with the latter potentially offering higher returns and tax benefits. Employer-sponsored pension plans are less common but may be available in larger companies.
In Cabo Verde, employment termination and anti-discrimination laws are comprehensively outlined in the Labour Code. Termination can be based on objective grounds such as economic reasons or job extinction, or subjective grounds like worker misconduct or inability. Notice periods vary by contract type and length of service, with severance pay depending on the grounds for dismissal.
The Labour Code also enforces strict anti-discrimination policies protecting characteristics such as race, gender, religion, and disability. Employers are required to implement anti-discrimination policies, provide training, and establish grievance procedures.
Additionally, the Labour Code regulates work hours, rest periods, and ergonomic requirements to ensure employee well-being. The standard workweek is capped at 44 hours, with regulations on overtime and mandatory rest periods.
Employers must adhere to Occupational Safety and Health (OSH) regulations, conducting risk assessments and implementing preventive measures. Employees have rights to a safe work environment, necessary training, and can refuse unsafe work.
Enforcement of these regulations is managed by the Ministry of Labour and Employment and the Labour Inspectorate, which conduct inspections and can impose penalties for non-compliance.
In Cabo Verde, there are two main types of employment contracts: Fixed-Term and Uncertain-Term.
Fixed-Term Employment Contract:
Uncertain-Term Employment Contract:
General Contractual Elements:
Probation Periods:
Confidentiality and Non-Compete Clauses:
Overall, employment contracts in Cabo Verde are governed by the Labour Code, which provides frameworks for various aspects of employment, including probationary periods, confidentiality, and competition.
Cabo Verde has established itself as a key player in Africa's remote work sector, supported by a comprehensive legal framework and attractive environment. The country introduced the Cabo Verde Remote Working Program in December 2020, offering a six-month renewable visa for remote workers, which includes tax exemptions and a simplified visa process. Despite advancements, the technological infrastructure still needs enhancement, particularly in internet reliability and digital literacy.
Employers in Cabo Verde must adapt employment contracts to specify remote work details and may choose to provide necessary equipment and cover internet costs. The labor laws also accommodate flexible work arrangements like part-time work, flexitime, and job sharing, though these are less regulated and may require legal consultation to ensure compliance.
Data protection is a critical aspect, with the country adhering to GDPR principles. Employers must implement robust security measures and be transparent about data handling practices. Remote workers have rights to access, correct, or request deletion of their personal data. Best practices for securing data include using encrypted platforms, implementing access controls, and training employees on data protection.
Cabo Verde's national labor legislation stipulates a standard workweek of 44 hours, with a daily limit of 8 hours, extendable by one hour if compensated with extra rest. For workers aged 16 to 18, the workweek is reduced to 38 hours and 7 hours per day. Overtime is regulated, with daily overtime capped at 2 hours and annual overtime limited to 160 hours, extendable to 300 hours with employee consent. Overtime pay must be at least 50% above the regular wage. Workers are entitled to a mandatory 30-minute break after 6 hours, and a minimum of one rest day per week, typically Sunday. Night and weekend work are subject to additional premiums, although specifics may vary and are often outlined in employment contracts or collective bargaining agreements.
Understanding market competitive salaries in Cabo Verde involves considering factors such as skill and experience, industry, location, and education. Salaries generally exceed the minimum wage, and resources like job boards, salary surveys, and government statistics can provide insights into market rates.
The national minimum wage is set by the government after consultations with employer and worker representatives. The actual minimum wage may vary by sector or region due to collective bargaining agreements. Additional compensation in Cabo Verde includes performance bonuses, industry-specific allowances, and standard allowances like transportation and meals.
Employers must adhere to payroll guidelines set by the Cabo Verde Labor Code, ensuring salaries are paid at intervals not exceeding 31 days. The standard workweek is 38 hours, with overtime compensated at a minimum of 50% above the regular pay rate.
In Cabo Verde, the Labour Code (Lei n.º 2/2007) governs employment termination, specifying notice periods and severance pay conditions based on the nature of the contract and the party initiating termination.
Notice Periods:
Exceptions to Notice Periods:
Severance Pay:
Types of Termination:
Procedures:
Important Considerations:
In Cabo Verde, the labor law distinguishes between employees and contractors, impacting their tax, social security, and rights. Employees are under employer control, dependent on their employer for income, and integrated into the business using the employer's resources. Contractors operate independently, often serving multiple clients, and use their own tools.
The Cabo Verde Labor Code governs employment relationships, detailing obligations like salary, social security, and employee rights such as minimum wage and safety. Contractor relationships fall under the Civil Code, emphasizing the importance of written contracts to define work scope, compensation, terms, and confidentiality.
Contract negotiation in Cabo Verde should focus on clear expectations, fair compensation, and dispute resolution. Key industries for contractors include IT, tourism, creative sectors, and marketing.
Intellectual property (IP) created by contractors typically belongs to the client unless otherwise stated in a contract. Contractors should protect their IP through copyrights, trademarks, and NDAs.
Freelancers must handle their tax obligations and may opt into social security for benefits. They should consider insurance options like health, professional liability, and life insurance to mitigate risks. Regular consultation with legal and tax professionals is advised to navigate these complexities effectively.
Cabo Verde's health and safety regulations are primarily governed by the Labor Code (Código Laboral), Law No. 85/VI/2008, which outlines the responsibilities and rights of both employers and employees. Employers are mandated to ensure a safe working environment by conducting risk assessments, providing training, and supplying personal protective equipment (PPE). They must also report work-related accidents and illnesses and may need to conduct health surveillance in certain industries.
Employees are responsible for following safety procedures, using equipment properly, and reporting hazards. The General Directorate of Labor and the Labor Inspectorate are key agencies overseeing the enforcement of these regulations.
The Labor Code also addresses specific health and safety issues such as ergonomic risks, hazardous substances, and sectors with increased risks like construction and agriculture. Employers must comply with occupational health and safety (OHS) standards that align with international guidelines, including hazard identification, accident prevention, and emergency preparedness.
Workplace inspections by the General Labor Inspectorate (IGT) play a crucial role in ensuring compliance with health and safety standards. These inspections can be scheduled or unannounced and involve a thorough review of workplace conditions, equipment safety, and hazard management.
Employers must report serious accidents and fatalities immediately to the IGT, and they are required to provide occupational accident insurance for employees, covering medical expenses and compensation for injuries or death.
Overall, Cabo Verde emphasizes a proactive approach to workplace safety, requiring both preventive measures by employers and active participation by employees in maintaining a safe working environment.
Cabo Verde's labor dispute resolution system includes specialized labor courts and voluntary arbitration mechanisms. Labor courts, part of the judicial system, handle individual disputes related to employment contracts, work-related accidents, and social security contributions. The arbitration process, used for both collective and individual disputes, involves parties selecting an arbitrator to issue a binding decision.
The Labor Code is the primary law governing labor relations, supported by the Law on Arbitration and the Judicial Organization Law. Compliance audits and inspections are conducted by various government agencies, including the General Inspectorate of Labor and the Tax Authority, to ensure adherence to labor, tax, and sector-specific regulations.
Non-compliance can lead to fines, administrative penalties, and even criminal prosecution. Reporting mechanisms for legal violations include government agencies, an ombudsman, and an anti-corruption hotline. Whistleblower protections exist but are limited and primarily focused on labor violations and corruption.
Cabo Verde has ratified several International Labour Organization (ILO) conventions, influencing its domestic labor legislation. The Labor Code and the Constitution uphold fundamental labor rights, though challenges like child labor and gender disparities in the labor market persist. Advocacy efforts continue to strengthen whistleblower protections and align national laws with international labor standards.
Indirect Communication: In Cabo Verde, people often communicate indirectly, using phrases like "talvez" (maybe) or "não sei" (I don't know) to avoid direct refusal. Trust and rapport are prioritized before business discussions.
Formality in the Workplace: The work environment is traditionally formal with a respect for hierarchy, where superiors are addressed formally. However, there is a shift towards more casual interactions, particularly in modern sectors and among the younger workforce.
Non-Verbal Cues: Non-verbal communication such as gestures, facial expressions, and eye contact is significant in Cabo Verde. Eye contact denotes respect, while physical touch among colleagues indicates warmth.
Negotiation Practices: Relationship building is crucial in negotiations, with a focus on long-term partnerships rather than immediate gains. Indirect language and non-verbal cues are essential in these discussions.
Hierarchical Business Structure: The business culture is hierarchical, respecting authority and following a top-down approach in decision-making. However, there is a gradual shift towards more participative leadership styles influenced by global trends.
National Holidays and Cultural Observances: Public holidays like New Year's Day, Democracy Day, and Independence Day significantly impact business operations, with closures common. Understanding these can aid in planning and scheduling in the Cabo Verdean business context.
Cultural Sensitivity: Maintaining respect and patience during negotiations and interactions is vital, considering the cultural emphasis on hierarchy and consensus.
Frequently Asked Questions for Employer of Record services in Cabo Verde
When using an Employer of Record (EOR) like Rivermate in Cabo Verde, the EOR handles the filing and payment of employees' taxes and social insurance contributions. This includes ensuring compliance with local tax laws and regulations, calculating the appropriate amounts for income tax and social security contributions, and submitting these payments to the relevant Cabo Verdean authorities on behalf of the employer. By managing these responsibilities, the EOR helps businesses maintain compliance with local employment laws and reduces the administrative burden associated with payroll and tax obligations.
Employing someone in Cabo Verde involves several costs that employers need to consider. These costs can be broadly categorized into direct compensation, statutory contributions, and other employment-related expenses. Here is a detailed breakdown:
Direct Compensation:
Statutory Contributions:
Other Employment-Related Expenses:
Legal and Compliance Costs:
Using an Employer of Record (EOR) service like Rivermate can help manage these costs more efficiently. An EOR handles payroll, benefits, compliance, and other HR functions, allowing companies to focus on their core business activities. This can be particularly beneficial for companies unfamiliar with Cabo Verde's employment laws and regulations, as it reduces the risk of non-compliance and associated penalties.
Yes, it is possible to hire independent contractors in Cabo Verde. However, there are several important considerations to keep in mind when doing so:
Legal Framework: Cabo Verde has specific labor laws that distinguish between employees and independent contractors. Independent contractors are generally not covered by the same labor protections as employees, such as minimum wage laws, social security contributions, and other employment benefits.
Contractual Agreement: When hiring an independent contractor in Cabo Verde, it is crucial to have a well-drafted contract that clearly outlines the scope of work, payment terms, duration of the contract, and other relevant conditions. This helps to avoid any potential disputes and ensures that both parties are clear on their obligations.
Taxation: Independent contractors in Cabo Verde are responsible for their own tax filings and payments. They must register with the local tax authorities and ensure that they comply with all tax obligations. Employers do not withhold taxes on behalf of independent contractors, unlike with employees.
Social Security: Independent contractors are not entitled to social security benefits provided by the employer. They must make their own arrangements for social security contributions if they wish to have coverage.
Misclassification Risks: It is important to correctly classify workers as independent contractors or employees. Misclassification can lead to legal issues, including fines and penalties. Authorities in Cabo Verde may reclassify a contractor as an employee if the nature of the work relationship suggests an employment arrangement, such as if the contractor is working exclusively for one company, follows a fixed schedule, or is subject to significant control by the employer.
Local Expertise: Navigating the legal and regulatory landscape in Cabo Verde can be complex. Utilizing the services of an Employer of Record (EOR) like Rivermate can be beneficial. An EOR can help ensure compliance with local laws, manage payroll and tax obligations, and provide guidance on best practices for hiring and managing independent contractors.
In summary, while it is possible to hire independent contractors in Cabo Verde, it is essential to understand and comply with local laws and regulations to avoid potential legal issues. An Employer of Record service can provide valuable support in managing these complexities.
In Cabo Verde, employers have several options for hiring workers, each with its own set of legal and administrative requirements. Here are the primary options available:
Direct Employment:
Independent Contractors:
Temporary Employment Agencies:
Employer of Record (EOR) Services:
Compliance with Local Laws:
Cost-Effective:
Speed and Efficiency:
Focus on Core Business:
Risk Mitigation:
Local Expertise:
In summary, while there are multiple options for hiring workers in Cabo Verde, utilizing an Employer of Record like Rivermate offers significant advantages in terms of compliance, cost savings, efficiency, and risk management. This solution is particularly beneficial for companies looking to expand into Cabo Verde without the complexities of establishing a local entity.
Setting up a company in Cabo Verde involves several steps and can take a varying amount of time depending on the efficiency of the processes and the preparedness of the entrepreneur. Here is a detailed timeline for setting up a company in Cabo Verde:
Business Plan and Feasibility Study (1-2 weeks):
Name Reservation (1-2 days):
Drafting Articles of Association (1 week):
Notarization of Documents (1-2 days):
Deposit Initial Capital (1-2 days):
Register the Company (1-2 weeks):
Obtain Tax Identification Number (1-2 days):
Register for Social Security (1-2 days):
Obtain Business License (1-2 weeks):
Register for Municipal Tax (1-2 days):
Set Up Accounting and Compliance Systems (1-2 weeks):
In total, the process of setting up a company in Cabo Verde can take approximately 6-10 weeks, depending on the efficiency of each step and the preparedness of the entrepreneur. Using an Employer of Record (EOR) service like Rivermate can significantly streamline this process by handling many of these steps on your behalf, ensuring compliance with local laws, and reducing the time and effort required to establish your business presence in Cabo Verde.
Yes, employees in Cabo Verde receive all their rights and benefits when employed through an Employer of Record (EOR) like Rivermate. An EOR ensures compliance with local labor laws and regulations, which is crucial in a country like Cabo Verde where employment laws are designed to protect workers' rights comprehensively.
Here are the key benefits and rights that employees receive through an EOR in Cabo Verde:
Legal Compliance: An EOR ensures that all employment contracts are compliant with Cabo Verdean labor laws. This includes adhering to regulations regarding working hours, overtime, and termination procedures.
Social Security and Taxes: The EOR manages the registration of employees with the National Institute of Social Security (INPS) and ensures that all necessary contributions are made. This includes both employer and employee contributions to social security, which covers pensions, healthcare, and other social benefits.
Health and Safety: Employees are entitled to a safe working environment. An EOR ensures that the workplace complies with Cabo Verde’s health and safety regulations, providing necessary training and resources to maintain a safe work environment.
Paid Leave: Employees are entitled to various forms of paid leave, including annual leave, sick leave, and maternity/paternity leave. An EOR ensures that these entitlements are provided in accordance with local laws.
Minimum Wage and Salary Payments: The EOR ensures that employees receive at least the minimum wage as stipulated by Cabo Verdean law. They also handle payroll processing, ensuring timely and accurate salary payments.
Employment Contracts: The EOR provides legally compliant employment contracts that outline the terms and conditions of employment, ensuring transparency and protection for both the employer and the employee.
Termination and Severance: In the event of termination, an EOR ensures that the process is handled in accordance with local laws, including the provision of any required notice periods and severance payments.
By using an EOR like Rivermate in Cabo Verde, companies can ensure that their employees receive all the rights and benefits they are entitled to under local law, while also simplifying the complexities of international employment compliance.
HR compliance in Cabo Verde refers to the adherence to the local labor laws, regulations, and standards that govern employment practices within the country. This includes ensuring that employment contracts, wages, working hours, employee benefits, health and safety standards, and termination procedures comply with the legal requirements set forth by Cabo Verdean authorities.
Employment Contracts: Employers must provide written contracts that clearly outline the terms of employment, including job responsibilities, salary, working hours, and conditions for termination. These contracts must comply with the Labor Code of Cabo Verde.
Wages and Salaries: Employers must adhere to the minimum wage laws and ensure timely payment of salaries. Any deductions must be lawful and agreed upon in the employment contract.
Working Hours and Overtime: The standard working hours and overtime regulations must be followed. Typically, the standard workweek is 44 hours, and any additional hours worked must be compensated at an overtime rate.
Employee Benefits: Compliance includes providing statutory benefits such as social security contributions, health insurance, and paid leave (annual leave, sick leave, and maternity/paternity leave).
Health and Safety: Employers are required to maintain a safe working environment and comply with occupational health and safety regulations to prevent workplace accidents and illnesses.
Termination Procedures: Proper procedures must be followed for terminating employment, including providing notice periods and severance pay as stipulated by law.
Legal Protection: Compliance with local labor laws protects the company from legal disputes and potential penalties. Non-compliance can result in fines, legal action, and damage to the company's reputation.
Employee Satisfaction: Adhering to HR compliance ensures fair treatment of employees, which can lead to higher job satisfaction, increased productivity, and lower turnover rates.
Reputation Management: Companies that comply with local labor laws are viewed more favorably by employees, customers, and the community, enhancing their reputation and brand image.
Risk Mitigation: By following HR compliance, companies can mitigate risks associated with labor disputes, workplace accidents, and other legal issues that could disrupt business operations.
Operational Efficiency: Understanding and implementing HR compliance helps streamline HR processes, ensuring that all employment practices are standardized and legally sound.
Using an Employer of Record (EOR) service like Rivermate can significantly simplify HR compliance in Cabo Verde. An EOR takes on the legal responsibilities of employing staff, ensuring that all HR practices comply with local laws. This includes managing payroll, benefits, taxes, and compliance with labor regulations. By partnering with an EOR, companies can focus on their core business activities while ensuring that their HR operations are legally compliant and efficiently managed. This is particularly beneficial for foreign companies entering the Cabo Verdean market, as it helps them navigate the complexities of local employment laws and reduces the administrative burden.
Rivermate, as an Employer of Record (EOR) in Cabo Verde, ensures HR compliance through a comprehensive approach that addresses the unique regulatory and cultural landscape of the country. Here are the key ways Rivermate achieves this:
Local Expertise and Knowledge: Rivermate employs local HR professionals who are well-versed in Cabo Verde's labor laws, regulations, and employment practices. This local expertise ensures that all HR activities are compliant with national legislation, including employment contracts, payroll, benefits, and termination procedures.
Employment Contracts: Rivermate ensures that all employment contracts are drafted in accordance with Cabo Verdean labor laws. This includes specifying terms of employment, job roles, compensation, working hours, and other critical elements. By doing so, Rivermate mitigates the risk of legal disputes and ensures that both the employer and employee are protected.
Payroll Management: Payroll in Cabo Verde can be complex due to varying tax rates, social security contributions, and other statutory deductions. Rivermate manages payroll processing accurately and timely, ensuring that all deductions and contributions are made in compliance with local laws. This includes handling income tax, social security, and any other mandatory contributions.
Tax Compliance: Rivermate ensures that all tax obligations are met, including corporate taxes, employee income taxes, and other relevant fiscal responsibilities. By staying updated with the latest tax regulations and working closely with local tax authorities, Rivermate helps prevent any legal issues related to tax compliance.
Benefits Administration: Rivermate administers employee benefits in line with Cabo Verdean regulations, including health insurance, pensions, and other statutory benefits. This ensures that employees receive their entitled benefits and that the employer remains compliant with local laws.
Labor Law Adherence: Cabo Verde has specific labor laws that govern working conditions, employee rights, and employer responsibilities. Rivermate ensures adherence to these laws, including regulations on working hours, overtime, leave entitlements, and workplace safety. This helps in maintaining a lawful and ethical working environment.
Employee Onboarding and Offboarding: Rivermate manages the entire employee lifecycle, from onboarding to offboarding, in compliance with local regulations. This includes proper documentation, orientation, and ensuring that termination processes are conducted legally and ethically, including the provision of any required severance pay or notice periods.
Continuous Monitoring and Updates: Labor laws and regulations can change, and Rivermate continuously monitors these changes to ensure ongoing compliance. By staying proactive and updating HR policies and practices accordingly, Rivermate helps employers avoid potential legal pitfalls.
Cultural Sensitivity and Best Practices: Understanding the cultural context is crucial for HR compliance. Rivermate incorporates local cultural norms and best practices into their HR management strategies, ensuring that employment practices are not only legally compliant but also culturally appropriate.
By leveraging these strategies, Rivermate provides a robust framework for HR compliance in Cabo Verde, allowing businesses to focus on their core operations while ensuring that all employment-related legal requirements are met.
When a company uses an Employer of Record (EOR) service like Rivermate in Cabo Verde, the EOR assumes many of the legal responsibilities associated with employment. However, the company still retains certain obligations and must ensure compliance with local laws and regulations. Here are the key legal responsibilities and considerations:
Compliance with Local Labor Laws: The EOR is responsible for ensuring that all employment practices comply with Cabo Verde's labor laws. This includes adhering to regulations regarding working hours, minimum wage, overtime, and employee benefits. The company must ensure that the EOR is knowledgeable and compliant with these laws.
Employment Contracts: The EOR will handle the drafting and management of employment contracts in accordance with Cabo Verdean law. These contracts must include all legally required terms and conditions, such as job description, salary, benefits, and termination conditions.
Payroll and Taxation: The EOR manages payroll processing, ensuring that employees are paid accurately and on time. They also handle the calculation and withholding of taxes, social security contributions, and other statutory deductions. The company must ensure that the EOR is correctly managing these financial responsibilities to avoid legal issues.
Employee Benefits and Social Security: The EOR is responsible for providing mandatory employee benefits, such as health insurance, paid leave, and social security contributions. The company should verify that the EOR is fulfilling these obligations to ensure employees receive their entitled benefits.
Work Permits and Visas: If the company employs expatriates in Cabo Verde, the EOR will assist with obtaining the necessary work permits and visas. The company must ensure that all foreign employees have the appropriate legal documentation to work in Cabo Verde.
Health and Safety Regulations: The EOR must ensure that the workplace complies with Cabo Verde's health and safety regulations. This includes providing a safe working environment and adhering to occupational health standards. The company should monitor the EOR's compliance with these regulations to protect employee well-being.
Termination and Severance: The EOR handles the termination process, ensuring that it complies with Cabo Verdean labor laws. This includes providing the appropriate notice period, calculating severance pay, and managing any disputes that may arise. The company must ensure that the EOR follows legal procedures to avoid wrongful termination claims.
Data Protection and Privacy: The EOR must comply with Cabo Verde's data protection laws, ensuring that employee personal information is handled securely and confidentially. The company should ensure that the EOR has robust data protection policies in place.
Employee Relations and Dispute Resolution: The EOR manages employee relations and is responsible for addressing any workplace disputes or grievances. The company should ensure that the EOR has effective mechanisms for resolving conflicts in accordance with local laws.
By using an EOR like Rivermate in Cabo Verde, a company can significantly reduce its administrative burden and mitigate the risks associated with non-compliance. However, it is crucial for the company to maintain oversight and ensure that the EOR is fulfilling all legal responsibilities to protect both the company and its employees.
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