Mozambican government approves Labor Law

2 August 2006

Maputo, Mozambique, 02 Aug – The Mozambican government has approved the new Labor Law, which plans to make relations between employers and workers more flexible and is expected to be presented to parliament in the coming days, according to a official statement.

This most recent Council of Ministers meeting also approved the new General Accounting Plan, which aims to adapt the current model for presenting accounts in Mozambique to international standards.

The proposal for the new law states that Mozambican companies are exempt from authorization from the government to hire 12 percent of foreign workers. The proposal also mentioned exceptional conditions for investment projects approved by the government, whereby a predetermined number of foreign workers are hired.

Mozambican companies are now classified as small companies (up to 10 workers), medium (less then 100) and large (above 100 workers). The new legislation will also allow companies to swap workers and permit temporary contracts for periods that are no longer than two years and are renewable for six years.

The new Labor Law plans to “create an environment that is increasingly attractive to internal and external investment and stimulates a generation of jobs and more opportunities for work”, said the government in its statement.

The legislation, which needs to be approved by parliament, aims to “create an instrument that suits the current political, economic and social situation, make the job market more flexible and regulate work relations that favor a coexistence of the public, private and cooperative sectors.

The proposal also includes the “economic situation of the company” among the justifiable reasons for letting go of workers and increasing weekly working hours to 56, as long as for a maximum period of six months the average does not exceed 48 hours.

Also included in the proposal is a new advanced notice for a strike, which the government states as at least five days (currently it is 76 hours), a measure that the government hopes will allow for more time to ponder its effects.

The previous Labor Law was from 1998 and was subject to a revision process that was coordinated by the Technical Unit for Legal Reform (UTREL-Unidade Técnica da Reforma Legal).and took close to one year to finalize.

The final document was submitted to the government after being analyzed by the Workers Consulting Commission (CCT-Comissão Consultiva do Trabalho), which includes employer associations and labor unions. (macauhub)