Mozambique

Overview

Mozambique (officially known as the Republic of Mozambique), is located in southeastern Africa. The countries that border Mozambique are South Africa and Swaziland to the southwest, Zimbabwe to the west, Malawi and Zambia to the northwest, and Tanzania to the north. Mozambique (or Moçambique) is a Portuguese name, which is the official language of the country. The total value of imports and exports is equal to 108.9% of GDP.

Currency: Mozambican Metical

Principal Language: Portuguese

Government: Republic, Presidential System, Unitary State, Constitutional Republic

Capital City: Maputo

Major Cities: Matola, Nampula, Beira

Employment Contracts

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.

Work/Time Regulations

The maximum work schedule has 8 hours per day and 48 hours per week. All the workers are entitled to a weekly rest period for a minimum of 24 consecutive hours on a day that normally is Sunday.

Overtime

Work performed over and above the normal daily working hours is considered overtime. An employee may not work more than 200 hours of overtime per year.

Leave

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.

Benefits

Death Benefits
If an employee dies, their dependents or designated beneficiaries will receive a death benefit.

Disability Benefits
If an employee is unable to do his/her work, or take up another occupation, due to disability or poor health, the insurance company pays out a one-time lump sum.

Critical Illness Benefit
If an employee is suffering from a medically defined illness such as coronary artery bypass graft, heart attack, cancer, kidney failure, stroke, major organ transplant, dismemberment, total blindness, major burns, coma or multiple sclerosis, he/she will receive a one-time living benefit to bear the required medical and living costs.

How GPS can Help

With our Global PEO/Employer of Record services, companies can expand into Mozambique and hire their employees without having to establish a branch office or subsidiary in Mozambique.

  • Your candidate is hired via our Mozambique PEO. If needed, we can also help you find the right talent in any country with our comprehensive global staffing services
  • Your new employee begins work quickly as we take care of employment contracts, statutory and non-statutory benefits, and running their payroll – all in full compliance with the Mozambique laws
  • Global PEO Services experts manage all day-to-day operational issues, such as employee expenses, and severance/termination if required.
  • No contractor risks, pass on the compliance burden to Global PEO Services.

 Spin Off/M&A Support

  • Ensure continuity of payroll, benefits and HR support when acquiring or spinning off a business with employees overseas.

24/7 Support in 100+ Countries

  • Empower your teams with 24×7 support and a single point-of-contact model in which experienced client services directors are in continuous communication with information and advice.
  • We are backed by a mix of 300+ multidisciplinary experts from HR, Payroll, Finance, Tax, and Legal domains who are ready to respond to the expected and unexpected needs of your business on the shortest notice.

Easy Visibility into Your Employee Time & Attendance and Benefits Data

With our Global PEO, you get access to our proprietary Mihi SaaS solution for time and attendance, vacation, leave management and benefits enrollment and management. Mihi enables clients to have easy access to employee data in real time. It is designed specifically for companies with a global workforce, especially when working in multiple countries with low headcount.

Ready for Growth When You Are

When ready, we can seamlessly transition you from the PEO/EOR model to your own legal entity and provide ongoing international HR, finance, legal, compliance and staffing support. Learn more about our end-to-end international expansion services here.

Contact Us