Immigration, Employment and Local Content
c. Termination by either of the parties; d. Dismissal with just cause by either of the parties. Employers may unilaterally terminate employment contracts in the following situations: a. During the probationary period; b. Expiry of the contractual term or completion of the work for which the employee was hired to; c. Termination with 30 days prior notice for objective reasons that may be extended to the following circumstances: (i) structural reasons; (ii) technological reasons; (iii) market reasons; d. Dismissal with just cause, which may only occur in the following circumstances: i. when after the end of the probation period, the employee is visibly inapt to perform the assigned work/tasks; ii. there is culpable and gross breach of the legal and contractual obligations by the employee; and iii. when the employee has been arrested or imprisoned and said circumstance, in light of the nature of the employee’s functions, is found to disrupt the work’s normal course. On the other hand, the employee may terminate the employment contract as follows: a. Dismissal with just cause with a previous notice of, at least, seven (7) days; b. Termination of the contract with a previous notice established in accordance with the length of service. Mozambican Labor Law also provides for collective dismissal in case the termination of employment contracts affects more than ten (10) employees. Labor Law provides for the employee’s rights, prohibiting and sanctioning illegal termination of employment contracts. Therefore, the employee can only raise a claim in case of unfair dismissal by addressing it to the Labor Mediation and Arbitration Center, which is the body responsible to control the labor relations. In the event of disagreement, the nonconformist party is granted a right to file a court case within six months from the dismissal day. Real Estate The real estate sector is one of the most important in Mozambique and enjoys incentives from the State. Access to land is crucial to investment. In accordance with Mozambican legislation Law no. 19/97, of October 1 ( Land Law ), the land in Mozambique is owned by the State and, for
Mozambique’s Employment Law, enacted in 2007 defines the general principles and establishes the legal rules applicable to individual and employment relationships in respect of remunerated work done by an employee. Work done under employment contracts by foreigners in Mozambique should, in principle, have the same treatment under law as those for locals. However, when there are grounds to do so, the Mozambican State may still reserve the performance of certain activities to Mozambican citizens. Under the Employment Law and supplemental regulations, Mozambique has four different schemes for hiring foreign workers: 1. Hiring under the employment authorisation scheme (outside the quota) is only allowed when there are no Mozambican citizens with the necessary qualifications to fill the vacancy in question or when, if such professionals do exist, there are not enough of them to meet demand in the employment market. 2. Hiring under the quota scheme depends on the employer’s number of workers, which determines the exact number of foreign workers that can be hired. 3. Hiring under investment projects approved by the Government will have been authorised by the issue of the respective investment project authorisation. Therefore employment authorisation is not required. The employer simply needs to inform the ministry responsible for employment about the hiring of the employee or employees in question. 4. Hiring under the short term employment scheme (less than thirty days) only requires a communication to local authorities, rather than a work permit. The short term employment period can be extended, as long as it does not exceed 90 days per year. According to Mozambican Labor Law, employment contracts may be terminated in the following situations: a. Expiry of the employment contract; b. Revocation agreement; Size of Company Total Number of Employees Quotas of Foreign Personnel (% of entire workforce) Large > 100 5 % Medium-sized > 10 and ≤ 100 8 % Small < 10 10 %
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