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IMPACT – MEDIUM
What is the change? The High Commission of Mozambique in South Africa has significantly increased visa application fees and has abolished fee distinctions based on nationality.
What does the change mean? Visa applicants should be prepared for the higher fees regardless of their nationality. The change appears to be limited only to visa applicants in South Africa and not in other countries.
Additional information: The new visa fees range from 750 South African rand (about US$62) to 5,000 rand (about US$419), depending on the category. The new fees differentiate between those visiting Mozambique for tourist purposes and those visiting for business purposes, creating a clear distinction between the two visa categories that was not previously in place.
BAL Analysis: The new fees are significantly higher than they were before and will apply to all applicants in South Africa, regardless of nationality. The increases appear limited to applications lodged in South Africa and there is no indication that fees will increase at other Mozambican embassies and consulates around the world.
This alert has been provided by the BAL Global Practice group in Mozambique. For additional information, please contact africa@bal.com.
Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
What is the change? Mozambican officials have intensified audits of employers across the country in an effort to find violations of immigration and labor laws.
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.
Background: The Mozambican National Migration Service (SENAMI) has intensified employer audits across the country to identify and repatriate foreign citizens working in Mozambique illegally. The audits may be scheduled or unannounced.
Over the last fortnight, SENAMI undertook 64 audits, and of the 734 foreign nationals questioned, 145 were found to be in the country illegally. The greatest number of offenses were uncovered in Maputo and Tete with Chinese, Nigerian and Portuguese citizens being the most common nationalities with illegal status.
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 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.
Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
What is the change? Minimum wage rates will increase between 6 and 18 percent in most sectors of Mozambique’s economy.
What does the change mean? Companies are now subject to the new pay thresholds. Work permit application fees are tied to industry-sector minimum wage rates and thus will also see an increase.
Background: Mozambique does not have one set minimum wage, but rather sets wage minimums by economic sector. Below is a look at wage increases in key industry sectors. The wage minimums will cover the period from April 1, 2017 to March 31, 2018.
BAL Analysis: Employers should factor the new minimum wages into their budgets for foreign national employees, especially because work permit application fees are tied to minimum wage rates.
What is the change? Employers are reminded to submit their annual Mozambican Company Employee List (known locally as the Relação Nominal) to the Ministry of Labor between April 1 and April 30.
What does the change mean? The list must detail all employees, regardless of nationality, who are employed by the company as of March 31. Employers who do not submit their annual list to the Ministry of Labor by April 30 will automatically be deemed noncompliant.
BAL Analysis: Employers should begin preparing to submit their employees lists and should be sure to meet the April 30 deadline. Those who fail to comply with this requirement face being deemed noncompliant by the Ministry and could face a penalty.
What is the change? Mozambican authorities have suspended 34 foreign employees of one of the largest oil companies in Sub-Saharan Africa for working without the proper work authorization.
What does the change mean? Employers should be aware of the enforcement environment and the risks of violating immigration laws. Mozambican authorities have recently significantly increased their audits of employers to encompass additional regions since they began the audits in Maputo in December.
Background: Following an inspection of SASOL’s facilities in Inhambane, the Mozambican Ministry of Labor, Employment and Social Security suspended 34 foreign national workers, of whom 28 had no work authorization and six had permits in excess of the company’s available quota. Companies requesting permits in excess of their quota must request approval after the Ministry of Labor determines that there are no qualified Mozambicans to fill the position. The 34 foreign nationals reportedly included nationals of Brazil, Canada, Iran, South Africa, the United Kingdom and the United States. In response to reports of the suspension, SASOL has stated that its recruitment is in line with the quota system and all relevant work authorization procedures and that the company is “working with the Labor Ministry in order to clear up the matter.”
BAL Analysis: The case is a reminder to employers that labor inspections are underway and officials are cracking down on companies that flout work permit rules, regardless of the company’s size or contribution to the national economy.
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.
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.
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.
IMPACT – HIGH
What is the change? Mozambique is scheduled to implement changes to work permit regulations at the end of November.
What does the change mean? The changes apply to all employers except oil, gas and mining companies. The regulations will bar employment agencies from sponsoring foreign nationals working at third-party client sites, increase government application fees for short-term permits, introduce longer processing time frames and impose enhanced sanctions for noncompliance, and place new limits on employers terminating a local employee, among other changes.
Background: As first reported by BAL Sept. 16, the regulations were published several weeks ago with an effective date of Nov. 29. They include the following key changes:
BAL Analysis: Mozambican employers should begin preparing now for these changes and anticipate potential delays in all application processes immediately following implementation. In particular, employers who currently use an employment agency to apply for work permits on their behalves should anticipate that they will no longer be able to do so and will need to apply directly for work permits for any foreign employees or contract workers.
Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
What is the change? Angola and Mozambique have reached an agreement to provide each other’s nationalities with preferential visit visas.
What does the change mean? The arrangement is expected to significantly improve visa procedures and allowances for Angolan and Mozambican nationals traveling to each other’s countries.
Background: Under the agreement, Angola and Mozambique will issue multiple-entry visit visas with a validity of 12 months to nationals from each other’s countries. The additional benefits of the agreement are the following:
BAL Analysis: The change will facilitate business travel and reduce the inconvenience of having to apply for a work visa in certain circumstances and a visit visa as frequently as required under the current visa regimes of Angola and Mozambique. BAL will continue monitoring developments and will update clients when an implementation date is announced or visa issuance begins.
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.
Details: As BAL reported in July, Mozambique is making significant changes to its work permit regulations. Among other new rules:
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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The following is a roundup of recent developments concerning Brexit negotiations and the United Kingdom’s withdrawal from the European Union.
Political
Points-based system out
Prime Minister Theresa May last week rejected the idea of an objective points-based system for controlling migration from the European Union to the United Kingdom, saying she supports a system that would give the government more subjective control over who comes into the country and when.
“What the British people voted for on 23 June was to bring some control into the movement of people from the European Union into the U.K,” she said. “A points-based system does not give you that control.”
May offered her remarks 5 September at the G20 summit in China. While May pulled a points-based system off the table, it remains to be seen what type of migration system the U.K. might put in place – and how a new system would impact migration for both EEA and non-EEA workers.
Second vote debated
Members of Parliament debated the idea of a second referendum last week. Some MPs have argued that the specific details of the U.K.’s exit from the EU, once formulated, should be ratified by voters. Others say that a second referendum would violate the public trust and undermine the clear decision delivered by the 23 June referendum.
The idea has split the Labour Party. Owen Smith said if he is elected Labour Party leader, he would block May from triggering Article 50 exit procedures unless there is a general election or a second referendum to approve the terms of a Brexit. Current Labour Party leader Jeremy Corbyn has ruled out a second referendum.
Past the two-month mark
Some Leave campaigners have expressed frustration and have called for May to invoke Article 50 as soon as possible, thereby triggering the U.K.’s formal withdrawal from the EU. May is standing by her position that further plans are required before any formal exit process is started and that she will not invoke Article 50 until 2017. It is not clear whether May intends to invoke Article 50 in early or late 2017.
It also remains constitutionally unclear whether May has the power to invoke Article 50 on her own. U.K. courts continue to grapple with lawsuits seeking to force May to obtain an Act of Parliament before invoking Article 50, on the expectation that elected MPs would not support any move to “leave” the EU in line with the popular referendum result.
Immigration
Status unchanged
There is still no change to the immigration status of EU workers in the U.K. or British workers in the EU – and there will be no change until after Article 50 is invoked and the U.K. formally exits the union. For a more detailed analysis, see BAL’s Backgrounder on this topic.
New migration stats released
Net migration to the U.K. stood at 327,000 for the year ending March 2016, according to government figures released in August. The figure represents a small dip compared to migration over the same period last year, but net migration numbers have remained largely flat.
Poll: Highly skilled migrants welcome
According to survey published 25 August, only 12 percent of people surveyed want reduced migration of highly skilled workers to the U.K. Forty-six percent would like an increase. Even among Leave voters, 45 percent wanted more high-skilled migration and only 15 percent thought high-skilled migration should be reduced. Current EU free movement rules do not, and cannot, distinguish between highly skilled business migration and lower-skilled migration. Read the full report by British Future here.
Low-skilled EU migrants may need permits
Low-skilled EU migrants may be subject to work permits after the U.K. leaves the EU, the outgoing Migration Advisory Committee chair David Metcalf has said in an interview with The Daily Telegraph. The permits would stem EU migration in industries such as retail, construction and food processing and could be modeled after the seasonal agricultural work-permit scheme.
Business
Short-term bounce
Data released last month showed that July unemployment claims fell, retail spending was up and inflation rose slightly. The figures were some of the first hard economic numbers since the referendum and eased fears of an imminent recession.
Falling Sterling boosts tourism
Tourists are giving a boost to the U.K. by taking advantage of the slide in the pound since the Brexit referendum. In July, tax-free shopping rose 7 percent – visitors from Japan spent nearly double compared with the same month last year, while American visitors spent 46 percent more and Indonesian visitors spent 88 percent more.
Preparing Your Business
Brexit negotiations have not yet begun and a new immigration regime has not been presented, but that does not mean businesses should not start preparing. BAL can assist with a number of services including:
Should you have any questions or require more information on how BAL can help with Brexit planning, please contact us at uk@bal.com.
The Brexit Bulletin has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact uk@bal.com.