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How to hire remote employees in
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Hiring in Mozambique can get complicated, at least unless you know what your options are. If you want to hire remote talent in Mozambique, you have two options: Hire people as contractors, or hire them as employees.
If you want to successfully hire in
Mozambique
, you have two options:
Laws about hiring contractors are significantly more simple in
Mozambique
. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Thera for.
This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in
Mozambique
is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.
Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in
Mozambique
.
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
Hiring contractors in
Mozambique
means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
If you’re hiring contractors in
Mozambique
, you can pay them with Thera in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Mozambique than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Mozambique.
Employees are entitled to 30 days’ leave per year. Employees accrue their annual paid leave during their first year of employment with an organisation at a rate of one day per month worked.
This doubles to two days per month in their second year.
There are 10 public holidays.
Employees can get compensation for their time out of work due to illness through the National Social Security Institute.
Employees also may be eligible for benefits under Mozambique’s social security system. Eligible employees receive 70% of their average daily earnings for up to 365 days after a three-day waiting period.
Female employees are entitled to 60 days, which may begin up to 20 days before the due date; however, sick leave is considered a justified absence if the employee can provide a medical certificate.
Employees receive 100% of their average daily earnings if they have made at least 12 months of contributions in the 18 months before the expected due date
Male employees are entitled to one day of paternity leave, every two years; it must be taken the day immediately following the birth.
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Employees in Mozambique may also be entitled to:
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In Mozambique, employee may receive 5 days of bereavement leave.
A mutual agreement by the employer and employee to terminate the employment relationship must be in writing and identify the effective date. Employment contracts can expire or be terminated by mutual agreement or by either party (with or without just cause).
An employment contract expires at the end of its term if for a fixed period, on the completion of work, or upon the death of the employer or employee.
An employer can terminate but he/she must provide prior notice 30 days before the date of termination & the employee is eligible to receive compensation in this case.
Severance pay in Mozambique depends on the circumstances of the termination and the employee’s contract type.
The probation period in Mozambique is 90 days.
The standard workweek in Mozambique is 40 hours a week and eight hour a day.
Overtime in Mozambique of up to 200 hours per year is permitted, with compensation.
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