In Mozambique, labor law stipulates specific notice periods for terminating employment contracts. These periods differ based on the type of contract and the duration of service.

Permanent Contracts Notice Periods

According to the Mozambican Labor Law (Decree No. 20/2007), the notice periods for permanent contracts are as follows:

• 15 days: This applies if the employee's service period is more than six months but less than three years.
• 30 days: This applies when the employee's service period is more than three years.

Fixed-Term Contracts Notice Periods

For fixed-term contracts, the termination procedures vary based on who initiates the termination.

• Employee-initiated termination: The law requires the employee to give a minimum of 30 days' written notice to the employer.
• Employer-initiated termination: Employers can terminate fixed-term contracts that have lasted more than three years with 30 days' written notice.

Exceptions to Notice Periods

There are a few exceptions where notice periods may not apply:

• Gross misconduct: In cases of severe employee misconduct, employers can dismiss an employee without notice.
• Probationary period: During the probationary period, a shorter notice period of seven days might be established in the employment contract.

It's important to consult the latest version of Mozambique's Labor Law (Decree No. 20/2007) for the most current information on notice periods and other employment termination regulations.

In Mozambique, the severance pay system is regulated by the Labor Law (Law No. 23/2007). The amount of severance pay an employee is entitled to is determined by their years of service and salary levels.

Calculation of Severance Pay

The law in Mozambique stipulates the following calculations for severance pay:

• Employees earning 1-7 times the national minimum wage receive 30 days of pay per year of service.
• Employees earning 8-10 times the national minimum wage receive 15 days of pay per year of service.
• Employees earning 11-16 times the national minimum wage receive 10 days of pay per year of service.
• Employees earning more than 16 times the national minimum wage receive 3 days of pay per year of service.

Circumstances Where Severance Pay Is Due

Severance pay is mandatory in the following termination scenarios:

• Dismissal due to economic, structural, technological, or market reasons. This includes situations such as company restructuring or downsizing.
• Mutual agreement between the employer and employee to end the contract.

Circumstances Where Severance Pay May Not Be Due

Severance pay may not be applicable in the following cases:

• Employees dismissed for gross misconduct.
• Expiration of a fixed-term contract. However, employees might be entitled to compensation if the termination happens before the contract's end date.

Additional Notes

Severance pay is calculated based on the employee's basic salary, which may include length-of-service bonuses. Additionally, severance payments in Mozambique may be subject to income tax.

The termination of employees in Mozambique is governed by the Labor Law (Law No. 23/2007) and associated regulations. This process is crucial for both employers and employees to understand.

Grounds for Termination

Mozambican law outlines various grounds for terminating employment contracts:

• Mutual Agreement: Both the employer and employee agree to end the employment relationship.
• Completion of work (for fixed-term contracts): The contract expires naturally.
• Death of the employee.
• Employer-Initiated Termination:
  • Economic, technological, structural, or market-related reasons: This covers situations like company downsizing or liquidation.
  • Just cause: The employee commits severe misconduct as detailed in the Labor Law.
• Employee-Initiated Termination: The employee resigns.

Termination Procedure

Just Cause Termination

1. Written Notice: The employer must provide a written 'indictment' to the employee and the relevant trade union within 30 days of the alleged misconduct. This notice should clearly outline the reasons for termination.
2. Employee Response: The employee has 15 days to provide a written response.
3. Trade Union Consultation: The trade union has 5 days to offer its opinion.
4. Employer Decision: Within 30 days of the initial indictment, the employer makes their final decision on termination.

Termination for Other Reasons

1. Notice Period: Employers must adhere to legally mandated notice periods.

Additional Considerations

• Documentation: Employers must maintain thorough documentation of termination proceedings, including notices, responses, and any relevant communication.
• Legal Consultation: Consulting a legal expert in Mozambican labor law is recommended for complex termination scenarios, particularly those related to just cause dismissals.

Always refer to the most updated version of Mozambique's Labor Law (Law No. 23/2007) for the most comprehensive and accurate guidance on termination procedures.