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Sierra Leone

Updated on:
16 Jan, 2024
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Employer Of Record In Sierra Leone

Sierra Leone is an emerging country for businesses in Africa. The population of Sierra Leone is young and enthusiastic to work. The business environment of Sierra Leone is very conducive for foreign investors. The social and political environment of the country is stable, making it suitable for the expansion of businesses. Organizations who wish to expand their business across the globe consider Sierra Leone as an ideal place as the business policies of Sierra Leone are pro-investors.

Skuad gives wings to your expansion plans in Sierra Leone by acting as your Employer of Record in Sierra Leone. Its unified employment platform offers holistic EOR solutions and takes care of hiring, payroll management, tax compliance, etc., in Sierra Leone. Skuad relieves you of all the stresses of complying with the legal formalities regarding hiring and payroll so that you can focus on your strengths and outsource the HR department to Skuad. Book a demo to experience the exemplary EOR services provided by Skuad in Sierra Leone.

Sierra Leone At A Glance

  • Population: 8 million (2015 census)
  • Capital city: Freetown
  • Languages spoken: Krio, English
  • National language: English
  • GDP: $ 12.77 billion (2018 estimate)
  • Currency: Leone (SLL)
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Employment In Sierra Leone

Sierra Leone is a country in Africa rich in natural resources like gold, bauxite, aluminum, etc. If you are planning to grow the scale of your business and foray into the market of Sierra Leone, you need to have a sound knowledge of Sierra Leone’s employment laws. Skuad makes the task of employing people in Sierra Leone easy for you by taking on the onus of hiring and managing your employees in the country while ensuring that Sierra Leone’s labor laws are being complied with.

There is a great demand for knowledge workers in Sierra Leone. As the country is developing rapidly, the demand for qualified workers has also increased significantly in recent years. Therefore, there is a huge potential for knowledge workers aspiring to work in Sierra Leone.

The main provisions of Sierra Leone’s labor laws are as follows:

Public Holidays There are 11 public holidays in Sierra Leone. They are as follows:
  • New Year’s Day
  • International Women’s Day
  • Eid al-Fitr
  • Eid al-Adha
  • Mawlid
  • Christmas
  • Boxing Day
Working Age The minimum age of a worker in Sierra Leone is 18 years.
Working Hours The standard working hours in a day are 8 hours. An employee cannot work for more than 40 hours in a week.
Overtime An employee can exceed the regular working hours by not more than 10 hours in a week. In a week, he/she can work for a maximum of 50 hours. The employer is obliged to pay the employee for working overtime and a bonus of 25% over the average wage rate. In addition, an employer is obliged to pay 100% extra salary to the employee if the employee is made to work on a rest day.
Salary Sierra Leone’s government has prescribed the minimum wage rate as 500,000 Sierra Leonean Leones per month for all the employees.
Leaves An employee is entitled to the following paid leaves in a year according to their term of service:
  • 1 to 5 years of service - 19 paid leaves
  • 5 to 10 years of service - 22 paid leaves
  • More than 10 years of service - 28 paid leaves
Sick Leaves According to the labor laws of Sierra Leone, an employee is entitled to receive 5 sick leaves in a year.
Maternity Leave Working women are entitled to receive 12 weeks of maternity leave.
Employee Health Benefits The government provides free health care for pregnant women, lactating mothers, and children below the age of 5.

Every organization must abide by the employment laws of Sierra Leone. If an organization wants to operate in Sierra Leone and hire the people of the country, it should be fully aware of the regulations and policies of Sierra Leone. However, understanding the complex structure of local laws would be a tedious and cumbersome process for the organizations. Alternatively, they can take advantage of the services rendered by Employer of Record companies in Sierra Leone. Skuad, an established and eminent Employer of Record company in Sierra Leone, offers end-to-end solutions for hiring and managing a workforce in the country. Skuad handles the hiring, payroll, and tax compliance on their behalf, leaving the organizations free to concentrate on their primary business activities. To know more, talk to a Skuad expert.

Contractors Vs. Full-time Employees

Sierra Leone has become an attractive business destination for companies who wish to spread their business overseas. As a business, you can hire full-time employees, part-time employees, or independent contractors in Sierra Leone according to your needs. Full-time employees are employees of permanent nature. They are required for all the regular jobs, and they work for an indefinite period for your organization. As opposed to this, organizations can also hire independent contractors whenever required. These independent contractors are not the employees of the organization. Instead, they are hired for a specific project or duration for their service and are paid accordingly.

The main points of distinction between an employee and an independent contractor are as follows:

  • A full-time employee works continuously for the organization, whereas an independent contractor is hired only according to the business’s specific requirements.
  • An employer is supposed to pay a salary to a full-time employee. An independent contractor is paid fees for his services.
  • The employer exerts complete control over the employees of his organization. Independent contractors have the autonomy to work in their style.
  • An employee is entitled to receive employee benefits from the employer. However, an employer is not liable to pay such benefits to independent contractors.
  • An employer is responsible for the tax compliance of his employees. Independent contractors assume this responsibility themselves.

An employment contract is an agreement between an employer and an employee. It lays down the terms and conditions of employment in Sierra Leone. Employment contracts in Sierra Leone can be either written or verbal. The term for verbal contracts cannot be more than six months. The employer must get a written employment agreement made for fixed term-term employees in Sierra Leone. The term for an employment agreement in Sierra Leone is 12 months and can be renewed after the expiry of 12 months. In Sierra Leone, employment contracts must specify the salary of the employee.

Business organizations need to be aware of the employment contract laws and guidelines of Sierra Leone to ensure hassle-free operations. Skuad simplifies your journey of expanding your business in Sierra Leone by handling the hiring process and complying with the local regulations. Book a demo to understand Skuad’s phenomenal EOR solutions in Sierra Leone.

Hiring In Sierra Leone

Sierra Leone is a small country where hiring employees can be a challenging task. Organizations have two options for hiring employees in Sierra Leone:

1. In-house hiring:

If you want to hire from rural areas, a strong networking channel would be highly beneficial. Referrals and word-of-mouth help to get the right candidate for the job. Organizations can also post advertisements in local newspapers like Sierra Leone Daily Mail, Awareness Times, etc. In addition, they can also use social media for hiring employees. Online job portals like Careerjet, Expat.com, Career.sl, etc., in Sierra Leone, also play an important role in hiring the workforce. There are many hiring companies in Sierra Leone that can assist you in hiring the ideal candidate. This process can be tedious and time-consuming for organizations. The innumerable applications received would have to be screened thoroughly for selecting the best employee.

2. Partnering with an EOR:

The other and the more desirable option is to partner with an Employer of Record in Sierra Leone to hire the required employees on your behalf. Organizations need to simply state their requirements regarding the number of employees and the skills needed for the job, and the EOR would handle the rest.

It can be challenging for organizations to hire employees in Sierra Leone without setting up a business entity. Skuad’s EOR solutions help you to overcome these hurdles by hiring the best talent on your behalf. Skuad would act as your local Employer of Record in Sierra Leone and recruit the employees of the desired skill-set in no time. Partner with Skuad to learn more about their client-centric working style.

Probation and Termination

The standard probationary period in Sierra Leone is up to 6 months. When an employer hires an employee, the employee is under probation for the first three or six months. If both parties agree, the probationary period in Sierra Leone can be decreased or further increased once for not more than 6 months. After the probationary period, the employee is considered a permanent employee of the organization.

Termination of Service

Termination of Employment in Sierra Leone can be for a justified reason. Organizations can terminate an employee from the service according to the employment contract. The different forms of termination are as follows:

Termination of employment under an unlimited period contract Organizations must notice a minimum of 30 days before terminating the employment under an unlimited period contract. If an employer fails to give the notice, they should compensate the employee by paying one month’s salary.
Termination of employment under a limited period contract If an employee is hired for a limited time, his/her employment can be terminated without giving any notice.
Termination during probation An employer must serve notice of 5 days to the employee if the employee is being terminated during probation.
Immediate termination An employer can terminate an employee with immediate effect only if there is a valid reason for doing so. If the court finds that the dismissal was not based on a just reason, the employer must pay the compensation to the employee.
Termination with mutual agreement An employer can terminate an employee on mutually agreed terms.

Organizations should terminate an employee from service only if there is sufficient reason for doing so. To know more, get in touch with Skuad.

EOR Solution

The complex and ever-competitive business environment has made it peremptory for organizations to expand their reach and explore the global market. Organizations willing to broaden their horizons beyond their home base are worried about hiring and legal compliance in a foreign country. Such organizations should take advantage of the diverse and cost-effective services of an Employer of Record in Sierra Leone.

Sierra Leone is a developing country that offers a host of opportunities for business organizations to grow. Skuad’s EOR solutions aim to solve your problems regarding expanding into Sierra Leone. Skuad shoulders the responsibility of hiring the best talent on your behalf and handles tasks such as payroll management, compensation, tax compliance, and legal compliance. Skuad is one of the most trusted Employers of Record companies in Sierra Leone. Skuad offers professional and complete Employer of Record services in Sierra Leone to smoothen the process of your business expansions. Talk to a Skuad expert for more details on EOR services in Sierra Leone.

Types Of Visas In Sierra Leone

It is essential to have the required visa to enter Sierra leone. There are primarily two types of work visas in Sierra leone.

Tourist Visa This visa is suitable for those persons who want to visit Sierra Leone for sightseeing with family. This visa is valid for one year, and it takes around 4 to 5 days to process.
Business Visa You must possess a business visa if you visit the country for business purposes. A business visa is valid for one year, and the processing time is 4 to 5 days.

The following documents are required for applying for a Sierra Leone work visa:

  • Original passport with 6 months validity
  • 2 recent photographs
  • Completed visa application form
  • Covering letter stating the reason for travel to the country
  • 3 months bank statements
  • Itinerary of your visit
  • Yellow fever certificate

Skuad provides complete assistance in fulfilling Sierra Leone’s Work Visa requirements. It arranges to complete the formalities and obtain the work visa for you in minimum time.

Work Permits

All the employees of foreign companies in Sierra Leone must have a work permit. Therefore, the employer must arrange the work permits in Sierra Leone for all their employees. As your local Employer of Record, Skuad takes all the necessary steps to obtain Sierra Leone work permits for foreigners who are employees of your organization.

Sponsorship Skuad sponsors the work permits, being the local Employer of Record.
Validity The work permit in Sierra leone is valid for one year.
Renewal Employees must get their work permits renewed every year.
Residence Employees also need to get a resident visa in Sierra Leone along with a work permit.
Employment Switch If an employee switches his employment to another employer, he has to apply again for a work permit.
Sierra Leone Work permit without a job offer In Sierra Leone, employees need to have a job offer to get a work permit.

Organizations must arrange for valid work permits for their employees. Skuad, as your EOR in Sierra Leone, relieves you of this responsibility and ensures that the work permits and visas are arranged for your employees in Sierra Leone. To learn more about Skuad’s support and guidance, partner with us in Sierra Leone.

Payroll And Taxes In Sierra Leone

Organizations can handle the payroll department themselves by establishing a payroll office in Sierra Leone. However, this would require a lot of money and time. A more cost-effective and convenient method is outsourcing the payroll department to an Employer of Record company in Sierra Leone. Payroll outsourcing in Sierra Leone mitigates the risk and responsibility of organizations to a great extent.

In Sierra Leone, employer payroll taxes are as follows:

Tax Authority The primary tax authority in Sierra Leone is the National Revenue Authority.
Tax Year The financial year for taxation purposes is from January 1 to December 31.
Corporate Tax Rate The corporate tax is 30%.
Income tax The income tax rate is 15%.
Sales tax The Sales tax in sierra leone is 15%.
Social Security Contribution Employers in Sierra Leone must contribute 10% of their employee’s salaries to the National Social security and Insurance Trust.
Payroll Tax There is no payroll tax.
Tax Deducted at Source According to the PAYE (Pay As You Earn) System, tax is deducted at the source in Sierra Leone.

Having a clear understanding of Sierra Leone’s Payroll Tax Rates is paramount for the smooth functioning of any business. Skuad handles your payroll management administration, apprises you of the tax structure, and makes sure that all the taxation guidelines are complied with for stress-free working of the enterprise. Book a demo to take advantage of our EOR services in Sierra Leone.

Incorporation

Running a business in Sierra Leone can be immensely profitable as it is a developing country with an enthusiastic population. There are several business opportunities in Sierra Leone in various sectors such as mining, infrastructure, energy, etc. Organizations planning to incorporate a holding company in Sierra Leone must follow the procedure and the guidelines.

Organizations can choose from the following options to set up a subsidiary in Sierra Leone:

  • Limited Liability Company (Ltd)
  • Public Limited Liability Company (PLC)
  • Branch
  • Representative office

The most common form is Limited Liability Company. The process of setting up a subsidiary as an LLC is as follows:

  • Prepare a Memorandum of Association and Articles of Association
  • Choose a name for your company
  • Submit statutory declarations
  • Submit the required documents

The subsidiary laws in Sierra Leone vary depending on the form of the subsidiary, and organizations must follow these regulations to stay compliant. Skuad provides complete guidance to organizations who wish to traverse the national borders and set up their entity in Sierra Leone. Book a demo for detailed assistance regarding human resource management in Sierra Leone.

Professional Employer Organization

A Professional Employer Organization (PEO) in Sierra Leone offers the same services as an EOR. A PEO and an EOR handle the hiring of human resources, managing the payroll, complying with the payroll taxes, administering employee benefits, and taking care of your remote teams. The main point of difference between an EOR and PEO is that a Professional Employer Organization acts as a co-employer of the employees hired by you in Sierra Leone. You are also held responsible in case of breach of regulations. An Employer of Record, on the other hand, assumes full responsibility for legal compliance. It acts as the legal employer of the employees hired for your organization in Sierra Leone. Organizations may choose to opt for a PEO or an EOR in a foreign country depending on the degree of control it wants to retain. Stay connected to learn more about our unparalleled EOR solutions.

Conclusion

An organization must grow and expand to stay ahead of the competition. Skuad makes your journey of expansion very smooth by tackling all the hurdles on your behalf. Acting as your trusted Employer of Record, Skuad ensures that you concentrate on your core business to achieve excellence by taking care of legal compliance and HR-related tasks. In addition, Skuad has a global platform to handle your remote teams. Talk to a Skuad expert to gain more insight into our all-inclusive EOR services in Sierra Leone.

FAQs

1) What is an employer of record in Sierra Leone?

An EOR in Sierra Leone allows companies to hire employees without creating a local entity. The EOR manages payroll, tax compliance, and employment contracts, ensuring adherence to local labor laws.

2) What is the employer of record in Africa? 

An EOR in Africa, including Sierra Leone, allows businesses to hire employees across the continent without establishing a local presence in each country, while ensuring compliance with local labor laws and regulations.

3) How much is severance pay in Sierra Leone?

Although not mandatory by law, severance pay in Sierra Leone depends on the employment contract and the number of years an employee has worked. The severance amount is determined by the length of service as follows:

  • 1–5 years: 30 days' wages for each service year
  • 5–10 years: 40 days' wages for each service year
  • More than 10 years: An extra 7 days' wages for each year after 10 years

For example, an employee with one year of service would receive 8.4 weeks of salary, a five-year employee would get 47 weeks, and an employee with ten years of service would receive 132 weeks' pay.

4) What are the employment laws in Sierra Leone?

Employment laws in Sierra Leone cover workers' rights, working hours: 8 hours per day, minimum wage: 5 SLL per hour (800 SLL per month), termination, and social security contributions. Employers must comply with these laws when hiring and managing employees.

5) What is the difference between an employer of record and a staffing agency?

An EOR manages long-term employment and full legal compliance, while a staffing agency provides temporary workers and does not assume legal responsibilities beyond recruitment.

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