COUNTRY

Cameroon

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The Republic of Cameroon is a French-speaking country in Central Africa. English is also an official language. The main industries include petroleum production, food processing and lumber. The low cost of labor and abundant natural resources are considerations for businesses contemplating Cameroon for expansion.

Written Agreements

In Cameroon, there are no specific definitions of what constitutes a written contract. According to the law, agreements concluded for a fixed term of more than 3 months, as well as those including a probationary period, must be made in writing.

Employers can stipulate a non-compete clause in employment contracts such that in the event of termination, the employee shall not engage in an activity liable to compete with the employer if the contract is broken by the employee or if the contract is broken due to a serious offense by the employee. Such prohibition will not apply outside a radius of 50 kilometers from the employee's workplace, and its duration must not exceed 1 year.

Oral Agreements

In Cameroon, employment contracts for an unspecified duration or specified duration of under 3 months can be concluded orally.

Implied Agreements

In Cameroon, there are no provisions or guidance on implied contracts.

In Cameroon, the labor law indicates that the standard workweek is 40 hours. However, standard working hours may vary for different occupations. Employees working more hours than what is considered standard for their profession are eligible for overtime benefits.

  • New Year’s Day - 1st January
  • Youth Day - 11th February
  • Labor Day - 1st May
  • National Day - 20th May
  • The Ascension Day - Date subject to change
  • Good Friday - Date subject to change
  • Christmas - 25th December
  • End of Ramadan - Date subject to change
  • Sheep Festival - Date subject to change

According to the Labor Code of Cameroon, an employee is entitled to paid annual leave equal to 1.5 days of leave for every month of work done by the employee. For employees younger than 18 years, the leave is granted as 2.5 days per month of service. Employees accrue or accumulate annual leave after 1 year of service. The collective agreement of the company with the trade union or individual employment contract can provide for an increased duration of the leave.

If the contract is terminated or expires before the employee has exercised their right to leave, the employer must issue compensation in lieu of the leave.

The Labor Code of Cameroon states that the employment contract can remain suspended for 6 months if the employee is sick. Permanent employees with a contract for unspecified duration are paid 100% of their remuneration for the duration of the notice period if the sick leave exceeds the notice period or for the duration of sick leave if it is less than the notice period of the employee. Fixed-term employees are paid for the duration of their notice period based on the length of their employment.

The labor law of Cameroon provides maternity leave of 14 weeks to pregnant employees. It starts 4 weeks before the expected date of delivery. The leave can be extended by 6 weeks in case of medical complications. The employee is entitled to an allowance equal to her salary for the duration of the leave funded by the National Social Insurance Fund.

A pregnant employee may terminate her employment contract without notice and without being obliged to pay any compensation to the employer. An employer is prohibited from dismissing an employee during her maternity leave.

There is no statutory provision granting parental leave to employees in Cameroon. However, the Cameroonian Labor Code provides a special paid leave of up to 10 days annually that employees can take for family events directly concerning their own home. This leave is not deducted from the annual leave.

Minimum Wage

According to the Labor Code of Cameroon, the National Labor Advisory Board sets the minimum wage in the country. The Interprofessional Guaranteed Minimum Wage (SMIG) is currently set at XAF 43,969 (Central African CFA francs) per month.

Wages must be paid at least once a month, except when allowed by law in certain trades and occupations. Employees can request a shorter payment period of 15 days. Wages must be paid no later than the eighth day of the month following the end of the month in which they were due.

Overtime, Holiday & Vacation Pay

Overtime is allowed for up to 20 hours per week, subject to the prior written authorization of the labor inspector. It can be allowed in cases of extraordinary work, increased workload, or shortage of manpower. The overtime wages are paid as follows:

  • 30% increase on regular wages for the first 8 hours of overtime in the week
  • 50% increase on regular wages for every additional hour of overtime after the first 8 hours in the week

Work done during weekly rest days is compensated at a rate of 40% higher than the regular wages. Employees who are asked to work during public holidays are paid an additional 50% of the regular wages.

Notice Period

The duration of the notice period depends on the seniority and professional classification of the employee. It is broken down into categories listed below (unless a collective labor agreement stipulates a longer duration)

  • Category I to VI (all household employees): service under 1 year (15 days), between 1 and 5 years (1 month), more than 5 years (2 months)
  • Category VII to IX: service of less than 1 year (1 month), between 1 and 5 years (2 months), more than 5 years (3 months)
  • Category X to XII: less than 1 year (1 month), between 1 and 5 years (3 months), more than 5 years (4 months)

Severance Benefits

Severance pay is granted to employees who have worked for at least 1 year for the same employer and who are dismissed for reasons other than gross misconduct. It is paid in addition to the compensation for the notice period. Severance payment is calculated as a percentage of the average monthly salary of the employee multiplied by the number of years of service:

  • 1st to 5th year - 20% of the monthly pay
  • 6th to 10th year - 25% of the monthly pay
  • 11th to 15th year - 30% of the monthly pay
  • 16th to 20th year - 35% of the monthly pay
  • 21st year onwards - 40% of the monthly pay

Pension

The retirement age in Cameroon is 60 years for eligible persons who have been registered with the National Social Insurance Fund for at least 20 years, have completed at least 60 months of insurance in the last 10 years, and have ceased all salaried activities.

The monthly pension is equal to 30% of the average monthly salary and is increased by 1% for every year after 180 days. The minimum pension is 30% of the minimum wage, and the maximum is 80% of the average remuneration of the employee.

Dependents/Survivors Benefits

In Cameroon, survivors are entitled to a pension in case of death of an insured employee who is the holder of either an old-age pension, invalidity pension or early pension, or who fulfills the conditions for pension by contributing 180 months for insurance. The amount of survivor pension is as follows, calculated as the percentage of the allowance received by the deceased employee:

  • 50% of the monthly pension for a widow or a widower
  • 25% for a child if one of the parents deceased
  • 40% for orphans

The following persons are considered survivors:

  • A widow who is at least 50 years of age or disabled, provided the marriage was contracted for at least 1 year
  • A disabled widower dependent on the deceased employee
  • Dependent children of the deceased

If the deceased employee did not fulfill the contributions condition, survivors receive a lump-sum grant based on the number of contributions made by the deceased employee.

Invalidity Benefits

The National Social Insurance Fund of Cameroon provides a disability benefit to insured employees below the age of 60 years if they have been registered with the National Social Insurance Fund for at least 5 years and have completed 6 months of insurance in the last 12 calendar months preceding the onset of disability. These contribution conditions are not applicable in case of disability work-related accidents. The monthly disability pension amount is 30% of earnings, increased by 1% for each year of contributions after 180 months.

  • Local Laws & Regulations

    We understand that local laws and regulations change and sourcing an accurate reference guide is not easy. Our data is researched and verified by our team of local international Employment Attorneys, HR and Benefit Professionals and Tax Accountants through our Atlas team and consultants, to ensure information up-to-date and accurate.

  • Partner with atlas logo

    Partnering with Atlas when expanding into Cameroon can dramatically reduce the standard brick and mortar processes of doing business in foreign markets and allow you to focus on what you do best, growing your company! To discover more about how Atlas can simplify your ability to expand globally, please feel free to contact us.

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