Global HR Compliance in Djibouti
Employing staff in Djibouti requires more than just a locally signed contract. Whether managing expatriates or local hires, companies must operate within a well-defined legal system that mandates written agreements, enforces specific rules on working time, leave, and termination, and places clear obligations on employers. Although the private sector has no statutory minimum wage, other labour protections are strictly regulated.
All employment carried out in Djibouti is governed by national legislation, even if contracts are executed abroad. This makes local compliance non-negotiable for foreign companies. Missteps around fixed-term limitations, immigration procedures, or dismissal protocols can lead to fines, reputational damage, or blocked operations.
The following guide sets out the essential legal requirements and operational considerations for compliant hiring in Djibouti with a focus on contracts, benefits, termination rules, and regulatory oversight.
Employment contracts
In Djibouti, a valid employment contract is required when a natural person undertakes to provide professional services under the authority of another, in exchange for remuneration. Contracts may be fixed-term or indefinite, and either full-time or part-time. Written contracts are mandatory in cases involving apprenticeships, foreign workers, assignments outside the usual residence of the worker, contracts exceeding one month, or where a probation period is stipulated. All contracts executed for work performed in Djibouti are governed by national law, even if concluded abroad, unless the employee is temporarily posted under foreign legislation for less than six months.
Contracts and stipulations are exempt from stamp duty and registration.
Minimum statutory employment standards
Hours of work
The legal weekly working limit is forty-eight hours. Night work is defined as work performed between 10:00 p.m. and 5:00 a.m.
Probation periods
For indefinite contracts, the maximum probation period is fifteen days for hourly workers, one month for monthly-paid workers, and three months for supervisors and managers. This can be renewed once, in writing. For fixed-term contracts, the period is proportional to the expected work duration but cannot exceed one month for standard roles and three months for higher-level staff. Pay during probation must match the applicable wage for the role.
Annual leave
Employees earn 2.5 working days of paid leave per month of service. Working days exclude the weekly rest day and public holidays. Up to eleven days of additional exceptional leave for family-related events is provided, including leave for marriage, bereavement, or the birth of a child. This leave is not deducted from annual entitlements.
Maternity leave
Maternity leave covers fourteen weeks, beginning eight weeks before and ending six weeks after childbirth. In case of early or late delivery, the leave is adjusted to maintain the fourteen-week entitlement. An extension of three weeks is possible in the event of medically verified complications. The employee receives full salary during leave, shared equally between the employer and the Social Protection Agency. The employee is also entitled to medical care and benefits in kind during this period.
Sick leave
For certified illness, employees are entitled to 50 percent of their salary for the first twenty-nine days. From the thirtieth day onward, the rate increases to 75 percent.
Overtime
Employers may impose up to five hours of overtime per employee per week, provided they notify employees and the Labour Inspectorate in advance. Overtime must be pre-authorised and is subject to enhanced payment rates set by collective or company-level agreements. For employees hired for part of the year, the overtime ceiling is prorated.
Minimum salary
Djibouti abolished private-sector minimum wage regulations in 2006. Wages are negotiated directly between employer and employee. In the public sector, the minimum salary is DJF 35,000 per month.
Termination of employment
Fixed-term contracts
Early termination of a fixed-term contract is permitted only in specific cases: gross misconduct as defined by law or internal regulation, force majeure, economic or technical difficulty documented with the Labour Inspectorate, judicial ruling, or mutual written agreement. Unjustified early termination entitles the affected party to damages.
Indefinite-term contracts
Termination must be based on a legitimate and serious reason. Acceptable reasons include the employee’s health, inability to perform duties, lack of competence, or misconduct. Economic grounds include structural change, financial distress, or closure of operations.
Employers must observe the required notice period and retain the burden of proof in the event of a legal dispute.
cumen International: Employer of Record and HR Compliance Support in Djibouti
Service Scope
Acumen International acts as the Employer of Record for local and foreign workers engaged in Djibouti. We structure contracts in full compliance with Djibouti’s labour laws, administer payroll and social security contributions, and oversee day-to-day employment matters across multiple sectors and workforce types.
Employer Responsibilities
We assume responsibility for tax and social contribution calculations, monthly remittances, and legal registration requirements. This ensures that the employing entity is protected from exposure to regulatory breaches, misclassified engagements, or incorrect wage and benefits handling.
Immigration Support
Acumen provides work permit sponsorship for expatriates, ensuring workers are lawfully employed and documented from day one. We coordinate directly with Djiboutian authorities to avoid delays and manage renewals and exit processes when needed.
Risk and Compliance
All employee engagements are continuously reviewed for compliance with Djibouti’s labour code, especially around fixed-term limitations, probation clauses, dismissal justifications, and overtime permissions. We work with local partners and legal professionals to stay aligned with current enforcement practices and avoid future liability.