Many growing companies begin operations in new countries to widen their customer base and build their success. While full-time employees can contribute to international growth, independent contractors are another useful resource for your company.
Contractors may seem similar to employees in some ways, but understanding the difference between these types of workers is essential to ensure compliance in Senegal.
Hiring contractors in Senegal
Independent contractors have different rights and obligations than full-time employees, so understanding the designation is vital.
Independent contractors vs. full-time employees
Full-time employees provide continuous services for an employer, and they are under the company’s jurisdiction regarding working hours, location, and other details. Employment positions do not end upon the completion of a specified project, and employees receive salaries or hourly wages for their ongoing work.
Independent contractors are hired to complete a specific project. These individuals provide services outside the jurisdiction of the employer and engage in a contract based on commercial code.
Penalties for misclassification
Misclassification can result in penalties even if it was unintentional. A company that incorrectly classifies an employee as a contractor may have to make back payments on social security and government fines.
How to hire independent contractors in Senegal
There are 3 main steps to the contractor hiring process.
1. Carefully conduct interviews.
Interviews for contractors are business transactions. Instead of focusing on character traits and personal factors, ask questions regarding the contractor’s skills and experience surrounding the project. You need confirmation that the contractor can complete the task at hand effectively, not that they’ll make a valuable contribution to the company culture.
There are no laws regarding the contractor interview process but approaching it carefully can help you define the boundary early on. Include your need for a contractor in your advertisements to attract the right candidates to the position.
2. Create a service agreement.
A service agreement details the terms of the commercial transaction. This agreement should include:
- Pay rate and arrangements
- A description of the project
- Termination conditions
3. Introduce necessities.
Since independent contractors are free to perform their work as they see fit, training and onboarding will not play a role in the hiring process. After creating and reviewing the service agreement with a contractor, you should introduce any necessities for completing the job. These may include vital workflows or important points of contact within your company.
How to pay independent contractors in Senegal
In many cases, payment is due to an independent contractor upon project completion. However, the service agreement can outline different payment terms depending on the task, industry, or the contractor’s preferences. A contractor may require equal installments over the course of the contract, a lump sum payment at the end, or payment on another specified schedule.
Since employers owe these payments in exchange for services rather than employment, they are not required to deduct income taxes or social security contributions.
Terminating independent contractors
Both parties can terminate a service agreement with mutual consent. Any other causes for termination must be outlined in the service agreement. The agreement can also include other policies regarding termination, such as required notice periods or payments in lieu of notice.
Turn to G-P when hiring independent contractors in Senegal.
As a part of our #1 suite of global employment products, G-P Meridian Contractor™ allows companies to hire and pay global contractors faster, with self-service workflows and a wide set of flexible payment options. Whether you’re hiring employees or contractors, our platform streamlines the process with a single solution for your global workforce.
Contact us to learn more.