In order to sustain the activity of a company from its creation, it needs human resources, the employees, whether they are numerous or not depending on the activity company or the needs of the entity.

With regard to its employees, the company is bound by certain commitments, whether in the regulatory, social or other fields, the internal or external sector of the company.

Essential elements in human resources management:

A – Recruitment:
It is important to establish tough methods to have the most effective employees that will be appropriate to the profile requested. Recruitment thus plays a crucial role, for a company, newly created or with years of experience, in providing the service of new employees.

  1. The first step is to establish the need for society: in what field should we recruit?
  2. Once the need has been determined, it is necessary to establish the qualification of the future employee, which profile can be recruited to be up to the task?
  3. After that, the job advertisement is set up, to drive the heads out of the interesting and relevant profiles.
  4. The interview and test sessions are the next steps to identify the candidate’s weaknesses and strengths.

We finalize by decision-making, the choice of the candidate called to be the future employee.

B – Hiring:
The choice being made, hiring is the next step. The employee’s actual integration into the new work environment.

The steps to follow are:

  • Writing the Contract
  • Membership of social organizations:

An employment contract is subject to the provisions of the Labour Code Act. It is a written act specifying at least the function, the category
the minimum classification index, the worker’s salary that must not be less than the minimum wage for hiring and the effective date of the contract” according to the Labour Code in force in Madagascar.

Social organizations being:
– The Social Security Fund, the body in charge of social protection,
– Health agencies responsible for occupational medicine.

Regarding the recruitment of an expatriate worker, the employer must have the authorization of the Ministry of Public Service, Labour and Social Laws (MFPTLS) in support of a contract covered by the latter.

C- The employee’s life in the company:
In his work environment, the employee is required to comply with the regulations in force. Starting with the labour code, the internal regulations and the charters or directives established within the company.In return for his service, the employee receives a remuneration equivalent to his attributions, his salary. The payment is attached to the receipt of a pay slip provided by the employer at the end of each month. Several elements are visible in the pay slip so that the employee can make claims or make comments for any payroll deductions made by the employer considered to be out of the norm
The statutory deductions from wages are:

  • Payroll income tax or IRSA,
  • The social security contribution,
    – The health contribution.

The contribution for vocational training (FMFP) is paid by the employer.

Vocational training is a key to improving the productivity of the company and the quality of its products. It is therefore important to develop human capital skills in support of pre-employment or continuing training.

D- Debauching:
Once an employee’s employment contract within the company is terminated, the debauching procedure is initiated. It is the removal of the employee’s name from the company, or in other words, the exclusion of the employee from the company.

Similarly to hiring, one must declare his departure with the social organizations to which he was affiliated to exclude him. (CNAPS, OSTIE, ESIA, AMIT, etc.). The procedure is the same but vice versa.

One of the employer’s obligations is also to prepare the balance of any account or STC. The party who takes the initiative to terminate the contract must respect the notice periods, or failing that, pay an indemnity of notice to the other party for compensation of the said period.

It should be noted that the period of notice is an obligation on both Contracting Parties. The payment of compensation shall be made to the parties at fault.

For any assistance in the outsourced management of your human resources, do not hesitate to contact MDG Services.