Government expands audits of employers for compliance

IMPACT – MEDIUM

What is the change? Mozambican officials have begun conducting audits of employers in Cabo Delgado province in an effort to find violations of immigration and labor law.

What does the change mean? Employers face fines, deportation, suspension of activities and rejection or revocation of work permits if they are found to be violating the law.

• Implementation timeframe: Immediate and ongoing.
• Visas/permits affected: Work permits.
• Who is affected: Companies employing foreign nationals.
• Business impact: Businesses risk serious consequences if they are found to be violating work permit regulations.
• Next steps: Employers should review procedures to make sure they are in compliance with the law and prepared for an audit by authorities.

Background: Mozambique recently tightened several laws on foreign work permits, and the government is conducting regular employer audits that may be scheduled or unannounced.

Further to the recent inspections undertaken in Maputo Province, the General Labor Inspectorate of the Ministry of Labor has now extended its site visits to Cabo Delgado province, initially focusing on mining and construction companies that are based there.

Employers may be fined for employing a worker without a work permit where one is required, and repeat offenders may have their facilities closed. Fines are determined on a case-by-case basis, depending on the type of violation involved. In addition, the government will publish the details of noncompliant companies and foreign workers in the local media. Foreign nationals working without a work permit may be fined and are frequently deported.

BAL Analysis: The recently publicized enforcement, prompted by changes to Mozambican law, indicates that the government is continuing to further crack down on abuse of the work permit system.

This alert has been provided by the BAL Global Practice group. For additional information, please contact your BAL attorney.

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