Hiring in Mozambique: the work authorisation, the contract and a salary worked through, step by step

Move someone who is already in Mozambique

A foreign national who entered Mozambique for a purpose other than work cannot be hired there. The spouse or child of a diplomat is the exception, where a bilateral agreement allows it.

A foreign national's contract is a fixed term, renewed only on a new application. When it ends, the labour authority and the migration services are told within five days.

A Mozambican citizen needs no authorisation. Their move turns on the notice they give when they resign. On an open-ended contract it is 15 days after six months' service, or 30 days after three years, unless the contract says otherwise.

Check the role is open to a non-Mozambican

The State can reserve some functions to Mozambican citizens, in the public interest.

Within the quota, a foreign national can be hired by notice. The quota is 15% of the workforce at an employer of up to 10 people, 10% at one of up to 30, 8% at one of up to 100 and 5% at a larger one. A micro employer can take on one foreign national even with fewer than ten Mozambican staff.

Within the quota or above it, a foreign national needs the academic or professional qualifications the role calls for. They are hired only where no Mozambican has those qualifications, or too few do. Hiring a foreign national for a foreign non-governmental organisation, for research, teaching, education, medicine or nursing, as a civil aviation pilot, or for other specialised technical work is decided by the Labour Minister, after hearing the authority for that sector.

Where a foreign national is hired, a training plan passes their knowledge on, with gradual replacement by Mozambican nationals.

Set the contract up right

A contract of employment is in writing, dated and signed by both sides. The exception is a fixed-term contract for task work of 90 days or less. The contract states the job, the place of work, its length, the pay and how often it is paid, and the start date. A fixed-term contract that does not state its term or the reason for it becomes open-ended.

A fixed term is for temporary needs. It runs for up to two years and can be renewed twice by agreement, after which it becomes open-ended. A micro, small or medium employer can use fixed terms freely in its first eight years of activity. Notice not to renew is 15 days for a contract of three months to a year, and 30 days for a longer one.

On an open-ended contract, a trial period lasts up to two months, or three for mid-level technicians and six for senior technicians and managers. On a fixed term it lasts up to three months for a contract of over a year, a month for one of six months to a year, and 15 days for a shorter one. A trial period applies only where it is agreed in writing. During it, either side can end the contract on seven days' written notice, or three where the trial period is 15 days.

Pay is in Mozambican currency, by cash, cheque or bank transfer, weekly, fortnightly or monthly as the contract sets. Each payment comes with a statement of the base pay, the additions, the deductions and the net amount. A deduction the law does not order needs the employee's written consent, and deductions together never pass a third of the month's pay.

The normal week is up to 48 hours and the day up to eight, or nine where the employee has an extra half day off each week. Weekly rest is at least 24 hours in a row, normally on a Sunday. Overtime is capped at eight hours a week, 96 a quarter and 200 a year. It is paid at normal pay plus 50%, and plus 100% for overtime at night. Work on a rest day or a public holiday is paid at normal pay plus 100%, and earns compensatory rest within the next three days. Night work carries 25% more than the same work by day.

Know the employee test before you engage a contractor

Mozambique's Labour Law treats as an employee anyone who works for another, under their authority and direction, for pay.

An employment relationship is presumed wherever someone does paid work with the employer's knowledge and without objection, or lives on what the employer pays them. That relationship is presumed open-ended.

A services contract that leaves the contractor economically dependent is treated like a contract of employment. One for work that matches a post on the staff establishment becomes a contract of employment.

A foreign national can do one-off work in Mozambique for up to 120 days in a calendar year, notified to the labour authority before they arrive. A longer role needs the quota or an authorisation, and a role that needs one goes through employer of record.

Work out what a salary costs you and what the employee takes home

Take an employee with no dependants on MZN 100,000 a month.

The INSS takes 3% of the salary from the employee and 4% from you.

Income tax is withheld on the month's gross pay, on the monthly table in the income tax code. Pay of MZN 100,000 falls in the band that starts at MZN 60,750. The tax at the bottom of that band is MZN 7,375 for an employee with no dependants. Each metical above it adds 25%, so the MZN 39,250 above it adds MZN 9,812.50, MZN 17,187.50 in all. Dependants lower the amount withheld, and the top rate is 32%.

The month's INSS contributions are declared and paid between the 20th of the month and the 10th of the next. A late contribution carries interest of 2% for each month or part of a month.

Know the leave your people are entitled to

End employment on the law's terms

A contract ends on its lapse, by agreement, on notice, or for just cause. An agreement to end it is in writing and signed by both sides. The employee can withdraw from it within seven days, returning any compensation received.

An employee on an open-ended contract resigns in writing, with 15 days' notice after six months' service, or 30 days after three years, unless the contract says otherwise.

A dismissal for misconduct follows a disciplinary process. A written note of charges goes to the employee and the union within 30 days of the employer learning of the offence. The employee has 15 days to answer in writing. The decision follows in writing within 30 days of the deadline for the union's opinion, with the facts found proved.

A termination for structural, technological or market reasons is notified in writing to each employee, the union and the labour ministry at least 30 days ahead. Severance is 30 days' pay for each year of service where the base salary, with any seniority bonus, is up to seven times the minimum wage of the employee's sector. It is 15 days' pay up to eighteen times, and five days' pay above that. On a fixed-term contract, the compensation is instead the pay the employee would have earned up to the end of the term. Ending more than eight contracts within three months at a micro or small employer, or more than ten at a medium or large one, is a collective dismissal.

A dismissal is unlawful where it is for political, union, ideological or religious reasons, where it skips the legal formalities, or where it follows a refused favour, pressure, harassment or gender-based violence. A claim is brought within six months of the dismissal. Where a labour court or an arbitration body finds the dismissal unlawful, it can order reinstatement with back pay of up to six months. Where the employee prefers, or reinstatement cannot happen, it can order compensation of 45 days' pay for each year of service instead.

During pregnancy, and until one year after maternity leave ends, a contract cannot be ended except on its lapse or by a dismissal.

A certificate of work is given whenever employment ends, whatever the reason.

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