Key Takeaways

  • An Employer of Record can help a foreign company expand into Cameroon quickly and with ease.
  • Companies looking to expand in Cameroon through an Employer of Record have several factors to consider before making a decision.Unlike a PEO, an EOR serves as the legal employer, handling employment responsibilities while allowing businesses to operate without legal registration in Ecuador.
  • Before opting for an EOR, companies should consider other options, like working with a Cameroonian freelancer or setting up a legal entity.
  • A Cameroonian EOR must be an expert in Cameroon labor laws to ensure efficiency and compliance.
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What is an Cameroon Employer of Record?

An Employer of Record (EOR) in Cameroon is a third-party service provider that legally employs workers on behalf of a company. The EOR handles all employment-related responsibilities, such as payroll, taxes, benefits, and compliance with local labor laws, while the company manages the day-to-day work and operations. This allows businesses to hire employees in Cameroon without setting up a local entity.

Cameroon EOR

What is the Difference Between a Cameroon EOR and a Cameroon PEO?

An EOR is the legal employer and handles all compliance and administrative tasks, while a PEO involves shared responsibilities between the company and the PEO, with the company maintaining some control over employment functions.

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How Does a Cameroon Employer of Record Work?

An Employer of Record in Cameroon legally employs staff on your behalf, taking responsibility for contract registration, payroll processing, tax withholding, social contributions and benefits administration.

While the EOR manages all local compliance and HR administration, your organization retains full control over day-to-day direction, performance management and project oversight.

Recruit Talent in Cameroon

Recruitment in Cameroon usually starts with employers preparing a comprehensive job description clearly outlining the role’s responsibilities and requirements. After receiving applications, employers review submissions and create a shortlist of the most qualified candidates. Shortlisted candidates are invited for interviews, and the employer selects the preferred candidate(s) to whom a job offer is extended.

Employers in Cameroon have several avenues to attract potential candidates. Online platforms are becoming increasingly important, with professionals using sites like LinkedIn to showcase their skills and connect with job opportunities. Companies in Cameroon can use LinkedIn for recruitment, particularly for managerial and professional roles. Other platforms like Njorku, JobInfoCamer, and Indeed Cameroon also serve as valuable tools for advertising vacancies and reaching a wider audience.

Compare Using an EOR with Setting Up a Legal Entity in Cameroon

When expanding into Cameroon, companies need to decide whether to work with an Employer of Record (EOR) or establish a legal entity. Each option has its benefits, depending on the company’s size, goals, and plans for the market. Using an EOR is a quicker way to get started in Cameroon. With an EOR, companies can launch operations in a matter of days or weeks, skipping the long and often complex process of setting up a local entity. On the other hand, creating a legal entity can take months, involving detailed paperwork, multiple registrations, and dealing with regulatory authorities.

An EOR takes care of essential HR tasks like hiring, onboarding, payroll, benefits, and ensuring compliance with Cameroon’s labor laws. By acting as the legal employer, the EOR shoulders all legal and administrative responsibilities on behalf of the company. In contrast, setting up a legal entity means the company handles everything itself, from managing employees and processing payroll to dealing with labor laws, which can be challenging without local expertise.

When it comes to costs, working with an EOR is often the better choice for companies testing the waters or managing smaller teams in Cameroon. EORs typically charge a fee for their services without requiring the significant upfront investment that comes with setting up a legal entity. However, if a company is planning large-scale or long-term operations, establishing a local entity may be more cost-effective in the long run, despite the higher initial expenses. The right choice depends on your company’s resources, timeline, and plans for growth in Cameroon.

Compare Using an EOR with Hiring a Cameroon Freelancer

When expanding into Cameroon, businesses face the decision of hiring a freelancer or working with an Employer of Record (EOR), each offering different advantages. Freelancers in Cameroon are ideal for short-term, specialized tasks such as software development, design, or marketing campaigns. They handle their own taxes and social security contributions, making them a cost-effective option for businesses with limited long-term needs.

On the other hand, using an EOR in Cameroon provides a more streamlined approach for companies looking to hire full-time employees without the complexities of local labor laws. The EOR manages all compliance requirements, including contracts, tax deductions, and contributions to Cameroon’s National Social Insurance Fund (CNPS). While freelancers suit project-based work, an EOR is more suitable for businesses aiming to establish a long-term presence in Cameroon, ensuring legal compliance and a structured workforce.

Choose an EOR Provider with Cameroonian Expertise

Cameroon has specific employment regulations and labor laws that emphasize the importance of compliance for companies planning to expand there. Working with an Employer of Record (EOR) provider experienced in managing the Cameroonian workforce is crucial for ensuring smooth operations. Companies should evaluate potential EOR providers to confirm they have successfully managed operations for other organizations in Cameroon without compliance issues. This includes examining their payroll management systems, tax compliance processes, benefits administration, and the timeliness and accuracy of their overall management practices.

It is also important to review feedback from the provider’s past clients in Cameroon. Client testimonials and reviews can reveal whether the provider has encountered any negative experiences. Finally, ensure that the EOR provider demonstrates the ability to stay updated on Cameroon’s labor laws and adapt swiftly to any legal changes.

Engage with the EOR to Produce a Compliant Cameroon Employment Contract

Once they have chosen an Employer of Record (EOR), companies need to collaborate with the EOR in drafting an employment contract. Employment contracts in Cameroon must adhere to the country’s labor laws, including provisions outlined in the Cameroon Labour Code. The EOR can ensure that the contract complies with regulations governing working conditions, wages, hours, and employee rights. 

The company must communicate job details, requirements, responsibilities, and other work-specific information to the EOR during the drafting process. By working with a Cameroon-based EOR, companies can create employment contracts that meet their operational needs while remaining fully compliant with Cameroonian labor regulations.

Have the Candidate Provide Employment and Personal Information to the Employer of Record

Once the employment contract is finalized, the next step is for the successful candidate(s) to provide their employment and personal details. This includes the candidates’ full name, contact information, tax identification number, and bank account details. If the company is hiring foreign nationals, the Employer of Record (EOR) may request documentation confirming the candidates’ right to work in Cameroon, such as residence permits or work visas. 

Additional information, such as preferred start dates, working hours, and specific terms agreed upon during the hiring process, may also be required. The accuracy of this data is crucial, as it is used by the EOR to handle payroll, tax obligations, and employee benefits efficiently.

Onboard the Employees to Both the EOR and the Client Company

Onboarding involves familiarizing the candidate with the systems, policies, and cultures of both the EOR and the client company. For the EOR, this includes ensuring the candidate is registered in the payroll system and enrolled in any applicable benefits. Candidates are also briefed on deductions that will be withheld from their earnings, such as taxes and contributions to the Cameroon National Social Insurance Fund (CNPS). 

The client company, on the other hand, focuses on orienting new employees to day-to-day operations, team dynamics, and organizational values. This includes training on internal systems and aligning employees with company goals to promote a productive work environment.

Monitor Payroll Alongside EOR

While payroll management is primarily the responsibility of the EOR, client companies should actively monitor this process to ensure transparency and accuracy. This involvement allows companies to verify timely salary payments and address employee concerns about pay or benefits promptly. 

By staying engaged, client companies can confirm the accuracy of hours worked, overtime calculations, and performance-based bonuses. Monitoring payroll reduces the risk of errors and non-compliance with Cameroon’s labor laws. It also ensures employees feel valued, as timely and accurate compensation is a key factor in employee satisfaction.

Engage with EOR on Any Ongoing Cameroonian Employment Issues

For ongoing employment matters, such as disputes, performance management, or adapting to changes in local employment regulations, the EOR and client company must collaborate closely. The EOR, as the legal employer, takes the lead in handling disputes, grievances, and terminations. However, the client company should also be actively involved to ensure that its operational needs and policies are represented effectively.

What Labor Laws Apply to Hiring in Cameroon?

Cameroon’s labor laws are derived primarily from two sources: statutes (such as the Labor Code of 1992) and collective agreements (industry-specific agreements negotiated between employers and trade unions). The Labor Code of 1992 is the cornerstone of Cameroon’s employment regulations, designed to protect the rights of both employees and employers while promoting fair labor practices. 

Below is a breakdown of the key labor laws that employers in Cameroon are required to follow:

Employment Contracts

In Cameroon, employment contracts are a fundamental part of the employment relationship and must be formalized in writing before an employee begins work. This ensures that both the employer and the employee are clear about their rights, duties, and obligations. Verbal agreements are not legally binding under Cameroonian labor law, making it essential for employers to provide a written contract that clearly outlines the terms of employment.

There are two main types of employment contracts in Cameroon which are permanent and fixed-term contracts. A permanent contract is intended for employees who will work with the company on a long-term basis, either full-time or part-time. This type of contract offers job security and continuity for the employee. In contrast, a fixed-term contract is used for specific projects or time-limited roles, and it must state a valid reason for the fixed duration of employment. These contracts often have a clear end date and are used when a company needs to meet specific operational needs or project requirements.

Working Hours and Paid Holidays

In Cameroon, the typical workweek consists of 40 hours, with employees working eight hours per day from Monday to Friday. Any work exceeding this standard is considered overtime, which must be mutually agreed upon by the employer and employee in advance. Overtime is usually compensated at a higher rate, with the common practice being to pay 150% of the regular hourly wage for the initial overtime hours worked. Employees are also entitled to at least 18 days of annual leave per year.

Cameroon has 11 national public holidays each year. These holidays include both fixed and movable dates. Workers are entitled to paid time off on these public holidays, which are an important part of the national and religious observances in the country. If employees are required to work on any of these holidays, they are typically entitled to additional compensation, as agreed upon in the terms of their employment.

Social Security Contributions (CNPS – Caisse Nationale de Prévoyance Sociale)

In Cameroon, the Caisse Nationale de Prévoyance Sociale (CNPS) is responsible for managing social security contributions. Both employees and employers are required to contribute to the CNPS, which covers various benefits such as retirement savings, healthcare, and workers’ compensation. 

Employees automatically become CNPS members when they start employment, with contributions deducted from their salaries by the employer. These contributions are then remitted to the CNPS. The contribution rate depends on the employee’s income and is shared between the employer and the employee.

Workers’ Compensation (Part of CNPS coverage)

Cameroon’s workers’ compensation system is part of the CNPS and provides coverage for employees in case of work-related injuries. Employers must make contributions to ensure that workers are compensated for any accidents that occur during work activities. This compensation system operates under a no-fault policy, meaning that employees do not need to prove employer negligence to receive benefits. The CNPS oversees the management of claims related to work-related injuries and ensures that employees are appropriately compensated.

Taxes

Cameroon follows a Pay As You Earn (PAYE) income tax system, where employers are responsible for withholding income tax from their employees’ salaries. The tax rates are progressive, meaning they vary based on the employee’s income. Employers are obligated to remit these taxes to the relevant tax authorities, specifically the Direction Générale des Impôts (DGI) in Cameroon, ensuring that employees comply with national tax laws. This system ensures that taxes are deducted directly from the employee’s earnings, simplifying the process for both employers and employees.

Parental Leave

In Cameroon, maternity leave grants pregnant women 14 weeks of leave, starting four weeks before the expected confinement date, with an option for a six-week extension if medically necessary. During this period, the woman cannot be dismissed, and she receives a daily allowance equal to her regular wages, paid by the National Social Insurance Fund.

Additionally, mothers are entitled to nursing breaks for up to 15 months after childbirth. Fathers, on the other hand, are granted paternity leave for a shorter duration, typically ranging from two to three days, allowing them to support their partners during the early stages of childrearing. These provisions ensure both parents can fulfill their familial roles while safeguarding their employment rights.

Probation Periods

Probation periods are commonly used by employers to evaluate whether an employee is the right fit for a job. While the probation period is not regulated by law, it is typically agreed upon in the employment contract and must be clearly stated before employment begins. The duration of the probation period can vary but usually lasts for up to three months. During this time, employees are entitled to their wages, and the probationary period serves as a trial phase to assess the employee’s performance and suitability for the position.

Union Membership

Regarding union membership, Cameroon recognizes the right of workers to form and join unions based on their job type or workplace. These unions must be registered with the Ministry of Labour and Social Security and require a minimum of 10 members. Membership in a union is voluntary, and no worker can be forced to join or remain in a union. 

Employees are protected from any form of discrimination for choosing not to participate in union activities. Employers are also required to respect workers’ rights and engage in good faith with unions, ensuring that any union-related meetings during working hours are accommodated without discrimination.

Employment Termination

In Cameroon, either party to an employment contract without a specified duration can terminate the agreement at any time, provided they give written notice of the termination. The notice period depends on the terms of the contract, the employee’s seniority, and the job category and can range from two weeks to four months. Severance pay is determined by the length of employment and is calculated as a percentage of the employee’s annual salary. 

For employees with up to five years of service, the severance pay is 20% of the annual salary. From the sixth to the tenth year, this increases to 25%, and for those with 11 to 21 years of service, it ranges from 30% to 40%, based on the duration of employment.

How Does an Cameroonian Employer of Record Help with Payroll and Taxes?

An EOR in Cameroon plays a vital role in managing employees’ payroll and taxes. They ensure salaries are calculated accurately and that tax deductions comply with Cameroon’s labor laws. This includes withholding and remitting taxes such as the Personal Income Tax (PIT) and contributions to the CNPS. The EOR also ensures compliance with legal deadlines for tax payments to avoid penalties.

How Does an Cameroonian Employer of Record Help with Benefits Administration?

Cameroon’s labor laws require employers to provide specific benefits, including annual leave, sick leave, maternity leave, and CNPS contributions. An EOR ensures these benefits are administered by local laws while helping companies tailor their benefits packages to attract and retain talent. This includes aligning benefits with both employee expectations and the company’s budget.

How Much Does an Cameroon Employer of Record Service Cost?

The cost of using an EOR in Cameroon varies based on factors like the number of employees, the range of services needed, and the length of the engagement. EOR providers generally charge a monthly fee or a percentage of employee salaries. For a precise estimate, it is recommended to contact an EOR provider for a customized quote based on your needs.

Is Employer of Record Legal in Cameroon?

Yes, using an Employer of Record (EOR) is legal in Cameroon as long as the EOR adheres to local labor laws, including regulations on employment contracts, social security contributions, and workplace safety.

Using an Employer of Record in Cameroon

Expanding your business into Cameroon can be a smooth experience when you partner with an Employer of Record (EOR) service. With an understanding of Cameroon’s labor laws and business culture, an EOR helps you stay compliant and manage payroll, benefits, and employee relations without the stress.

Partner with Remote People Services for your EOR needs and take advantage of our local expertise to ensure your business operates smoothly and legally in Cameroon. Contact us today for a hassle-free and compliant business expansion.

Remote People simplifies your expansion into Cameroon by serving as your Employer of Record. We manage local compliance, payroll, and hiring—helping you build a strong team and achieve long-term success in the region. Contact us today to get started.