Compliant HR, Payroll, Tax & Employer of Record Africa
Since independence from France in 1960, Chad—a landlocked country in central Africa—has been plagued by instability from internal rivalries between ethnic groups, conflicts in neighbouring countries, and the impact of climate change through desertification and the drying up of Lake Chad.
Chad joined the list of oil-producing countries in 2003 and since then its economy has been heavily dependent on oil. The economy, previously agrarian, saw per capita GDP grow from about $497 in 2001/02 (which was less than half of the average in Sub-Saharan Africa) to about $967 in 2014.
Central African CFA Franc
Directorate of General Taxes
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Central African CFA Franc
Directorate of General Taxes
1 January – 31 December
West Africa Time WAT
However, the combined effect of the 2014 drop in oil price and the weak security environment have left the country in deep recession, with poverty expected to rise to 39.8% by 2019. This is reflected in cuts in public expenditure, low foreign direct investment, and a loss of income caused by the disruption of cross-border trade with Nigeria in livestock. Nonetheless, there were modest increases in agriculture, which constitutes the primary sector of employment for nearly 75% of Chad’s working age population.
Despite severe fiscal adjustment, the overall fiscal deficit (cash basis) increased slightly from 4.4% of non-oil GDP in 2014 to 4.9% in 2016. This was financed through treasury bonds in the regional debt market, IMF disbursement, and budgetary support from donors. The increase in public debt has led to the risk of debt distress: hard currency rationing and substantial fiscal consolidation had reduced the external current account deficit from 11.3% of GDP in 2015 to 5.2% in 2017, but Chad’s official reserves continue to fall, representing barely a month’s worth of imports as of 2017.
Chad has ratified all eight Fundamental Conventions of the International Labour Organization. International labour rights such as freedom of association, the elimination of forced labour, child labour employment discrimination, minimum wage, occupational safety and health, and weekly work hours are recognized within the labour code. However, gaps remain in law and practice. Chadian labour law derives from French law and tends to provide strong protection for Chadian workers and priority is given to Chadian nationals. Labour unions operate independently from the government and, in fact, often challenge the government. The two main labour federations, the Confederation Libre des Travailleurs du Tchad (CLTT) and the Union des Syndicats Tchadiens (UST), to which most individual unions belong, are the most influential, and have been instrumental in persuading the GOC to engage in social dialogue regarding the 2016 austerity measures.
The Ministry of Labour and Employment is in the process of reviewing the current labour code, which will include provisions for the informal economy, although no progress was reported in 2016.
The labour court is the labour dispute mechanism in Chad. In case of a dispute, the aggrieved party contacts a labour inspector directly or through the labour union to settle the dispute or lodge a complaint with the labour court.
Labour unions practice collective bargaining, and the labour code monitors labour abuses, health, and safety standards in low-wage assembly operations. The enforcement of the code is not effectively conducted; most disputes are based on contract termination.
In December 2016, the GOC enacted a new law restricting the right of public sector workers to strike. The labour unions are currently negotiating with the GOC.
The GOC may provide incentive for foreign businesses, but no laws are waived to attract or retain investment as the Chadian labour law strongly supports workers.
Documentation requirements for travel to Chad often vary. A basic guide is;
- All non-Africans who wish to travel to Chad must have a passport and a Chadian Visa (unless from a Visa exempt Country)
- To travel outside of the capital (N’Djamena), travellers will need to obtain a special permit called “Autorisation de Circuler”.
- First time visitors should register their passport at the police station in N’Djamena upon arrival and within 3 days.
Obtaining a visa to Chad will be different depending on which country you are departing from.
For all foreigners entering Chad it is necessary to be in possession of a passport with a valid visa, except for citizens of the following countries:
- Republic of Central Africa,
- Equatorial Guinea,
Citizens of these Countries can enter the Chad by presenting their valid passport or with a waiver. Holders of a diplomatic or official passport or any other travel document issued by an international organization are not required to pay for visa fees.
How to apply for a visa through the embassy of Chad:
- Valid passport
- Complete the visa application forms with the required photo.
- An attestation from your employer stating the reason for your travel to Chad, clearly marking the date of departure from your home Country.
- Be in possession of a round trip ticket, or have a valid reservation from a travel agency
- Have at least two free pages in your passport
- Be in possession of an invitation letter
* All supporting documents MUST be submitted with the passport.
Incomplete Applications will be rejected.
If you wish to travel outside of the capital, you will probably need to obtain extra documentation.
Registering on Arrival
Upon arriving at N’Djamena Airport (IATA Code: NDJ), visitors pass through the immigration process. Passengers are taken to immigration (inside the airport).
Then you hand your immigration card (which is filled out while still on the plane) to an immigration worker, who will look it over and possibly ask a question (such as, “How long will your stay be?”). Then, he will stamp your passport and release you into the city.
There is a second step. If this is your first trip to Chad (on your current passport), then you must register at the police station within three days of arriving in the capital. If you’ve been to Chad before (on the same passport), then you don’t need to register your passport. Be sure to take three passport-size photos with you, as they will request them. Also take your passport.
2017/8 PAYE Rates
Any individual who resides in Chad is subject to personal income tax (PIT) on their worldwide income. A non-resident individual in Chad is subject to PIT on the income derived from work activities in Chad.
Work and capital income are combined to make up the total taxable income.
Work incomes (salaries, benefits, life annuities, industrial, commercial and agricultural income, non-commercial incomes and other similar income) are taxed on the progressive rates below, after deduction of non-taxable allowances (transport, social security contributions at rate of 3.5%, etc.):
|Work incomes (XAF*)||Rates (%)|
|0 to 800, 000||0|
|800,001 to 2,500,000||10|
|2,500,001 to 7,500,000||20|
* Franc de la Coopération financière en Afrique (Central African CFA) (XAF).
The Table above is based on annual income.
Capital income taxed at rates as follows:
|Capital income||Rates (%)|
|Receivables, deposits and suretyship incomes||25|
|Rental incomes (for residents)||15|
|Rental incomes (for non-residents)||20|
|Dividends, incomes from shares||20|
Taxation is calculated by using a sliding scale which considers of the revenue of the taxpayer.
There is an annual calculation for the total income of the taxpayer. There are categories of incomes which may lead to withholding taxes (WHTs) during the year
SSC – Social Security Contribution
Social security contributions in Chad are paid by the employer and the employee. Employer contributions are 16.5% of the gross salary and limited to XAF 500,000 per month (XAF 82,500 upper limit). The Employee contributes 3.5% of the gross salary limited to XAF 500,000 per month (XAF 17,500 upper limit). The social security contributions paid by the employee are deducted from the taxable income and are withheld by the employer on a monthly basis.
The table below summarises items according to rates.
|Type||Rate (%)||Basic ceiling of contribution (XAF)||Ceiling of contribution (XAF)|
|Contributions related to family and maternity benefits||7.5||500,000||37,500|
|Contributions related to occupational accidents and professional diseases||4.0||500,000||20,000|
|Contributions related to insurance and pension for old age, incapacity, and death||5.0||500,000||25,000|
SOCIAL SECURITY CONTRIBUTION RATE FOR SELF-EMPLOYED
Self-employed individuals in Chad are the same as above, as the person is both the employer and the employee.
The following is an extract from the Labour Code Chad which is originally in French. Employ Africa are not liable for any translation errors or misinterpretation of the code. The original can be obtained here https://www.ilo.org/dyn/natlex/docs/ELECTRONIC/47297/77458/F10428800/TCD-47297.pdf
Law No. 038 / PR / 96 of 11 December 1996
The labour code is enacted in the Republic of Chad, applicable throughout the national territory.
It governs the relations between employers and workers resulting from contracts of employment concluded for execution in the territory of the Republic of Chad irrespective of their place of conclusion, residence and nationality of the parties.
It also governs the occasional performance in the territory of the Republic of Chad of a contract of employment concluded for execution in another State. However, this latter provision is not applicable to workers displaced for a temporary mission not exceeding 3 months
The fixed-term employment contract
Article 57 The contract of employment concluded for a given term must include a precise term fixed as soon as it is concluded; it must therefore indicate either the date of its expiry or the precise period for which it is concluded.
However, this contract may contain an imprecise term in the cases provided for in Article 61 and under the conditions laid down in Article 62.
Art.58.- The specific future contracts cannot be concluded for a duration greater than two years.
Contracts whose duration does not exceed six months shall be concluded freely, subject to the provisions of Article 66.
Contracts lasting between six months and two years are subject to the prior approval of the National Office for the Promotion of Employment.
Art.59.- The fixed-term employment contract is a contract with a definite term, fixed in advance and in agreement with the parties. It is obligatorily written. Its duration cannot exceed two years, renewable once. However, short-term contracts may be concluded and renewed more than once, provided that their total duration does not exceed two years.
Any renewal clause is there for the employer to facilitate the proposing of a renewal, and for the worker to accept it.
Art.60.- Fixed-term contracts may have an imprecise term when they are written to replace a temporarily absent worker; for the duration of a season or a project; for an extra occupational increase of work; for an unusual business activity.
The return of the replaced employee or the termination of his employment contract, the end of the project, the project or the end of the occasional increase in work or the unusual activity of the company then constitute the end of the contract.
Art.61.- When a replacement contract has been executed for at least six months, the employee may decide to leave the company under the same conditions as if his contract were of indefinite duration. This facility of unilateral termination is not open to the employer.
Art.62.- Where a contract contains an imprecise term and except where it is concluded to ensure the replacement of a temporarily absent worker, the contract of employment must indicate its foreseeable duration, which may not be greater than six months. The exact term is set by the employer.
Art.63.- Fixed-term employment contracts, even in the absence of any specific stipulation, must include a trial period for the benefit of the employee. This period is equal to one working day per work week, but not exceeding fifteen working days. In the case of a replacement contract, it is fixed at eight working days. By a special mention in the contract, these same trial periods may also be stipulated for the benefit of the employer.
Art.64.- Fixed-term employment contracts are written. They all contain useful information on their term and eventual renewal.
Art.65 – Fixed-term employment contracts that do not meet the requirements of this section shall be deemed to be of indefinite duration.
Art.66.- When the contractual relations of work continue after the expiration of the term, they are obligatorily part of a contract of indefinite duration.
Contracts submitted to the visa of the National Office for the Promotion of Employment
Art.67.- The contracts mentioned below must be in writing and submitted before any start of execution, for the approval of the National Office for the Promotion of Employment:
- contracts concluded with workers of foreign nationality;
- contracts requiring the worker’s outside the place of employment;
- fixed-term contracts with terms of more than six months; the term is understood to include any renewal;
- contracts of indefinite duration.
A medical examination provided for in Article 240 must be prior to the conclusion.
An authorization prior to hiring any foreign worker must be requested by the employer from the National Office for the Promotion of Employment.
A decree issued by the Council of Ministers on the proposal of the Minister of labour and Social Security sets the terms for recruiting foreign labour.
Art.68.- The National Office for the Promotion of Employment targets contracts after having:
- noted their compliance with laws, regulations and agreements;
- checked the identity of the worker and his consent to do so;
- verified that he is free from any commitment;
- gathered the opinion of the Labour Inspectorate if necessary and, in the case of a fixed-term contract, assessed the reasons given by the employer for not resorting to a contract of indefinite duration.
Article 69. If the Office has not made its decision known within thirty working days of receipt of the contract and supporting documents, the visa shall be deemed to have been granted.
Art.70.- Any employment contract referred to in Article 67 for which a visa has not been granted shall be null and void, according to the provisions of Article 71.
Art.71.- The visa application is the responsibility of the employer and:
- When the employer uses the services of a foreign worker without a visa being granted, each of the parties, as well as the Labour Inspector, may demand that he be immediately terminated the employment relationship, the employee enjoying all the rights he / she would have enjoyed, if the contract was regular, it had been broken at the initiative and by the fault of the employer;
- when the employer uses the services of a worker installed outside his place of employment without a visa being granted, the employee alone may decide to immediately terminate the employment relationship while benefiting from of all the rights which he would have had if, his contract being regular, he had been broken at the initiative and by the fault of the employer;
- when the employer uses the services of a worker for a fixed period of more than six months without a visa being granted, the employee may decide to terminate the employment relationship by benefiting from all the rights he would have had if his contract was lawful, he had been broken at the initiative and by the fault of the employer, without prejudice to the employee of the faculty who was opened to him by the Article 63.
Art.72.- The breakdown of the employment contracts referred to in article 67 must be brought to the attention of the National Office for the Promotion of Employment within fifteen days of its occurrence. This obligation is incumbent on the employer
Art.87.- A disciplinary proceeding can be imposed on an employee only if he has committed professional misconduct, that is to say a fault in the execution of his contract of employment.
The employee’s behaviour outside working hours cannot constitute professional misconduct unless it concerns the disclosure of company secrecy, acts of overt competition, a clear denigration of the company.
Art.88.- In enterprises required to have by-laws, this by-law lists the penalties that the employer may receive. No action can be taken if it has not been provided for in the rules of conduct.
Art.89.- No pecuniary s can be imposed on an employee. The term pecuniary sanction is defined as any measure whose purpose or result is to reduce the remuneration normally due for work performed by the employee.
Art.90.- No disciplinary action may be initiated by the employer more than one month after he becomes aware of the professional misconduct committed by the employee.
Art.91.- An employer who intends to take a disciplinary action other than a simple verbal reminder must warn in writing to the employee to a prior interview.
Art.92.- The convocation can be made verbally in the presence of a staff representative.
In the absence of a staff representative or if the employer so wishes, the convocation may be made by means of a letter delivered to the employee by hand against receipt, in the presence of another employee who can read and write when the “destina” – Silence of the convocation is illiterate.
When neither of these two procedures can be used, the convocation is made by means of a registered letter with acknowledgment of receipt.
Art.93.- In any event the precise convocation, the reason, the place, the date and the hour of the interview, it indicates to the employee that he has the right to be assisted by a person of his choice belonging to the staff of the company.
When the convocation is made verbally, or by hand-delivered letter, the interview must take place after 24hrs and not before.
When the notice is sent by registered letter, this period is extended to five working days from the date of receipt of this letter.
Art.94.- During the interview, the employer who may be assisted by a person of his choice, employee or manager of the company, then details;
the complaints against him/her. The employer receives the employee’s explanations as well as the arguments in his/her defence from the person who can assist him.
Art.95.- The persons present at the interview and who are employees of the company must be considered as being in working time and remunerated as such. When, exceptional, the interview takes place outside their usual place of work, their transportation costs are borne by the employer.
Art.96.- In the case where the employee cannot go to the meeting, he/she can send, written observations. The employer is not obliged to organize another interview.
Art.97.- The employer cannot decide the disciplinary sanction as soon as possible the day after the interview or the date fixed for it, at the latest within five working days.
When the employer makes the decision to take action against the employee, the Employer must notify the penalty by hand-delivered letter with signed receipt,or, in the presence of a staff delegate or another employee who can read and write when the employee mentioned is illiterate.
When delivery by hand cannot take place, the penalty is notified by registered letter with acknowledgment of receipt. The notification contains the statement and the professional fault (s) specifically alleged against the employee. A copy of the letter of subsequent action is sent to the Inspector of Labour in the area.
Art.98.- In the event of gross negligence committed by the employee, making it impossible for him to remain in the enterprise, the employer may, on the spot, impose a provisional dismissal which may not lead to the suspension of remuneration greater than eight days. In this case, he must at the same time initiate disciplinary proceedings.
Art.99.- Subject to the provisions of Article 420, the employee may still contest, before the Labour and Social Security Tribunal, the sanction he is subject to.
It is up to the employer to prove the facts to the employee.
The Tribunal must set aside the penalty where the facts alleged against the employee cannot be not regularly followed or where the penalty is disproportionate to the fault committed.
Art. 100.- When the Tribunal cancels the sanction due to the irregularity of the procedure, the employer may, within eight days of notification of the judgment, initiate a new disciplinary procedure.
When the Tribunal cancels the sanction because of its disproportionality, it indicates what maximum penalty could have been allowed. The employer may, within eight days after notification of the judgment, decide on a sanction within the limits allowed by the Tribunal. This decision is taken without procedure but the sanction must be notified in the form prescribed by paragraph 2 of article 97.
Art.101.- When a sanction has been pronounced, the sanctioned facts may no longer, together with other subsequent facts, be invoked against the worker after a period of twelve months after their occurrence.
Art.102.- The termination by the employer of a fixed-term contract by reason of a gross negligence committed by the employee as well as dismissal for misconduct, although constituting disciplinary sanctions, are exclusively subject to the rules Title 4 of this book.
However, the provisions of Articles 87, 90 and 101 apply to them. Similarly, the disciplinary procedure applies to early termination of a fixed-term contract for gross negligence on the part of the employee.
Illnesses and Accidents
Art.115.- An accident at work, whatever the cause, is considered as an accident to a worker;
(1) by the fact or at the time of the work, that there is fault or not of his part;
(2) during the journey from his residence or the place where he habitually takes his meals to the place where he performs his work or receives his remuneration and vice versa, insofar as the journey has not been interrupted or diverted for a reason dictated by the personal or independent interest of the employment.
(3) during a trip for which the costs are borne by the employer according to the regulations in force.
Art.116.- Criteria for the identification and reparation of occupational diseases are formulated
in each table of the national list of occupational diseases.
Art.117.- The contract of employment of an employee victim of a non-professional illness or of an accident other than a duly justified industrial accident is suspended at least during the first six months of absence subject to the provisions Article 118 paragraph 1.
Art.118.- Apart from the case of gross negligence and the impossibility of maintaining the contract, no employer may dismiss an employee whose contract is suspended by application of the article.
At the end of the six-month period, a dismissal may be pronounced if the employer justifies the need to make the final replacement of the absent employee.
Art.119.- In all cases of accident at work or occupational disease, the worker whose permanent physical incapacity has been found and dismissed will receive compensation from his employer for services rendered.
The methods of calculation and allocation of this compensation are determined by Article 170 of this Code.
Art.120.- During the duration of his absence within the limit of the period of notice, the employee benefits, at the expense of the employer, from an indemnity equal to the amount of the remuneration which he would have perceived if had worked. Employees under fixed-term contracts are, from this point of view, assimilated to employees on indefinite-term contracts.
Art.121.- The contract of employment of an employee victim of an industrial accident or occupational disease is suspended until either cure or definitive incapacity is found, excluding any possibility of subsequent reclassification within the company.
Art.122.- Apart from the case of gross negligence or the impossibility of maintaining the contract, no employer may dismiss an employee whose contract is suspended by application of the preceding article. The reality of these situations is subject to the prior control of the Labour Inspector, to whom an authorization to dismiss must be sought. The lack of response of the latter within the thirty-day period is authorization.
Art.123.- At the end of the suspension of his employment contract and if the employee is cured, he returns to his job or an equivalent job;
After consolidation of his condition and if the incapacity of the employee is total and duly noted, the employer has an objective and serious reason to dismiss him;
After consolidation of his condition, if the ability of the employee allows him to occupy a job different from that which he occupied before the accident or illness, the employer is required to propose the reclassification of the employee, except to justify that no position corresponding to his aptitudes and abilities is available in the company;
The employer has an objective and serious reason to liaise with the employee for whom no available position exists, or who refuses a proposal for reclassification corresponding to his aptitudes. The reality of these situations is subject to the prior control of the Labour Inspector, to whom an authorization to dismiss must be sought. The lack of response of the latter within the thirty-day period is authorization.
Art.124.- An employee dismissed without the authorization of the Labour Inspector provided for in the preceding articles shall, at the expense of the employer, be entitled to an indemnity provided for in Article 156.
This allowance may be cumulated with any other indemnities to which the dismissal may give rise, including that provided for in Article 148, if it proves that the dismissal has no objective and serious reason.
Art.125.- The National Office for the Promotion of Employment strives to ensure the reclassification of the disabled workers who have not been reclassified in their company. To this end, a decree issued by the Council of Ministers on the proposal of the Minister of Labour and Social Security may, in view of the activity of enterprises and the number of their workers, make it obligatory for employers to reserve a certain percentage of their jobs to the maimed labourers.
Art.136.- If there is a change of employer, a natural person or a legal person, as a result of, among other things, succession, sale, merger, transformation of the fund, incorporation, all work contracts in progress on the day changes remain between the new contractor and the company’s staff. The new employer is deemed to have been a party from the outset.
The temporary interruption of the activity of the enterprise does not prevent the application of the preceding provisions. The new employer nevertheless retains the right to terminate employment contracts, but only under the conditions and forms provided for in this Title.
Art.137.- Any employment contract may end because of the occurrence of an independent of the will of the parties that makes the performance of the contract impossible in a definitive or long-term manner. Termination of the employment contract by the occurrence of such an event of force majeure shall not be entitled to compensation unless otherwise provided by law or regulation.
Collective procedures for the settlement of liabilities due to cessation of payments are not considered as force majeure.
In all circumstances, the termination of an employment contract by mutual agreement of the parties is valid only if it is noted in writing and signed in the presence of the Labour Inspector.
Art.138.- On the expiry of the contractual labour relations, the employer must immediately issue to the employee, under pain of damages, a certificate specifying exclusively the date of his entry into the undertaking, that of his deposit and the nature of the job held.
When the employee has held several jobs in the company, mention is made of each of them and their respective dates.
This work certificate is exempt from all stamp duties and registration, even if it contains other mentions than those provided for in this article.
Art.139.- The mention “for balance of any account” or any other equivalent mention underwritten by the employee at the time of the rupture of his employment contract or after this break on any document and by which he would forgo all or part of his rights under his contract or his termination will not be enforceable against him.
Chapter 2 – Rules specific to fixed-term contracts
Art.140.- The fixed-term contract ceases automatically upon the arrival of the agreed term upon its conclusion.
Art.141.- On the expiry of the fixed-term contract, unless the contractual labour relations are continued under a contract of indefinite duration, the employer owes the employee a termination indemnity contract equal to 5% of the amount of salaries and benefits of any kind acquired by the latter during the performance of the contract.
It shall also be paid a compensatory leave with pay calculated on the basis of the months of actual service in accordance with the provisions of Article 223.
Art.142.- Subject to the provisions relating to the probationary period, the employer may unilaterally terminate the contract before the expiry of the term only because of gross negligence committed by the employee and respecting the provisions relating to the disciplinary procedure provided for in Articles 91 to 98.
Any termination by the employer that is not justified by gross negligence on the part of the employee entitles the employee to an indemnity equal to the wages and benefits of any kind from which the employee would have benefited for the remaining period up to at the end of his contract.
Any termination by the employer, justified or not by gross negligence on the part of the employee, but pronounced without respect for the disciplinary procedure, entitles the employee to compensation equal to one quarter of the previous indemnity, regardless of whether it is due or not.
Art.143.- Subject to the provisions relating to the probationary period, an employee may unilaterally terminate the contract before the expiry of the term only on the ground of a serious reason, in particular due to non-performance by the employee. Employers own obligations, or a compelling family need.
Any breach by the employee who is not justified by a serious reason entitles the employer to an indemnity determined by the Tribunal on the basis of the reasons given by the employee to justify the termination and injury claims relied on by the employer.
Any break by the employee justified by the employer’s failure to fulfil his own obligations is deemed to have occurred by the employer. The provisions of paragraph 2 of Article 140 apply to it. Compensation for non-compliance with the procedure provided for in paragraph 3 of the same article shall be acquired by the employee only if the employer’s attitude is indicative of a will to fraud or if, by reason of his gravity, can be considered equivalent.
Chapter 3 – Rules specific to the contract of indefinite duration.
Art.144.- The contract of employment of indefinite duration may always cease by the will of one of the parties. This termination is subject to a notice given by the party initiating the break.
The termination of an employment contract of indefinite duration resulting from an initiative of the employer occurring after the expiry of the probationary period is a dismissal.
The termination of an employment contract of indefinite duration resulting from an employee initiative occurring after the end of the probationary period is a resignation. However, such a break-up is considered a dismissal when:
(1)the resignation results from pressure from the employer.
(2) the resignation results from the employer’s non-performance of its own obligations, particularly when the latter has purported to impose unilaterally on the employee a substantial change in his working conditions.
An employee whose resignation is considered to be on a leave of absence benefits from all the rights of the dismissed employees. However, the employer will be debtor of the compensation for non-compliance with the procedure if his attitude is indicative of a desire to fraud or if, by its gravity, it can be held to be equivalent.
Art.183.- Is punished with a fine of 14,700 to 73,500 F CFA, the employer who has not issued the work certificate under the conditions set out in Article 138.
Art.184 .- Are punished with a fine of 73,500 to 147,000 CFA francs in the event of a repeat offense, a fine of 147,000 to 294,000 CFA francs for the perpetrators of infringement of the provisions of articles 81, 83, 85, 86 and 89.
If the violation of Article 83 consists in the non-consultation of the staff representatives, the penalties provided for in Article 409 shall apply.
Art.185.- Are punished with a fine of 73.500 to 147,000 CFA francs in the event of a repeat offense, a fine of 147,000 to 588,000 CFA francs for the perpetrators of infringements of the provisions of articles 77, 78 and 79.
Art.186.- Are punished with a fine of 147.000 to 294,000 FCFA in case of re-offense, a fine of 588.000 to 882.000 F CFA the offenders of the provisions of articles 107, 112, 118, 122 and 123.
Art.187. – Are punished with a fine of 73,500 to 147,000 CFA francs in the event of a second offense, a fine of 147,000 to 294,000 CFA francs, pronounced as many times as there are dismissed employees, the employer’s violators of the provisions of Articles 157 and 158.
Art.188.- is punished with a fine of 73.500 to 147,000 CFA francs in case of re-offense, a fine of 147,000 to 294,000 CFA francs and imprisonment for one to ten days, or one of these two penalties only, any employer who has used the services of worker in breach of the provisions of Article 71.
When the violation of Article 71 concerns a foreign worker, imprisonment is compulsorily pronounced in the event of a repeat offense and is increased from one day to three months.
When the violation of Article 71 concerns a foreign worker the penalties of this article are not incurred by the employer who has been the victim of an error that is not attributable to him, but they are incurred by any person who has provided false information or false documents in order to obtain the visa of the National Office for the Promotion of Employment. The same punishments are incurred by any organizer of illegal or illegal movements of migrants for employment purposes, any perpetrator of foreign labour traffic, irrespective of the country from which they operate.
Art.189 – Are punished with a fine of 147,000 to 294,000 FCFA and, in the event of a subsequent offense, a fine of 288,000 to 882,000 FCFA and imprisonment of six to ten days, or only one of these two penalties, employers who commit Articles 6, 7 and 168, the lenders or borrowers who committed the offense of haggling provided for in Articles 73, 76, as well as those who demanded from the employee a financial guarantee or surety outside the provisions of the collective agreements.
In the case of offenses under Articles 73 and 76, imprisonment must be pronounced in the event of a repeat offense.
The penalties provided for in the first paragraph of this article are incurred by any person who, by violence, threats, deceit, fraud or promises has forced or attempted to compel a worker to hire against his will, or who, by the same means, has attempted to hire him or has prevented him from hiring or fulfilling the obligations imposed by his contract.
Art.190.- Are punished with a fine of 147.000 to 294,000 F CFA and, in case of recidivism, a fine of 147,000 to 882,000 CFA francs and imprisonment from six days to three months, or from this last sentence only the offenders of the provisions of Articles 5 and 52, paragraph 1.
In the case of infringement of Article 52, paragraph 1, penalties are not incurred if the offense was the result of an error concerning the age of the children, not attributable to the employer.
Art.191.- Any employer who has withheld or used in his personal interest, or for the needs of his enterprise, the sums or securities given by the employee under the guarantee, shall be punishable with the penalties provided for in breach of trust even if it is authorized by a collective agreement.
Art.192.- The provisions in force concerning suspension apply to all the offenses provided for and repressed in this title.
When a fine is imposed under this title, it is incurred as many times as there have been infringements, although the total amount of the fines imposed may not exceed 735,000 CFA francs.
For the purposes of the provisions of this title, there is a repetition when, in the twelve months prior to the fact pursued, the offender has already been convicted for an identical act.
Depending on the nature of the offenses, the additional penalties provided for in Book 1, Chapter 1, Section 3 of the Penal Code may be applied.
The facts repressed by this Code are recognized and penalized, as regards the administrative services, according to an administrative procedure determined by decree of the Council of Ministers on the joint proposal of the Minister in charge of the Public Service and the Minister of Labour and Social Security.
Art.193.- The heads of enterprises are civilly responsible for the sentences pronounced against their proxies or agents.
Title 1 – Hours of work, night work, rest and holidays
Chapter 1 – Hours of work
Art.194.- In all non-agricultural public or private establishments, even educational or charitable, the legal duration of work of employees of either sex, of any age. working on time, on the job or on the parts cannot exceed thirty-nine hours a week.
Hours worked beyond this period will give rise to a salary increase.
However, this period may be exceeded by applying the rules on equivalence, overtime, the recovery of lost hours of work and their modulation.
Decrees issued by the Council of Ministers on the proposal of the Minister of Labour and Social Security set the terms and conditions for the distribution of working hours over the different days of the week, as well as the amplitude and duration of the work maximum daily work.
Art.195.- In agricultural and similar establishments, the normal hours of work of employees, whatever their sex and mode of remuneration, may not exceed 2400 hours a year.
Decrees issued by the Council of Ministers, on the joint proposal of the Minister of Labour and Social Security and the Minister in charge of Agriculture, fix, by category of culture and season, the maximum number of hours of work can be done per week.
Art.196.- The equivalence rules are laid down by decree adopted by the Council of Ministers on the proposal of the Minister of Labour and Social Security.
These equivalence rules determine the number of hours of presence at the workstation that equates to thirty-nine hours per week or a maximum of two thousand four hundred hours per year of actual work for agricultural establishments assimilated.
In the absence of any regulation, any hour of presence at the workplace is considered as actual working hours.
Art.197.- The employer may, by its sole decision, subject to the posting and communication procedures to the labour Inspector, impose employees to work overtime within a limit of no more than 94 hours per calendar year. Beyond this, the conditions for overtime work are fixed by decree issued by the Council of Ministers on the proposal of the Minister of Labour and Social Security or on the joint proposal of the Minister of Labour and Social Security and the Minister in charge of Agriculture, as the case may be.
Art.198.- Except for derogations laid down by decrees in the Council of Ministers on the proposal of the Minister of Labour and Social Security and relating to urgent work whose immediate execution is necessary to prevent accidents threatening the safety of workers equipment, the installations, the buildings of the undertaking, or to repair the consequences thereof, either for preparatory or additional work, the performance of overtime may not have the effect of increasing the effective period of time more than 11 hours a day and 54 hours a week.
Art.199.- Overtime is remunerated at a higher rate fixed by decree adopted by the Council of Ministers on the proposal of the Minister of Labour and Social Security. More favourable rates may be fixed by collective agreement.
Art.200.- The recovery rules are laid down by decree adopted by the Council of Ministers on the proposal of the Minister of Labour and Social Security.
These recovery rules determine the cases and conditions in which collective interruptions of work may result in a subsequent increase in hours of work in order to compensate for these losses of activity.
The hours thus recovered are not considered as overtime. However, they cannot justify exceeding the maximum periods laid down in Article 198.
Art.201.- The rules of modulation are fixed by collective agreement. National collective agreements cannot impose the practice of modulation in the companies they regulate, but only by offering it to employers.
The modulation agreements introduce, according to the seasonal fluctuations of the activity of the enterprises, an unequal distribution of the normal working hours over the various periods of the year periods of less activity being exactly offset by periods of greater activity.
Modulation agreements therefore have the effect of reducing, in certain weeks, the hours of work to less than 39 hours and of carrying on other weeks beyond that period without the hours thus completed being regarded as overtime.
Art.202.- In order to be valid, the modulation agreements must indicate the precise annual calendar of hours of work. They must determine the methods of payment of the wages of the workers, which, as far as possible, shall not suffer, in the case of normal hours of work, of variations in their remuneration according to the periods of the year. In any case, modulation agreements cannot result, in periods of low activity and for employees paid at the minimum standard, of a salary lower than that which they would have had if the normal hours of work had been evenly distributed over the period year;
They must determine the terms of additional remuneration, which must be granted, at the expiry of their contract, to employees who, for whatever reason and except in the case of gross negligence, have been employed only year and for which, because of the modulation agreement, the average duration of work would have been greater than 39 hours per week.
Art.203.- Modulation agreements, covering only the normal hours of work, do not prevent the combined practice of hours of recovery, overtime and hours of equivalence.
Rest and Holidays
Daily rest, weekly rest and public holidays
Art.208.- The daily rest of women and young workers under the age of 18 must have a minimum duration of 12 consecutive hours.
Art.209.- The weekly rest is obligatory; it is at least 24 consecutive hours. It usually takes place on Sundays.
A decree issued by the Council of Ministers on the proposal of the Minister of Labour and Social Security and after the opinion of the High Committee for Labour and Social Security determines the modalities for the application of this article, particularly the professions for which and the conditions under which rest may exceptionally and for clearly established reasons, be given in rotation or collectively other days than Sunday, be suspended for compensation of certain festivals or be distributed over a longer period of time longer than the week.
Art.210.- Apprentices and young workers under the age of 18 are always entitled to weekly Sunday rest.
Art.211.- The list and the system of the holidays are determined by decree taken in Council of Ministers on proposal of the Minister in charge of Labour and Social Security.
Paid Annual Leave
Art.212.- The employee acquires the right to paid leave, at the expense of the employer, at the rate of two working days per month of actual work.
Are counted for a month of effective work periods equivalent to four weeks or 24 working days.
Art.213.- For the purpose of calculating the duration of the holiday, the period of actual work shall be considered as the previous paid leave, the absence for a work accident or an occupational disease, the rest periods for women in Articles 110 and 111 and within a limit of 6 months, duly recorded sick leave.
Art.214.- The duration of the leave may be increased by collective agreement, particularly for young people under 18, mothers, employees having acquired a certain seniority in the company.
Art.215.- The duration of the leave for workers employed outside their place of recruitment shall be increased by the time required to move from the place of employment to the place of recruitment and vice versa.
In the absence of an agreement to the contrary, a worker who uses a lane or means of transport which is less rapid than those regularly chosen by the employer under section 285 may not, for that reason, have longer periods of time than those imposed by the way and the normal means.
If he uses a lane or more rapid means, he continues to receive, in addition to the period of leave proper, delays which would have been necessary with the use of the lane and the means chosen by him employer.
Art.216.- Within a limit of ten days, the exceptional leave which would have been granted to the worker on the occasion of family events singing directly his own home. Granted in addition to holidays may, on the contrary, be deducted unless they have been recovered in any form whatsoever.
Art.217.- The right for an employee to take his leave effectively shall start after an actual working period, or considered as such, equal to one year.
Art.218.- The leave must actually be taken within the next 12 months.
To account for seasonal variations in activity, collective agreements may determine the periods of the year during which workers will be required to take their leave.
The order and dates of departure on leave shall be fixed by the employer taking into account the requirements of the service and, as far as possible, the desires of the employee. Each employee must be informed at least 15 days in advance of his leave dates.
Art.219.- With the agreement of the employee, the leave may be split on condition that the employee has a rest period of at least fourteen consecutive days, including weekly days of rest or holidays.
For employees who are employed outside their place of employment, travel time is not taken into account in the minimum period of uninterrupted rest. These periods of time increase only the longest of their periods of leave thus divided.
Art.220.- The employer shall pay to the employee, during the whole period of the holiday, a daily, weekly or monthly allowance at least equal to the daily or weekly average of wages, ancillary to wages, allowances, bonuses and miscellaneous commissions earned by the employee during the twelve months preceding the day of departure on leave.
The calculation of the holiday allowance shall not include: allowances representing professional expenses or risks; the premiums inherent in the nature of the work; benefits in kind, except for food where it is provided by use or by regulation or by agreement.
Art.221.- The leave allowance must be paid in full before the employee leaves.
Art.222.- In addition to the leave allowance, the employer shall cover the travel expenses of employees away from their place of recruitment, their spouses and minor children who usually live with them, as well as the cost of transporting them their baggage from the place of employment to the place of recruitment under the conditions laid down in Articles 281 et seq.
The return to the place of employment is only due if the contract has not expired before the end of the leave and if the employee is, at that date, able to resume his service.
In the event of splitting, travel expenses are due only for the longest periods of the split leave.
Art.223.- When the employment contract ends before the employee has actually been able to take his leave, an allowance calculated on the basis of the leave entitlements acquired on the day of the expiry of the contract must be paid to him.
The right to the holiday is prescribed by 3 years as from the day of the effective and definitive cessation of the work.
Apart from this case, any agreement providing for the payment of a compensatory indemnity instead of the holiday is null and void.
Employer of Record for Chad Africa
Although an Employer of Record often works with a staffing agency, the two are separate business entities. Each has specific roles and responsibilities in their symbiotic relationship. We Handle Employer of Record and Payroll throughout Africa.
An employer of record serves as an employer for tax purposes while an employee performs work for the client, such as a staffing firm or other business. An employer of record in Chad handles all personnel functions, including payroll processing and funding; tax deposits and filing; and employment contracts and paperwork. Maintaining a Certificate of Insurance, and Verification forms; unemployment insurance; and workers’ compensation are done. An employer of record also performs background checks and drug screenings; administers benefits; terminates employees; and may handle worker issues. Conversely, a staffing firm recruits’ employees and assigns them to businesses for worker absences, temporary skill shortages, seasonal work, or special projects. Their main focus is to match temporary, temp-to-hire, long-term, or permanent workers with clients in need.
Using an employer of record in Chad allows the client company to free up time and cost-effectively outsource its necessary human resource functions, employee benefits, payroll, workers’ compensation, and compliance issues. The money saved by outsourcing these functions can be used to expand the business, provide steady income for the owner, or fill a variety of other purposes. Onboarding quality talent is done quickly by an employer of record so clients can quickly ramp up staff and staffing agencies can deliver top quality workers to their clients. Most staffing agency owners don’t have the HR training, payroll and accounting skills, compliance knowledge, or risk management, insurance, and employee benefits background to meet the demands of being an employer.
- Responsibilities and Liabilities
The client company or staffing agency owner retains control over business operations and responsibility for workplace safety and compliance. The employer of record in Chad assumes responsibilities and liabilities for employment issues such as administration, payroll, taxes, benefits, and maintaining employee records. Because the employer of record assumes most of the responsibility for compliance and tax laws, the client or staffing services owner receives peace of mind, knowing their business is being taken care of by qualified professionals.
Whereas an employer of record and staffing agency often work together, they have diverse purposes in the workplace
Chad overview available at Source; https://www.worldbank.org/en/country/chad/overview
Chad Travel Documentation available at; http://www.chadnow.com/chad_travel_guide_information/chad_documentation.php
Chad Individual taxes on personal income available at; http://taxsummaries.pwc.com/ID/Chad-Individual-Taxes-on-personal-income
Chad Labour code original in French available at; https://www.ilo.org/dyn/natlex/docs/ELECTRONIC/47297/77458/F10428800/TCD-47297.pdf