Hiring in Guinea-Bissau: the contract approval, the contract and what comes off pay, step by step

Move someone who is already in Guinea-Bissau

Every contract with a foreign national is approved and deposited before work starts. A foreign national who moves to a new employer needs the new contract approved and deposited in the same way.

A national of Guinea-Bissau needs no approval. Their move turns on the notice they give: 30 days in writing with up to two years' service, or 60 days after that. On a fixed term, it is 30 days where the contract runs six months or more, and 15 days on a shorter one.

Check the role is open to a non-national

A foreign national can be hired only where no national of Guinea-Bissau has the qualifications the work needs. A private company cannot hire a foreign worker in breach of equal access to work for nationals who offer the same qualifications.

A national doing the same work as a foreign employee cannot be paid less than them. Rules on career, seniority and productivity can still set pay apart.

The Code extends its right to work to nationals of the member states of ECOWAS and UEMOA, and of any country that does not discriminate against Guinea-Bissau's citizens.

Set the contract up right

A contract of employment is in writing, except for specific tasks of 30 days or less. A fixed term, a part-time contract and a foreign national's contract are always written. Within 30 days of the start, the employer tells the employee the place of work, the job, the base pay and how often it is paid, any collective agreement that applies, and the normal hours where they are shorter than the law's.

As a rule, a fixed term covers the business's temporary needs, for as long as they last. With prior authorisation, it can also be used to launch a new business or activity, or to hire someone looking for a first job or long unemployed. It states its reason, and it is deposited with the Labour Inspectorate. It runs for up to six years, renewals included, with no more than two renewals. After that it can be renewed once more, for two to four years. For a first job, long unemployment or a new activity inland, it runs for no more than four years in all, or three for someone looking for a first job. A fixed term of more than three years also carries the visa of the government department for employment. A contract that passes these limits is open-ended, with seniority from the first day.

A trial period applies unless the two sides agree in writing that it does not. It lasts up to six months for senior staff and three months for everyone else. On a fixed term of more than four years, it lasts up to two months, and 30 days on any other. Either side can end it without notice or a reason. Once it has lasted more than 60 days, the employer gives seven days' notice. Where the contract ends during the trial, the employer pays the employee's journey home.

Pay is in money, or partly in kind where agreed. It falls due by the week, the fortnight or the month, unless agreed otherwise. Each payment comes with a statement of the base pay, the other items, the deductions and the net amount. Deductions the law does not order come to no more than a sixth of the pay.

The normal day is eight hours, and the normal week up to 45. Nobody works more than five hours in a row, and the day has a break of one to two hours. The weekly rest is a day, in principle Sunday.

Overtime is worked for a passing rise in work, or to meet force majeure or prevent serious harm to the business. It runs to no more than two hours on a working day and 175 hours a year, or 200 where a collective agreement allows. It is paid at 50% more for the first hour and 75% more for each hour after it. On a rest day or a public holiday it is paid at 100% more. Overtime on a working day, a complementary rest day or a public holiday earns paid rest of 25% of the hours, taken within 90 days. Work on the weekly rest day earns a full day off within the next three days. Night work, between 20:00 and 07:00, is paid at 25% more than the same work by day. That premium does not apply where the pay was set for night work, or in a business that works mainly at night or serves the public at night, unless a collective agreement provides it.

Know the employee test before you engage a contractor

Guinea-Bissau's Code treats as a contract of employment any agreement by which a worker, for pay, puts their activity at another's service under that person's authority and direction.

A contract of employment is presumed where five things hold together. The person works within the organisation, under its instructions. They work at its premises or a place it controls, to hours it set. They are paid by the time they spend, or depend on it economically. It mainly supplies the tools of the work. The work has run for at least 30 days without a break. The business then has to prove there is no legal subordination and no economic dependence.

Work done without subordination, but in economic dependence on the business, still carries the general principles of employment, the minimum wage and health and safety among them.

A role that needs the contract approval goes through employer of record.

Know what comes off pay each month

The INSS takes 8% of pay from the employee and 14% from the employer. It counts the base pay, pay in kind, every regular payment, commissions and bonuses, and any sum paid when the contract ends. Transport expenses and daily subsistence allowances are left out. The month's contributions are paid with its wage sheet from the 1st to the 15th of the next month. A late payment carries interest of 3% for each calendar month or part of one.

The Imposto Profissional is withheld from each month's pay, on monthly bands. Each rate applies only to the pay within its band.

The tax withheld is paid over within ten days of the end of the month. The employer cannot bear the tax for the employee. A democracy tax is assessed with the Imposto Profissional, on a progressive scale of its own. The employer also insures work accidents with an insurer authorised to cover them.

Know the leave your people are entitled to

End employment on the law's terms

A contract ends by agreement, on its expiry, for just cause, through a collective dismissal or the elimination of a job or unsuitability for it, or on the employee's notice. A dismissal without just cause, or for national origin, colour, sex, religion, political opinion or social origin, is prohibited. An agreement to end a contract is in writing, signed by both sides and dated.

A dismissal for the employee's conduct follows a disciplinary process. The employer gives written notice of its intention to dismiss, with a note of the charges, and copies both to the workers' committee. The employee has ten working days to see the file and answer in writing. Once the evidence is gathered, the committee has five working days to give its opinion. The employer then decides, in writing and with reasons, within 30 days.

A collective dismissal ends the contracts of two or more employees, for economic, technical or organisational reasons. The labour ministry, the employees and their unions are told of the plan together, and the unions have 15 days to give their opinion. Consultations follow. The decision is given 90 days before the contracts end, or the employer pays double the pay for the notice not given. During the notice, the employee has two paid days a week to look for work. Those dismissed keep priority for rehiring for two years.

A fixed term ends at its expiry where the employer gives 15 days' written notice, or the employee eight days'. Where the employer ends it, the employee is owed three days' base pay for each month of a contract of up to six months, or two days' for a longer one.

A contract for an uncertain term ends on the employer's notice, once its end can be foreseen. The notice is seven days where it has run up to six months, 30 days up to two years, and 60 days beyond. Its end carries the same compensation as the end of a fixed term.

Only a court can find a dismissal unlawful, in a claim the employee brings within a year of the dismissal. A collective dismissal has shorter time limits. Where the court finds a dismissal unlawful, it can order reinstatement, with the pay lost since the dismissal. In its place, the employee can take compensation, which the court sets at no less than three months' pay. Where the court accepts the employer's objection to reinstating a manager, or an employee of a micro-business, the compensation it sets is at least six months' pay. The dismissal of a pregnant employee, a new mother or a nursing mother is presumed to be without just cause.

A work certificate is owed whatever the reason the contract ends.

See what changed, and what is next

No change to the INSS contribution rates took effect in the last twelve months.