Employer of record in Botswana
Skuad’s Employer of Record Botswana (EOR) solutions make business expansion to Botswana easy and hassle-free. Our unique HR platform allows companies to hire exceptionally talented employees in Botswana, without having to set up a separate legal entity. It streamlines the process of hiring and onboarding a remote team by handling payroll management, taxation, and other legal compliances. To learn more about Skuad, Book a demo today.
Botswana at a Glance
Population: 2,397,666
Currency: Botswana Pula (BWP)
Capital city: Gaborone
Languages Spoken: English and Tswana.
GDP: USD 17,406,565,823
Employment in Botswana
What You Must Know Before Employing in Botswana?
The Republic of Botswana is a landlocked nation in Southern Africa. The economic and political system of this English-speaking country is stable and free from corruption. Botswana - Employment (Amendment) Act 2010 applies to both citizens and foreign nationals. A deep insight into all the crucial aspects of the Botswana employment laws will minimize the delays and complications.
Some employee entitlements under Botswana employment laws are as follows.
Entitlements |
Explanations |
Statutory Working Hours |
48 hours/ Week |
Overtime Eligibility |
Overtime pay is disbursed at the rate of 150% of the normal pay.
For work over public holidays or weekends, rest time accounts for 200% of the normal pay.
|
Paid Public Holidays |
The public holidays in Malawi are as follows:-
- New Year’s Day ((January 1)
- Good Friday (April 2)
- Easter Monday (April 5)
- Labor Day ( May 1)
- Ascension Day (May 13)
- Sir Seretse Khama Day (July 1)
- Presidents’ Day (July 19)
- Independence Day (September 30)
- Christmas Day (December 25)
- Boxing Day (December 26)
|
Annual Leave |
An employee is entitled to receive annual leave pay of a minimum of 1.25 days for every month. This converts to 15 working days of annual leave/ Year. Also, Annual leave does not increase with the employment length with the employer.
After the new year has started, the employer needs to determine the amount and T&C related to the annual paid leave in advance. All accrued unutilized annual leaves must be paid to the employee on termination.
Payment in place of yearly leave is possible where the employment contract has been terminated by any of the parties. An employer becomes liable to compensate the employee of his basic pay in regards to any period of accumulated leave that has otherwise accrued to him but has not been granted before the termination of the employment contract.
An employee is entitled to receive full payment on festivals, religious and public holidays
|
Weekly Rest Days |
Workers are entitled to a rest period of at least 24 consecutive hours in any period of 7 consecutive days. This period is ordinarily a Sunday or includes a Sunday. Where the employee is engaged in shift work, he is to be granted a rest period comprising any period of 30 consecutive hours.
|
Holiday Pay |
Employees are entitled to receive half-paid leaves of 15 days/year, out of which eight days must be taken within six months and the remaining days must be taken within three years. |
Sick Leave |
Employees are entitled to receive 20 days of sick leave /year. However, the leave will be granted only once an employee submits a medical certificate. |
Maternity Leave |
Female employees are entitled to receive half-paid 12 weeks of maternity leave. Out of which six weeks paid leaves can be taken before the birth and six weeks after the birth of a baby. Maternity leave is subject to extension in pregnancy-related illnesses. An employee must submit a certificate obtained from a doctor.
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Skuad’s Botswana EOR solution aims to fast-track your business expansion efforts sans any hassles and delays. To learn more, get in touch with Skuad experts today.
Contractors vs. Full-time Employees
Employment contracts in Botswana can be written or oral. Though, it is always in the best interest of both (employee and employer) to opt for a written contract to keep any complex legal hassles at bay. Also, the contract must be put in a local language while ensuring that it spells out all the terms related to the employee’s compensation, termination, benefits, Botswana employment laws and Botswana employment contracts, and more. An offer letter in Botswana must also clearly mention the salary and other compensation-related benefits in local currency i.e. Botswana Pula instead of any foreign currency. However, if you hire an EOR, you need not require drafting a separate employment contract.
Full-time employees are those who are recruited by your firm to work exclusively for a dedicated amount of hours. They are entitled to receive a fixed salary along with fetching other statutory benefits. A termination notice is mandatory in case an employer decides to terminate the working relationship with a full-time employee.
Contractors are freelancers who are hired to work on a freelance basis. They are compensated based on project-basis and work as per the requirements. A hiring company is not liable to pay any statutory benefits to a contractor. Also, work can be terminated with an employee on a short notice period anytime.
Attracting the top talent that too, a global one proves to be much cheaper in comparison to choosing an in-house option. It saves a considerable amount of the cost in comparison to engaging and paying a talent through in-house HR. Hiring contractors results in several benefits right from flexibility related to ever-changing resources requirements to leveraging the contractors’ experience to enter a new market to enjoying financial flexibility, and beyond.
Hiring full-time employees result in increased employee loyalty due to stable salaries. Also, the knowledge and exclusive skills of a full-time employee remain accessible to an employer organization only. The threats related to data breaches are minimized due to job security. In terms of compliance and penalties minimization, hiring a full-time employee proves to be beneficial in comparison to the contractor.
Nevertheless, whatever option you decide to opt for, it is always prudent to optimize the expertise of a reputed EOR. Talk To Skuad Experts if you intend to know more about Botswana EOR.
Hiring in Botswana
Botswana’s economy mainly relies on the Diamond trade, Mineral Industry, Textile Industry, Livestock Processing, and more. The hiring process in Botswana begins with choosing an industry to expand, assessing HR requirements, receiving applications, processing interviews, candidate selection, getting contracts prepared, and more. There are many popular job portals in Botswana through which an employer can hire employees on either a contractual basis or full-time.
However, reliance on job portals for the recruitment process comes with its own sets of pros and cons. Undeniably, if time is the major constraint, relying on Job portal hiring solutions does make sense but ensuring the reliability of shortlisted candidates can prove to be a daunting task. Learn more about the hiring process in Botswana and how an experienced EOR does take the lead by fast-tracking the entire hiring process in Botswana.
Probation & Termination
(Botswana - Employment (Amendment) Act 2010)
Probation
Probation in Botswana is regulated under the Botswana- Employment (Amendment Act 2010). Employment contract offers a provision for a probation period for employment contract with an indefinite term with skilled and unskilled workers. The length of an employment contract is three months for an unskilled worker, and 12 months for a skilled worker. An employment contract can be terminated during the probation period by giving a minimum. Neither the employee nor the employer is required to provide any reason.
Topics |
Explanation |
Notice For Termination Of Employment Botswana |
Termination - Termination is required to be provided in writing to an employee. The notice period should be equal to an employee’s pay period. This implies that if an employee is paid every month, the notice period required is one month. If an employee is paid every week, the notice period is one week. However, the notice is not required if an employee is dismissed for poor performance or misconduct.
Redundancy dismissals are subjected to special rules.
Professional level staff including executives, managers, and others are entitled to be the recipient of severance pay post 60 consecutive months related to employment. This is calculated as a day of pay related to each month served up to 60 months and then two days for every further month.
Last, but not least, an employee must be offered an opportunity to present a counter argument against termination.
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To ensure hassle-free expansion endeavors abiding by the laws regarding probation and termination in Botswana, Book a demo with Skuad experts.
EOR Solution
Employer of Record (Guinea EOR) solution streamlines the process of hiring and onboarding the employees without the need to establish a separate entity to hire and manage a remote team here. Companies find it easier to outsource complete or specific HR functions to an EOR for it assumes all responsibilities and liabilities of compensation, benefits, claims for unemployment to filing taxes under its ID, and payroll funding.
General Employer Of Record Service Terms
If you are thinking of collaborating with a trusted EOR that gives you an edge, Skuad’s technologically advanced EOR solution is your best option. Talk to us and we will let you know how we do it for you.
Types of Visas in Botswana
Companies struggle to gain clarity on Botswana laws and regulations for work visas.
Type of Visa |
Explanation |
Tourist Visa |
Tourist Visa is strictly issued for Vacation or Tourism.
- Validity: 3 months
- Processing time: 7-14 days
- Entry: Single entry
|
Visitor Visa |
Visitor Visa is issued either for social or medical reasons.
- Validity: 3 months
- Processing time: 7-14 days
- Entry: Single entry
|
Business Visa |
Business Visa is issued to traders and prospective investors who aim to explore business opportunities in Botswana.
- Validity: 3 months
- Processing time: 7-14 days
- Processing time: 7-14 days
|
Work Permit
Botswana demands all foreign nationals possess a valid work permit. With the right documentation for your employees, you can save a considerable amount of time and effort to start operations in the country of your expansion.
Work Permit Category |
Explanation |
Work Permit |
Botswana has a single work permit for all foreign employees under the Employment related to the Non-Citizens Act. No employer can engage an employee until an employee holds a valid Botswana work permit. An employee can renew a work permit by going through the work permit process again through the initial application. |
Work permits are issued to an applicant with a validity period which the board feels to be appropriate. Work permit Botswana can be renewed and the process is very much similar to an initial application.
The following documents are required to obtain a work permit in Botswana
- Completed application form {Form 15}
- Original medical report { Completed Form 3}
- Copy of job advertisement not older than 6 months old
- Copy of Employment Contract
- Signed Application letter for work
- Appointment letter or Letter of offer
- Applicants’ CV
- Certified copies of educational certificates translated into English
- Certified copy of a valid passport
- Passport-size photos (2 Copies)
Securing work permits for your employees is one of Skuad’s foremost EOR features. To know more about Work Permit Botswana, book a demo with Skuad experts today.
Payroll & Taxes in Botswana
Payroll in Botswana
As a foreign company, you need to gain clarity regarding countless legal stipulations on local taxation laws including income tax, business tax, social security cost, withholding tax, and compensation insurance. There are three different ways of expanding in Botswana.
- By setting up a subsidiary and establishing an in-house HR team to manage the payroll.
- By hiring local payroll organizations to ensure compliance with the Botswana employment laws.
- By outsourcing payroll to EOR companies such as Skuad
Taxes in Botswana
Botswana does not have any provision related to social security taxes and payroll as it operates under a (PAYE) Pay As You Earn system that differs for non-resident taxpayers and resident taxpayers. Resident tax rates vary from 0-25% depending on the taxable income. Non-resident taxpayers contribute anywhere from 5-25% depending on the income.
Summary of Tax Rates
Entity |
Income Tax Rate (%) |
Resident Companies |
22 |
Non-resident companies |
30 |
Approved Manufacturing Companies |
15 |
IFSC Companies |
15 |
Pension & Provident Funds not approved by Commissioners |
7.5 |
In all other cases for Malawi branches of external companies |
20 |
To learn more about Botswana payroll management and to find out how Skuad can assist you to set up payroll and manage taxation in Botswana, talk to Skuad experts and book a demo.
Incorporation: Incorporating a Subsidiary Company in Botswana
Establishing a subsidiary company in Botswana increases the ease of doing business. Different subsidiary formats in Botswana include Limited Liability Company (LLP), LLC, Public Limited Company (PLC), Offshore Company (IFSC), Representative Office, and Branch. Each option comes with its own set of cons and pros. However, the majority of companies prefer to opt for the LLC route as it imparts benefits to both parent and subsidiary companies. For incorporating a subsidiary in Botswana, a company requires completing the following steps:-
Botswana subsidiary laws differ based on the type of subsidiary format. For instance, for an LLC, a minimum of one director should be a resident of Botswana along with one Shareholder who can be of any Nationality. Interestingly, unlike most of the countries, Botswana requires no minimum paid-up share capital. A registered office is mandatory in Botswana and a company requires submitting audited financial statements within 5 months at the year-end and should hire a qualified CS to handle this task. All companies looking to establish subsidiaries must register the Name, Title, Description, or Style under which the subsidiary is set up.
Also, it is crucial to keep these documents safe at the LLC office. Moreover, it is recommended to gain insights into possible expenditures, the company’s articles of association, lawyer fees, fees to the government, and beyond.
Benefits of Establishing a Subsidiary
Establishing a Subsidiary in Botswana enables a company to operate legally in Botswana. By establishing a subsidiary, a company receives benefits as a subsidiary company but the scope of benefits also expands to the parent company. With the help of Skuad’s Botswana EOR Solution, you can set up a subsidiary without experiencing any delays and troubles. Learn more about availing of Skuad’s EOR solution for Botswana.
Professional Employer Organization
A Professional Employer Organization (PEO) is an organization that shares the responsibility of managing employees and payroll with your company. Unlike EOR services where the complete responsibility of compliance management lies with the outsourced company, a PEO works jointly with your business.
Responsibilities |
EOR |
PEO |
Legal employer |
Yes |
No. Legal co-employer |
Services for a minimum of |
1-5 employees |
5-10 employees |
Local business registration |
Not required |
Required |
Insurance |
Workers Compensation provided |
Not provided |
Skuad's EOR solution is a good way to expand your business in Botswana without setting up a separate entity. Our solutions help you to stay focused on your business and leave all business compliances, payroll processing and complete management work to us. Connect with Skuad to know more.
Conclusion: What Makes Skuad’s Botswana Solutions The Best Option?
Do you think you are ready to expand your company’s business operations in Botswana? Skuad’s Employer of Record Botswana services can make the process fast and easy by handling your Employment requirements in compliance with the local labor laws. If you want to discuss know more on how Skuad’s unified employment platform can help with your organization's expansion plans, Book a demo with Skuad today!
FAQs
1) What is an Employer of Record in Botswana?
An Employer of Record (EOR) in Botswana helps foreign organizations hire employees legally without a local entity. The EOR manages employment contracts, tax compliance, payroll, and ensures adherence to Botswana’s labor laws.
2) What is an Employer of Record vs PEO?
An Employer of Record (EOR) is the legal employer of the workers, managing all employment-related tasks, while a PEO (Professional Employer Organization) co-manages HR functions with the client company but does not assume full legal responsibility for the employees.
3) What is the Employer of Record in Africa?
An Employer of Record (EOR) in Africa helps businesses hire employees without local entities across different countries on the continent by taking full responsibility for local employment compliance, payroll, and taxes.
4) What is the difference between Employer of Record and Payroll?
An EOR takes on full employment responsibilities, including payroll, taxes, and local compliance. Payroll services, on the other hand, focus solely on salary processing and tax deductions but do not assume legal responsibility for employees.
5) How much does an EOR cost?
The cost of an EOR varies by country, the complexity of local laws, and the number of employees. EORs typically charge a monthly fee per employee, which can range from $100 to $1000 or even more, depending on the region and services required.
6) What are the benefits of EOR?
The benefits of using an EOR include legal compliance, faster entry into new markets, cost savings from not having to establish a local entity, reduced legal risks, and streamlined payroll and tax management for international employees.