Mozambique Employment Guide

Navigating Employment Termination in Mozambique: A Guide for International Employers

For global companies operating in Mozambique, understanding the legal framework for employment termination is crucial. The country's labor laws establish clear procedures that must be followed to ensure compliance and avoid disputes. Termination cannot be executed arbitrarily by the employer outside of the probationary period; valid, justifiable grounds are mandatory.

Permissible Grounds for Termination

Mozambican law recognizes several legitimate pathways to end an employment relationship. These include:

• Voluntary resignation initiated by the employee.
• Mutual agreement between the employer and the employee.
• Unilateral termination by the employer, which must be based on one of the following:
  • Dismissal during the probation period.
  • Termination for objective reasons (e.g., role redundancy).
  • Dismissal as a disciplinary measure for misconduct.
• Natural expiration of a fixed-term contract.

For instance, a company like SailGlobal, when restructuring its Maputo office, must rely on 'objective reasons' and follow due process, rather than discretionary dismissal.

Mandatory Notice Periods

The required notice period before termination varies significantly based on the contract type and the employee's length of service. Adhering to these timelines is a fundamental compliance step.

• Fixed-Term Contracts: A minimum notice of 30 days is required.
• Indefinite-Term Contracts:
  • For employees with more than 6 months but less than 3 years of service: 15 days' notice.
  • For employees with over 3 years of service: 30 days' notice.
• Probationary Period: A shorter notice period of 7 days applies.

Severance Pay Obligations

Employees dismissed for structural, technological, or market-related reasons are entitled to severance pay. This financial compensation is calculated based on the employee's salary and total years of service.

• Standard Severance: The typical calculation grants a minimum of 30 days' wages for each full year of employment. For example, an employee with a 5-year tenure made redundant due to market changes would receive at least 150 days' pay in severance.

Properly managing these severance calculations is vital. International HR teams, such as those at SailGlobal, often utilize specialized payroll systems to ensure accuracy and compliance with local statutes, mitigating legal risks.