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Written Agreements

Madagascar's Labor Code provides that employment contracts concluded in writing, whether in French or Malagasy, must be made in 2 copies and signed by both parties. The written agreement must be provided to the employee immediately after signing and must include the following information:

• Functions
• Wage
• Professional classification
• Professional category
• The effective date of the contract
• Probationary period, if any.

Oral Agreements

Madagascar's labor law does not contain provisions for oral contracts. Without a written agreement, an employment relationship may be proved by any means based on the Labor Code's definition of a worker and employer.

Implied Agreements

Madagascar's labor law does not contain provisions for implied contracts. Without a written agreement, an employment relationship may be proved by any means based on the Labor Code's definition of a worker and employer.

The Labor Code of Madagascar defines hours of work as actual hours worked, not including time required to dress, undress, or eat. The maximum legal work hours is 173.33 monthly or 40 per week. Work done in excess of these hours is considered overtime.

For agricultural businesses, the maximum legal work hours is 2,200 hours yearly, and the Government Council determines the terms, wages, nature, and length of overtime.

New Year (January 1), International Women’s Day (March 08), Easter Sunday and Easter Monday (dates may vary), Commemoration of the 1947 Rebellion (March 29), Labor Day (May 1), Ascension Day (date may vary), Pentecost/Whit and Monday of Pentecost/Whit (dates may vary), Independence Day (June 26), Assumption Day (date may vary), All Saints’ Day (November 1), Christmas Day (December 25).

Madagascar's Labor Code specifies that a probationary period (or trial employment) cannot exceed 6 months in duration and is renewable only once. The agreement or renewal of probationary employment must be in writing, signed at the time of hiring, and include the following information:

• The position to be filled
• The duration
• The salary
• The professional category

It is deemed non-existent if the trial period is not stipulated in writing in any fixed-term or indefinite contract.

The Council of Government consults with the National Council for Labor and Employment to determine the form and terms of probationary employment and its duration, considering the professional categories.

Notice Period

An indefinite-term contract can be terminated by either party by providing prior notice (or without notice in the event of gross negligence). The dismissal notice length varies between 1 day and 6 months, depending on the employee’s length of service in that company and their professional category.

The notice must be provided in writing. During the notice period, the worker is entitled to 1 day off per week. Any breach of contract where the notice period is not fully observed requires the party responsible for the breach to pay the other party compensation.

Severance Benefits

In cases of economic redundancy, employers must pay affected employees a severance payment equal to 10 days’ wages for each year of service in the company, up to a total of 6 months’ wages.

Employees and employers may agree on severance pay in other cases of termination. Such provisions must be indicated in the employment contract.

Minimum Wage

The current non-agricultural minimum wage is MGA 262,680 (Malagasy ariary), and the agricultural minimum wage is MGA 266,500 per month. The value of the index point for calculating Minimum Hiring and Seniority Salaries by professional category is 0.8745 for the non-agricultural sector and 0.7688 for the agricultural sector.

Remuneration for performance, task, piecework, or target-related work must equal that of an employee paid by the hour doing similar work and at least the minimum wage for the applicable occupational category.

Overtime, Holiday & Vacation Pay

Overtime shall be paid as follows:

• 130% of the regular hourly rate for the first 8 hours of overtime
• 150% of the regular hourly rate after the 8th hour
• 150% of the regular hourly rate for overtime at night
• 150% of the regular hourly rate for work done on public holidays
• 140% of the regular hourly rate for work done on weekly rest days

Employees are entitled to a 12th of their annual wages before the commencement of annual leave.

Visas

The following types of visas are recognized:

• Non-immigrant visa - This visa is issued to foreign nationals visiting Madagascar for up to 90 days.
• Transformable visa - This visa is issued exclusively by an Embassy or Consulate of Madagascar. It allows the holder to apply for a long-term immigrant visa and is valid for a stay of up to 30 days.
• Immigrant visa - This visa is issued to foreign nationals visiting Madagascar for longer than 90 days.

Work Permits

Under the labor law, foreign nationals may work in Madagascar if they obtain the following:

• Prior approval of the employment contract by the Labor and Social Affairs Inspector from the relevant department of the Ministry of Labor and Employment
• A work permit issued by the Minister of Labor that indicates the employee's identity, nationality, position, professional category, validity, and workplace.

Employees must apply for a transformable visa to obtain a work permit. Depending on the immigrant category, additional documents might be required in addition to the general documents required for this type of visa.

To apply for a work visa, an application with relevant documents must be submitted to Madagascar's Economic Development Board. Work visas are issued for up to 2 years and are renewable.