Table of Contents

Mozambique

Table of Contents

Currency

Mozambican Metical (MZN)

Payroll Frequency

Monthly

Employer Taxes

4%

About Mozambique

Mozambique is an African country along the continent’s southeastern coast. The country has experienced civil war since the country gained independence in 1975 and is still suffering from a political conflict between the Frelimo party and the opposition party Renamo. Poverty remains a defining feature due to constant political tensions, violence, and rampant corruption. Mozambique is a former Portuguese colony with a rich and diverse culture. It is known for its variety of fresh seafood dishes and its traditional music such as marimba bands. The country is made up of seven tribes and ethnicities which have different customs and traditions. Tribal music is considered an important aspect of Mozambique’s culture and is played at traditional ceremonies and religious occasions. The main language is Portuguese, but Swahili, Bantu, and Arabic are also widely used. Roman Catholicism is the main religion in Mozambique.

Employment Relationship

• Permanent Employment

Employment contracts of indefinite duration are considered permanent contracts. Such contracts are concluded to fill job vacancies contemplated in the business's staff structure or those corresponding to its regular production or operating cycle. Permanent contracts can be terminated by giving a notice period. They can also include probationary periods not exceeding 180 days for intermediate and higher-level technicians and employees who hold leadership and management positions. For other employees, probationary periods cannot exceed 90 days.

• Fixed-Term or Specific-Purpose Contracts

Fixed-term employment contracts may only be concluded for the performance of temporary duties. They may be entered into for up to two years and renewed up to two times. Fixed-term contracts can also be made for an unspecified duration where their termination depends on a particular task's performance. If the employment relationship continues after the maximum number of renewals, it is considered a contract for permanent employment. Fixed-term contracts made for 90 days or more must be in writing. Fixed-term contracts can also include a probationary period. Fixed-term employees hired for more than three months but less than one year are entitled to annual leave of one day for every month of actual service.  

• Temporary Employment Contratcs

A temporary employment contract is an agreement concluded between a private employment agency and an employee. The employee undertakes to temporarily perform work for a user company in exchange for remuneration.  Temporary employment contracts must be in writing and signed by both the private employment agency and the employee. A user contract is signed between the private employment agency and the user company. It must contain details on reasons for using temporary labor, the nature of work, the fee to be paid, etc.  A temporary worker can be assigned to more than one user company at a time. While working for a user company, temporary employees are subject to the employment rules applicable to the user company concerning the place, manner, duration, suspension, and performance of work, discipline, safety, hygiene, health, and access to the user's social facilities.

Probationary Period

An employee who is employed in a position that is considered a mid-level technician can be subject to a 3-month probationary period. Higher-level technicians or employees in leadership or management positions can be subject to a probationary period of up to 6 months. The probationary period must be explicitly included in the employment contract. An employment contract can be terminated during the probationary period by either party without showing just cause and without any right to compensation unless this is otherwise stipulated. Either contracting party is obliged to give a minimum of seven days’ notice in writing to the other party.

Working Hours

Regular working hours must not exceed 48 hours per week and eight hours per day. Daily working hours may be extended to 9 hours per day, provided that the employee is given an extra half-day of rest per week. The regular working hours of minors between the ages of 15 and 18 must not exceed 25 hours per week and are limited to a maximum of 5 hours a day. Establishments engaged in industrial activity, except for those in which employees work shifts, may adopt a workweek of 45 hours spread out over 5 days in a week. Under exceptional circumstances, working time may be extended to 56 hours a week by collective agreement.

Holidays / PTO

• Statutory Holidays

January 1 (New Year’s Day); February 3 (Heroes’ Day); April 7 (Women’s Day); May 1 (Workers’ Day); June 25 (Independence Day); September 7 (Victory Day); September 25 (Revolution Day); October 4 (Day of Peace and Reconciliation); December 25 Family Day (Christmas).

• Paid Annual Leave

Employees are entitled to paid annual leave as follows: One day for every month of actual service, during the 1st year of service 30 days for every year of actual service, from the 2nd year onwards. Fixed-term employees employed for more than 3 months but less than one year are entitled to holidays of one day for every month of actual service. The employer can postpone annual leave for compelling reasons. Up to 15 days of annual holidays can be accumulated per year up to a maximum of 60 annual leave days in a year. The accumulated holidays must be taken during the year following that in which the limit is reached. Up to 30 days of annual leave can be taken in advance. 

• Sick Leave

Employers must grant sick leave for an uninterrupted period of up to 15 days in a year (or five non-continuous days in a quarter), after which an employer can refer the employee to a health board to determine their capacity to work. Employees who have paid at least 12 months' social security contributions are entitled to 365 continuous days of sick pay under the social security system in case of a non-occupational illness or an accident. They must submit a medical certificate. 

• Maternity Leave

Female employees are entitled to a paid maternity leave of 90 consecutive days, which may commence 20 days before the expected delivery date. This leave shall apply equally to cases of full-term or premature births, regardless of whether it was a live birth or a stillbirth. If there is a clinical risk to the female employee or the child, she shall be entitled to a leave of absence before the birth without prejudice to the maternity leave. Mozambique National Institute of Social Security provides maternity benefits to insured employees who pay contributions. The allowance is paid at the rate of employee's average daily wage for up to 60 days. Employees are paid their regular remuneration during maternity leave. Employers are forbidden from giving female employees work that is harmful to their health or their reproductive functions or to dismiss pregnant employees during maternity leave or up to 1 year after birth.

• Paternity Leave

Fathers are entitled to 7 days of paid paternity leave every two years, and this must be taken on the day immediately following the birth. An employee who wishes to take paternity leave shall inform the employer in writing, before or after the birth.

Termination of Employment

• Notice Period

Advance notice in writing is required for terminating contracts. The length of the notice period depends on the reasons for termination.  In case of termination of a contract at an employee's initiative, advance notice of seven days is required if there are just causes for termination. In other cases, the notice period must be as follows: 6 months to 3 years of permanent employment – 15 days More than 3 years of permanent employment – 30 days Fixed-term employment lasting more than 3 years – 30 days. Employers can terminate employment contracts with prior notice of at least 30 days on the basis of structural, technological, or market-related reasons. If a contract is terminated during probation, advance notice of seven days is required in writing. No notice is required for dismissal due to gross misconduct.

• Severance Benefits

Employees dismissed for structural, technological, or market-related reasons are entitled to severance benefits as follows: Employees' basic wage is between 1 and 7 times the national minimum wage – 30 days' wages for each year of service Employees' basic wage is between 8 and 18 times the national minimum wage – 15 days' wages for each year of service Employees' basic wage is more than 18 times the national minimum wage – 5 days' wages for each year of service Severance pay for termination of contract by employees is calculated as: Permanent employee – 45 days of wages for every year of service Fixed-term employee – remuneration that the employee would have earned between the termination date and the contract's expiry date