What should an employment contract in Madagascar include?
An employment contract in Madagascar should encompass the following information:
- Names and contact details of the employer and employee.
- Employee’s job title, function, and professional category.
- Minimum classification index (as per labour standards).
- Agreed salary, benefits, and any additional compensation.
- Effective start date of employment.
- Probation period (if applicable, must be stated in writing).
- Working hours and conditions.
- Termination provisions, including notice periods.
- Any additional clauses such as confidentiality or non-disclosure.
Employment contracts must be established in writing, drafted in Malagasy and/or French, and provided in duplicate - one copy for each party. Both the employer and employee must carefully review the terms before signing.
What types of employment contracts exist in Madagascar?
There are various categories into which employment contracts in Madagascar can be classified.
1. Employee contract
Employee contracts are the most common type of employment agreement in Madagascar. There are two main types:
Fixed-term contract (CDD):
A fixed-term contract is concluded for a specific duration or for a defined task, such as a project or temporary replacement. The minimum duration is one month, and it cannot exceed two years. A CDD can be renewed up to two times, with a maximum total duration of six years. After two consecutive renewals, the contract is automatically converted into an indefinite-term contract.
Indefinite-term contract (CDI):
An indefinite-term contract is the standard form of employment in Madagascar and does not include a fixed end date. The employment relationship continues until either party decides to terminate it, subject to applicable notice periods and legal requirements.
2. Part-time contract
Part-time contracts are used when employees work reduced hours compared to full-time schedules. These contracts provide flexibility while still ensuring employees are entitled to statutory protections and benefits, adjusted proportionally to their working time.
3. Project-based or temporary contract
Project-based contracts are used for specific assignments, seasonal work, or non-permanent business activities. These contracts are typically structured as fixed-term agreements (CDD) and must clearly define the scope, duration, and objectives of the project.
Such contracts may also be terminated in cases of unforeseen circumstances (force majeure), as defined by the Labour Code.
How to hire employees in Madagascar?
Typically, when hiring employees in Madagascar, companies are required to establish a legal entity in the country. This includes registering the business with local authorities and ensuring compliance with Madagascar’s Labour Code (Loi n° 2024-014). Employers must also ensure that employment contracts are properly drafted in writing and meet all statutory requirements.
However, with Native Teams’ employer of record services, you can focus on your core business operations while we handle employment, compliance, and payroll on your behalf. We provide expert guidance on hiring in Madagascar and across multiple countries worldwide.
