G-P provides employer of record services for customers that want to hire employees and run payroll without first establishing a branch office or subsidiary in Benin. Your candidate is hired via G-P’ Benin PEO in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. The individual is assigned to work on your team, working on your company’s behalf exactly as if he or she were your employee to fulfill your in-country requirements.
Our solution enables customers to run payroll in Benin while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As a Global PEO expert, we manage employment contract best practices, statutory and market norm benefits, and employee expenses, as well as severance and termination if required. We also keep you apprised of changes to local employment laws in Benin.
Your new employee is productive sooner, has a better hiring experience and is 100% dedicated to your team. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. G-P allows you to harness the talent of the brightest people in more than 185 countries around the world, quickly and painlessly.
Benin is a small country in West Africa, bordered by Niger, Burkina Faso, Nigeria, and Togo. Its southern border is the Atlantic Ocean, where most of Benin’s nearly 13 million people live. Benin is a primarily agricultural country and is largely dependent on subsistence farming. The official language is French, but Fon and Yoruba are also spoken.
When negotiating terms of an employment contract and offer letter with an employee in Benin, it may be useful to keep the following in mind:
Employment Contracts in Benin
Fixed term contracts are allowed for up to 48 months.
Fixed term contracts must be in writing. Indefinite contracts can be oral, but it is best practice to put an employment contract in place in the local language, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Benin should always state the salary and any compensation amounts in West African CFA francs rather than a foreign currency.
Working Hours in Benin
Typically in Benin, work is convened Monday through Friday from 8am to 12:30pm and 3:30pm to 7pm, and on Saturday from 9am to 1pm.
Total working hours are generally 40 per week and should not exceed 56 per week.
Workers may not work more than 240 hours of overtime per year. Overtime is paid at:
- 112% of normal hourly rate for 41st to the 48th hour per week.
- 135% of normal hourly rate beyond the 48th hour per week.
These rates increase for overtime worked during the night, on Sundays or during holidays.
Holidays in Benin
Benin celebrates 16 national holidays:
- New Year’s Day
- Traditional Day
- Easter
- Eastern Monday or Dyngus Day
- Worker’s Day
- Ascension of Jesus
- Whit Monday
- Eid ul-Fitr
- Independence Day
- Assumption of the Blessed Virgin Mary
- Eid al-Adha
- Armed Forces Day
- All Saints Day
- National Day
- Mauloud (Birth of the Prophet)
- Christmas Day
Vacation Days in Benin
Generally, employees are entitled to 24 paid days of annual leave, with increases at the following rate:
- after 20 years, and additional 2 days
- after 25 years, an additional 4 days
- after 30 years, an additional 6 days.
Leave may be split, but must be at least 14 days in length.
The cumulative duration of the leave may not exceed 30 working days within a year, and the leave must be taken within 12 months of receipt.
Benin Sick Leave
Employees with less than 2 years of service are generally entitled to 6 months’ sick leave.
Employees with 2+ years of service are generally entitled to 12 months’ sick leave.
- If the employee has worked for less than 12 months s/he is generally entitled to one month paid leave.
- Employees with 1-5 years’ service are generally entitled to three months at full pay and three months at half pay.
- Employees with 5+ years of service are entitled to full pay for 6 months.
Maternity/Paternity Leave in Benin
Female employees are generally eligible for 6 weeks of paid leave before the birth and 8 weeks after the birth, with the employer paying for half and social insurance the balance.
Fathers are generally entitled to 3 days of paid paternity leave.
Health Insurance in Benin
Benin is working toward universal health care but currently has a public/private system.
Termination/Severance in Benin
A probationary period of up to 3 months is allowed.
Employers may terminate a worker for a valid reason, including:
- worker health
- inability to hold employment
- competence or conduct
- changes in the organization or technology
- economic hardship or closure of the company
If the employer dismisses the employee on personal grounds, the employer must notify the employee in writing and include the reasons for termination. The labour inspector must also be notified in writing. Notice periods are as follows:
- Hourly employees are entitled to 15 days’ notice.
- Employees, workers, and laborers are entitled to one month of notice.
- Supervisors and executives are entitled to 3 months’ notice.
Employees on notice may spend 2 days per week looking for a new job.
Employees are entitled to severance pay. The amount depends on length of service:
- First 5 years of employment–30% of average monthly salary
- 6-10 years of service–35% of average monthly salary
- 10+ years of service–40% of average monthly salary
An employee terminated for gross negligence is not generally entitled to severance pay.
Paying Taxes in Benin
Employees contribute 3.6% of salary to social security.
Employers contribute 15.4% of gross salary to social security, 6.4% for pension and 9% for family allowance, plus an additional 1%-4% for industrial injury assistance.
This information is provided as generally accepted information and is not intended as advisory services.
Why G-P
Establishing a branch office or subsidiary in Benin to engage a small team is time-consuming, expensive and complex. Benin’s labor law has strong worker protections, requiring great attention to detail and an understanding of local best practices. G-P makes it painless and easy to expand into Benin. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws, without the burden of setting up a foreign branch office or subsidiary. Our Benin PEO and Employer of Record solution provides you peace of mind so that you can focus on running your company.
If you would like to discuss how G-P can provide a seamless employee leasing or PEO solution for hiring employees in Benin, please contact us.