Contracts of employment
- The two most common types of contracts are:
- the fixed-term contracts and
- the unlimited- duration contract.
- The fixed-term contract cannot be celebrated for a period exceeding two years, which can be renewed twice.
- The fixed-term contract may be transformed into an unlimited duration contract when the period of its maximum length is exceeded or when the number of renewals allowed is surpassed.
- Employment contracts are required to stipulate the following
|Employer & employee’s identification||Job qualification||Place of work||Work schedule|
|Duration of the contract & conditions for renewal||Amount, form & timing of salary payments||Start date, signature date & termination date||Grounds for hiring an employee on a fixed- term basis|
Working hours and overtime
- The general rule is that an employee works a maximum number of 48 hours a week and 8 hours a day, leaving 1 day a week of mandatory rest, which in principle should be a Sunday.
- The maximum number of hours an employee works a day may be increased to 9 hours if the employer grants the employee an additional half a day’s rest a week, thus making the maximum number of hours a week increase to 49.5.
- The table displayed below lists applicable hourly rates for extra-hours and exceptional hours.
|Hours performed during||Applicable hourly rate|
|Complementary rest period (exceptional
|2.00 x Usual hourly rate of pay + 1 day’s rest within the following 3 days|
|Holidays (exceptional hours)||2.00 x Usual hourly rate of pay + 1 day’s rest within the following 3 days|
|Mandatory rest period (exceptional hours)||2.00 x Usual hourly rate of pay + 1 day’s rest within the following 3 days|
|Working day (extra-hour)-until 8.00 PM||1.50 x Usual hourly rate of pay|
|Working day (extra-hour)-after 8.00 PM||2.00 x Usual hourly rate of pay|
- The number of paid annual leave varies according to the length of service.
|Length of service||1st year of employment||2nd year||≥ 3 years|
|Number of days||1 per month||2 per month||30 per year (weekends included)|
- Holidays and duly certified periods of illness cannot be considered as vacation leave.
- If agreed in writing by the employer and the employee, paid vacation can be postponed up to a maximum of 15 days per 12 months of work.
- Yet, an employee may not accumulate more than 60 days of paid vacation in 1 year, the days in excess shall be deemed to have expired.
Duties and rights
- Employees are subject to the following duties
|To respect and treat with propriety and loyalty their employer, their hierarchical superiors, their work colleagues and all other persons who they are in contact or come into contact with the enterprise||To go to work regularly and punctually|
|To obey the lawful orders and instructions of the employer, the employer’s representatives and the employee’s hierarchical superiors, and to perform all other obligations arising from the employment contract, except those that are illegal or are contrary to their rights and guarantees||To respect professional confidentiality and in no case disclose information regarding the organization, production methods or business of the enterprise or establishment|
|To be loyal to the employer, in particular, not to compete with the employer either directly or for the account of a third party, and to contribute to improving the system of safety, hygiene and health at work to use properly and keep in good condition the work-related property and equipment entrusted to them by the employer||Not to use the workplace or the equipment, property, services or tools of the enterprise for personal or non-work-related purposes without authorization from the employer or the employer’s representative|
|To perform their work with enthusiasm and diligence||To protect the property of the workplace and the production output against any damage, destruction or loss|
- In Mozambique, workers have notably the following rights
|To be assured of a job according to their abilities, their technical and vocational preparation, the requirements of the workplace and the national economic development possibilities||To be assured of job stability, whilst performing their duties under the terms of their employment contracts, collective labour regulation instruments and the applicable legislation|
|To be treated correctly and respectfully, being punishable by law all acts against the honour, good name, public image, private life and dignity of employees||To be guaranteed daily and weekly rest periods and paid annual holidays|
|To enjoy suitable measures of protection, safety and hygiene at work in order to ensure their physical, moral and mental integrity||To compete for access to higher positions according to their qualifications, experience, work results, assessments and requirements of the workplace|
|To freely associate in professional organizations or trade unions in accordance with Mozambique’s Constitution||Report to the General Labour Inspectorate or authorities with labour jurisdiction whenever their rights are threatened|
|To benefit from medical and medicinal aid, and to receive compensation for accidents at work or occupational illness||To enjoy adequate assistance in the event of disability and old age, in accordance with the law|
|The employers cannot assign works to female employees that might be harmful to their health or their reproductive functions, or dismiss, punish or otherwise cause prejudice to them for reasons of alleged discrimination or exclusion||Both male and female employees shall be respected and any act against their dignity shall be punished by law, and any employee at the workplace who carries out acts against their dignity shall be subject to disciplinary proceedings|
|Female employees are entitled to maternity leave of 60 consecutive days, which may start 20 days prior to the expected delivery date and may be enjoyed consecutively||Fathers are entitled to paternity leave of one day every two years. Such leave should be taken on the day immediately following the birth.|
|Working mothers’ absences (maximum of 30 days of absences per year) to take care of their minor children in cases of accident or illness, shall be considered justified absence and shall not result in any loss of rights, except as regards remuneration||Employers must provide employees with good physical and moral conditions at work|
Termination of employment and employment disputes
- The dismissal of employees is regulated.
- A formal termination procedure must be carried out (e.g. presence of disciplinary proceedings).
- The legislation provides reasons for termination, such as:
|A serious violation of the employee’s duties||Termination because of the needs of technological, management or financial reorganization of the company||Termination for grounds||Termination for objective reasons (lack of economic conditions for paying salaries)|
- In case of termination without cause or in breach of the applicable statutes, employees have to be compensated according to the following rules
|Fixed-term contract||Unlimited-duration contract|
|Amount of the compensation =||Salary range (expressed in minimum wages)||Amount of the compensation =|
|Salaries that the worker would have received until the end of the contract||[x1;x7]||30 days’ salary for each year of employment|
|[x8;x10]||15 days’ salary for each year of employment|
|[x11;x16]||10 days’ salary for each year of employment|
|≥x16||3 days’ salary for each year of employment|
- Employees may challenge the employer’s decision to terminate the contract by resourcing to the General Labour Inspectorate, by way of requesting mediation between such entity and the employer and employee.
- If that fails to get a result, worker can go to courts.
- In the event of the termination being disputed, and the employee being successful in legal action brought against the employer, the employee is due compensation in the amount corresponding to 45 paid salary days of work per year and the same may further opt to be reinstated in his or her employment.
- Investors can recruit foreign workers through one of the following routes
|Hiring under the quota system||Hiring outside the quota system (hiring with authorization)||Short-duration hiring|
|Conditions||Foreigners cannot exceed:
||Hiring outside the quota system requires more time and is much more complex (a justification and an authorization from the Ministry of Labour are required)||Expatriates have to work less than 30 days. It can be extended up to 90 days a year.|
|Required documentation to hire an expatriate||
- Employers seeking to employ expatriate staff are required to apply for work permits from the Director of Immigration Department.
- In the event of termination of employment, MITESS and the National Migration Services have to be informed within 15 days.
- Employment authorization is not required when hiring under investment projects. The employer simply needs to inform MITESS about the hiring of the employee or employees in question within 15 days of their entry into the country.
- Employment contracts with foreign citizens must be in writing and cannot exceed two years.
- To get more info : click here
Employee minimum costs estimation calculator
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- The Government of Mozambique has set up minimum wages for the following occupations
|Applicable to||Employees working in /for||Minimum monthly wage (MT)|
|Fisheries||Industrial sea fishing activities||5,370.75|
|Fisheries||Semi-industrial sea fishing activities||5,370.75|
|Industry & Mining||Large companies||9,254.60|
|Industry & Mining||Quarries & Sandbarsr||6,379.00|
|Industry & Mining||Salt flats||5,318.60|
|Manufacturing industry||Manufacturing activities||7,000.00|
|Bakery industry||Livestock sector||4,390.00|
|Production/distribution of Electricity,Gas & Water||BProduction/distribution of Electricity,Gas & Water||8,300.00|
|Small & Medium-sized Enterprises||Small & Medium-sized Enterprises||6,760.00|
|Non-financial services||Non-financial services activities||6,850.00|
|Financial services activities||Banking & Insurance sector||12,760.18|
|Bakery industry||Livestock sector||4,390.00|
|Financial services activities||Microfinance & microinsurance sector||11.336,93|
|Public Administration||Public administration||4,255.00|
Last update: April 2019
Social Security Contributions
- Both employees (3% of the salary) and employers (4% of the salary) have to contribute to the National Institute of Social Security (INSS).
- Expatriate employees that are member of a similar scheme in a foreign country can be exempted of contributions.
- The firm must withhold at source the personal income tax due by workers.