Government auditing employers for compliance

IMPACT – MEDIUM

What is the change? Mozambican officials are conducting regular audits of employers in Maputo Province 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.
• Impact on processing times: None.
• 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. The government is conducting regular employer audits that may be scheduled or unannounced.

In the most recent examples published by the Ministry of Labor, the General Labor Inspectorate audited companies on National Road No. 4 in Maputo Province between Nov 28 and Dec 2 and uncovered noncompliance in three companies, resulting in action being taken against six Lebanese nationals, three Portuguese nationals and one French national.

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. As per the example of the National Road No. 4 companies detailed above, the government will publish the details of non-compliant 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 recent changes to Mozambican law indicates that the government is continuing to 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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