- Overview: Mozambique
- Global PEO and payroll
- Global HR Compliance
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global HR Compliance in Mozambique
If you hire an international workforce, or plan to hire, then Hiring and Firing Workforce in Mozambique Guide below will help you understand the nuances of labor legislation in the country.
When the company is planning to enter a new foreign market of Mozambique and has a need to employ a local national there, the first question to answer is how it is going to make local hires.
We have designed a Global Employer of Record service to help you outsource global employment of your foreign workforce to companies like ours.
This solution helps you employ your global sales force in Mozambique as well as in other 180+ countries of the world, and provide pay and benefits to your employees, as well as administer any business expenses with our help.
Our solution is different from other hiring modes in that it helps you engage your foreign workforce in full compliance with the local labor legislation. This means you are protected from any non-compliance and employee misclassification risks while we bear all employment risks, not you.
So, it looks very much like hiring your in-house sales force in your home country. However, you focus on only on your global business development while we admin your global HR. In addition, you don’t need to open your own entities in the foreign countries and can leverage our infrastructure in Mozambique instead. With our service, you can become a global company with reduced costs and minimized time and effort on your end.
Your employed foreign sales force will devote 100% of their time to your company product and may stay with you longer than foreign independent sales reps.
Global Employer of Record solution is 100% compliant solution that guarantees you and your employees fully compliance with local legislation in Mozambique .
We are experts in global workforce employment in Mozambique, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.
Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.
With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Mozambique.
See Hiring and Firing Workforce in Mozambique Guide below for a general overview of labor rules and regulations in the country. Or contact us if you need to employ workers in Mozambique or would like to get more details.
Hiring and Firing Workforce in Mozambique Guide
# Employment contracts
Employment agreements in Mozambique may be indefinite or temporary (fixed and uncertain/open ended) term agreements.
Fixed term agreements may only be concluded in order to fulfil temporary needs of the business and strictly for the period necessary for the fulfilment of those needs. The initial period of these agreements shall not exceed 2 years; the agreements may be renewed 2 times.
Small and medium sized enterprises (companies employing up to 100 employees), may be concluded fixed term agreements in the first ten years of activity. Uncertain term agreements (open ended) are only admitted in situations where it is not possible to predict with certainty the time in which the temporary need behind the execution of such an agreement may be terminated.
# Minimum (Statutory) Employment Rules and Regulations in Mozambique
# Hours of work:
Under statute, the normal maximum permitted working period in Mozambique cannot exceed 48 hours per week and 8 hours per day. However, the normal period of daily work may be extended up to 9 daily hours, as long as the employee receives a complementary weekly rest half day.
Furthermore, it is also possible to exceptionally increase, through collective bargaining agreements, the normal maximum period of daily work up to a maximum of 4 hours, as long as the amount of the weekly work hours doesn’t exceed 56 hours.
# Probation period:
A probation period of up to 180 days will be granted on the commencement of employment. The duration depends on the type of contract and/or of the employee’s job title/functions.
The parties may expressly waive the right to a probation period or reduce its length by agreement; this can also happen by means of applicable collective agreement. Regardless of the trial’s period duration, the parties (either the employer or the employee) are obliged to give 7 days’ notice of termination.
# Annual leave:
All employees are entitled to paid holiday as following:
- one day per each month of effective work, during the first year of contract;
- two days per each month of effective work, during the second year of contract;
- thirty days per year, from the third year of contract on.
Employees are entitled to split holiday provided that each fraction is not less than 6 consecutive days.
Exceptionally, upon agreement, the employee’s holiday may be replaced by a supplemental compensation, and the employee shall however, take at least six working days of leave.
According to the law, employer is responsible to, in coordination with the company’s labor union, draft the Holiday Plan. If required or allowed by the work nature and organization, as well as by the production conditions, and after prior consultation with the labor union, the employer may decide that employees shall take their holidays simultaneously.
In addition to the above holiday entitlements, employees will also benefit from two kinds of annual public holiday: mandatory public holidays and optional public holidays.
# Parental leave:
The Mozambican Labor Law guarantees to working mothers, fathers or guardians, special rights related with maternity, paternity and care of children in their infancy.
The working mother is entitled to a maternity license (without any reduction of remuneration) of 60 (sixty) consecutive days, which can start 20 (twenty) days before the expected date of confinement. The same shall also apply in cases of premature childbirth, regardless of being a live birth or a stillborn.
The working father is entitled to a paternity license of 1 (one) day, every two years, which shall be taken at the day immediately after the birth of the child. However, to this end, he is required to inform his employer in writing.
# Sick leave:
The National Social Security system grants illness and disability subsidy for all eligible employees. The illness subsidy depends on the employee, if he did or did not comply with certain conditions at the date of onset of illness, such as for example, the period of contributions.
The monthly amount of the disability pension is equal to 60% of old-age pension the employee would be entitled to if he had worked until the required age to be admitted to the old-age pension. This amount cannot be inferior to 60% of the highest monthly minimum wage.
Overtime’ is defined as work performed beyond the normal daily working period. However, a distinction is made between overtime rendered during a working day (extra hours) and overtime rendered during mandatory or complementary rest periods or during holidays (exceptional hours). The main difference is that while extra hours are limited to a certain number per week, trimester and year, and must be compensated by payment of an additional 50% per hour up to 8:00pm and an additional 100% after 8:00pm, exceptional hours must be compensated by payment of both an additional 100% per hour and a day’s rest within the following three days.
# State minimum salary:
There is no national minimum wage in Mozambique, but a minimum wage rate is set by the government for nine sectors of the economy. Minimums range from 3,002 Mozambican meticias a month in the public sector to 7,465 meticias a month in the financial sector. Mozambique’s minimum wage was last changed in May 2014.
# Employee dismissal:
Instant dismissal is unlawful in Mozambique. Doing so will determine the “dismissal” as illegal and entitle the employee to file a court claim for reinstatement or compensation for unlawful dismissal which shall be calculated by taking account the type of contract (if indefinite or fixed term), the seniority of the employee and the employee’s monthly remuneration.
The employee may resign to his employment agreement by giving a prior notice and without needing to invoke just cause, as long as he informs the employer in writing. If employee has a fixed term employment agreement, he shall give a prior notice of at least 30 days to the employer. In case of an indefinite employment agreement, the prior notice shall be of 15 days, if he is working for more than6 months and less than 3 years, and 30 days if he is working for more than 3 years. If the required notice period is not given, the employee should indemnify the employer in the amount correspondent to such period of time and having in mind the salary that the employee would receive plus, if applicable, the amount correspondent to the damages/losses caused to the employer due to such employee’s behavior.
Termination can be mutually agreed between employer and employee at will and under the correct conditions.
Lay off, collective dismissals and redundancy’ provisions are set out by the Mozambican Labour Law.
The law distinguishes between collective dismissals, that is, where several people are dismissed by reason of redundancy and individual redundancy. In both situations, the first condition to be met is that an objective reason must exist, which may be either market, structural or technological reasons. A demanding, formal and mandatory procedure must be complied with by the employer.
The difference between an individual redundancy and a collective dismissal is that the latter implies the termination of employment agreements of more than 10 employees.
Affected employees are entitled to compensation as following:
- thirty days of salary for each year of service, if the employee’s basic salary, including seniority payment, is equal to the amount of one to seven minimum wages;
- fifteen days of salary for each year of service, if the employee’s basic salary, including seniority payment, is equal to the amount of eight to ten minimum wages;
- ten days of salary for each year of service, if the employee’s basic salary, including seniority payment, is equal to the amount of eleven to sixteen minimum wages;
- three days of salary for each year of service, if the employee’s basic salary, including seniority payment, is equal to the amount of more than sixteen minimum wages.
Acumen International can help you fast-track your possibilities of entering and expanding your business in Mozambique by providing you with our Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any need to set up a legal entity first or afterwards.