Hiring guide in Algeria

What should I know about hiring in Algeria?

Although Algeria is the home of a wide expert talent pool, it’s essential to understand the local labour laws and regulations, as well as the work culture of the nation. To navigate Algeria’s employment system successfully, businesses must be familiar with the intricacies of employment contracts, payroll procedures, and tax requirements.

To attract and retain Algerian expert talents, it’s also crucial to adhere to anti-discrimination rules, offer competitive compensation packages, and provide various opportunities for professional development and advancement. The distinctive cultural norms and business practices must also be followed to establish and foster loyalty, efficiency, and productivity.

Why is Algeria a good choice for finding remote employees?

Algeria is an excellent choice for finding remote employees for many reasons. First of all, the country boasts a large pool of skilled and educated professionals in fields such as IT, engineering, digital technologies, and others.

In addition, Algeria is a country with very low living costs. Not only does this result in fewer expenses for recruiting local talent, but it also allows employers to offer more competitive salaries and compensations to Algerian remote workers. 

Finally, Algerians generally have good proficiency in English and French, which can be beneficial for communication and collaboration with clients, as well as for establishing international remote teams in different areas of the world.

How can Native Teams help you hire in Algeria?

If you’re not familiar with Algerian labour laws and regulations, Native Teams is at your service. Our Employer of Record solutions allow you to stay compliant while navigating local labour laws and regulations. 

Our team of experts are here to give you guidance and support throughout the employment process while successfully tackling local laws, business practices, and language barriers.

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 Hire your first Algerian employee with Native Teams.

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Legal requirements for hiring in Algeria

Prior to hiring remote employees in Algeria, employers need to be aware of the following legal requirements:

Legal framework

Types of employment contracts

Employment contracts in Algeria generally fall into two categories – fixed-term contracts and indefinite-term contracts. 

Each employment contract in Algeria is presumed to be for an indefinite duration unless explicitly stated otherwise in writing. 

However, fixed-term contracts are also permissible under specific conditions. Even though there is no statutory limit on the duration of these contracts, they must clearly specify both the employment period and the reason for the limited term. In addition to this, fixed-term contracts must also be in writing to be legally valid.

Content of an employment contract

Algerian labour law doesn’t prescribe a mandatory list of elements that must be included in a written employment contract. This gives employers and employees flexibility to determine which terms and conditions to include in their agreement. 

However, despite the lack of formal legal requirements for the content of contracts, parties generally include details like job descriptions, wages, working hours, and duration of employment.

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 Download a free employment contract for Algeria through Native Teams.

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Oral, written or electronic employment contracts

Employment relationships in Algeria can be created with or without a written contract. Even if there is no formal contract, the relationship exists simply by the fact of working for an employer. 

This approach allows for more flexibility, meaning the actual act of work for an employer is sufficient to recognise the rights and obligations between the parties.

However, while employment relationships can be based on an oral agreement, written contracts are commonly used and recommended for better clarity and for avoiding potential disputes.

Probationary period

According to Algerian labour law, the probationary period is limited to a maximum of six months. 

However, for the probationary period to be legally valid, it must be explicitly stated in writing. This can be either in the employment contract itself or stipulated in a collective bargaining agreement. In the absence of such written documentation, the probationary period may be deemed invalid.

Working hours

According to the Algerian labour law, the standard workweek in the country is set at 40 hours per week, spread over five days. However, there are several provisions and exceptions, depending on the nature of certain jobs and collective agreements. 

In jobs that are deemed dangerous, the law allows for a reduction in working hours to safeguard the health and safety of the employees. However, certain roles that involve periods of inactivity – such as jobs in transportation or security may have their working hours extended.

Night work

Night work in Algeria is defined as any work performed between 9 pm and 5 am. This eight-hour period is considered nighttime for the purpose of labour regulations, and special rules apply to employees working during these hours.

The conditions under which night work occurs and the rights associated with it are typically determined by collective agreements between employers and employees. There are also strict limitations on who may engage in night work, including the prohibition of workers under 19.

Breaks and types of leaves

Employees in Algeria are entitled to regular breaks, weekly rest days, and compensatory time off if they are required to work on rest days.

According to the country’s labour laws, workers must receive a break of up to one hour, with half an hour of this break being paid working time. In addition to breaks during the workday, every worker is entitled to a full day of rest each week, typically on Friday. 

The Algerian labour law currently considers making legal rest days (such as public holidays) mandatory for employed individuals in the country.

Annual leave

Employees in Algeria are entitled to annual leave paid by the employer, with duration and calculation based on the worker’s length of service during the year.

The general rule for calculating paid annual leave is that every employee accrues 2.5 days of leave for each month of work. In other words, over the course of a year, an employee is entitled to a total of 30 calendar days of paid annual leave.

However, there are exceptions to this standard 30-day leave rule, particularly for workers in specific regions and professions. 

When determining the duration of paid annual leave, any period of work totalling 24 working days or four weeks is considered equivalent to one month. Hence, if an employee works more than 15 days during their first month of employment, that period is also treated as one full month to calculate their annual leave entitlement.

Public holidays

Public holidays in Algeria celebrate both religious and secular observance to reflect the country’s diverse culture. Algeria recognises ten public holidays nationwide, and some of the most important ones are New Year’s Eve, Yennaver, Eid Al-Fitr, Independence Day, Ashura, and others.

Salary

The national guaranteed minimum wage (SNMG) in Algeria is the minimum wage that employers must pay employees. Designed to adapt to the current economic conditions, the SNMG is determined by a government decree. 

The calculation of the SNMG is based on several economic factors, like the average national productivity, the consumer price index, and the general economic situation. In addition to this, the minimum wage in Algeria includes the base wage, allowances, and bonuses of all kinds.

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To calculate the salary and taxes in Algeria, click here.

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Sick leave

Algeria’s laws regarding sick leave ensure that employees have access to financial support during illness, allowing them to focus on recovery without the stress of income loss. 

While sick leave pay starts from the first day of leave, the full salary coverage begins by the 16th day or immediately in cases of hospitalisation. 

The financial burden of paying employees during sick leave doesn’t fall entirely on the employer but is shared between the employer, the employee, and the National Fund of Social Security. This is due to both the employer and the employee contributing to the fund through mandatory social contributions, ensuring that employees are entitled to sick pay and medical expenses reimbursed.

Paternity and maternity leave

Female employees in Algeria are entitled to maternity leave, including both the prenatal and postnatal periods. Maternity leave can begin at least one week before the expected date of childbirth, during which the employee receives a daily allowance corresponding to their normal wage.

Social security protections also provide mothers on maternity leave with benefits, including full reimbursement for medical and pharmaceutical expenses and hospitalisation expenses for up to eight days. 

Fathers in Algeria are also granted paternity leave, specifically three days of paid leave taken for the birth of their child.

Methods of employment termination

Employment relationships in Algeria can be terminated for a variety of reasons. Some of the most important ones include nullity or legal abrogation of the contract, end of fixed-term employment contract, resignation, dismissal, incapacity of work, retirement, death of the employee, and others.

Ordinary dismissal by employer

Employees who want to voluntarily terminate the employment relationship must submit a written resignation to their employer, which is typically followed by a notice period. 

In cases where economic conditions justify it, the employer can initiate workforce reductions, also known as retrenchment. This involves laying off several employees at once and can only be decided after collective negotiation with relevant stakeholders. During workforce reductions, employers are prohibited from recruiting new employees in the same job categories affected by the layoffs.

Notice period and challenging the dismissal

In cases where an employer dismisses a worker without following mandatory procedures, the dismissal can be deemed invalid by a court. The court may require the employer to rectify the procedural violations and compensate the worker financially. At the very least, the compensation must equal the salary the employee would have received if they continued working. 

The duration of the notice period is primarily determined by collective bargaining agreements and the employee’s length of service within the company.

Rights and obligations of unemployed individuals

In Algeria, the primary mechanisms of support for unemployed individuals include the Unemployment Benefit (Indemnité d’assurance chômage) and a Lump-sum Subsidy (Contribution dite d’Ouverture des Droits), along with other related entitlements.

To qualify for unemployment benefits, individuals must meet certain criteria. This includes being unemployed involuntarily, having accumulated at least three years of contributions to the unemployment insurance system, not receiving any income from work-related activities, and actively searching for employment for at least two months before applying for benefits. 

Unemployment beneficiaries and their dependents may receive other benefits, such as maternity and family, for up to 12 months after unemployment benefits cease.

Severance pay

Severance pay in Algeria is not mandated by general statutory law, but specific provisions apply under collective agreements and legislative decrees. 

In other words, an employee can be entitled to severance pay if they are dismissed for reasons unrelated to serious misconduct and have at least two years of continuous service with the employer.

The minimum amount of severance pay is set at no less than 15 days’ wages for each year of service, calculated based on the employee’s last salary.

Prohibition of competition

Employees in Algeria may be bound by a non-compete clause during their period of employment, which prohibits them from engaging in competitive behaviour against their employer. This non-competition clause can also extend beyond the termination of employment, provided there is a written agreement between the parties involved. 

However, the validity of such a prohibition is subject to strict regulations, where both parties must explicitly agree to the non-compete clause in writing.

Remote working policy

In Algeria, remote working, or work from home, can be arranged as permanent, temporary, or occasional, depending on the mutual agreement between the employer and the employee. This type of work is permissible if the nature of the job and its associated low risk allow for such an arrangement.

Employees who work on-site may request contract provisions for remote work, often to balance work with family obligations and personal needs. The agreement to work from home for a specified period must be formalised through an amendment to the existing employment contract.

Intellectual property rights

Employment contracts in Algeria typically contain provisions related to intellectual property rights. Such clauses are legally enforceable, provided they are clearly defined and mutually agreed upon by both parties. 

In Algeria, employers generally retain the rights to inventions created during employment, while inventors are entitled to proper recognition and fair compensation. However, this is enforceable, provided that the invention falls within the scope of the employee’s duties.

Employee data privacy

Algeria’s legal framework for data protection, especially involving employee data, has undergone significant changes in the last few years. The most notable development is the introduction of Law No. 18-07 of June 10, 2018, which focuses on protecting individuals when their personal data is processed. This law, fully enforced in August 2023, works alongside other regulations like the Telecommunications Law.

However, a key challenge remains the lack of clear provisions about cross-border data transfers. To address this, Algeria is developing new regulations to make cross-border data transfers safer and clearer. This includes training programmes, workshops, and partnerships with international organisations to ensure that the authorities have the tools and knowledge needed to handle data protection effectively.

Responsibilities within remote work arrangements

Given that the remote working model is established through mutual agreement between the employee and employer, both parties bear significant responsibilities in its implementation.

When an employee requests provisions for remote work, the employer has the discretion to accept or reject the proposed amendment. If the employer agrees to amend the contract to allow remote work, the arrangement is typically considered temporary. On the other hand, the employee may request to return on-site before the amended contract expires.

Health and safety at home

Regardless of the workplace or employment conditions, employers in Algeria must consistently uphold their health and safety obligations.

Under Algerian labour law, employers must conduct thorough risk assessments to identify potential hazards that remote workers may face. This includes providing adequate training and information on health and safety practices tailored to the remote work setting. Employers are also responsible for supplying the necessary protective equipment at no cost to ensure that remote workspaces adhere to safety standards.

What are the advantages of hiring employees from Algeria vs other countries?

Hiring employees from Algeria can bring a wide variety of benefits to remote teams. 

First, Algeria has a growing pool of skilled professionals in trending sectors, which is especially advantageous for tech companies that work remotely. In addition, labour costs in Algeria are often lower than in many other regions, making it a cost-effective solution for businesses seeking remote talent. 

Algeria is also home to a multilingual workforce fluent in Arabic, French, and, increasingly, English, which can positively impact communication and collaboration in global business settings. 

Finally, the country’s evolving legal framework around labour and data protection fosters a stable and secure environment where global companies can hire talent and expand operations without worries.