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How to hire remote employees in
Hiring abroad is difficult: New labor laws, entities, a lot of words you’d rather not hear again. But we’ve got good news. It doesn’t need to be that way. Below, we’ll break down your two main options for hiring in Rwanda (and the one we think you’ll prefer).
If you want to successfully hire in
Rwanda
, you have two options:
Laws about hiring contractors are significantly more simple in
Rwanda
. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Thera for.
This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in
Rwanda
is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.
Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in
Rwanda
.
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
Hiring contractors in
Rwanda
means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
If you’re hiring contractors in
Rwanda
, you can pay them with Thera in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Rwanda than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Rwanda.
Employees under the age of 18 receive 24 days of paid annual leave. Employees are entitled to 18 days of paid annual leave after a year of service.
Additionally, paid leave allotments increase for adult employees with the length of service.
There are 14 public holidays.
Sick leave entitlement is up to six months (subject to evidence). The first three months are paid and the last three months are unpaid.
Long-term sickness is determined by a committee of three recognized medical practitioners and is granted for no more than three months with pay and three months without pay.
Female employees are entitled to 12 weeks of paid maternity leave. This leave may be taken up to two weeks before the due date.
Certificate of delivery needs to be furnished before starting the maternity leave.
Male employees are entitled to four days of paternity leave.
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A contract for employment can be terminated either by either mutual consent of the employer or the employee, expiry of the term of the contract or unilateral termination of employment.
The minimum notice period is 15 days for service up to a year and 30 days for service beyond a year where the employee is entitled to an additional day off per week to look for alternate employment.
Employments in Rwanda may be terminated upon written notice, as follows:
Severance pay in Rwanda as follows:
The probation period is six months, while there is no limit on the length or the number of renewals of a fixed-term contract.
The standard workweek in Rwanda 45 hours per week with a standard workday of 7.5 hours over six days.
Overtime compensation is determined in the employment contract.
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