EOR Tome and Principe
Skuad’s Tome and Principe EOR solutions help with the expansion of business in Tome and Principe. We streamline the process of hiring foreign employees for companies. We offer an automated HR platform that enables organizations to recruit employees without initially setting up a branch office or subsidiary. All the hiring follow the local labor and employment laws of Tome and Principe. The EOR service expedites the hiring process, onboarding remote teams, comprehensive management of payroll, contracts, compensation, and benefits with visa assistance. Skuad accompanied by local allies helps in the efficient management of the hiring process.
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Tome and Principe at a Glance
Population: 0.2 million
Currency: Sao Tome and Principe Dobra
Capital City: Sao Tome
Languages Spoken: Portuguese
GDP: 0.42 billion
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Everything You Need to Know Before Applying for Employment in Tome and Principe
The Tome and Principe employment law applies both to the citizens as well as foreign nationals. More or less, laws are similar but there are some differences in terms of entitlements. It is crucial for all the companies planning to start a branch office or subsidiary to be aware of and abide by the other state's laws.
Under Tome and Principe Labour laws, a foreign national can work with organizations and companies following Tome and Principe under the same laws as the citizens of the country. For a foreign national, a valid visa and work permit are necessary for employment. All the companies or subsidiaries by foreign entities owned wholly or partly follow the labor legislation and laws of the country.
Entitlements and Explanations
Statutory Working Hours
Forty-eight(48) hours is the standard working hours across 5 – 6 days of employment week.
Overtime Eligibility
Employees are allowed to work overtime under the local labor code and laws. However, the employees working overtime are compensated with double the regular wage depending on the industry type.
Paid Public Holidays
The following are the public holidays for Tome and Principe
- New Years Day
- Martyrs Day
- Labour Day
- Independence Day
- Armed Forces Day
- Agricultural Reform Day
- Sao Tome Day
- Christmas
Dates of these holidays and observances may change based on religious calendars.
Holiday Pay
The employee is entitled to a total of 14 days of annual paid leave for holiday or vacation.
The workers are guaranteed 24 hours of rest weekly for six(6) working days. In some cases, there are guaranteed weekends off as rest days.
Medical Leave
The employees are entitled to receive a total of 26 days of casual and sick leave.
In some circumstances, the workers can even avail six (6) months of paid sick leave, but this depends on the situation and industry.
Maternity Leave
Here are the details of maternity/paternity leave:
- Female employees are entitled to receive 12 weeks of maternity leave. However, there is no explicit job protection guaranteed during the paid parental leave.
- The father can avail of unpaid paternity leaves.
- Mothers are guaranteed breastfeeding breaks at work for at least six (6) months. However, it is a choice given between maternal leave or breastfeeding breaks.
Annual Leave Accrual Entitlement
The total annual leave accrual for the employee is up to 14 days (Paid vacation leave).
Leave Expiry
In Tome and Principe, the annual paid holiday leaves to be taken within 12 months of the financial year. The leftover leaves are not carried forward to the following year.
Leave Cash Out
The accrued annual leaves can be cashed while quitting the job or during termination.
Accrued Leave at Termination
The accrued annual leave gets compensated to the employee at termination. A universal formula for calculating the amount of payment to be made.
Employee Protection and Anti-Discrimination Rights
Employment in Tome and Principe are bound by employment protection and anti-discrimination rights, especially for the citizens.
There is a legislative prohibition of workplace discrimination based on race/ethnicity, gender, sex, harassment at the workplace, age, religion, social class, and political affiliation.
However, for migrants and foreign nationals, Tome and Principe lack proper legislation that prohibits discrimination
Confidentiality of Personal Information
The employer is obliged to maintain the confidentiality of the personal information of the employees under the labor and employment policies.
- Prohibit disclosing employee personal information with the third party without consent (barring exceptional cases)
- Provide information only to authorized persons but limited to part of the information required for certain activities.
- Administration and Office employees with access to personal information of staff must abide by the legislation and maintain non-disclosure of personal information.
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Contractors vs. Full Time Employees
The employment contracts Tome and Principe are crucial for hiring. They are a formal agreement between the employer and employee. The employment contracts are either oral or written but, one should have a well-founded written contract. The employment agreement between Tome and Principe is written in Portuguese and must include information concerning salary, compensation, benefits, and termination grounds.
Skuad offers an employment contract template as a part of the EOR service. The written template is curated abiding by the employment contract law Tome and Principe. Using the EOR services by Skuad does not require the employer to draft a separate template although, it is not mandatory. Our team provides complete assistance to the employer for hiring full-time or contractor employers with templates for a contract form.
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Hiring in Tome and Principe
Skuad offers an automated global EOR service to help companies. Further, it assists organizations in hiring employees in Tome and Principe. The services get contoured with a professional HR platform for hiring both full-time as well as contractual employees. As part of EOR service, Skuad extends assistance with payroll management, benefits, compensation, insurance, and termination. EOR service assists in hiring for the companies in Tome and Principe to complete the onboarding process of remote teams. After the hiring formalities are complete, a contract gets signed between the employee and the company. The skuad takes care of all the legal administrative processes for the employees on behalf of the company with employee health benefits Tome and Principe¸ visa assistance, compensation, and others.
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Probation & Termination
The standard probation period in Tome and Principe is on a mutual agreement between the company and the employee. It ranges from 3 to 6 months but thebut, the probationary period cannot extend beyond six (6) months.
The termination of employment Tome and Principe must be in adherence to the labor contract and mostly done under the following circumstances:
- Mutual agreement of both employee and company
- Initiative of the Employee or Employer
- Once the employment contract term is over and not renewed.
- Transfer of employee to another job/organization
However, a notice must be given by either employee or company in advance based on who initiates the termination. The notice period is one(1) month for termination of employment. In some cases, employees can take severance or compensation by way of one month of wages for each year of service.
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EOR Solution in Tome and Principe
The skuad makes the Employers of record EOR service for Tome and Principe easy and less complicated. All the processes like foreign hiring and setting up branch offices or subsidiaries adhere to the compliance and labor laws of the country.
As one of the leading employers of record companies in Tome and Principe, Skuad handles everything related to Human Resource Management. The automated HR platform helps with the hiring and onboarding process for the employees, salary survey, employment contract, payroll administration and processing, immigration solution, visa assistance, and building subsidiaries adhering to government compliance. The foreign employees in Tome and Principe are subjugated by the immigration and labor law.
Employer of record service
General Employer of record EOR Service Terms
Currency Accepted
USD, GBP, Sao Tome and Principe Dobra
Documents Required
For Tome and Principe Citizens: Personal Information and Identifiers, Passport Copy, Bank Details, Job Description, Employment Contract
For Foreign Nationals: Personal Information and Identifiers, Work Permit, Job Description, Educational Qualification, Employment Contract, Technical Qualifications, CV, Copy of Passport, Copy of ID, Bank Details, Police Verification, Medical Exam, Photographs
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Types of Visas in Tome and Principe
The Tome and Principe work visa is mandatory to take up employment in the country. The e-visa has a maximum validity of 3 months used for tourism. With the e-visa, a foreign national cannot work in Tome and Principe. The following are the Tome and Principe work visa requirements :
- A passport with a validity of a minimum of 6 months
- The applicant must have a valid job offer in Tome and Principe
- A signed an employment contract with a company based in Tome and Principe
- Letter of Invitation by the company
- Address in Tome and Principe
- Full name, contact, and address of the company in Tome and Principe
- Proof of the employer as a registered company in Tome and Principe
The work visa allows foreign employees to work legally for a locally registered company in Tome and Principe. The employer sponsors the visa. The skuad provides complete assistance in the application of the work visa. It takes ten(10) days to two (2) weeks for processing.
A business visa is a different type of visa that gets issued for business purposes. The business visa for Tome and Principe has a validity of 30 days and takes nearly 3 to 5 days for visa processing. It gets issued for purposes like conferences, meetings, or official business visits.
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Work Permits
The Tome and Principe work permit without a job offer is not issued. An individual is eligible for obtaining a work permit only after a job offer is made and crucial for working legally in the country. Skuad offers EOR service through exceptionally skilled teams and local partners in Tome and Principe. With several local partners, it is easy to obtain a Tome and Principe work permit for foreigners. The easy-to-navigate HR platform from Skuad makes it easy for employers and client companies to recruit foreign employees and manage their daily activities and operations.
Can Skuad Sponsor Work Permit in Tome and Principe?
Yes
Processing Time
Two (2) weeks
Work Permit Process
Step-1: The local partner for Skuad in Tome and Principe will apply for the work visa.
Step 2: Application for work permit supporting documents through the concerned embassy.
Step 3: Receive email by the embassy or consulate submitting fingerprints, photograph, and application process.
Step 4: On application approval, collect the passport from the embassy along with the work visa and payment of the visa fee.
Step 5: Upon receiving the work visa, the employee can travel to Tome and Principe.
Step 6: The work permit gets issued by the authorized department after arriving in the country.
Passport Submission
Submit the original passport during the appointment with the Embassy or Consulate for Tome and Principe.
Work Permit Process for Different Countries
For the majority of the countries, the process of obtaining the Work permit Tome and Principe is the same.
Change of Sponsor within Tome and Principe
File a fresh application for the change in the sponsor or employer.
Where is the application processed?
The application for change of sponsor gets processed in Tome and Principe or the home country of the company
Work Permit Restrictions
To obtain a work permit in Tome and Principe, the applicant must have an offer letter and employment contract with an invitation from the employer company.
When can Employee Travel to Tome and Principe
An employee can travel to Tome and Principe once the work visa is approved. However, the authorized department must grant a work permit to start working legally in the country.
Duration of Business Visa Processing
5 to 10 business days
Switch Business Visa to Work
No
Can Spouses work on dependent visas?
No, a fresh work visa to be filed for the spouse on a dependent visa
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Everything You Need to Know about Payroll & Taxes in Tome and Principe
As part of the EOR service, the payroll outsourcing Tome and Principe gets handled by Skuad. The tax and payroll system follows compliance with the rules and regulations of the country. The domain of payroll and taxation are slightly different for the citizens and foreign employees. It might be slightly different for citizens and foreign nationals as well. Foreign employees need to adhere to the rules about income tax, business tax, compensation, insurance, etc. The Tome and Principe payroll tax rates get managed through Skuad’s operations. Outsourcing the payroll means effective management of the company and handling all the payroll and tax-related aspects for the employees. It reduces the overall burden and hassle for the employer company.
The Tome and Principe employer payroll taxes get calculated for both personal income and corporate tax.
Tax |
Explanation |
Income Tax Rates |
Income Tax for Citizens
Income Threshold |
Tax Rate |
Db 0.00 to Db 11,700, 000 |
0% |
Db 11,700, 000.01 to Db 50,000, 000.01 |
10% |
Db 50,000, 000.01 to Db 100,000,000.00 |
13% |
Db 100,000,000.00 to Db 150,000,000.00 |
15% |
Db 150,000,000.00 to Db 240,000,000.00 |
20% |
Db 240,000,000.00 and above |
25% |
Income Tax for Foreign Nationals
Income Threshold |
Tax Rate |
Db 0.00 to Db 125,900.00 |
0% |
Db 125,900.01 to Db 1,000,000.00 |
15% |
Db 1,000,000.01 and above |
30% |
|
Tax Returns |
Yes |
Corporate Tax |
A corporate or business in Tome and Principe typically has to pay nearly 42 types of taxes. The total tax for business is 32.5% of the commercial profits.
- The labor tax paid by a business in Tome and Principe is 6.80% of the commercial profit of the company.
- The other payable tax includes property taxes, turnover taxes, municipal fees, or fuel taxes is 3.60%.
- The profit tax by businesses of the commercial profit is 22.1%.
|
Sales Tax |
The sales tax on goods is up to 140%, and for services, it is 5%. |
Public Pension |
The residents of Tome and Principe are eligible for the public pension scheme. |
Medical Insurance |
There is no universal healthcare system. Tome and Principe does not have a government funded healthcare service. |
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Incorporation of Subsidiary and Business
Incorporating a holding company in Tome and Principe or a subsidiary is a complicated process. It requires a complete understanding of the rules and regulations set by the government for starting a branch office or subsidiary. Skuad simplifies the whole process through step-by-step guidance and helps with the incorporation of a subsidiary. The assistance provided with Skuad becoming the local partner for setting up the company in Tome and Principe. The partnership helps understanding small to major details that go into setting up a foreign business, partnering with relevant sources, and hiring employees through the EOR service.
With the help of Tome and Principe PEO, Skuad helped in setting up a subsidiary for the company, abiding and following all the laws. The process becomes easy with the acquaintance of the local laws, documentation & application process, search for the right location, and arranging for all the necessary permits. Skuad helps in setting up functional business in Tome and Principe across multiple sectors. The process of subsidiary set-up in Tome and Principe include the following:
- Completion of the application form required for state registration for the legal entity or subsidiary
- Detailed information on the founder, business activities, and resolution of founded on legal entity establishment
- Copy of a passport for the company set-up
- Payment of the registration fee and obtain a receipt
- Obtain the certificate for state registration and TIN (Tax Identification Number)
- An additional application for the statistic code along with PIN (Social Protection and Pension Number)
There are many business opportunities for Tome and Principe, and to explore its full potential, the correct procedure is to set up a branch office or subsidiary. Once the business gets assembled, the Skuad team helps with all the legal and financial assistance. EOR service streamlines employee recruitment along with management and handling of all the necessary administrative aspects.
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Professional Employer Organization (PEO) Services in Tome and Principe
The professional employer organization Tome and Principe offers a comprehensive platform, perfect for small to midsize businesses. Skuad offers both EOR and PEO services across Tome and Principe. Although the EOR and PEO get used interchangeably, both involve different services. Skuad offers PEO services that handle an array of services on behalf of an employer including payroll management and processing, compliance, and record maintenance. The PEO services offer efficient HR administration like managing employer liability, termination assistance, leave, and risk mitigation. The PEO services are involved only in HR services, recruitment, onboarding, payroll, termination, benefit, etc. On behalf of the company, Skuad’s EOR service takes responsibility for the administration and legal responsibility of the employee. EOR is a legal employer responsible for employee management, payroll handling, benefits, compensation, taxes, insurance, etc. The company can legally engage employees in the companies set up in the country with the presence of an EOR partner in Tome and Principe.
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Conclusion
Skuad offers comprehensive EOR services in Tome and Principe and helps companies hire and recruit foreign employees. We align the whole process from hiring and onboarding to legal management of the payroll, tax, compensation, benefits, termination, and related administrative issues. Partner with Skuad for hiring in Tome and Principe for expanding business in the country and recruit employees from anywhere across the globe. To know about the process, feel free to contact us.
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FAQs
1) What is an Employer of Record in Tome and Principe?
An Employer of Record (EOR) in Tome and Principe enables foreign businesses to hire employees without a local entity. The EOR handles payroll, tax compliance, and ensures labor law adherence.
2) What is an Employer of Record?
An Employer of Record (EOR) is a service provider that assumes legal responsibility for hiring employees on behalf of other organizations. The EOR manages payroll, taxes, and compliance with local employment laws, while the client focuses on core business.
3) What is the Employer of Record in Africa?
An Employer of Record in Africa helps businesses legally hire employees in various African countries by managing compliance, contracts, and payroll without setting up a local entity.
4) What is the difference between Employer of Record and PEO?
An Employer of Record (EOR) takes full legal responsibility for employing workers, while a PEO (Professional Employer Organization) shares HR responsibilities with the business but does not assume full legal responsibility for employees.
5) What is the difference between an Employer of Record and a Staffing Agency?
An EOR manages the legal employment of workers, including payroll and compliance, while a staffing agency focuses on recruiting temporary or contract workers but does not typically manage legal employment responsibilities.