Mozambique PEO Services

Global PEO Services (GPS) helps companies hire employees in Mozambique without establishing a legal entity. All human resources, benefits, payroll, and tax needs for the employees are managed by the Global PEO, while the new hires and headquarter teams focus on your business goals.

When hiring employees in Mozambique, establishing a subsidiary or branch office is not always the best route, as it’s often a lengthy and expensive process. Hiring via a Professional Employer Organization (PEO), or Employer of Record (EOR), is a faster and often more effective option – especially when starting up in a new country.

Global PEO Services hires the employees on your behalf, legally contracting them through our subsidiary in accordance with Mozambique labor laws. As a result, the burden of compliance is on us and the employees can begin work for your company in a matter of days. PEOs/EORs provide you with a streamlined option for hiring employees, testing markets, and responding to growing business needs in Mozambique. With Global PEO Services, you get control without taking on legal entity liabilities, contractor risks, or sacrificing on talent or speed to market.

Types of Contracts

• Fixed-term contracts for more than 90 days must be in writing justifying the grounds of the fixed term.
• A written contract for performing temporary duties in specified instances.
• A contract is only for up to 2 years. It can be renewed twice by agreement and shall be considered a permanent contract if it goes beyond the maximum permitted periods of renewals.
• In the case of permanent contracts, if the duration is mentioned, it must be in writing.
• User contracts relating to a fixed-term contract for services between a user enterprise and a private employment agency must be in writing and specify the reasons for using temporary labor. Otherwise, the contract will be void and the employment relationship between the parties shall be considered permanent.

Probation Period

• Contracts for permanent employment shall not be more than 180 days for intermediate and high-level technicians and employees holding leadership and management positions. In the case of other employees, the probation period shall not exceed 90 days.
• Contracts for fixed-term employment shall be 90 days for periods longer than 1 year; 30 days for terms between 6 months and 1 year; 15 days for terms up to 6 months and 15 days for contracts with an unspecified term (The term is expected to be 90 days or more).
• During the probation period, either party may reject an employment contract without having to show just cause and without any right to compensation. However, the parties are required to give a minimum of 7 days written notice in advance.

Holidays

The government recognizes nine public holidays in Mozambique. Employers must provide employees with paid leave on these days.

The public holidays are:

• Jan. 1: New Year’s Day
• Feb. 3: Mozambican Heroes’ Day
• April 7: Mozambican Women’s Day
• May 1: International Workers’ Day
• June 25: Mozambique’s Independence Day
• Sept. 7: Lusaka Agreement’s Day
• Sept. 25: Mozambique Armed Forces’ Day
• Oct. 4: Peace Day
• Dec. 25: Family Day

Whenever a public holiday falls on a Sunday, work is suspended on the following Monday.

Annual Leave

Employees are entitled to the following periods of paid annual leave:

• 1 day for every month of actual service, during the first year of service;
• 2 days for every month of actual service, during the second year of service
• 30 days for every year of actual service, from the third year onward.

Other types of leave regulated by the labor law include:

Maternity Leave

Employers must provide women with a minimum of 60 consecutive days off, which may commence 20 days prior to the expected delivery date.

Paternity Leave

Employers must provide one day of paid paternity leave the day after the birth.

Sick Leave

Generally, employees are eligible for up to 15 days of sick leave, or 5 non-consecutive days per quarter. If an employee requires more time s/he must go to the health board. Social security will compensate for 365 days of continuous sick leave for a non-occupational illness or accident.