Why this special report? 

Dispatch Risk Advisory and the Hmila Law Firm collaborated on this report to provide insights regarding changes to Tunisia’s employment law. This report is intended to provide an overview of the issue and help employers avoid risks.*  

What has prompted the new employment law? 

The new employment law reform aims to make open-ended contracts (CDI) the standard way of hiring people. At present, many companies use fixed-term contracts (CDD) for longer than was intended through various means. The new law restricts CDDs to three situations: seasonal work, a temporary increase in workload, or temporarily replacing an employee.  

What will the law change?  

Currently, a CDD can convert to a CDI after four years. However, companies often bypass this by employing workers through outsourcing companies, which keeps them on CDDs for longer periods. The new law prohibits outsourcing and mandates companies hire workers directly.  

How will this impact current contracts? 

This change will nearly eliminate CDDs, making CDIs the primary contract type, with strict guidelines for exceptions. Existing CDDs (not qualifying for aforementioned exceptions) will convert into CDIs upon their natural conclusion, or if they were terminated after March 14th. Additionally, if a CDD is terminated by the employer between March 6 and the law’s start date and the worker has more than four years of service, it must also turn into a CDI. Companies will need to update documentation accordingly.  

How will this impact outsourcing?  

Furthermore, any worker employed via an outsourcing company will automatically become a permanent employee of the company. Traditional outsourcing will end, though new service companies may appear. The reform’s main objective is to provide workers with better job stability and legal protection.  

What can employers do to prepare?  

Employers should review all employment contracts, prepare to restructure their workforce if necessary, and ensure full compliance with the new legal requirements to avoid legal issues or court-ordered changes in the future. The law provides a 3-month adjustment period. 

 *Not intended as legal advice or counsel 

Need more information? Contact our team.