A clear employment contract helps a business explain what it expects and helps an employee understand the terms of the job. Effective HR policies turn those terms into consistent practices for recruitment, payroll, leave, workplace safety and resolving problems.
For Somaliland businesses, these documents should reflect the applicable law as well as the organisation’s operations. A template copied from another country can create gaps, even when it looks professional.
1. Establish which employment rules apply
Somaliland’s Labour Law, No. 31/2020, defines its scope in Article 3. It covers specified employment relationships in the non-government sector and contains exclusions, including government employees, national forces, sports players and daily manual workers. The private-workplace wording also refers to three consecutive months of employment. Businesses should check how these scope provisions apply to their workforce rather than assume every category is treated identically.
This article concerns business employment arrangements. It should not be used as a civil-service employment guide. Any later amendments, implementing regulations or special rules must also be checked.
2. Put the employment agreement in writing
Article 27 requires a written employment agreement and identifies the information it must contain. Its list covers the parties’ details, employee grade, working hours, agreed salary and allowances, a detailed job description, employment dates, any lawful probation period, overtime and Eid entitlements, safety and rest arrangements, dispute handling, separation and renewal arrangements, promotion, compensation and employee insurance.
The same article requires a signed copy to be brought to the labour office for registration and states that registration should not attract a tax or fee. Confirm the current submission process with the responsible office and retain evidence of submission.
In practical terms, the contract should make responsibilities understandable. Explain the reporting line, work location and payment arrangements, and ensure any incorporated policies can actually be accessed by the employee. These additional drafting recommendations should be checked against the full statutory requirements.
3. Use probation and contract types carefully
Article 28 addresses probation, fixed-term, indefinite-term and apprenticeship arrangements. Under Article 28, probation is limited to two months, with an extension of up to two further months. Avoid importing a longer probation clause from a foreign template.
Choose a contract type that matches the actual relationship and check the applicable conditions before renewal or termination. A contract label alone should not replace an assessment of the work being performed.
4. Align payroll, working time and leave
Working time, overtime and rest are addressed in Articles 11-14; public holidays and other leave appear in Articles 15-22. Payroll and related entitlements are addressed in Articles 23-26, while Article 52 deals with employment-tax withholding and remittance.
Prepare schedules and payroll procedures against these provisions. Record attendance and overtime, explain how leave is requested, and keep reliable leave balances. Check the full conditions attached to each entitlement before inserting numerical allowances into a handbook.
For example, Article 16 provides annual leave in working days, and Article 18 addresses paid maternity leave. A generic policy that uses calendar days or an allowance taken from another jurisdiction may produce the wrong result.
5. Build an HR policy set people can use
The following is a practical policy checklist, not a claim that every item is separately mandated by statute:
- Recruitment and equal opportunity, reviewed against Article 10.
- Attendance, working time, overtime and leave.
- Payroll, benefits and authorised deductions.
- Conduct, complaints, investigation and discipline.
- Workplace safety, incident reporting and emergency response.
- Performance review and promotion, checked against Article 43.
- Confidentiality, access to employee records and responsible use of business equipment.
- Separation, handover and return of company property.
Article 53 specifically addresses written workplace health and safety policies and provision of a copy to the labour office. Policies should therefore be more than documents stored on a computer: train staff, assign responsibilities and retain evidence of implementation.
6. Handle discipline and termination through the applicable process
Articles 44-45 address notice and dismissal without notice; Articles 62-63 address warnings and suspension. Compensation also requires consideration of Article 25 and the facts of the employment relationship.
Before taking action, identify the applicable provision, record the relevant facts, check required notices and labour-office communications, and calculate any amounts due. A handbook should not be treated as authority to bypass statutory protections.
An internal complaint route can help address problems early, but it does not replace legal remedies. Articles 47-51 address the employment complaints committee and appeal arrangements. Obtain advice promptly when a dispute arises because procedural deadlines may matter.
7. Check foreign-worker arrangements separately
Articles 35-40 address foreign workers, permissions and related employment arrangements. Check permit and residence requirements, any applicable exceptions, renewal dates and the employment-contract submission process before work begins.
Prepare for an employment-document review
Bring existing contracts, the staff handbook, job descriptions, payroll and leave procedures, workplace-safety policies and details of the workforce categories. Identify inconsistencies between written terms and actual practice. Share individual employee information only where necessary through an appropriate private channel.
Contact Harir Legal & Advisory Group to discuss employment contracts, HR policies and the scope of a compliance review.
Disclaimer: This article provides general information, not advice on an individual employment relationship or dispute. Applicable law, amendments, regulations and the facts must be checked before decisions are made.