→ Mozambique has not ratified the ILO Convention 158 on Termination of Employment, 1982.

▶ In 2023, after approval by the Assembly of the Republic and ratification by the President of the Republic, Law no. 13/2023, of 25 August (the New Labour Law), which repeals Law no 23/2007, of 1 August (the Old Labour Law), was published in the Bulletin of the Republic no. 165, Series I, and came into force 180 days after its publication, i.e. on 21 February 2024.

▷ Scope
→ Section 2 of the Labour Law 2023 provides that:
1. This Law applies to the legal relations of subordinate work established between employer and worker, both national and foreign, from all sectors of activity, who carry out their activity in the country.
2. This Law also applies to the legal relations of work formed between public law entities and their workers, who are not state employees or whose relationship is not regulated by specific legislation.
3. This Law also applies, with the necessary adaptations, to associations, non-governmental organisations, the cooperative sector, in respect of the salaried worker, diplomatic and consular missions in relation to the locally hired worker, international organisations, and other individual or collective entities of Private Law.
4. The following are regulated by specific legislation:
a) the legal relations of work of the state official and agent;
b) the legal relations of work of individuals serving decentralised entities.

▷ Special Regimes
→ Under section 3 of the Labour Law 2023, some types and modes of work are governed by special legislation:
1. The following types of work are governed by special legislation, namely: a) artistic; b) sports; c) domestic; d) home-based; e) maritime; f) mining; g) fishing; h) oil; i) port; j) rural; k) private security.
2. The following modes of work provision are governed by special legislation, namely: a) lump sum contract; b) contract for work; c) intermittent; d) free regime; e) seasonal; f) telework; g) private employment agency.
3. The labour relations provided for in paragraphs 1 and 2 of this article, as well as those of other sectors whose activities require special regimes, are regulated by this Law, in all that is adapted to their nature and particular characteristics.

Under the Labour Law 2023 (Annex - §§ E and W):
▻ "Employer" is the natural or legal person, public or private, who in the employment contract or in the labour relationship appears as the creditor of the provision of activity and debtor of the payment of remuneration.
▻ "Worker" is any natural person, national or foreign, who in the labour relationship appears as the debtor of the provision of activity and the creditor of the remuneration.

▷ Fixed-term Employment Contract
→ Section 41 of the Labour Law 2023 provides that:
1. The fixed-term employment contract can only be signed for performing temporary tasks and for the necessary period. (...).

▷ Duration of Employment Relationship:
→ Section 42 of the Labour Law 2023 indicates that:
1. The employment contract may be concluded for an indefinite period, for a fixed or an uncertain term.
2. An employment contract is presumed to be for an indefinite period if its duration is not specified. The employer can rebut this presumption by proving the temporariness or transitoriness of the tasks or activities that are the subject of the employment contract.

▷ Uncertain Terms Contracts and Temporary Contracts
→ Under section 45 of the Labour Law 2023, reference is made to (Uncertain Term Contract) indicating that: The conclusion of an employment contract for an uncertain term is only admitted in cases where it is not possible to predict with certainty the period in which the cause justifying it ceases, especially in situations provided for in paragraph 2 of Article 41 of this Law [Signing of the Fixed-term Employment Contract].

▷ Usage Contract and Temporary Work:
→ Section 89 (1) of the Labour Law 2023 indicates that: A usage contract is defined as the fixed-term service provision agreement between the temporary work employer and the user entity, by which the former commits, in return for payment, to make one or more workers temporarily available to the latter.
→ Section 90 of the Labour Law 2023 indicates that:
1. The usage contract can only be concluded to meet the temporary needs of the user.
2. Temporary needs of the user include, among others:
a) Direct or indirect replacement of a worker absent or temporarily prevented from providing service;
b) Direct or indirect replacement of a worker in relation to whom a legal action for assessing the legitimacy of dismissal is pending;
c) Direct or indirect replacement of a worker on unpaid leave;
d) Replacement of a full-time worker who has shifted to part-time work;
e) Needs arising from vacancies when a recruitment process for filling them is underway;
f) Seasonal activities or other activities whose annual production cycle shows irregularities due to the structural nature of their market, including agriculture, agro-industry, and activities resulting from it;
g) Exceptional increase in the company's activities;
h) Execution of an occasional task or service that is not durable;
i) Execution of a project, or another defined and temporary activity, including construction, public works, installations, and industrial repairs, under contract or direct management, including related projects and other complementary activities of control and monitoring;
j) Provision of security services, maintenance, hygiene, cleaning, food, and other complementary or social services not included in the employer's regular activities;
k) Development of projects, including design, research, direction, and supervision, not included in the regular activities of the user employer;
l) Intermittent labour needs determined by fluctuations in activity during days or parts of the day, provided that the use does not exceed half of the normal working period practiced by the user on a weekly basis;
m) Intermittent labour needs for direct family support of a social nature, during days or parts of the day.
3. In addition to the situations outlined in paragraph 1 of this article, a usage contract for a determined period can be concluded in the following cases:
a) Launching a new activity of uncertain duration, as well as the beginning of operations of a company or establishment;
b) Hiring young workers.

▷ Fixed Term Contracts:
→ Section 41 of the Labour Law 2023 provides for fixed-term employment contracts:
1. The fixed-term employment contract can only be signed for performing temporary tasks and for the necessary period.
2. Temporary needs include, among others:
a) the replacement of a worker who, for any reason, is temporarily unable to perform their activity;
b) the execution of tasks that respond to an exceptional or abnormal increase in production;
c) the performance of seasonal activity;
d) the execution of activities that do not aim to satisfy the permanent needs of the employer;
e) the execution of a work, project, or another specific and temporary activity, including the execution, management, and supervision of construction works, public works, and industrial repairs, on a contract basis;
f) the provision of services in activities complementary to those mentioned above, including subcontracting and outsourcing of services;
g) the execution of non-permanent activities.
3. Permanent needs of the employer are considered to be vacancies provided for in the staff framework of the company or those that, even if not provided for in the staff framework, correspond to the normal cycle of production or operation of the company.

▷ Uncertain Term Contract:
→ Section 45 of the Labour Law 2023 indicates that: The conclusion of an employment contract for an uncertain term is only admitted in cases where it is not possible to predict with certainty the period in which the cause justifying it ceases, especially in situations provided for in paragraph 2 of Article 41 of this Law.

► Exception: Micro, small, and medium-sized employers may freely conclude fixed-term contracts in the first eight years of their activity (§ 43 (3) of Labour Law 2023).

→ Section 43 of the Labour Law 2023 (Limits to fixed-term contract) indicates that:
1. A fixed-term employment contract is concluded for a period not exceeding two years and may be renewed twice by mutual agreement of the parties, without prejudice to the regime for micro, small, and medium-sized employers.
2. A fixed-term employment contract in which the maximum duration periods or the number of renewals provided for in paragraph 1 are exceeded is considered as concluded for an indefinite period. The parties may opt for the regime provided for in paragraph 4 of this article.
3. Micro, small, and medium-sized employers may freely conclude fixed-term contracts in the first eight years of their activity.
4. The conclusion of fixed-term contracts outside the cases, especially provided for in Article 41 of this Law, or in violation of the limits provided for in this article, converts them into contracts for an indefinite period.

► Exceptions:
▻ To promote youth employment, section 242 of the Labour Law 2023 on "Youth contractual regime" introduces an exception to the general limit for the renewal of fixed-term contracts of employment, which provides that:
1. With a view to promoting employment, the freedom to use fixed-term employment contracts for newly qualified young people is enshrined.
2. Fixed-term employment contracts concluded with job applicants can be freely renewed, not exceeding the maximum limit of eight years of consecutive work for the same employer under this regime, except in the cases provided for in Article 43 of this Law.
▻ Also, under section 43 (3) of the Labour Law 2023, Micro, small, and medium-sized employers may freely conclude fixed-term contracts in the first eight years of their activity.

▷ Fixed-term Contracts:
→ See sections 43 and 242 of the Labour Law 2023 above.

▷ Uncertain Term Contract:
→ Section 46 (4) of the Labour Law 2023 indicates that: The uncertain term employment contract that exceeds six years of service, consecutive or interspersed by a period not exceeding six months, converts into an employment contract for an indefinite period.

► Exceptions:
▻ For youth employment, fixed-term employment contracts concluded with job applicants can be freely renewed, not exceeding the maximum limit of eight years of consecutive work for the same employer under this regime, except in the cases provided for in Article 43 of this Law (§ 242 (2) of the Labour Law 2023).
▻ Micro, small, and medium-sized employers may freely conclude fixed-term contracts in the first eight years of their activity (§ 43 (3) of the Labour Law 2023).

→ Section 48 of the Labour Law 2023 provides for the duration of the probationary period in indefinite and fixed-term contracts of employment:
1. The indefinite term employment contract may be subject to a probationary period that does not exceed two months for workers not provided for in the following items:
a) three months for mid-level technicians;
b) six months for higher-level technicians and workers who hold management and leadership positions.
2. The fixed-term employment contract may be subject to a probationary period that does not exceed:
a) three months in fixed-term contracts with a duration of more than one year;
b) one month in fixed-term contracts with a duration of more than six months and less than one year;
c) 15 days in fixed-term contracts with a duration of up to six months;
d) 15 days in uncertain term contracts when the duration is expected to be equal to or more than 90 days.

→ Section 49 of the Labour Law 2023 provides for cases of reduction or exclusion of the probationary period:
1. The duration of the probationary period can be reduced by collective labour regulation instruments or by an individual employment contract.
2. In the absence of written stipulation of the probationary period, it is presumed that the parties intended to exclude it from the employment contract.
3. With the reduction of the probationary period, it is not allowed to establish a new term either to complete the reduced one or to extend the established one.

→ Section 50 of the Labour Law 2023 provides for the calculation of the probationary period, which indicates that:
1. The probationary period is counted from the beginning of the execution of the employment contract.
2. During the probationary period, the days of absences, even if justified, leave or dispensation, as well as contractual suspension periods, are not considered for the purpose of evaluating the worker, without prejudice to the worker's right to remuneration, seniority, and vacations.

▷ Partial exclusion: "probationary period":
→ Section 50 of the Labour Law 2023 on the "termination of the contract during the probationary period" provides that:
1. During the probationary period, unless stipulated otherwise, any of the parties may terminate the contract without the need to invoke just cause and without entitlement to compensation.
2. For the purposes of the provision in paragraph 1 of this article, any of the contracting parties is obliged to give written notice to the counterparty at least seven days in advance.
3. For the contract whose probationary period duration is 15 days, the notice must be three days.

→ Section 55 of the Labour Law 2023 provides for equality of rights and protection from discriminatory treatment, including protection from dismissals and other rights related to work.
→ Section 67 (5) of the Labour Law 2023 stipulates that: It does not constitute a disciplinary offence, subject to the initiation of a disciplinary process or the application of a disciplinary sanction, the worker's disobedience to an illegal order or one that contradicts their legal or conventional rights and guarantees.
→ Section 75 of the Labour Law 2023 indicates that: Without prejudice to the provisions of this Law and other specific legislation, dismissal is always unlawful when:
a) it is initiated for political reasons or union affiliation, ideological, religious, even if the invocation is different;
b) it is initiated without observing legal formalities;
c) it is initiated due to refusal of favour or advantage, pressure, harassment, or violence based on gender.
→ Section 204 of the Labour Law 2023 indicates that: Any act aimed at dismissing, transferring, or otherwise harming a worker for joining a strike declared in accordance with the law is prohibited and considered null and void.

▶ Sections 12 and 13 of Act No 5/2002 provide specific rules regarding dismissals without a cause of workers with HIV.

▷ Maternity
→ Section 13 (1)(d) of the Labour Law 2023 provides protection against dismissal for women in pregnancy, during maternity leave, and for one year after the child´s birth.
→ Also, subsection 5 of section 13 indicates that: Employers are prohibited from dismissing, applying sanctions to, or in any way harming the female worker on grounds of discrimination or exclusion.
▷Trade Union Activities
→ Section 167 (2) of the Labour Law 2023 indicates that: The employer is prohibited from unjustly terminating the employment contract of members of social bodies of trade unions and trade union committees, for reasons attributable to their trade union functions.
▷ Worker with Residual Capacity
→ Section 233 of the Labour Law 2023 provides that the worker has the right to compensation for an accident at work or an occupational disease, which requires the employer to place the injured worker in a job compatible with their residual capacity. If it is impossible to fit the employee under the terms described in the previous paragraph, the employer may terminate the contract. In such a case, the employee shall be compensated in accordance with Article 139 of this Labour Law.

▶ The Decree No 62/2013, in its section 17, provides that dismissal without just cause of the worker temporarily incapacitated as a result of a work-related accident, without prejudice to other rights established by law, if you choose to non-reintegration, the right to compensation equal to that provided for in case of just cause argued by the worker.

→ Section 142 (1) of the Labour Law 2023 indicates that: In the case of employment contract termination, the employer must communicate in writing to each affected worker, to the trade union body, or, in its absence, to the representative trade union association and to the Ministry overseeing labour. (...).

▷ Notice Period for Dismissal and Termination for Just Cause
→ Under section 141 of the Labour Law 2023, the employer may terminate one or more employment contracts with notice, provided this measure is based on structural, technological, or market reasons and is essential for the competitiveness, economic recovery, administrative or productive reorganisation of the company.
→ Section 142 of the Labour Law 2023 provides that:
1. In the case of employment contract termination, the employer must communicate in writing to each affected worker, to the trade union body, or, in its absence, to the representative trade union association and to the Ministry overseeing labour.
2. The communications referred to in paragraph 1 must be made at least 30 days in advance of the anticipated contract termination date.

▷ Notice Period for Non-renewal of Fixed Term Contracts
→ Section 43 (5) of the Labour Law 2023 indicates that: If one of the parties does not wish to renew the fixed-term employment contract, a notice period of:
a) 15 days, if the contract is equal to or longer than three months but not exceeding one year;
b) 30 days, if the duration of the contract is more than one year..

▷ Notice Period for Expiration of Uncertain Term Contract
→ Section 46 (3) of the Labour Law 2023 provides that: The expiration of the employment contract for an uncertain term, unless stipulated otherwise, must be communicated to the worker with a notice period subject to the following terms:
a) 15 days if the work period is more than six months and does not exceed three years;
b) 30 days if the work period is more than three years and does not exceed six years.

→ Section 144 of the Labour Law 2023 provides that:
1. When the employer foresees a collective dismissal, they must inform the trade unions and the affected workers and communicate to the Ministry overseeing labour, before the start of the negotiation process.
2. The information to the workers must include:
a) a description of the reasons invoked for the collective dismissal;
b) the number of workers affected by the process.
3. The consultation process between the employer and the trade union, which cannot last more than 30 days, must cover the reasons for the collective dismissal, the possibility of avoiding or reducing its effects, as well as the necessary measures to mitigate its consequences for the affected workers.

→ Section 144 (1) of the Labour Law 2023 provides that: When the employer foresees a collective dismissal, they must inform the trade unions and the affected workers and communicate to the Ministry overseeing labour, before the start of the negotiation process. (...).

→ Section 144 (1) of the Labour Law 2023 provides that: When the employer foresees a collective dismissal, they must inform the trade unions and the affected workers and communicate to the Ministry overseeing labour, before the start of the negotiation process. (...).

→ Section 144 of the Labour Law 2023 provides that:
1. When the employer foresees a collective dismissal, they must inform the trade unions and the affected workers and communicate to the Ministry overseeing labour, before the start of the negotiation process.
2. (...).
3. The consultation process between the employer and the trade union, which cannot last more than 30 days, must cover the reasons for the collective dismissal, the possibility of avoiding or reducing its effects, as well as the necessary measures to mitigate its consequences for the affected workers.

Under the Labour Law 2023, severance pay and redundancy payment are referred to as "compensation" or "indenização".
Redundancy payment and severance payment are not explicitly distinguished as separate concepts; both typically refer to compensation paid upon termination.

▷ Employment Contracts
→ Section 141 (3 and 4) of the Labour Law 2023 provides that:
▻ 3. The termination of the employment contract, based on the reasons mentioned in paragraph 2 [structural, technological, or market reasons], entitles the worker to compensation equivalent to:
a) 30 days of salary for each year of service if the worker's base salary, including the seniority bonus, falls between one to seven minimum wages of the sector;
b) 15 days of salary for each year of service if the worker's base salary, including the seniority bonus, falls between more than seven to eighteen minimum wages of the sector;
c) five days of salary for each year of service if the worker's base salary, including the seniority bonus, exceeds 18 minimum wages of the sector.
▻ 4. Individual employment contracts and collective regulation instruments may provide for other criteria or bases for calculating compensation more favourable to the worker than those provided in paragraph 3.
→ Section 142 (5) of the Labour Law 2023 indicates that: In the case of termination of indefinite-term contracts, compensation is paid according to the terms of paragraph 3 of Article 139, unless the regime of Article 143 applies.

▷ Fixed Term Contracts
→ Section 142 (4) of the Labour Law 2023 indicates that: For fixed-term contracts, at the termination date, the employer must provide the affected worker with pecuniary compensation corresponding to the salaries that would have been due between the termination date and the end date of the contract.

▷ Under the Labour Law 2023, severance pay and redundancy payment are referred to as "compensation" or "indenização".
▷ Under the new law (§ 48), indefinite contracts max out at 6 months only for management/high-level roles; standard is 2 months. Fixed-term varies (e.g., 3 months for >1 year).