How to stay compliant

Employer-of-Record (EOR) in Benin: Do You Need One?

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How to stay compliant

Employer-of-Record (EOR) in Benin: Do You Need One?

So you want to hire someone in Benin. Problem is, your company is located somewhere else.  

If you’ve done some research, you’ve probably been told you should be using an Employer-of-Record (EOR). Why? Well, if your company isn’t located in Benin, using an EOR can help you bypass the traditional obstacles to hiring full-time employees.  

But there’s a catch: EOR solutions in Benin are expensive—usually at least $500 per month per employee—and can take time to set up. And because you’re complying with a different set of labor laws, logistics and benefits can end up costing you lots of time and money. While they will save you time from setting up your own Beninese entity, they’re rarely cheap or fast.

The good news? There’s another way to hire remote workers in Benin, and it doesn’t involve forking out huge amounts of money for an EOR.

The solution: Hire your teammates in Benin as contractors. If you’re hiring remotely and your teammates have autonomy, there’s a good chance you can make compliant contractor hires. You still have to use locally-compliant contracts, but the process is a lot easier, more affordable, and faster.

We built Thera to help you make contractor hires, in 150+ countries (like Benin). So you can hire the people you want on your team, without paying thousands for an EOR. You can get set up in a couple of clicks—and you’ll only pay $49 per contractor per month.

It’s just as easy as it sounds. No catch. Here’s what Thera looks like vs. an EOR in Benin:

Everything you should know about using an EOR in Benin

Are you considering expanding your business to Benin and wondering how to hire employees? As a business owner or manager, you have two options: hiring independent contractors or using an Employer of Record (EOR). In this post, we'll explore what an EOR is, the legal and regulatory conditions specific to Benin, and why hiring independent contractors might be a better option.

What is an EOR?

An EOR is a third-party company that acts as the legal employer of your workers. They handle all the administrative tasks, including payroll, taxes, benefits, and compliance with local labor laws. You, as the client, retain full control over the day-to-day activities of your employees, while the EOR takes care of the legal and administrative aspects.

Legal and regulatory conditions in Benin

If you decide to use an EOR in Benin, there are some legal and regulatory conditions you should be aware of. Firstly, the Labor Code of Benin requires that all employment contracts be in writing and signed by both parties. The contract must include the job description, salary, working hours, and duration of the contract. The EOR will handle the drafting and signing of the contract on your behalf.

Secondly, Benin has a mandatory social security system that covers all employees, including expatriates. The EOR will deduct the social security contributions from the employee's salary and remit them to the relevant authorities.

Thirdly, the Labor Code of Benin requires that all employees be registered with the National Social Security Fund (CNSS). The EOR will handle the registration process and ensure that your employees are compliant with this requirement.

Why hiring independent contractors might be a better option

While using an EOR in Benin can be a convenient option for some businesses, it may not be the best choice for everyone. One alternative is to hire independent contractors. This option gives you more flexibility and control over the work that is done. You can negotiate the terms of the contract directly with the contractor and have more control over the work that is done.

Additionally, hiring independent contractors can be more cost-effective than using an EOR. With an EOR, you will be paying for their services on top of the employee's salary. With independent contractors, you only pay for the work that is done—without many additional administrative costs.

What if I accidentally misclassify my contractors?

We’ve got two pieces of good news for you. For one, if you’re hiring remotely, it’s unlikely you’ll misclassify your contractors. Many of the things that qualify people as employees, such as company equipment and set working hours, don’t typically apply to remote work.

Still, it’s helpful to have the comfort of knowing you’re not at risk for misclassification. That’s why, at Thera, we’ve launched Misclassification Assurance: so you can hire contractors abroad, worry-free. Learn more about hiring with Thera below.

Hiring contractors? Thera can save you a ton of time

If you’re hiring contractors, you’re probably spending too much time on their payroll, contracts, and tax documents. Which is why we built Thera, which saves you 90% the time you spend on contractor paperwork each month.

With Thera, you can compliantly hire your contractors in 150+ countries, onboard them in minutes, and pay them all at once (in a click). It’s global contractor payroll, finally simplified.

Sound interesting? Click here to book a demo and see the platform firsthand

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