2024 – Overview of Law No. 2024-014 relating to the labour code and its keys aspects
Law no. 2024-014, dated 14 August 2024, relating to the new labour code applicable in Madagascar (the “2024 Labour Code”), brings substantial changes and improvements to the country's labour law to better align with current global practices and evolving work environment.
The 2024 Labour Code, the main text applicable to labour law, is a legislative text relating to the technical and socio-economic conditions of work, including hygiene, safety, and health at work. According to the explanatory memorandum to this law, the spirit of the recast is also to maintain the achievements of previous Labour Codes, including Law no. 94-029, dated 25 August 1995, and Law no. 2003-044, dated 28 July 2004, in terms of protecting the rights of workers and employers, and to introduce new provisions in line with current reality and the conventions recently ratified by Madagascar.
At first glance, the 2024 Labour Code introduces stricter regulations to protect workers from arbitrary dismissal. This means that employers must provide substantial justification for termination and redundancy procedures are more clearly defined to prevent unfair dismissals. Regarding redundancy procedures, enhanced guidelines ensure that workers affected by layoffs receive appropriate compensation and support. The 2024 Labour Code also details handover obligations, terms, and the case of firing hypothesis during the suspension of employment contracts.
The 2024 Labour Code also mandates higher occupational health and safety standards. Since Madagascar is a part of the Organisation Internationale du Travail or OIT and has recently ratified several conventions, employers must implement more rigorous safety protocols and provide better training to reduce workplace accidents and health hazards. Moreover, regular inspections are now increased for the benefit of employees, that is frequent inspections are mandatory to ensure compliance with health and safety regulations.
The minimum wage has also received some adjustments to better reflect the cost of living, aiming to ensure that workers receive fair and adequate compensation for their labour. The 2024 Labour Code establishes a framework for regular reviews and adjustments of the minimum wage to keep pace with economic changes.
Regarding employment contracts, employers are now required to provide more comprehensive and transparent employment contracts that clearly outline the terms of employment, including job responsibilities, compensation, and benefits. Procedures for modifying employment contracts are standardized to ensure clarity and fairness.
Working Hours have also been improved. The 2024 Labour Code gives more detail on working hours to prevent excessive work and ensure that employees have a balanced work-life schedule. Clear rules are established regarding overtime pay and mandatory rest periods, promoting better work conditions. The latter can also be noticed by giving more detail on remote work and work-from-home. These improvements have been noticed during the Covid-19 pandemic. Teleworking and work-from-home was seen as a necessity. The 2024 Labour Code now provides clear guidelines on how these work arrangements can be managed by ensuring that no disadvantages are witnessed in remote work. Employers must maintain fair working conditions, provide necessary tools and resources, and ensure remote employees have the same rights and protection as those working on-site.
Maternity Leaves have also been enhanced providing extended leave duration and improved pay during leave periods. Paternity Leave is one improvement not seen from previous labour laws. Its introduction in the 2024 Labour Code supports fathers and promotes shared family responsibilities. On another note, additional benefits and support for employees with family responsibilities have been enhanced, ensuring better work-life integration.
For a better international relationship in the labour market, the 2024 Labour Code dedicates more attention to migrant workers in response to the increasing globalisation and the mobility of the workforce. The legal provisions subject such workers to the control and visa of the labour inspector and Social Legislation with the eventual intervention of the Ministry of Labour and Employment. Under the same order of reinforcement, fiercely protective and humanitarian strengthening on sanction provisions is made toward individuals including women, children, motherhood, and topics of violence at work or forced labour.
These comprehensive reforms, acknowledged in the 2024 Labour Code, aim to foster a more equitable and regulated labour market in Madagascar, especially in the private sector, benefiting both workers and employers by promoting fair practices, improved working conditions, and stronger worker rights.