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Mozambique – Employer of Record

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Globalization Partners provides employer of record services for clients that want to hire employees and run payroll without first establishing a branch office or subsidiary in Mozambique. Your candidate is hired via Globalization Partners’ Mozambique PEO in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. The individual is assigned to work on your team, working on your company’s behalf exactly as if he or she were your employee to fulfill your in-country requirements.

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Our Global Employer of Record Platform™ and Global PEO service enables clients to run payroll in Mozambique while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As a Global PEO expert, we manage employment contract best practices, statutory and market norm benefits, and employee expenses, as well as severance and termination if required. We also keep you apprised of changes to local employment laws in Mozambique.

Your new employee is productive sooner, has a better hiring experience and is 100% dedicated to your team. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. Globalization Partners allows you to harness the talent of the brightest people in 170 countries around the world, quickly and painlessly.

Mozambique is located in Southeastern Africa on the Indian Ocean and across the Mozambique channel from Madagascar. The population of 25 million speak many indigenous languages, but Portuguese is the official language.

When negotiating terms of an employment contract and offer letter with an employee in Mozambique, it may be useful to keep the following in mind:

Mozambique Holidays

Mozambique celebrates 9 national holidays:

  • New Year’s Day
  • Heroes’ Day
  • Women’s Day
  • Worker’s Day
  • Independence Day
  • Victory Day
  • Armed Forces Day
  • Peace Day
  • Christmas Day

Bonus in Mozambique

Performance-based bonuses are used in Mozambique.

Working Hours in Mozambique

The work week in Mozambique has a 48-hour limit and a daily limit of 8 hours, but overtime of up to 200 hours per year is permitted, with compensation.

Vacation in Mozambique

In general, employees are entitled to:

  • first year of employment: one day of paid leave per month
  • second year of employment: two days of paid leave per month
  • third year+: 30 days of paid leave

Employees are entitled to up to five days of bereavement leave.

Sick Leave in Mozambique

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

Maternity/Paternity Leave in Mozambique

Female employees are generally eligible for 60 days of maternity leave, which can begin up to 20 days before the due date. They are also generally entitled to up to 30 days of explained absences per year, which can be used for things like hospitalization of a child.

Fathers are entitled to one day of paid paternity leave.

Employees are also generally entitled to unpaid leave to be with hospitalized children under their care, such leave may be reimbursed by social security.

Termination/Severance in Mozambique

Fixed-term contracts of up to 90 days are permitted.

Employees may be terminated under grounds set forth in the labor law and are generally entitled to at least 30 days’ notice.

In general, employees on indefinite-term contracts are eligible for severance pay. Employees whose wages are :

  • one to seven times the national minimum wage: receive 30 days pay per year of service
  • eight-10 times the national minimum wage: receive 15 days pay per year of service
  • 11-16 time the national minimum wage: receive 10 days pay per year of service
  • 16+ times the national minimum wage: receive three days pay per year of service

To terminate an employee for just cause, the employer must provide a written indictment note to the employee and the trade union within 30 days of the fault. The employee has 15 days to respond and the trade union an additional five days to consul.  Afterwards, the employer has 30 days to make a decision.

Taxes in Mozambique

Employers contribute 4% of wages to social security and employees contribute 3%.

Health Insurance in Mozambique

Mozambique has a public/private healthcare system, but there are few doctors and nurses, especially in rural areas.

Additional Benefits in Mozambique

Some companies provide an annual flight to Portugal, even if the employee has no family there.

Employment Contracts in Mozambique

It is legally required to put a written employment contract in place in Mozambique, in the local language, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Mozambique should always state the salary and any compensation amounts in Mozambican meticais rather than a foreign currency.

This information is provided as generally accepted information and is not intended as advisory services.

Why Globalization Partners

Establishing a branch office or subsidiary in Mozambique to engage a small team is time-consuming, expensive and complex. Labor law in Mozambique has strong worker protections, requiring great attention to detail and an understanding of local best practices. Globalization Partners makes it painless and easy to expand into Mozambique. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws, without the burden of setting up a foreign branch office or subsidiary. Our Mozambique PEO and Global Employer of Record Platform provides you peace of mind so that you can focus on running your business.

If you would like to discuss how Globalization Partners can provide a seamless employee leasing or PEO solution for hiring employees in Mozambique, please contact us.

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