Located off the Southern Coast of Africa, Madagascar is the fourth biggest island in the world. Due to its geographic isolation, the island is famous for its distinct plants and wildlife found nowhere else on the planet. Madagascar is famous for its lemurs which have thrived in that location due to a lack of competition from other species. This varied flora and fauna face endangerment from human development and interaction, with almost 90% of its forested area already lost to agricultural practices that are native to the inhabitants. Forestry, agriculture, and fishing are the mainstay of Madagascar’s economy, which accounts for over one-fourth of the nation’s GDP and for employing about 80% of the entire population. Madagascar has also experienced political instability including a coup, disputed elections, and violent unrest. Madagascar has a population of 25 million with major ethnic groups including Malayo-Indonesian, Cotiers, Indian, French, Comoran, and Creole. Most Malagasy are multi-ethnic, reflecting the nation’s diversity. The primary languages of Madagascar include both French and Malagasy and the majority of its people are Christians, Muslims, or Indigenous religionists.
A contract is considered to be for an indefinite period in the following cases:
When the conditions for a fixed-term contract's existence are not met
When neither party indicates an intention to terminate the employment relationship under the fixed-term agreement or the trial contract
The contract of day laborers working for the same employer and in the same position on an intermittent basis for 6 consecutive months, for an average of 20 working days per month.
An employment relationship without a written contract is proven to exist
A contract of indefinite duration can be terminated upon agreement between the parties, by either party with notice, or in the case of force majeure, as determined by the court.
Madagascar's Labor Code provides that employment contracts concluded in writing, whether in French or Malagasy, must be made in 2 copies and signed by both parties. The written agreement must be provided to the employee immediately after signing and must include the following information:
Functions
Wage
Professional classification
Professional category
The effective date of the contract
Probationary period, if any.
The Labor Code of Madagascar defines temporary employment as work performed by an employee hired to temporarily take over work during an incumbent's absence for up to 1 year. If the temporary work exceeds 1 year, the temporary employee must be confirmed in the position upon their express request.
Temporary employment conditions are established by agreement between the employer and employee, the Labor Code provisions, and any applicable collective bargaining agreements.
Madagascar permits the hiring of workers on a temporary basis through a wage portage (umbrella employment) arrangement involving 3 parties: the client company, the umbrella company, and the employee. In this model, the umbrella company assigns employees to the client company. The umbrella company is the sole legal employer of the employee, although it may delegate day-to-day supervision and organizational authority to the client company. The employment contract between the umbrella company and the employee may be either fixed-term or indefinite, and the employee’s remuneration is agreed directly between them. Use of this arrangement by the client company is restricted to occasional tasks outside its normal, ongoing business activities or for specific assignments requiring expertise not available internally. It cannot be used to replace an employee whose contract is suspended due to a lawful strike.
Madagascar's Labor Code specifies that a probationary period (or trial employment) cannot exceed 6 months in duration and is renewable only once. The agreement or renewal of probationary employment must be in writing, signed at the time of hiring, and include the following information:
The position to be filled
The duration
The salary
The professional category
It is deemed non-existent if the trial period is not stipulated in writing in any fixed-term or indefinite contract.
The Council of Government consults with the National Council for Labor and Employment to determine the form and terms of probationary employment and its duration, considering the professional categories.
The Labor Code of Madagascar defines hours of work as actual hours worked, not including time required to dress, undress, or eat. The maximum legal work hours is 173.33 monthly or 40 per week. Work done in excess of these hours is considered overtime.
For agricultural businesses, the maximum legal work hours are 2,200 hours yearly, and the Government Council determines the terms, wages, nature, and length of overtime.
In Madagascar, employees are entitled to 2.5 days of paid annual leave per month after 12 months of service. It is compulsory to take 15 days' leave within the first 3 months after acquiring the right to leave. Employees have the right to accumulate annual leave for up to 3 years.
An employee is entitled to 1/12th of the annual wages before the commencement of annual leave. If an employment contract is terminated before utilizing all of the annual leave, compensation for unused leave is paid.
According to Madagascar's Labor Code, employees are entitled to sick leave for a maximum of 6 months upon providing proof of illness from a certified doctor or medical professional. The employment contract may be suspended during this period, but the employer cannot terminate it. After this period, the employer may terminate the employment contract but must pay all employees' rights, including the termination notice.
Employees can receive a "suspension indemnity" during sick leave equal to the remuneration amount.
Employees with a probationary employment contract that is suspended due to illness certified by a certified medical professional are entitled to up to 1 month's compensation of their normal wages.
In Madagascar, female employees are entitled to 14 consecutive weeks of paid maternity leave, including 8 weeks of postnatal leave. In case of complications or sickness resulting from pregnancy or birth, the maternity leave can be further extended by 4 weeks with a medical certificate attesting to her condition.
An employee cannot be dismissed for taking maternity leave. Employees who are confirmed pregnant by an approved medical professional may terminate the employment contract without notice or duty to pay compensation for breach of contract.
Maternity leave is fully paid. The employee shall be reimbursed for childbirth costs and, where appropriate, for medical care (within the limits of the health facilities' fees). If the female employee is insured, the costs are split equally between the National Social Insurance Fund and the employer.
Madagascar's Labor Code grants employees who are the lawful spouse of a woman giving birth to 3 days of paid paternity leave. The employer must pay the leave as days actually worked.
An indefinite-term contract can be terminated by either party by providing prior notice (or without notice in the event of gross negligence). The dismissal notice length varies between 1 day and 6 months, depending on the employee’s length of service in that company and their professional category.
The notice must be provided in writing. During the notice period, the worker is entitled to 1 day off per week. Any breach of contract where the notice period is not fully observed requires the party responsible for the breach to pay the other party compensation.
In cases of economic redundancy, employers must pay affected employees a severance payment equal to 10 days’ wages for each year of service in the company, up to a total of 6 months’ wages.
Employees and employers may agree on severance pay in other cases of termination. Such provisions must be indicated in the employment contract.
