When expanding your business in Ivory Coast (Côte d'Ivoire), consider partnering with an Employer of Record (EOR). An Ivory Coast EOR will handle all employment-related responsibilities and risks, ensuring a smooth and compliant expansion.

An EOR in Ivory Coast manages essential tasks like employee payroll, taxes, and compliance with local labor laws. Your company still oversees day-to-day employee activities, but the EOR becomes the legal employer, taking care of administrative duties. This partnership simplifies your operations in Ivory Coast, allowing you to focus on growth while staying compliant with local laws. It's a smart move for employers looking to expand in the region.

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Côte d'Ivoire boasts an economic freedom score of 61.6, securing its position as the 76th freest economy in the 2022 Index and ranking 4th among sub-Saharan African nations. The country's economy leans heavily on the production of cocoa and coffee, with a notable global presence as one of the largest exporters of cocoa.

Tapping into Ivory Coast’s talent pool can lift a lot of stress on your hiring budget, especially for employers from developwed countries. The dollar-West African CFA franc arbitrage enables employers to pay employees in Ivory Coast several times lesser than an employee in the USA. However, employers must consider these potential pitfalls – compliance with employment laws, employee misclassification. 

Some aspects of Ivory Coast’s labor laws can be different to what employers in the USA,UK, Singapore usually engage with. For example, employers in these countries may have never engaged with labor unions,. However, labor unions are quite strong in Ivory Coast. Employers have to be hire around collective bargaining agreements (CBAs), which can cover various aspects of employment, such as working conditions, wages, and benefits.

To navigate the Ivory Coast’s labor laws effectively, consider using an Employer of Record (EOR) or a Professional Employer Organization (PEO).

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The cost of Ivory Coast EOR/PEO services can vary depending on factors such as the number of employees, the extent of services needed, and the intricacy of the project. Typically, the pricing structure involves a monthly fee per employee or a percentage of the employee's salary - extra services or customization may warrant additional charges. It's essential to consult with an EOR/PEO provider in Ivory Coast to get a tailored quote that aligns with your company's requirements and budget, allowing you to effectively plan and manage your expansion costs in Ivory Coast.

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‍Key Metrics For Foreign Employers 

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For foreign businesses, Ivory Coast's strategic location in West Africa makes it a gateway to neighboring countries in the Economic Community of West African States (ECOWAS) region, making it an ideal location for regional operations. To grab this opportunity, the Ivorian government has implemented tax breaks and other incentives for foreign employers to hire local citizens.

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The term "misclassification of employees" refers to the inaccurate classification of workers by their employers. Misclassification occurs when an employer categorizes a worker as an independent contractor or exempts them from certain employment laws and benefits, even if the worker should be classified as an employee and entitled to legal protections, benefits, and rights. 

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Utilizing a PEO/EOR in Ivory Coast helps mitigate the risks associated with misclassification by ensuring compliance with labour laws, proper employee classification, accurate payroll processing, and access to comprehensive benefits. This enables businesses to focus on their core operations while entrusting employment-related responsibilities to experienced professionals.

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To gain a comprehensive understanding of working conditions in Ivory Coast (Côte d'Ivoire), it's essential to consider the labor laws of 2015, pre-existing decrees, the collective bargaining agreements. Reading further will provide you with insights into the employment landscape in the country.

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Employment contract

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In Ivory Coast (Côte d'Ivoire), employee classification can fall into one of two categories: full-time employees or independent contractors, and this classification is determined by the employer in accordance with the country's labor laws.

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The key distinction between these two classifications lies in the benefits and responsibilities associated with each:

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• Full-time Employees: Full-time employees in Ivory Coast are entitled to a range of benefits, including statutory sick pay, maternity and paternity leave, minimum notice periods, legal protection against unfair dismissal, and more. They are integrated into the employer's payroll system, and their taxes are typically withheld by the employer.
• Contractors: Contractors in Ivory Coast work on a project-to-project basis. They are responsible for managing their own business entity, paying their taxes independently, and have the flexibility to work for multiple clients simultaneously. They do not become part of the employer's payroll system.

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Employment contracts in Ivory Coast must be written in French to comply with local regulations. This ensures clarity in the employment relationship between the employer and the employee or contractor.

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Working time

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The typical workweek comprises 40 hours, which are distributed over five days from Monday to Friday, with each day accounting for eight hours of work.

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Overtime

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Additional compensation for overtime in Ivory Coast follows a specific structure. 

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Employees receive a 115% salary rate for the initial eight extra hours worked, followed by a 150% salary rate for any additional hour. 

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For extra hours worked during the night, employees receive a 175% premium.

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Executives, however, may be exempt from these overtime limitations if a fixed lump sum premium is mutually agreed upon and specified in their employment contract.

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Public Holidays

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Employees are entitled to 14 days of annual leave. If a holiday falls on a weekend, it is forfeited.

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Minimum Wage

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The minimum wage in Ivory Coast stands at 75,000 CFA francs.

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Annual Leave

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Employees are granted a minimum of 26 working days of paid annual leave after completing one year of service. They are required to take one continuous period of 14 consecutive days off each year. 

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The allocation of leave days increases with the length of service:

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‍Paid Sick Leaves

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Employees can receive a maximum of five days of paid sick leave per year, and the cost of sick leave is borne by the employer

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Maternity leaves

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Female employees in Ivory Coast are eligible for 14 weeks of paid maternity leave, with a mandatory six-week leave period before the expected due date and an additional eight weeks after childbirth. 

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Prior to the start of maternity leave, maternity confirmation certificates must be submitted.

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Paternity leaves

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In Ivory Coast, fathers have the right to ten days of paid paternity leave, and this leave is covered by the family allowance.

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Tax and Social Security contribution:

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EMPLOYER PAYROLL 

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The "Total Employment Cost" can range from 15.45% to 18.45%, depending on factors such as the specific contribution rates applied for work injury and disability under CSS.

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EMPLOYEE PAYROLL

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Employee Income tax

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Termination 

Employers have the option to conclude a fixed-term contract based on various grounds, including business needs, personal reasons, or employee misconduct. Termination notices must be documented in writing, clearly state the grounds for termination, and be personally delivered to the employee.

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Severance Pay

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Notice Period

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Notice periods are established by employment regulations and differ based on occupation and income. In general, they are structured as follows:

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Both employers and employees are obligated to adhere to these notice periods.

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Probation period

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The legally mandated probation periods in Ivory Coast are as follows:

•  8 days for employees paid on a daily or hourly basis
•  1 month for employees paid on a monthly basis
•  2 months for roles such as supervisors, technicians, and positions of a similar nature

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When it comes to hiring globally, compliance can be a major headache. You need to follow local employment laws, sort out payroll issues, and make sure you're in line with regulations like GDPR and diversity and inclusion rules. Setting up local operations and hiring can be complex, and staying compliant is even tougher.

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That's where Gloroots comes in. We simplify everything by giving you one place to handle it all. Our experts take care of the tricky cross-border employment and payroll rules, leaving you to focus on finding the right people for your team.

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Our promise is a smooth global hiring process for you and your employees. Get in touch with our experts today to kickstart your hiring in Ivory Coast.

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Expanding your team in Ivory Coast involves hiring the right employees at the right time and for the appropriate positions. Employers in Ivory Coast must have a local entity to handle compliance, payroll, tax, and benefits management, given the complexity of employment regulations in the country.

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With Gloroots’s global Employer of Record (EoR) service, you can delegate payroll, tax, benefits, and compliance responsibilities, allowing you to focus on your employees and company growth. This partnership streamlines your expansion efforts, ensures compliance with local regulations, and makes your growth journey in Ivory Coast more efficient.

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