Introduction

Tunisia’s labour environment combines civil law traditions, strong statutory protections, and a layered system of collective bargaining. For foreign employers, compliance requires navigating not only the Labour Code but also the practical expectations of labour inspectors, social security authorities, and the courts.

Without a locally incorporated entity, international companies cannot legally hire staff in Tunisia for tax and social security purposes. In such cases, a Global Employer of Record (EOR) provides the compliant route, acting as the local employer, issuing contracts under Tunisian law, running payroll and statutory contributions, and ensuring employment terms meet collective agreement standards. Using an EOR also reduces key risks, including:

Permanent establishment exposure if local activity is treated as a taxable presence.
Worker misclassification when contractors meet the legal definition of employees.
Intellectual property disputes where rights are not automatically vested in the legal employer.

Tunisia offers a skilled talent pool and strategic access to Europe, Africa, and the Middle East. However, its employment regulations are detailed and strictly enforced, particularly around termination, social contributions, and collective bargaining compliance.

This guide outlines the legal and operational requirements for hiring, managing, and terminating employees in Tunisia, with emphasis on areas where international employers are most exposed to compliance risk.

Employment Contracts in Tunisia

Employment relationships in Tunisia can be established orally or in writing, but written contracts are strongly recommended for clarity and compliance. Tunisian law distinguishes between:

Indefinite-term contracts – the standard form of employment, offering ongoing protection under the Labour Code and relevant collective agreements.
Fixed-term contracts – permitted only in specific situations (e.g. seasonal work, temporary replacement, or work linked to a defined project). The total duration, including renewals, may not exceed four years. If the employee continues working beyond this limit, the contract is deemed indefinite.

All employment contracts, whether indefinite or fixed-term, must comply with mandatory statutory provisions, including:

Job title and classification under the relevant collective agreement.
Working hours and rest days in line with national limits.
Salary in compliance with the statutory minimum for the applicable workweek.
Social security registration with the Caisse Nationale de Sécurité Sociale (CNSS) from day one of employment.

For foreign employers operating via a Global EOR, these contractual obligations are handled locally, ensuring the employment terms are valid under Tunisian law, enforceable in court, and aligned with any industry-specific collective agreements.

Working Time and Overtime in Tunisia

Under the Tunisian Labour Code, standard working hours are:

Maximum 8 hours per day
Maximum 48 hours per week (or 40 hours in certain sectors as provided by collective agreements)
One full rest day per week, usually Friday, Saturday, or Sunday.

Overtime is permitted but subject to statutory limits:

Daily working hours, including overtime, cannot exceed 10 hours.
Weekly hours, including overtime, cannot exceed 60 hours.

Overtime pay rates:

For employees working 48 hours/week: +75% above the normal hourly rate.
For employees working fewer than 48 hours/week: +25% for hours up to 48, +50% beyond that.
For part-time employees: +50% above the standard hourly rate.

Overtime must be recorded, justified by operational needs, and compensated in accordance with the Labour Code or the applicable collective agreement.

When employment is arranged via a Global EOR, compliance with these limits and payment rules is monitored locally, ensuring accurate time tracking and correct overtime premiums. This protects employers from disputes or labour inspector penalties.

Probation Periods in Tunisia

In Tunisia, probation is not just a formality — it is a regulated trial period with specific legal limits, often reinforced by collective agreements. The law allows employers to test suitability before confirming permanent engagement, but any probation arrangement must be clearly written into the employment contract from the outset.

Maximum durations vary by role:

Operational roles (e.g. production, service delivery) – up to 6 months
Technicians – up to 9 months
Executives and senior managers – up to 12 months

Collective agreements may impose shorter periods, and exceeding the statutory maximum renders the clause unenforceable. Employers cannot “reset” probation by issuing a new contract for the same role; continuity of service will still apply.

Early termination during probation is permitted, but it must follow local notice requirements and cannot breach anti-discrimination rules. Disputes often arise when probation is extended without consent or when terminations are poorly documented.

For foreign employers hiring via a Global Employer of Record (EOR), probation terms are aligned with Tunisian law and relevant sectoral agreements from the start. This ensures that the trial period remains valid, compliant, and defensible if challenged.

Annual Leave and Public Holidays in Tunisia

Annual leave rights in Tunisia are set by the Labour Code and often supplemented by collective agreements. The statutory baseline is 12 working days of paid annual leave for employees who have completed one full year of service. For those with less than a year’s service, leave accrues proportionally at one day per month worked.

Certain categories of employees — for example, those in hazardous or physically demanding occupations — may be entitled to additional leave days under industry-specific agreements. Seniority-based increases are also common in collective bargaining arrangements, particularly in the manufacturing and transport sectors.

Annual leave must be granted within the year it is earned, although limited carry-over may be negotiated in writing. Employers must give reasonable notice of leave dates, and in many industries, holiday scheduling is influenced by sectoral shutdown periods (e.g. construction or public works).

In addition to annual leave, Tunisia observes a mix of fixed-date and moveable public holidays, including:

New Year’s Day (1 January)
Independence Day (20 March)
Labour Day (1 May)
Republic Day (25 July)
Eid al-Fitr and Eid al-Adha (dates vary by lunar calendar)
Islamic New Year (Hijri)
Revolution Day (14 January)

Public holidays are paid non-working days. If operational needs require work on a public holiday, the employee is entitled to compensatory rest or premium pay as defined by law or the applicable collective agreement.

Foreign employers using a Global EOR in Tunisia benefit from leave and holiday entitlements being administered in full compliance with both statutory requirements and sector-specific agreements. This includes correct accrual tracking, pay calculation, and ensuring that entitlements are applied consistently across all employees, avoiding disputes and penalties.

Parental Leave and Family-Related Absences in Tunisia

Parental leave entitlements in Tunisia are primarily structured around maternity provisions, with additional rights for paternity and exceptional family circumstances.

Maternity leave is set at 30 days of paid leave for female employees, funded through the national health insurance system rather than directly by the employer. An extension of up to 15 additional days may be granted upon request, provided supporting medical documentation is submitted. To qualify for paid benefits, the employee must have contributed to the social security system for at least 80 days in the year preceding childbirth.

During maternity leave, the employee receives 66.7% of her reference wage from the health insurance fund. Employers may choose to top up this amount under company policy or collective agreement obligations, but this is not legally mandatory.

Paternity leave is limited to one fully paid day off to be taken within the first seven days following the birth of a child. While short, this entitlement is common in the region, and some employers voluntarily extend paternity leave to remain competitive in attracting and retaining talent.

Employees may also be entitled to short periods of special leave in cases of marriage, death of a close relative, or other exceptional family circumstances, with duration and pay status determined by the Labour Code or collective agreements.

For foreign employers, administering these entitlements can be challenging due to the interaction between statutory rules, social security funding mechanisms, and sector-specific collective agreements. A Global EOR in Tunisia ensures correct eligibility checks, timely submission of claims to the health insurance fund, and accurate payroll adjustments, preventing errors that can lead to disputes or penalties.

Sick Leave in Tunisia

Eligibility and Qualifying Periods

Employees are entitled to sickness benefits if they have:

At least 50 days of insured employment in the previous two quarters, or
80 days of insured employment in the previous four quarters before the incapacity began.

Duration and Benefit Rates

Short-term sick leave: 66.7% of the employee’s average daily wage, paid by the national health insurance fund, after a five-day unpaid waiting period.
Maximum entitlement: Up to 180 days per year for the first three years of incapacity.
Long-term sick leave: Benefits reduced to 50% of the reference wage for each subsequent year.

Medical Certification

All absences must be supported by a medical certificate. For long-term sick leave (over 180 days), the case must be reviewed and approved by a medical commission appointed by the social security authority.

Employer Obligations

While the health insurance fund pays sickness benefits, employers must:

Ensure timely submission of medical certificates and claim forms.
Adjust payroll to reflect the statutory benefit levels.
Maintain employment during the authorised sick leave period, unless there is just cause for termination under the Labour Code.

Overtime in Tunisia

Legal Limits on Working Hours

The Labour Code sets maximum limits for working time:

Standard limit: 8 hours per day, 48 hours per week.
Absolute maximum with overtime: 10 hours per day, 60 hours per week.
Employees must receive a full weekly rest day, typically on Friday, Saturday, or Sunday.

Overtime Compensation Rates

Overtime must be paid in addition to the employee’s base salary at the following statutory rates:

For full-time employees working 48 hours/week: +75% for each overtime hour.
For full-time employees working less than 48 hours/week: +25% up to 48 hours/week, then +50% beyond this threshold.
For part-time employees: +50% for each overtime hour.

Record-Keeping Requirements

Employers must maintain accurate daily and weekly working time records for each employee, including overtime hours and payment details. Failure to provide such records during a labour inspection can result in fines or other penalties.

Compliance Considerations for Foreign Employers

Overtime entitlements in Tunisia are strictly regulated, and non-compliance is a frequent trigger for labour disputes. Rates may be further adjusted by collective agreements in specific industries.

Minimum Salary in Tunisia

Minimum wage levels in Tunisia are set nationally and vary depending on the length of the standard working week. Rates are updated periodically by government decree and are binding on all employers, regardless of sector.

Current statutory minimums

The current guaranteed interprofessional minimum wage (SMIG) in Tunisia, which applies to non-agricultural workers, is as follows:

For a 40-hour workweek, the monthly gross minimum wage is 448.24 TND ($448.238 TND).
For a 48-hour workweek, the monthly gross minimum wage is 528.32 TND ($528.320 TND).

These figures are effective as of January 1, 2025.

Key compliance points

The stated amounts are minimum thresholds. Employers may offer higher wages based on skill level, market conditions, or collective agreement provisions.
Increases must be implemented immediately following any government adjustment to avoid back-pay liabilities.
Collective agreements in some industries may set higher minima or include additional allowances (e.g., transport, meals, housing).
The minimum wage must be met exclusively through base pay — statutory allowances or bonuses cannot be counted towards meeting the threshold unless expressly permitted by law or applicable agreements.

For companies hiring in Tunisia via a Global EOR, wage compliance is monitored in real time. The EOR ensures:

Employment offers meet or exceed the correct statutory rate for the contracted working hours.
Payroll reflects any national adjustments from the date they take effect.
Benefits and allowances are structured correctly so they do not unintentionally offset base pay.

This approach reduces the risk of labour inspectorate findings, wage arrears claims, or disputes arising from improper minimum wage application.

Employment Termination in Tunisia

Termination of employment in Tunisia is regulated by the Labour Code, collective agreements, and, in some cases, individual employment contracts. The legal framework sets clear rules for both fixed-term and indefinite-term arrangements, with particular attention to notice, cause, and severance obligations.

Fixed-term contracts

End automatically at the expiry date stated in the contract.
No termination formalities are required unless early termination occurs.
Early termination is only permitted for lawful reasons specified in the Labour Code or contract.
If the employee continues working beyond the expiry date without renewal, the contract is deemed indefinite-term.

Indefinite-term contracts

May be terminated by either party with written notice.
The statutory notice period is generally one month unless a longer period is set by a collective agreement or contract.
Dismissal must be based on a valid reason recognised by law — economic grounds, redundancy, incapacity, or misconduct.
Terminations without lawful cause risk being classified as unfair or abusive dismissal.

Severance pay

Employees with at least one year of continuous service who are dismissed for reasons other than serious misconduct are entitled to severance pay calculated at one day’s wage per month of service, capped at 90 days’ wages.

In cases of unjust or abusive dismissal, Tunisian courts may award additional damages of between one and two months’ wages per year of service, up to a maximum of three years’ wages, depending on the circumstances and the employee’s loss.

Special protections

Certain categories of employees (e.g., union representatives, pregnant women, workers on leave) enjoy additional protection from dismissal and require prior approval from the labour inspectorate.

Termination procedures in Tunisia are heavily scrutinised by labour inspectors. Using a Global EOR ensures:

Valid grounds for termination are established and documented.
Notice and severance calculations comply with both statutory and collective agreement rules.
Any required pre-approvals or notifications to labour authorities are handled correctly.

This reduces exposure to wrongful dismissal claims, reinstatement orders, and substantial financial awards.

Collective Agreements and Sector-Specific Rules in Tunisia

Scope and Application

Collective agreements (conventions collectives) operate alongside the Labour Code and are negotiated between employer associations and trade unions. They apply to all employers in a given sector, even if the employer did not participate in the negotiations.

These agreements frequently set higher standards than the statutory minimum, covering areas such as wages, working hours, allowances, leave entitlements, training obligations, and termination procedures. Employers must follow whichever provision — the Labour Code or the collective agreement — is more favourable to the employee.

Common Sector Impacts

Wage grids establishing minimum salaries for specific roles and levels of seniority.
Adjusted probation periods, either extended or reduced, depending on the sector.
Additional paid leave beyond statutory minimums, often tied to length of service.
Enhanced severance pay formulas in sectors with strong union representation.
Mandatory in-kind or cash benefits, such as meal allowances, transport stipends, or workwear.

Compliance Risks for Foreign Employers

Non-compliance with sector-specific rules can result in:

Retroactive salary adjustments.
Claims for unpaid allowances or benefits.
Administrative penalties from labour inspectors.