Madagascar Labor Law 2025: Key Developments, Practical Steps, and Precautions

This guide summarizes the main themes employers and HR professionals should watch in Madagascar for 2025, explains practical compliance steps, and highlights important precautions . It focuses on the labor regulatory framework, social security obligations, contract management, dispute prevention, and operational checklists to help businesses stay compliant and reduce legal exposure.

Overview of the legal framework

Madagascar’s employment rules are shaped by its national Labor Code, sectoral collective agreements, and regulations administered by labor inspection authorities and social protection agencies (such as the national social security authority, CNaPS). Local ordinances, ministerial decrees and sectoral commissions also play a role in interpreting and applying the law. Employers should assume that official publications and court interpretations can affect routine HR practices.

2025 policy themes to monitor

• Formalization and inspection: Authorities continue to prioritize formal employment and improved labor inspections; expect increased scrutiny of contract registers, payroll records and social security filings.
• Social security and contributions: Updates to contribution calculations, registration procedures or reporting deadlines are commonly adjusted; timely CNaPS compliance remains essential.
• Fixed-term and casual work: Clarifications about limits on successive fixed-term contracts and the classification of casual or platform workers are a common policy focus.
• Working time and overtime: Revisions or stronger enforcement around maximum working hours, rest periods and overtime compensation may appear.
• Occupational safety and health: Enforcement of workplace safety rules, particularly in construction, agriculture and manufacturing, remains a regulatory emphasis.
• Collective bargaining and union rights: Sectoral bargaining updates and union recognition procedures can change employer obligations in affected industries.

Practical compliance steps (step-by-step)

1. Monitor official sources and retain local counsel — Subscribe to the government gazette, monitor ministry announcements, and work with Madagascar-based legal or HR advisors to interpret changes.
2. Conduct a focused compliance audit — Review employment contracts, payroll records, timekeeping, social security registrations (CNaPS), invoices and internal policies to identify gaps.
3. Update contracts and employee handbooks — Ensure written contracts reflect lawful job descriptions, probation clauses, termination notice periods, overtime rules and language requirements (French or Malagasy translations where appropriate).
4. Verify social security and tax registrations — Confirm that all employees are registered with CNaPS and other relevant schemes; reconcile contribution history and correct underpayments promptly.
5. Adjust payroll and benefits — Implement systems to calculate regular pay, overtime, statutory leave and severance in line with the most recent guidance and collective agreements.
6. Check work permits for expatriates — For foreign hires, validate visa/work permit status and maintain copies of approvals; factor permit validity into termination or role-change planning.
7. Strengthen workplace safety — Update risk assessments, training, recordkeeping and emergency procedures to meet enforcement expectations.
8. Engage with employee representatives — If unions or worker committees exist, maintain transparent communications and document collective consultations.
9. Train managers and HR staff — Provide concise training on lawful hiring, disciplinary processes and documentation standards to avoid informal practices that cause legal disputes.
10. Prepare a litigation and dispute response plan — Keep a clear file of employment records, standard templates for settlements, and an external counsel contact list for rapid response.

Practical checklist (quick view)

Notes (Precautions and practical tips)

• Documentation is decisive: Administrative and payroll records are often determinative in disputes—keep clear, dated files for hire, promotion, leave, and termination.
• Language and form requirements: Some documents may need to be in French or Malagasy; missing translations can be costly in proceedings.
• Probation and renewals: Misuse of successive fixed-term contracts or improper renewals can convert contracts to indefinite-term employment with greater protections.
• Termination risks: Follow formal notice, severance, and consultation rules; summary dismissals require documented cause and procedural fairness to withstand challenge.
• Collective agreements prevail: Sectoral bargaining agreements can impose terms above the law—check applicable collective agreements before implementing policy changes.
• Data and privacy: Personal data handling (payroll, medical records) should comply with local privacy expectations and be stored securely.
• Timeliness of corrections: If non-compliance is discovered, voluntary correction and transparent disclosure to authorities can mitigate penalties.

Illustrative cases and lessons

Case 1 (anonymized): A medium-sized export company missed several months of social contribution filings. After a compliance audit, the employer negotiated a repayment plan with CNaPS, avoided forced closure, and implemented automated payroll controls. Lesson: early detection and proactive remediation reduce enforcement risk.

Case 2 (anonymized): A service provider misclassified long-term contractors as short-term casual workers. A labor inspection concluded that contracts were de facto indefinite, leading to back-pay for benefits and paid leave. Lesson: classification must reflect the reality of the working relationship, not only contract labels.

When to hire external help

If your business is restructuring, terminating staff in bulk, hiring many expatriates, or undergoing a labor inspection, engage local labor counsel and a payroll provider. For companies operating across borders or seeking offshore HR support, consider a specialized partner such as SailGlobal for end-to-end human services and compliance assistance.

Final recommendations

In 2025, Madagascar employers should prioritize recordkeeping, social security compliance, and clear contracts. Regular audits, manager training, and early engagement with regulators or legal advisors significantly reduce exposure. Because labor policy and enforcement can change quickly, maintain regular monitoring of official publications and update practices promptly.

Disclaimer: This article provides general guidance and does not substitute for legal advice. For binding interpretations and the latest official instruments, consult Malagasy official gazettes, regulatory agencies, or qualified local counsel.