Understand the key elements of employment contracts in Cabo Verde
In Cabo Verde, labor law permits two primary types of employment contracts based on their duration: Fixed-Term Employment Contract and Uncertain-Term Employment Contract.
A Fixed-Term Employment Contract is one that has a predetermined end date. This contract type is ideal for temporary positions, project-based work, or seasonal requirements.
Key aspects of fixed-term contracts include:
An Uncertain-Term Employment Contract, also known as an indefinite contract, does not have a predetermined end date. This contract type is the most prevalent in Cabo Verde and offers the employee greater job security.
Key aspects to consider for indefinite contracts include:
It's important to note that while verbal contracts are legal, it is highly recommended to have a written contract in the local language, Portuguese. The written contract should detail various employment terms like salary, benefits, working hours, leave policies, and termination clauses to ensure clear communication and avoid misunderstandings.
An employment agreement in Cabo Verde should clearly identify both the employer and employee, including their full names, addresses, and identification details. The job description and place of work should be clearly defined, including the employee's job title, duties, responsibilities, and primary work location.
The agreement should outline the employee's gross salary, payment frequency, and any allowances. It should also detail any benefits offered, such as health insurance and paid leave entitlements, including a minimum of 22 days of annual vacation as per law.
Standard working hours per day and week, including rest periods, should be clearly defined. The agreement should also establish procedures and compensation rates for overtime work if applicable.
The agreement should outline procedures for requesting and obtaining paid leave, including annual vacation, sick leave, and maternity/paternity leave.
The agreement should address the ownership of intellectual property created by the employee during their employment.
The agreement should outline the grounds and procedures for termination by either party, adhering to Cabo Verde's labor laws. It should specify any required notice periods for termination and address any severance pay or compensation due in case of termination.
The agreement should be drafted in Portuguese, the official language of Cabo Verde. It's also recommended to include dispute resolution procedures in the contract.
The probationary period is a critical initial phase in an employment relationship in Cabo Verde. This period allows employers to assess an employee's suitability for the role and the employee to determine if the job aligns with their expectations.
The Labour Code of Cabo Verde establishes the framework for probationary periods. The maximum duration varies depending on the type of employment contract:
It's important to note that employers cannot arbitrarily extend the probation period beyond the legal limits.
The probationary period serves several purposes for both employers and employees:
During the probation period, both parties can terminate the contract with a shorter notice period compared to a confirmed employee. Probationary periods are a two-way evaluation process. It's essential for both employers and employees to openly communicate expectations and concerns. Employers should provide adequate training, support, and feedback during the probation to help new hires succeed.
Employment agreements in Cabo Verde often include confidentiality and non-compete clauses. These are designed to safeguard sensitive company information and reduce competition from former employees.
A confidentiality clause prevents employees from revealing confidential business information to unauthorized third parties. This could include trade secrets, client lists, marketing strategies, or unpublished inventions.
Key Points:
A non-compete clause limits an employee's ability to work for a competitor or start a competing business after leaving the company.
Legal Considerations:
Alternatives to Non-Compete Clauses:
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