Practice Area Articles
April 01, 2022
Nuno Gouveia and Silvia Mota Carvalho
Back to International Employment Law
KEY DEVELOPMENTS FOR 2022
Companies subject to the 2019 Local Content Law are required to prepare and subject a “Local Content Plan”
In May 2021, the National Printing released several Decrees relating to Senegalese local content framework (notably Law 2019-04 of 1 February 2019 – “the Local Content law”) specifically applicable to the local oil & gas industry.
Under the Local Content Law, companies are required to prepare and submit a so-called “Local Content Plan" to the National Local Content Monitoring Committee (CNSCL). This plan (which should be updated annually) must describe the company’s activities, detail the goods, services and competencies required for the carrying-out thereof, and address the promotion of the Senegalese capital and companies, and of employment and training (of nationals), the promotion and use of local goods and services, the transfer of technology and know-how, and the promotion of research and development. It must also comprise a report on the local content-related actions in the preceding 12 months, details on the forecasts in connection with such actions for the following 12 months, and a report evidencing the efforts undertaken to progressively reduce the use of personnel, capital, technology, goods, services or supplies not originating in Senegal.
The CNSCL came into operation in the summer of 2021, and has since been active in requesting that all companies that are subject to the 2019 Local Content Law and its 2021 Regulations should prepare and submit the required local content plan (LCP). Although guidelines on the contents, format and form of submission of the LCP (and/or of the annual local content implementation report) have not been formally disclosed by the CNSCL, we can confirm that the CNSCL prepared a LCP template and that it may be made available to the companies legally required to prepare and submit it, upon request.
Companies in the oil & gas industry will now be required to submit a local content plan and to update it on an annual basis.
Potential new regulations regarding remote working
Since the beginning of the COVID-19 pandemic, companies have been required to implement measures to cope with the spread of the virus in their work centers, notably home working. However, no regulations have been enacted regarding remote work and companies have therefore been defining their own modalities. The Government is now discussing the adoption of regulations on remote work and these will be submitted to the Parliament for approval.
Employers should monitor developments in this area of law. Once these regulations have come into force, employers should update their existing policies on remote work.
Introduction of new collective bargaining agreement for the hydrocarbon transport sub-sector
A Collective Bargaining Agreement ("CBA") of the hydrocarbon transport sub-sector was signed on 12 October 2021. The CBA contains provisions in respect of the following:
increase of salary costs of more than 12%;
an additional retirement indemnity;
a payment of a lump sum death indemnity;
payment of the 13th month salary; and
payment of a housing allowance.
This CBA is applicable to all petroleum transporters and the Government may adopt an extension decree for the CBA to be mandatory for the oil transport sector.
KEY DEVELOPMENTS FOR 2021
Local content legal framework
The Senegalese Government approved between 2019 and 2021 a set of statutes defining a completely new local content framework specifically applicable to the oil & gas industry. The ultimate political objective is to achieve a ratio of 50% of local content by 2030, ensure compliance with the obligations and measures to which companies directly or indirectly engaged in oil and gas activities are subject, and issue mandatory guidelines on matters such as the employment and training of local personnel, the use of national goods and services, and the participation by local investors in companies acting as subcontractors, service providers, and suppliers. The National Local Content Monitoring Committee was created as the authority that will define the particulars of each local content policy and supervise compliance by the oil & gas sector companies.
National Collective Bargaining Agreement for the Oil & Gas Sector
Despite being dated from August 2019, the National Collective Bargaining Agreement for the Oil & Gas Sector is an instrument that has not yet been put in practice by many companies since the local oil & gas industry is in its initial stages. This instrument sets out particular rules on working time requirements, work schemes, and salary components that are deviations to the general labour law rules to which the labour and immigration authorities are not used to dealing with and applying. The monitoring of the implementation of this structural Collective Bargaining Agreement will be a hot topic in the coming years.
Due to the general silence of the law on this topic, the rules applicable to remote working are very complex. Employers have been required to combine and harmonise statutes and procedures that do not deal directly with this particular work scheme that has been widely implemented in the pandemic scenario. As a result, this topic and all associated implications will to continue to be a very hot topic in Senegal.