Definitive Guide to Hiring in Liberia

Hiring in Liberia

Hiring employees compliantly in Liberia means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Liberia so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Liberia; or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Labor Laws in Liberia

Employee Probation Period

• Under Liberian employment law, probationary periods may not be less than 1 month and cannot exceed 3 months.

Annual Leave in Liberia

• Every employee is entitled to a minimum uninterrupted period of annual leave as follows:
  • during the first year of service with an employer,1 week of annual leave
  • during the first 2 years of service with an employer, 2 weeks of annual leave
  • during the first 3 years of service with an employer, 3 weeks of annual leave
  • during the first 5 years of service with an employer and thereafter, 4 weeks of annual leave

Holidays in Liberia

Maternity Leave Liberia

• Female employees are entitled to 14 weeks of paid maternity leave

Paternity Leave Liberia

• Fathers are entitled to 5 days of unpaid paternity leave

Sick Leave in Liberia

• Employees are entitled to 10 days of sick leave

Working Hours in Liberia

• Working hours cannot exceed more than 8 hours per day or 48 hours a week.
• Employees are also entitled to an uninterrupted period of 24 hours’ rest per week.

Overtime in Liberia

• Hours worked in excess of the normal working hours shall be considered overtime.
• Overtime is paid at a premium of 150% of normal wage

Termination of Employment in Liberia

• An employee may be dismissed if he or she is guilty of a “gross breach of duty” or a “total lack of capability to perform”.
• Examples of “gross breach of duty” include:
  • Unprovoked assault on the employer
  • Persistent disregard for safety measures imposed by the employer
  • Disclosure of company working secrets
• An employer may terminate the employment contract provided he or she gives at least 2 weeks written notice (casual employee) or 4 weeks (salaried employee).
• Compensation in lieu of notice may be given.
• However, employees guilty of a gross breach of duty may be terminated without notice or severance pay

Notice Period in Liberia

• An employer may terminate the employment contract provided he or she gives at least 2 weeks written notice (casual employee) or 4 weeks (salaried employee).
• Compensation in lieu of notice may be given.

Severance in Liberia

• Employees are entitled to 4 weeks of severance pay for each completed year of service (if terminated for economic reasons)

Liberia Salary and Wages

13th / 14th Month Salary in Liberia

• No
• There is no statutory requirement to pay the 13th or the 14th month salary.
• There is no evidence that bonuses are customary, however government employees are more likely to receive benefits.

• Employers are required to pay 3% of an employee’s monthly gross remuneration towards social insurance and 1.75% towards workmen compensation.
• Employees are required to pay 1.75% of an employee’s monthly gross remuneration towards social insurance.

Immigration Liberia

• Persons from countries other than ECOWAS (Economic Community of Western African States) are required to obtain a visa to enter Liberia.
• The most common types of visas that the Liberian government issues include:
  • Tourist visas
  • Business visas
  • Diplomatic and official visas
• Foreign nationals who intend to work in Liberia will typically need to submit the following documents during the visa application process:
  • A passport with at least one blank page and six months of validity
  • Two recent passport photographs
  • A signed and completed visa application form
  • Proof of medical insurance for the duration of the applicant’s stay in Liberia
  • Evidence of sufficient financial means
  • Proof of accommodations for travel, such as a flight itinerary
  • Proof of accommodations in Liberia
  • A certificate of immunization against yellow fever
  • A letter containing information about the applicant’s employment contract with a business in Liberia, which should be signed by a representative of the company
• Employees will also need a Liberian work permit.
• The requirements for the permit include:
  • A completed application form
  • An employment offer from a company in Liberia
  • A cover letter from the applicant’s employer
  • Two passport photos
  • A bank statement from the employer
  • A background check from the applicant’s country of residence
  • Professional qualifications

Value Added Tax (VAT) in Liberia

• GST is imposed on the supply of taxable goods and services in Liberia.
• Taxable persons charge GST on their taxable supplies (output tax) and are charged with GST on goods which they receive (input tax).
• GST is levied at 7% and 10% rates, 15% applies to telecommunications services.

Mandatory Benefits in Liberia

• These are mandatory benefits as postulated by law
• These include probationary period, annual leave, public holidays, paternity leave, maternity leave, overtime pay, notice period, and severance pay
• Statutory benefits also include social security benefits

Payroll Accrual in Liberia

Country Accruals Additional Information

Description

Employers are required to pay 3% of an employee’s monthly gross remuneration towards social insurance and 1.75% towards workmen compensation. For more details, please refer to the section on Employment.

Payroll Accruals Additional Information

Accrued Benefits in Liberia

Why use Global Expansion to hire in Liberia

Establishing a branch office or subsidiary in Liberia can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Liberia labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Liberia law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Liberia. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Liberia Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.