IMPACT – HIGH                                                               

What is the change? New work permit regulations that will govern the hiring of foreign labor in all sectors other than petroleum and mining will take effect Nov. 29.

What does the change mean? The new regulations contain several important changes, including a prohibition on employment agencies obtaining work permits for third parties, longer processing times, increased government filing fees and greater compliance enforcement.

  • Implementation time frame: Nov. 29, 2016.
  • Visas/permits affected:Work permits in all industry sectors other than petroleum and mining.
  • Who is affected:Anyone applying to work in sectors other than petroleum and mining; organizations sponsoring foreign nationals for work permits in sectors covered by the regulations.
  • Business impact:Employers should anticipate a longer end-to-end work permit application process, higher government application fees and enhanced compliance activity by the relevant authorities.

Details: As BAL reported in July, Mozambique is making significant changes to its work permit regulations. Among other new rules:

  • Employment agencies will no longer be allowed to sponsor work permits for foreign nationals who are to be placed at third-party client sites.
  • Short-term work permits will be valid for 90 days initially (instead of the current validity of 30 days initially with the possibility of two 30-day renewals).
  • The Directorate of Labor will have a longer legislated time frame in which to process short-term work permits and quota work permits.
  • Government processing fees will be introduced for short-term work permits.
  • Additional personal documents and an additional process step will be required for quota work permit applicants.
  • Employers face enhanced sanctions for noncompliance.
  • Employers who terminate the employment of a Mozambican national must match it by terminating a foreign national employee.

The regulations were published in the Mozambican Government’s Official Gazette on Friday and will take effect Nov. 29.

BAL Analysis: Employers should prepare for significant changes once the regulations take effect, both in terms of end-to-end process times and budgeting for work permit application fees. Most importantly, employers will need to ensure that any contract workers who are engaged via an employment agency will have work permits sponsored by the employer and not by the agency. Those with specific questions on how individual cases will be affected by the new regulations should contact their BAL professional.

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

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