Laws and Policies in Equatorial Guinea

Employment Contracts in Equatorial Guinea

Employment relationships are primarily governed by the Equatorial Guinea Labor Code and related regulations.

Contract Requirements

• Contracts can be oral or written, but written contracts are strongly recommended, especially for foreign employers.
• Contracts should include:
  • Job title and duties
  • Salary and payment terms
  • Working hours
  • Duration (if fixed term)
  • Leave and benefits
  • Termination conditions
• Spanish is typically used in official documentation.

Types of Contracts

• Indefinite-term contracts – default for ongoing roles.
• Fixed-term contracts – used for projects or temporary work (often in construction, oil & gas, and services).
• Probation Period: commonly 1–3 months depending on role and level.

An EOR ensures all contracts meet local legal standards and align with market practice.

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Working Hours in Equatorial Guinea

• Standard workweek: typically 40–48 hours per week, depending on sector and company policy.
• Usual schedule: 8 hours per day, 5–6 days per week.
• Overtime:
  • Must be compensated at a higher rate (often at least 125–150% of base hourly wage).
  • Work on Sundays or public holidays is generally paid at a premium or compensated with time off.

Local practice can vary by industry—especially in oil & gas and construction—so it’s important to structure schedules and pay correctly.

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Employee Leave in Equatorial Guinea

Annual Leave

• Employees are generally entitled to paid annual leave after one year of continuous service.
• A common benchmark in the region is at least 2 working days of paid leave per month of service (around 24 days per year), though exact entitlement is defined in the local code and/or collective agreements.

Sick Leave

• Sick leave is allowed with medical certification.
• Pay during sick leave may be employer-funded, social-security-supported, or a combination, depending on the duration and company policy.

Maternity Leave

• Maternity leave is mandatory and paid, with a minimum duration (commonly around 12 weeks in line with many Central African labor frameworks).
• Protection from dismissal during pregnancy and shortly after return to work typically applies.

Paternity Leave

• Short paternity leave (a few days) may be granted by law or internal company policy.

Public Holidays

Equatorial Guinea observes several paid public holidays, including:

• New Year’s Day
• Labour Day
• Independence-related national days
• Religious holidays (e.g., Christmas, Good Friday, etc.)

Employees working on these days are entitled to extra compensation or time off in lieu.

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Employee Benefits in Equatorial Guinea

Statutory Benefits

Mandatory employer obligations typically include:

• Social security contributions (for pensions, family benefits, and work injury)
• Paid annual leave and public holidays
• Maternity protection
• Severance or end-of-service benefits in some termination cases

Exact contribution rates and thresholds can change, but as a rule, employers must register employees with the national social security system and pay contributions based on salary.

Common Additional Benefits

To remain competitive—especially in oil & gas and professional roles—employers often offer:

• Private medical insurance
• Transport or housing allowances
• Meal allowances
• Performance bonuses
• Rotation benefits for remote site work

An EOR designs packages that are compliant but also aligned with local expectations.

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Payroll & Tax Basics

Payroll Currency

• Payroll is typically processed in Central African CFA Franc (XAF).
• For expats in senior roles, some companies benchmark in EUR/USD but pay locally (or via split payments), depending on structure and regulations.

Employee Income Tax

• Employees are subject to personal income tax, generally on a progressive scale.
• Employers must withhold income tax at source and remit to the tax authority along with social contributions.

Social Security Contributions

• Employers and employees contribute to social security on a percentage of salary (pension, family benefits, health/work injury coverage).
• Contributions and filing are normally done monthly.

Using an EOR ensures proper registration, monthly reporting, and payments in line with Equatorial Guinea’s tax and social security rules.

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Employment Laws and Compliance in Equatorial Guinea

Key elements of the labor framework:

• Labor Code regulates employment conditions, minimum protections, and dispute resolution.
• Minimum wage and working conditions are defined by law and/or sectoral regulations.
• Foreign workers must have proper work permits and visas; employers must respect immigration rules.
• Employers are responsible for workplace safety and health compliance, especially in high-risk sectors.

Termination & Severance

• Termination must be based on legal and justifiable grounds (economic reasons, role redundancy, misconduct, etc.).
• Notice period and severance pay generally depend on:
  • Type of contract (indefinite vs fixed-term)
  • Length of service
  • Reason for termination
• Unlawful or unjustified dismissal may lead to compensation claims or reinstatement orders.

Non-Discrimination & Equality

Equal treatment and fair opportunities help reduce legal risk and support ESG/reputation goals.

As in many jurisdictions, employers should avoid discrimination based on race, sex, nationality, religion, or political opinion.