Madagascar Labor Law and Employment Policy Overview
Employment Law Overview
Key Legislation:
Labor Code (Decree No. 2003-029 of 2003)
Social Security Code (Decree No. 60-127 of 1960)
Legal Characteristics:
Aims to protect employee rights and promote harmonious labor relations.
Sets standards for minimum wage, working hours, leave, social security, and contract termination.
Employment Contract Requirements
Contract Types:
Fixed-term contracts (maximum duration of 2 years)
Indefinite-term contracts
Contractual Provisions:
Must include clauses on job description, remuneration, working hours, benefits, and termination conditions.
Language and Currency:
Contracts must be written in French or Malagasy.
Currency is the Malagasy Ariary (MGA).
Working Hours Regulations
Standard Working Hours: 40 hours per week, 8 hours per day.
Rest Days and Breaks: 1 rest day per week, 1 hour break after 8 hours of work per day.
Leave Policy
Annual Leave: 30 days of paid annual leave per year.
Public Holidays: 15 official public holidays.
Special Leave:
Sick Leave: 5 days of paid sick leave per year.
Maternity Leave: 14 weeks of paid maternity leave, of which 8 weeks must be taken after childbirth.
Paternity Leave: No statutory paternity leave.
Parental Leave: Female employees are entitled to up to 14 weeks of paid parental leave, of which at least 8 weeks must be taken after childbirth. Male employees are entitled to 10 days of leave per year for exceptional family events.
Employee Dismissal and Contract Termination
Notice Period:
During probationary period: No notice period
Outside probationary period: 8 days to 6 months, depending on length of service and type of work.
Severance Pay:
Payable only in cases of dismissal for economic reasons.
10 days' salary per year of service, up to a maximum of 6 months' salary.
Protection Against Unfair Dismissal:
Employers must have valid grounds for dismissing an employee.
Employees can file a complaint for unfair dismissal.
Taxation
Personal Income Tax:
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