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.
Mozambique - Country 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.
Republic, Presidential System, Unitary State, Constitutional Republic
Matola, Nampula, Beira
Employment Contracts in Mozambique
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.
- 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.
Working Hours in Mozambique
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.
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.
Employee Leave in Mozambique
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.
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:
Employers must provide women with a minimum of 60 consecutive days off, which may commence 20 days prior to the expected delivery date.
Employers must provide one day of paid paternity leave the day after the birth.
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.
Employee Benefits in Mozambique
If an employee dies, their dependents or designated beneficiaries will receive a death benefit.
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.