How to stay compliant

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

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How to stay compliant

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

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

But there’s a catch: EOR solutions in Djibouti 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 Djibouti, and it doesn’t involve forking out huge amounts of money for an EOR.  

The solution: Hire your teammates in Djibouti 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 Djibouti). 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 Djibouti:

Everything you should know about using an EOR in Djibouti

Are you a business owner or manager considering hiring independent contractors abroad? If so, you may want to consider the benefits of using an Employer of Record (EOR) in Djibouti. An EOR can help you navigate the legal and regulatory conditions specific to the country, making it easier to expand your business operations. In this post, we'll break down everything you need to know about using an EOR in Djibouti.

What is an EOR?

An EOR is a third-party company that acts as the legal employer of your workers in a foreign country. This means that the EOR takes care of all legal and administrative tasks related to employment, such as payroll, taxes, and benefits. As the client company, you still have control over the day-to-day activities of your workers, but the EOR handles all the legal and regulatory compliance.

Why use an EOR in Djibouti?

Djibouti has specific legal and regulatory conditions that can make it difficult for foreign companies to hire workers directly. For example, the labor law in Djibouti requires that employers provide a minimum of 30 days of paid leave per year, as well as social security contributions and medical insurance. An EOR can help you navigate these requirements and ensure that you are in compliance with local laws.

Additionally, using an EOR can help you avoid the costs and administrative burden of setting up a legal entity in Djibouti. This can be a time-consuming and expensive process, and an EOR can help you get up and running quickly.

How to choose an EOR in Djibouti?

When choosing an EOR in Djibouti, it's important to look for a company with experience in the country. They should have a deep understanding of the local laws and regulations, as well as a network of local partners to help with any issues that may arise.

It's also important to look for an EOR that offers transparent pricing and clear communication. You should know exactly what services you are paying for and what the costs will be upfront.

Why hire independent contractors instead?

While using an EOR can be beneficial for some companies, it may not be the best option for everyone. EORs are expensive and notoriously slow. If you hire teammates as contractors, however, you can typically get them up and running within hours.

Independent contractors are not considered employees, so you’ll likely have less administrative overhead when you hire people as contractors. However, you should still ensure that your contractors are properly classified and that you are following all tax and legal requirements.

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.

If you want to hire 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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