How to stay compliant

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

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How to stay compliant

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

So you want to hire someone in Cape Verde. 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 Cape Verde, using an EOR can help you bypass the traditional obstacles to hiring full-time employees.  

But there’s a catch: EOR solutions in Cape Verde 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 entity, they’re rarely cheap or fast.

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

The solution: Hire your teammates in Cape Verde 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 Cape Verde). 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 Cape Verde:

Everything you should know about using an EOR in Cape Verde

Are you considering expanding your business to Cape Verde? If so, you may be wondering how to navigate the country's complex employment laws and regulations. One option is to use an Employer of Record (EOR) to handle your hiring and payroll needs. In this post, we'll break down everything you need to know about using an EOR in Cape Verde, including any legal or regulatory conditions specific to the country. We'll also discuss why hiring an independent contractor may be a more viable option for your business.

What is an EOR?

An EOR is a third-party company that acts as the official employer of your workers in Cape Verde. The EOR handles all aspects of employment, including payroll, taxes, benefits, and compliance with local labor laws. This allows you to focus on your core business activities without having to worry about the administrative burden of hiring and managing employees.

Legal and regulatory conditions in Cape Verde

Cape Verde has a complex legal and regulatory employment environment. The country's labor laws are governed by the Labor Code, which outlines the rights and obligations of both employers and employees. Some of the key provisions of the Labor Code include:

- A maximum work-week of 44 hours

- A minimum wage of CVE 13,000 (approximately USD 130) per month

- Mandatory social security contributions for both employers and employees

- A requirement to provide paid annual leave, sick leave, and maternity leave

Using an EOR can help ensure that your business is in compliance with these and other labor laws in Cape Verde. However, it's important to note that the EOR will also be subject to these regulations, which can increase the cost and complexity of using this option.

Why hire an independent contractor instead?

While using an EOR can be a viable option for some businesses, it may not be the best choice for everyone. One alternative to consider is hiring independent contractors in Cape Verde. This approach offers several benefits, including:

- Greater flexibility: Contracting agreements tend to be a lot simpler than employment agreements.

- Lower costs: Hiring independent contractors can be more cost-effective than using an EOR, as you won't have to pay for benefits or social security contributions.

- Reduced administrative burden: Hiring independent contractors typically involves less paperwork and administrative tasks than using an EOR.

However, it's important to note that hiring independent contractors in Cape Verde also comes with its own set of legal and regulatory considerations. For example, you'll need to ensure that your contractors are properly classified as independent contractors under Cape Verdean law, and that you're not inadvertently creating an employer-employee relationship.

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

Run your global workforce on autopilot with Thera

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