COUNTRY

Written Agreements

Chadian labor law requires the following types of contracts to be in writing and submitted before the start of execution to the National Office for the Promotion of Employment:

• Contracts concluded with foreigners
• Contracts requiring the worker to relocate outside of the place of employment
• Fixed-term contracts for more than 6 months (including renewals)
• Contracts of indefinite duration

Provisions on probationary period must be in writing.

Chad's Labour Code does not explicitly mention non-compete clauses. Employees' involvement in acts of disclosure of company secrets or engagement with obvious competition can be considered professional misconduct, and employees can be suspended or dismissed for the same.

Oral Agreements

Chadian labor law acknowledges the existence of oral contracts of employment but provides no guidelines for their use. The existence of an employment contract is proven by all means.

Implied Agreements

The law in Chad recognizes implied contracts. Certain commitments are formed without any express agreement due to the authority of the law alone or of a personal act. Commitments can be formed involuntarily. Other obligations arise from a personal act when, either by act or omission. These "quasi-contracts" are purely voluntary and result from some commitment towards a third party or sometimes a reciprocal commitment of 2 parties. Employers should be careful when engaging potential employees and use written agreements.

Per Chadian labor law, the regular working hours for employees in non-agricultural establishments cannot exceed 39 hours per week. Any work done beyond this limit is considered to be overtime. The duration of overtime work performed by an employee cannot be more than 94 hours in a year. In agricultural establishments, the working hours cannot exceed 2,400 hours in a year.

All Saints Day (November 1), Anniversary of the Proclamation of the Republic (November 28), Christmas Day (December 25), New Year’s Day (January 1), Labor Day (May 1), National Day (August 11), Freedom and Democracy Day (December 1), Easter Monday (date may vary), Maouloud El Nebi (date may vary), Eid El Fitr (date may vary), Eid El Adha (date may vary)

Employees accrue at least 2 days of paid annual leave per month, for 24 days per year. Periods equivalent to four weeks or 24 working days are counted as a month of actual work. The employee can take the annual leave after working in the company for 1 year. Leave must be taken within the following 12 months after it is accrued.

The employer determines the leave period, considering the employee's wishes and the organization’s requirements. The employee must be informed of the start of the leave at least 15 days in advance. The annual leave can be split so the employee gets at least 14 consecutive days of rest.

Chadian Labor Law stipulates that the employment contract of an employee who is the victim of a non-occupational disease or an accident other than a duly justified industrial accident is suspended for at least the first 6 months of their absence from work. The employer must pay the employee their regular remuneration while the employment contract is suspended due to non-occupational illness or injury. At the end of the 6 months, the employer can dismiss the employee if they justify the need to replace the absent employee permanently.

Per Chadian Labor Law, female employees are entitled to 14 weeks of maternity leave. An employer may not allow a pregnant employee to work in the 4 weeks preceding the presumed delivery date or in the 6 weeks following childbirth. Employees have a right to suspend their employment contracts for 6 weeks before and 8 weeks after delivery. Employers are responsible for paying 50% of their employee's last daily earnings for maternity leave if they qualify for social insurance benefits.

Chadian Labor Law does not contain statutory provisions addressing paternity leave. Employees who are subject to the general collective agreement are entitled to 1 day of paid paternity leave.

Minimum Wage

Chadian labor law provides the following types of wages: Guaranteed Interprofessional Minimum Wage (SMIG) and Guaranteed Minimum Wage Agricultural (SMAG).

The minimum wages were last set in 2011 and are currently:

• The SMIG is XAF 355 (Central African CFA francs) per hour for employees working for 39 hours per week.
  • The minimum wage for non-agricultural employees who are paid monthly is XAF 59,995
• The SMAG is XAF 302.80 per hour.
  • The minimum wage for agricultural employees who are paid monthly is XAF 60,560.

Salary must be paid monthly, and not later than 8 days after the end of the working month. Payment must be evidenced by a document drawn up or certified by the employer or their representative and signed by each person concerned or by 2
witnesses if the employee is illiterate.

Overtime, Holiday & Vacation Pay

Per Chadian labor law, the regular working hours for employees in non-agricultural establishments cannot exceed 39 hours per week. Any work done beyond this limit is considered to be overtime. An employee may not work more than 11 hours per day or 54 hours per week, including overtime. The total overtime hours worked by an employee cannot be more than 94 hours in a year.

The national collective agreement requires that the overtime hours are paid as follows:

• 10% increase in wages for the first 8 hours
• 25% increase in wages for the overtime beyond 8 hours
• 50% increase in wages for overtime worked during the night time
• 50% increase in wages for overtime worked during day time on weekly days of rest and holidays
• 100% increase in wages for overtime worked during the night time on weekly days of rest and holidays

The employer is obliged to pay an allowance for each day of the employee's annual leave. This benefit includes daily wages, salary supplements, allowances, miscellaneous bonuses, and commissions and should be paid out in full before the employee takes leave. Additionally, the employer is required to cover the travel expenses of the employees who live outside of their place of recruitment. In the event of a split leave, travel expenses are only due for the longest period of the split leave.

Notice Period

Per Chadian Labor Law, termination of an employment contract for an indefinite period does not become effective until the expiration of a notice period. The notice period begins on the day the letter notifying the dismissal is presented to the employee's home or on the day it is delivered directly to the employee by hand with a receipt.

A dismissed employee is entitled to a notice of 1 month if the employee has at least one year of service in the company, 2 months' notice when the employee has at least 3 years of service, and 15 days' notice in all other cases. An employee who has committed gross negligence justifying their dismissal is not entitled to notice, subject to the competent court's assessment concerning the fault's seriousness.

Severance Benefits

Per Chadian labor law, employees who, at the time of the effective termination of their work, have at least 2 years of service with the company are entitled to a termination indemnity payable by the employer. However, employees dismissed for gross misconduct are not eligible for a termination indemnity.

The termination indemnity is represented by a percentage of the average gross monthly salary over the last 12 months, excluding any allowance for dependents. This percentage is equal to:

• 25% per year for the first 5 years
• 30% per year for the next 5 years
• 35% per year from the 11th year onwards

For employees who become disabled due to a work injury or occupational disease, severance pay is increased by 5% in each case.

Pension

The retirement age in Chad is 60 years. Insured individuals are eligible for a retirement pension if they fulfill the following conditions:

• They have reached 60 years of age.
• They have been registered with the CNPS (the National Social Welfare Fund) for at least 15 years.
• They have contributed for at least 60 months in the last 10 years.
• They have permanently ceased all salaried activities.

The old-age pension is 30% of the average monthly wages of the employee. The average monthly payment is calculated over the last 3 or 5 years, whichever is greater. The pension is increased by 1.2% for every year of coverage exceeding 180 months the insured has paid.

Dependents/Survivors Benefits

Chadian law states that survivors of a deceased employee, who was eligible for a pension, are entitled to a pension after the eligible individual's death. The survivors are eligible to receive retirement, early retirement, or disability pensions as a percentage of the employee's pension as follows:

• 50% for a widow or invalid widower, (in case of several widows, the amount is divided between them equally)
• 25% for each child whose mother or father have died
• 40% for each full orphan

If an insured employee dies due to a work accident, their survivors become entitled to the pension the deceased was entitled to in case of permanent disability.

Invalidity Benefits

In Chad, insured employees who become permanently disabled before the age of 55 years are entitled to a pension if they meet the following conditions:

• They have been registered with the National Social Security Fund for at least five years.
• They have completed six months of insurance in the 12 calendar months preceding the beginning of the incapacity leading to disability.

The pension for permanent disability is calculated in the same way as the old-age pension. The monthly amount of the disability pension is 30% of the average monthly wages of the employee. The average monthly payment is calculated over the last three or five years, whichever is greater. The pension is increased by 1.2% for every year of coverage exceeding 180 months that the insured has paid. The amount cannot be less than 60% of the highest guaranteed minimum wage or more than 80% of the employee's average monthly remuneration.

These conditions are not required when the invalidity is caused by an occupational accident, provided they have lost at least 10% of their ability to work. If the disability is less than 10%, a lump sum compensation is paid. For temporary disability, daily allowance is paid by the employer for the entire duration of the work stoppage.