Hiring in Liberia: the work permit, the contract and what comes off pay, step by step

Move someone who is already in Liberia

An employer does not employ a foreign worker unless they hold a current work permit from the Ministry of Labour. So a foreign national's permit is checked before they start with a new employer.

A Liberian national needs no permit. Their move turns on the notice their current contract sets, which is at least four weeks after a year's service.

Check the role is open to a non-Liberian

The Ministry of Labour issues a work permit only where it is satisfied that no suitably qualified Liberian is available to do the work. The person also has to meet Liberia's requirements for foreign residence. The Minister can make regulations on how foreign employees are engaged. Those regulations can treat citizens of ECOWAS member states differently.

Once employed, a foreign worker resident in Liberia has every benefit of the Decent Work Act, and of any collective agreement that covers the work. Their terms are no less favourable than a Liberian national's, on pay, hours, overtime, rest, leave, safety and termination.

Set the contract up right

A contract of employment can be oral or written. It is for a definite period, an indefinite period or a specific task, and for full-time, part-time or casual work. It states the employer and the place of work, the job, how long it lasts, the notice, and the pay, how it is worked out and when it is paid. Where the contract is oral, the employee is given the particulars in a written statement. Where the oral terms are the same as other employees', a notice in the workplace can carry them instead. The contract or the statement is kept for five years after the employment ends.

A probation period lasts up to three months. A casual employee engaged regularly over six months can choose to become full-time or part-time.

Wages are paid in cash, or by cheque or into a bank account where the employee agrees in writing. They are paid at intervals of no more than a month, with a written statement of the gross pay, each deduction and the net pay.

Ordinary hours are eight a day and 48 a week. A day can run up to four hours longer where other days are shorter, within the 48 hours. An employer can require up to five hours' overtime a week, paid at least 50% above the normal rate, or with paid time off where both agree in writing. Work on a public holiday, which the employee can reasonably refuse, is paid at twice the normal rate.

Work of more than five hours in a row earns a paid meal break of at least an hour. Each employee has 12 consecutive hours of rest between working days, and a weekly rest of 36 consecutive hours that includes Sunday unless agreed otherwise in writing.

The minimum wage in the formal sector is USD 0.68 an hour, or USD 5.50 a day. For domestic and casual workers it is USD 0.43 an hour, or USD 3.50 a day.

Know the employee test before you engage a contractor

Liberia's Decent Work Act presumes that anyone who works for another person is an employee, whatever the contract says, until the contrary is proved. The presumption arises where any one of these is true: the work is controlled or directed by the other person, so are the hours, or the person is part of the organisation. It also arises where the person has worked for them an average of at least 40 hours a month over the last three months, depends on them economically, uses tools or equipment they provide, or works only for them.

The Act applies to all work in Liberia, whether or not the person is a citizen. A role that needs a work permit goes through employer of record.

Know what comes off pay each month

NASSCORP runs two schemes. For the National Pension Scheme, the employee pays 4% of monthly earnings and the employer 4%. For the Employment Injury Scheme, the employer alone pays 2%, and nothing is deducted from pay for it. Earnings for the pension scheme include salaries, wages, bonuses, piece rates, incentive payments and any cost of living allowance. Both are paid to NASSCORP each month.

Where a resident's wages for the year exceed LRD 70,000, income tax is withheld from each payment on the annual bands. Nothing is due on the first LRD 70,000. Then 5% is due on income from there to LRD 200,000, 15% from there to LRD 800,000, and 25% above that. The tax at LRD 200,000 is LRD 6,500, and at LRD 800,000 it is LRD 96,500.

The tax withheld is remitted within 10 days after the month's last day, with a statement of each payment. Tax can be paid in Liberian or US dollars. A payment in US dollars is translated at the Central Bank's published market rate on the day it is made. Knowingly failing to withhold or pay over tax is a misdemeanour. On conviction, the fine can reach 50% of the tax for a first offence.

Know the leave your people are entitled to

End employment on the law's terms

A contract for an indefinite period can be ended by the employer only for just cause: the employee's ability to do the work, their conduct, or the operational needs of the business. A fair internal procedure comes before the decision. A contract for a definite period can be ended early only for grave misconduct. Grave misconduct allows termination without notice. Its examples include being absent without good cause for more than 10 days in a row, or more than 20 days in six months.

After probation, the employer gives written notice that names the last day. It is at least one week under three months' service, two weeks under six, three weeks under a year, and four weeks after that. The notice runs from the first day of the next pay period. The employer can pay the notice period instead.

A redundancy, for economic, technological or structural reasons, carries severance of four weeks' pay for each completed year of service, on top of notice. The Ministry, the employees and any union are told the reasons, the numbers and the date at least four weeks ahead, and the employer negotiates in good faith on alternatives. Selection is first in, last out, weighed with qualifications and efficiency where service is about equal. Those let go are considered when new work arises.

An employee can complain to the Ministry within six months of a decision to end their employment, or later where the Ministry allows it for good cause. Where it was not ended as the Act requires, the Ministry or a court can order reinstatement, compensation or both. Compensation can reach two years' remuneration, or five years' where the dismissal was to avoid paying a pension.

For a foreign worker, the employer meets the cost of the journey home at the end of the contract, unless the employment ended for grave misconduct.

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