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This content is for informational purposes only. We do not guarantee the accuracy or completeness of this content. It is not legal advice and shall not be relied on as such.

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The Republic of Djibouti is an African country located on the eastern horn of Africa. The official languages are French and Arabic. However, most of the residents speak Somali. The service sector is the largest industry in Djibouti. The country is host to strategic transit points across its Red Sea coastal line. Companies looking to expand into Eastern Africa that select Djibouti will enjoy political stability, access to one of the largest shipping routes in the world, and one of the best telecom systems in Africa.

Employment contracts in Djibouti must be written and in the local language. Employment contracts can be indefinite, full-time, part-time, or for a definite fixed term that has an expiration date. Fixed-term contracts cannot exceed 12 months, can be based on work completion, and are renewable once. Any contract that does not have a fixed term is considered to be an indefinite contract. A contract stating the terms and conditions of employment should include:

  • name and address of the employer,

  • name and address of the employee,

  • job description,

  • salary, payment method, and payment date,

  • benefits, and

  • probation period.

The standard work hours in Djibouti are capped at 48 hours per week, spread over six days, at eight hours per day. A minimum of 24 hours rest is required, generally on Fridays. Overtime is capped at a maximum of four hours per day and 60 hours per week. Overtime generally is paid at rates established by convention or collective agreement.

Employees in Djibouti receive 29 days of sick leave paid at 50% of the basic rate by social security. For additional days, the employee receives 75% of the basic salary.

Female employees receive 14 weeks of paid maternity leave in Djibouti , eight weeks before the presumed date of delivery and six weeks after delivery. The leave period may be extended by an additional three weeks in case of complications that require a medical note. Male employees in Djibouti receive three days of paid paternity leave.

There is no fixed minimum wage in Djibouti. Wages are negotiated between the employer and employee. Employers are not required to provide bonuses. However, some employers may choose to offer performance-based benefits.

Employees are eligible for annual paid leave in Djibouti after 12 months of employment. They are entitled to two and a half days of leave per month from the day of service, which is 30 days of paid annual leave. The schedule for the leave is decided by the employer and reported to the employees at least 15 days before any leave starts. Leave can be split into two periods of at least 14 days.

In Djibouti, the public holidays are:

  • New Year

  • Al Isra

  • Labor Day/May Day

  • Eid-al Fitr

  • Independence Day

  • Eid-al Adha

  • Muslim New Year

  • Mouloud

  • Christmas

Some employers in Djibouti offer health insurance although they are not required to by law.

In Djibouti, employment can be terminated mutually or by either party after complying with a minimum notice period. The notice period generally is one month for regular positions or three months for executive positions. Employers who fail to provide the requisite notice are required pay the amount of wages that would have been earned during the notice period.

  • 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 Djibouti 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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