Hiring in Namibia: the employment permit, the contract and what comes off pay, step by step

Move someone who is already in Namibia

An employment permit is issued for the purpose and on the conditions the Board states in it. Staying on after it runs out, or working against its purpose or conditions, is an offence. The Board can extend the period, or alter the conditions, of a permit it has issued. A foreign national moving to new employment needs the permit to cover it.

A Namibian citizen needs no permit. Their move turns on the notice their current contract sets, which is at least a month after a year's employment.

Check the role is open to a non-Namibian

Each employment permit is decided on its own. The Board authorises one only where the person has the qualifications, education, training or experience to be efficient in the work.

It also has to be satisfied that the work is not one in which enough people are already engaged in Namibia to meet its inhabitants' needs. A permit cannot conflict with the Immigration Control Act or any other law.

Set the contract up right

The Labour Act's basic conditions are terms of every contract of employment, unless a law, the contract or a collective agreement gives the employee something better. An employee is presumed to be employed indefinitely, unless the employer can justify a fixed term. That presumption does not apply to managerial employees.

Pay is due on the normal pay day, in cash, by a payment instrument at the employee's option, or by direct deposit into an account they name in writing. Each payment comes with a written statement of particulars. The national minimum wage is NAD 18 an hour, for ordinary hours, without counting allowances, overtime or bonuses.

The ordinary week is up to 45 hours. A day is up to nine hours on a week of five days or fewer, and eight on a longer week. Overtime is worked only by agreement, up to ten hours a week and three a day. It is paid at one and a half times the hourly basic wage at least, and twice it on a Sunday or public holiday the employee ordinarily works.

Someone who works more than five hours in a row has a meal interval of at least an hour. Each hour worked between 20h00 and 07h00 earns an additional 6% of the hourly basic wage. The working day spreads over no more than twelve hours, and each week brings at least 36 hours of rest in a row. Sunday work is paid at twice the hourly basic wage.

Know the employee test before you engage a contractor

Namibia's Labour Act presumes that someone who works for or renders services to another person is that person's employee, whatever the contract calls them, until the contrary is proved. One sign is enough. The signs are control of how they work, control of their hours, work that is an integral part of the organisation, and an average of at least 20 hours a month over the past three months. Economic dependence, tools supplied by the other person, and working for that person alone are signs too.

A foreign national takes up employment in Namibia on an employment permit. A role that needs one goes through employer of record.

Know what comes off pay each month

The Social Security Commission's fund for maternity leave, sick leave and death benefits takes 0.9% of the employee's basic wage, and you pay 0.9% more. The basic wage counted is at least NAD 500 and at most NAD 12,500 a month. It leaves out allowances, overtime, Sunday and holiday pay, night work pay and pension or medical contributions. Contributions are paid within 30 days after the end of the month.

Income tax is withheld each month on the year's income. Nothing is due on the first NAD 100,000 a year. Income above that is taxed at 18% up to NAD 150,000, 25% up to NAD 350,000, 28% up to NAD 550,000, 30% up to NAD 850,000 and 32% up to NAD 1,550,000. Income above NAD 1,550,000 is taxed at 37%. The tax deducted is paid within 20 days after the end of the month.

An employer paying NAD 1,000,000 or more in a year to its employees also pays the vocational education and training levy. It is 1% of the year's total pay, paid on or before the 20th of each month.

The Social Security Commission also runs the accident fund that compensates employees injured at work. Each March, the employer sends the Commission a statement of the wages paid in the year to February. The Commission then assesses the employer at a percentage of those wages, set by the estimated risk and cost of accidents.

Know the leave your people are entitled to

End employment on the law's terms

Notice is at least a day in the first four weeks of employment, a week up to a year, and a month after that. A longer period can be agreed, the same for both sides. Notice is given in writing, with the reasons where the employer gives it. After a year's employment, it is given on the 1st or the 15th of the month. It is not given during leave, or to run alongside it. Either side can pay the remuneration for the notice period instead.

A dismissal needs a valid and fair reason and a fair procedure. Once the employee shows they were dismissed, the dismissal is presumed unfair until the employer proves otherwise. A dismissal for joining a union, using a right under the Act, or because of sex, race, religion or a similar ground is unfair.

A collective termination for economic or technological reasons, a reorganisation or a transfer of the business starts with notice at least four weeks ahead. It goes to the Labour Commissioner and the recognised union, or to the elected workplace representatives and the employees. The employer discloses the relevant information, negotiates in good faith on alternatives and selection, and selects on agreed or fair and objective criteria.

Severance is at least a week's remuneration for each year of continuous service, once an employee has served twelve months. It is owed on a dismissal, other than a fair one for misconduct or poor performance, on a death in service, and on resigning or retiring at 65.

A dispute over a dismissal goes to the Labour Commissioner within six months of it. The arbitrator can order reinstatement or award compensation, among other orders.

Everything due, including leave pay and any severance, is paid by the next pay day after the employment ends. A certificate of service is given on termination.

See what changed this year, and what is next