Employer of Record (EOR) in Namibia - Employment Laws, Payroll, Hiring

Employer of Record in Namibia

Skuad’s Namibia EOR (Employer of Record) solution is tailor-made for your expansion plans in Namibia. Organizations can expand into Namibia without setting up a legal entity, as Skuad will handle the end-to-end management of your remote team. Skuad’s technologically advanced self-serve platform offers fast and cost-effective methodologies for your human resources function.

To expand your business in Namibia and tap into its growing economy, Contact Skuad today.

Namibia at a Glance

Population: 2494530

Currency: Namibian Dollar, South African Rand

Capital city: Windhoek

Languages spoken: English, Afrikaans

GDP: USD 12.367 Billion

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Employment in Namibia

Namibian laws are rooted in the South African labor laws. Employment laws in Namibia apply to both foreign nationals and citizens. Understanding employee entitlements is foundational to employing here.

Some of the primary employee entitlements are listed below:

Entitlements	Explanations
Statutory Working Hours	Forty-five (45) hours per week. Nine (9) hours per day. seven-and-a-half (7.5) hours for shift workers.
Overtime Eligibility	Overtime is not permitted unless the employment contract between the employer and the employee explicitly allows the same. Overtime cannot exceed three (3) hours a day and ten (10) hours per week. If the employer wishes to exceed this statutory over time, he may write a letter to the Permanent Secretary and request the same.
Paid Public Holidays	New Year’s Day (1 January) Good Friday Easter Monday Independence Day (21 May) Workers Day (1 May) Cassinga Day (4 May) Ascension Day Africa Day (25 May) Heroes Day (26 August) Day of the Namibian Women and International Human Rights Day (10 December) Christmas Day (25 December) Family Day (26 December)
Holiday Pay	Sick Leave: Employees who do not work longer than five days a week are entitled to 30 working days of sick leave. Employees who work longer than five days a week are entitled to 36 days. The sick leave cycle for all employees is 36 consecutive months. Vacation Leave: Employees are entitled to 4 to 24 days of vacation leave depending on their service period.
Maternity Leave	On completing 12 months of service, a female employee would be entitled to four (4) weeks of paid maternity leave before the child’s birth and eight (8) weeks after the child’s birth bringing it to a total of twelve (12) weeks of paid maternity leave. A certificate from a medical practitioner is necessary to verify the details.
Paternity Leave	The statute does not specify a paternity leave.
Employment Termination/Severance	If an employer wishes to terminate an employee’s contract then as per Namibian law, due process should be followed and a fair reason must be provided. This is applicable regardless of whether a notice has been given. Fair reason includes employee’s misconduct, incapacity of the employee to perform the work allotted, employee incompatibility, etc. Unfair termination of an employment contract would take place if the said termination has taken place on grounds such as (a) refusal to do anything unlawful, (b) if the employee exercises his rights under the law, (c) if the employee exercises his rights under the contract, and (d) if the employee discloses information that he is legally required to. An employee is entitled to severance pay only after 12 months of continuous uninterrupted service. This severance pay is equivalent to one week’s remuneration for each year of service.
Employment Contracts	Under Namibian law, employment contracts are not required to be written. Employment contracts can be for an indefinite period or a limited duration. The contract must explicitly contain identifying details of both the employer and the employee, the salary that the employee will be entitled to, details of the workplace, the working hours that will be applicable, the nature of the job, etc. There is no statutory limitation placed on the fixed-term contract period and is entirely dependent upon the contract between the two parties.
Health Insurance Benefits/Medical Care	There is no statutory requirement for the same. However, most employers offer health insurance benefits in Namibia.
Employee Protection and Anti-discrimination Rights	The Labour Code (1992) of Namibia contains general provisions about occupational safety and health. It has defined the basic terms and conditions for work. It aligns with the ILO Conventions.
Confidentiality of Personal Information	Namibia does not have a data protection law in place. However, it is known to uphold rule of law and comply with international standards. Rest assured, all details shared with Skuad remain extremely safe as we understand your digital privacy concerns.

Skuad’s EOR solutions ensure organizations remain 100% compliant with the Namibian employment laws. Book a demo today.

Contractors Vs. Full-Time Employees

It is your choice to hire a full-time or a contractual employee depending on the requirements of your business. However, you must know that taxes are applied differently in Namibia for contractors and full-time employees. A written contract in the local language is mandatory for full-time employment. For any further queries, connect with Skuad experts.

Hiring in Namibia

Certain job search platforms relevant to Namibia are -

In addition to this, LinkedIn as a platform can always be resorted to looking for a job in Namibia.

While using any of these job search platforms, we encourage you to do your due diligence regarding the authenticity of the same.

Skuad can ease this process for its clients and ensure that vetted candidates with exceptional talent are remotely onboarded to your team. Skuad handles the hiring processes of both full-time employees as well as independent contractors in Namibia. It has a pre-vetted list of candidates that allows you to hire a whole team within 24 hours.

To know more regarding how Skuad can help ease the hiring process for your company in Namibia, get in touch with Skuad experts today.

Probation and Termination

Probation Period

The probation period in Namibia is not specified in the applicable labor laws. However, this can be determined within the employment contract between the employer and the employee. Call us today to enquire further.

Termination of Service

To terminate the employment contract, the Labour Code requires a written notice to the other party. The period of notice depends on the years of service that the employee has served. Since Namibia is an advocate of rule of law, its laws ensure that employers cannot arbitrarily and without any just or fair reason terminate an employee's contract.

Employees can be terminated when the work contract for a specific project is complete, for misconduct, the end of a fixed-term contract, or by mutual consent. Learn more about termination laws in Namibia.

EOR Solution in Namibia

Namibia Employer of Record (Namibia EOR) solution is a faster, more efficient, and easier solution for businesses that choose to expand into Namibia. With Skuad handling your HR needs remotely, no entity establishment is necessary. Skuad also takes care of all compliance needs that your business might have. It takes care of the onboarding, managing, paying, etc. in addition to addressing all needs of the employer as well as the employees. Skuad generates a single invoice where the employer can track all details necessary without any hassle.

To expand your business in Namibia and tap into their growing economy, Book a demo with Skuad experts today.

Outsourcing Employment Through An Employer of Record

When as an organization you decide to expand into Namibia, you also need to decide the route you want to take. Whether you want to build an in-house team or take the services of an EOR to manage payroll and employee lifecycle. Skuad can assist you with the same and provide remote services allowing you to focus on your core business activities while our unified platform takes care of the entire lifecycle of every employee- from hire to fire.

Feel free to connect with us for all your queries.

Types of Visas in Namibia

The two kinds of work visas offered in Namibia are as follows.

1. Namibia work visa, which is a short-term temporary work visa for up to six months.

2. A work permit visa, which is for a longer period of one to three years. The requirements for a temporary work visa, are as follows:

A correctly signed and completed application form.
A motivation letter from the applicant.
The applicant's CV/Resume.
Proof of qualifications of the applicant.
Police clearance from the country of origin as well as Namibia if the applicant has been a resident there before.
A satisfactory radiological Report coupled with medical reports.
A Deed of Surety.
Proof of means of sustenance while in Namibia.
Proof of employment contract.
Copies of all passport pages.

It usually takes around seven to ninety business days for the Namibian visa to be processed. Feel free to connect with us, to solve any queries that might arise.

Work Permit

All individuals planning to work in Namibia will need a work permit to stay compliant if they do not have a temporary work visa or are staying for longer than six months. A work permit takes the form of a stamp or an endorsement in the applicant’s passport. Skuad’s local partner in Namibia can sponsor foreign workers for work permits. As an EOR in Namibia, Skuad takes care of all the requirements and responsibilities related to employment. On Skuad’s HR platform, the client company can manage their employees’ daily activities and operations.

Work Permits
Can Skuad Sponsor Work Permit in Namibia	Yes
Passport submission	This is required to obtain a work permit. It is necessary so that the Namibia authorities can verify the employee’s identity.
Work Permit Validity	1-3 years.
Where and how is the application processed?	It is issued by either a Namibian consulate, embassy, or Department of Home Affairs. The Immigration Board takes into account various factors before granting a work permit. These include (a) the applicant is required to prove that he/she possesses the required qualifications and skills in the field that they will be employed in, (b) that the prospective employer has not been able to fill the position that the applicant has gotten, with a Namibian candidate.
Work Permit Requirements	The documents required for a work permit are: By the Applicant/Employee: A fully signed and completed application form. Two recent passport-sized photographs. Educational certificates and qualifications proving the applicant’s merit. A record of the applicant’s previous positions held and work references. A police certificate from the applicant’s country of origin. A radiological report and medical certificate. A copy of the applicant’s passport. Copy of marriage/divorce certificate if married to a Namibian citizen, and the consequent proof of citizenship. By the Employer: The work offer letter (Representation by Employer). If the position was advertised, then a copy of such Advertisement. Motivational letter from the prospective employer. The deed of surety. Proof that the vacancy was advertised adequately in the Namibian press. Additionally, a guarantee payment must be made by the applicant to the appropriate Gazette to ensure that the employee will adhere to the terms and conditions that the permit was issued under.
When Can Employee Travel to Namibia?	Once the work visa or the work permit is available and valid.
What’s the cost of a work visa?	The visa fee for three months or less is 1000 Namibian dollars. When payment is made to the Embassy bank account, the visa fee is 720 SEK. The visa fee for 4 - 6 months is 2000 Namibian dollars. When payment is made to the Embassy bank account, the visa fee is 1440 SEK.
Duration of work permit processing	Normally it takes around 3-9 months.
Switch Business Visa to Work Permit?	No, this is not permitted
Status of spouses and children	Spouses and children may also be issued within the Namibia employment work permit permission of the applicant to enter and stay in Namibia.
Termination of Work Permit	The work permit is valid only for 1-3 years but can be extended beyond that if the Immigration Board deems it fit.

To be more cognizant of the platform that you will be integrating your business with, you may learn more about the features that Skuad has to offer.

Things You Must Know To Set Up Payroll In Namibia

To set up payroll and manage taxation in Namibia, you need to be aware of the rules, which vary from one category to the other. The foremost thing you must consider is whether you want to employ foreign professionals or locals. As a foreign company, you must be aware and adhere to the local tax laws like income tax, business tax, withholding tax, employee compensation insurance, social security costs, etc. There are two ways of doing it - a) you set up an in-house team to manage the payroll in Namibia. b) you take the services of a local payroll specialist, who will not only make the management simpler but also ensure complete compliance with Namibia laws.

A corporate income tax of 32% rate is applied. A personal income tax of 37% rate is applied. A value-added tax of 15% rate is applied.

The profits that are subjected to the corporate tax in Namibia are determined with sole regard given to profits earned by businesses carried out or transactions conducted by businesses in Namibia.

Skuad handles the payroll and taxation, as well as the other compliances, entirely. Book a demo with us to know more.

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Incorporation: How to Set Up A Subsidiary In Namibia

Since all of Skuad’s operations are remote, your company is not required to set up a legal entity in Namibia. However, if your company wishes to do so regardless for operational purposes, the following are the details that you need to be aware of -

To be more cognizant of the platform that you will be integrating your business with, you may always read up on the features that Skuad has to offer.

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Professional Employer Organization (PEO)

A professional employer organization (PEO) is a third-party organization that provides human resources services to small-and-medium-sized enterprises. It manages the entire HR function and shares responsibilities and liabilities but only if your organization is registered in the country. You may need to file tax under your tax ID if you choose to collaborate with a PEO. A PEO acts as your co-employer.

On the other hand, an EOR acts as the legal employer of your employees. It assumes all the responsibilities and liabilities of your remote team. You can outsource a specific HR function or end-to-end activities. An EOR allows you to expand your workforce without setting up a business entity. It handles payroll funding, worker’s compensation, and unemployment claims and reports. It files taxes under its file ID number. In other words, if you join hands with an employer of record, you are free from managing the human resources function during your business expansion. However, if any doubts persist in your mind, please feel free to talk to an expert.

Conclusion

Skuad, an EOR platform, would be the perfect choice for all your company’s needs and can handle all your HR needs remotely. Feel free to connect with us, to solve any queries that might arise.

FAQs

1) What is an Employer of Record in Namibia?

An Employer of Record (EOR) in Namibia enables foreign companies to hire employees legally without a local entity. The EOR manages payroll, taxes, and compliance with Namibian labor laws.

2) What is an Employer of Record?

An Employer of Record (EOR) is a third-party service that legally hires employees for a company in a foreign country, managing local compliance, payroll, and tax obligations.

3) Who is a relevant employer in Namibia?

A relevant employer in Namibia is any legal entity or person responsible for employing workers and adhering to labor laws, including payroll, tax deductions, and employee rights.

4) What is the difference between Employer of Record and Payroll?

An EOR manages the full scope of legal employment responsibilities, including payroll, taxes, compliance, and benefits, while payroll services only handle salary processing and tax deductions.

‍5) How much does an EOR cost?

EOR services typically charge a monthly fee per employee. The cost depends on the country, the complexity of local regulations, and the number of employees, usually ranging from $100 to $1000 or even more per employee per month.

6) What is the best Employer of Record?

Skuad is one of the best Employer of Record platforms. Skuad is known for offering comprehensive EOR services that ensure compliance, efficient payroll management, and support for hiring in Namibia.

Namibia

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Employer of Record in Namibia