I. CFRAUDIT AS EMPLOYER OF RECORD EOR :
CFRAUDIT as Employer of Record EOR takes care of all compliance aspects of employment. It includes managing payroll, benefits, and other employment-related tasks on behalf of the real employer.
CFRAUDIT as Employer of Record EOR allows companies to legally and efficiently engage with overseas employees in a new country, without having to set up a local entity or risk violating local employment laws.
CFRAUDIT helps companies expand internationally by hiring and paying employees on behalf of another company. EORs assume the responsibility for all formal employment tasks
In this partnership, the employer (client) is still in charge of the employee’s day-to-day operations — such as tasks, meetings, performance reviews, and termination decisions — while the EOR handles the administrative burden of managing a foreign workforce.
The foreign company has the legal right to control how, where, and when the employee does his work.
II. MAIN TASKS OF CFRAUDIT AS EMPLOYER OF RECORD (EOR)
Employer of Record in Tunisia with CFRAUDIT offers comprehensive support in
- facilitating the onboarding process
- administering employee benefits
- coordinating social security programs
- managing healthcare and insurance coverage
- overseeing leave policies
- considering public holidays
- facilitating work permit
- managing probation periods, notice periods, termination, and severance procedures
- providing guidance on personal income tax obligations.
- Hiring and Termination : Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).
- Mandatory Benefits : All mandatory employer (and employee) contributions filed and paid for your EOR employees.
- Payroll Administration : Payroll recording, reporting and administration.
- Salary Disbursement : Distribution of salaries to employees through direct deposit into their bank accounts.
- Individual Income Tax : Calculation, reporting, filing and processing of EOR employee’s individual income tax due.
- Expense Reimbursement : Collecting and processing your employee’s invoices for business related expenses.
- VISA Processing (if expat) : Guiding and organizing your expat employee’s work visa application to guarantee their successful onboarding.
III. Key Considerations for Hiring in Tunisia :
- Cultural and geographical proximity to Europe : Tunisian cultural similarities with Europe ease remoting and recruitment. Most of the workforce is proficient in English, and French, which aids global communication. Moreover, the time zone alignment with Europe supports efficient remote communication.
- Tunisian Education regime is considered as the best one in the MENA, which allows Foreign company to hire talents in differents fields.
- A new political and social stability – the signing of a national agreement by all social and political groups and the structures of dialogue have allowed for a social climate favourable to development
- Tunisia enjoys an excellent reputation in international financial markets. In terms of financial risk, the country is among those of the first rank in Africa and among the best in emerging economies.
- An effective telecommunication network, in which enormous investments have been made to develop a modern telecommunication system covering all regions of the country
- The government is aiming to achieve higher economic growth levels to create sufficient employment opportunities for a large number of unemployed people as well as a growing population of university graduates.
IV. Overview of Tunisia :
| Region | Middle East & North Africa |
| Capital | Tunis |
| Population | 11 565 204 |
| Time zone | UTC+01:00 (CET) |
| Working hours per week | 40 or 48 |
| Working week | Monday to Friday or Saturday |
| Typical hours worked | 8 |
| Personal Tax filing deadline | 5th December |
| Currency | Tunisian Dinar (TND) |
| VAT | Standard rate 19% |
V. Employer Payroll Contributions in Tunisia :
| Employers | % of Gross Salary |
| Social Security | 16.57% |
| Work Insurance | 0.5% |
| Housing Levy | 1% |
| Development Levy | Standard rate 2% |
| Total Employment Cost | 20.07% |
Employee Payroll Contributions in Tunisia
| Employees | % of Gross Salary |
| Social Security | 9.18% |
| Total Employee Cost | 9.18% |
Minimum Wages in Tunisia
| Minimum Wage | |
| Minimum Wage | 530 TND per month (48 hours regime)
456 TND per month (40 hours regime) |
Payroll Cycle in Tunisia
| Payroll | |
| Payroll Cycle | Monthly |
| 13th Salary | Not required by law. |
Personal Income Tax in Tunisia
| Annual salary bracket | Tax rate |
| 0 – 5,000 TND | 0% |
| 5,001 – 20,000 TND | 26% |
| 20,001 – 30,000 TND | 28% |
| 30,001 – 50,000 TND | 32% |
| 50,001 TND and above | 35% |
VI. Overview of the tunisian labor framework :
Tunisia has built a strong framework of employment laws to safeguard the rights and duties of each party (employer and employee) :
- Working time :
The duration of effective work cannot exceed 48 hours per week, but it may be reduced without being less than 40 hours per week.
- Over Time :
Hours of work worked beyond the normal weekly duration are considered overtime.
These hours are remunerated by reference to the basic hourly salary increased according to the following rates :
- For the full-time work regime of 48 hours per week: 75%
- For full-time work regimes of less than 48 hours per week: 25% up to 48 hours and 50% beyond this duration;
- For part-time work arrangements : 50%.
- Part-time work :
The fixed-term or indefinite employment contract may be concluded for part-time work. Part-time work is considered to be work carried out for working hours not exceeding 70% of the normal working hours regime.
- Weekly days off :
Companies are required to provide 24 consecutive hours of weekly rest.
- Annual leave :
Every employee is entitled to leave at the rate of 1 day per month of work. After 5 years of service, every employee will be entitled to 1,5 day per month of work
The following are no longer counted in paid annual leave:
- Legal public holidays;
- Work interruptions due to illness or accident.
- Sick leave :
An employee who is unable to work due to illness is considered on sick leave subject to provide a medical certificate within 48 hours specifying the nature of the illness and its probable duration.
- Maternity leave :
Mother benefits, of prenatal leave for a maximum period of 15 days during the last month of pregnancy
The mother benefits of postnatal leave of 3 months. Said leave is necessarily extended to 4 months in the event of twin or multiple births, or if the child born has a disability, premature or has congenital malformations requiring medical interventions and care.
In the event of a stillborn child, the mother benefits of postnatal leave of 1 month
Postnatal leave may be combined with annual rest leave
The mother may benefit immediately at the end of the postnatal leave, upon her request and after approval of the employer, of childbirth leave for 1 to 4 months with compensation for maternity leave.
- Paternity leave :
The father benefits of paternity leave for 7 days, and it is increased to 10 days in case of twin or multiple births, as well as in case where the child born is disabled, premature or presents congenital malformations requiring medical interventions and care.
In the event of a stillborn child, the father benefits of postnatal leave for 3 days.
- Public holidays :
The public holidays considered as paid days off . Public holidays in Tunisia include both national and religious observances.
National holidays include: March 20, May 1, July 25, December 17
Religious holidays follow the Islamic calendar and include Mouled Day, the first 2 days of Eid El Fitr, the first 2 days of Eid El Idha.
Employees who cannot benefit from these holidays due to their work engagement will be entitled to a 100% salary increase.
Unpaid public holidays, if they are not days off, are considered normal working days.
- Probation period :
The probation period is set as follows:
- for executives: 6 months.
- for supervisors: 9 months.
- for managers: 1 year.
During the probation period, the employee may give or receive termination notice without notice period upon simple notification.
At the end of the probation period, any engagement is confirmed by a letter specifying the worker’s duties and remuneration. If the probation is not conclusive, the candidate may be subject to a second and final probation for the same period.
- Discipline :
The disciplinary sanctions applicable to employees, depending on the seriousness of the misconduct committed, are:
1st degree sanctions:
- verbal warning
- written warning
- reprimand
- suspension for a maximum period of three days without any remuneration.
2nd degree sanctions:
- suspension for a period not exceeding seven days, without any remuneration
- suspension for a period ranging from eight to thirty days, without any remuneration
- lowering of step
- demotion of scale
- dismissal.
- Notice period :
Notice of termination of the indefinite employment contract is notified by registered letter addressed to the other party 1 month before termination of the contract.
Employees are allowed to be absent for the entire second half of the notice period to allow them to look for other employment. This absence is considered as effective work and it couldn’t result any reduction in wages or compensation.
- Termination of employment agreement :
The fixed-term employment agreement ends with the expiration of the agreed duration or with the completion of the work covered by the agreement
The indefinite-term agreement ends upon expiry of the notice period.
The fixed-term or indefinite-term employment agreement ends:
- by agreement of the parties;
- by the will of one of the parties following a serious fault committed by the other part
- in the event of impediment to performance resulting either from a fortuitous event or force majeure occurring before or during the performance of the agreement, or from the death of the employee
- by the resolution pronounced by the judge in the cases determined by law.
- Rights after employment agreement termination :
Any employee working under an indefinite-term contract, dismissed after the expiry of the probation period, benefits, except in the case of serious misconduct, :
- An end-of-service bonus calculated at the rate of 1 day’s salary per month of effective service in the same company, on the basis of the salary received by the worker at the time of dismissal, taking into account all benefits not having the nature of reimbursement of costs. This bonus cannot exceed the 3 months salary
- Damages, it varies between 1 month’s salary and 2 months’ salary for each year of service in the company, without exceeding in any case 3 years’ salary.
- Damages due for wrongful termination of a fixed-term employment contract by the employer are set at an amount equal to the salary corresponding to the remaining duration of the contract