Household staff  - critical aspects to consider

The provision of household staff, commonly referred to by the Portuguese term "empregada" (maid), is a widespread practice among expatriates in Mozambique and represents one of the most readily available and affordable support services.

Here is detailed information regarding maids and domestic workers in Maputo and Mozambique:

1. Availability, Cost, and Types of Household Help

Household help is widely available in Mozambique and is commonly employed by expatriates. For many Mozambican women, paid domestic work is the most important occupation in urban areas, second only to self-employment.

Typical Costs (Monthly Estimates)

The cost of household help is generally considered cheap, though the exact amount depends on whether the staff member is full-time or part-time, and whether they specialize in a certain role:

• Full-Time Maids (Empregada): Costs typically range from US$200 to US$250 per month for full-time work. However, one expat reported paying US$350 per month for a full-time Empregada, noting this was considered "fairly high". Another estimate suggests a maid costs around $125 a month.
• Part-Time Maids: A part-time empregada (working, for example, 3 times a week) might cost around US$100 to US$130 per month.
• Other Staff: Babas (Nannies) can often be hired for lower amounts than maids, although a full-time nanny might cost around US$250 per month. Drivers are hired for even less than maids or nannies.

Scope of Work and Legal Definition

Domestic labor is officially governed by the Domestic Labour Regulations (Decree 40/2008) and defined as subordinate service rendered on a regular basis to a household. The work comprises specifically:

• The preparation of meals.
• Washing and ironing clothes.
• Cleaning and tidying the house.
• Supervision and aid to children, the elderly, and the sick.
• Treatment and care of domestic animals.
• Execution of gardening activities.

2. Legal Framework and Worker Vulnerability

Domestic work falls under special legislation and is historically marginalized, often not being considered a profession like other jobs. The Mozambican labor framework aims to provide protection, but significant issues remain:

Contractual Formalities and Pay

• Contracts: While written contracts are possible, the domestic work contract is not subject to written form under the law (Article 6 of the law). As a result, many domestic workers continue to work informally and without legal or documented contracts.
• Payment: Remuneration may be paid in cash or in kind, provided the portion paid in cash is not less than 75% of the overall pay. Payment in kind can include board and/or lodging.
• Dismissal: Labor laws generally favor the employee, which can make dismissal difficult for employers.
• Bonuses: Employees generally expect a month's bonus in December.
• Enforcement: Compliance with the Domestic Labour Regulations is monitored by the General Labour Inspectorate, but intervention is subject to a verbal or written complaint by the domestic employee.

Working Conditions and Common Issues

Despite regulations, the sector is characterized by low wages, long hours, rigorous schedules, and vulnerability to abuse.

• Abuse and Mistreatment: Many domestic workers feel their employers behave as if they are slaves. They report experiencing insults, lack of vacation regularization, low wages, and lack of food.
• Sexual Harassment: Sexual harassment is a major issue, characterized by the overlapping of class, race, and gender dynamics. Some domestic workers feel compelled to submit to situations of sexual harassment to guarantee their employment, particularly because white employers are perceived to pay better wages. Female workers in this sector declare that some employers feel free to choose the lines of the worker-employer relationship, with the employee feeling obliged to obey the personal wishes of the employer.
• Safety and Health: Domestic workers may be exposed to toxic products, carrying heavy goods, and sometimes face violations of their privacy and physical integrity. Workers may be subjected to tests for diseases like HIV and tuberculosis.
• Work Quality Concerns: Some expats report a poor work ethic and poor quality of work, requiring a large investment of time in training. One expat recounted firing an Empregada because she destroyed clothes, broke dishes, and simply did not listen.
• Financial Requests: Expats should expect employees to regularly ask for "loans" and "advances".

3. Domestic Labor and Empowerment

For many Mozambican women, domestic work is viewed as a critical economic lifeline:

• Livelihood: Women see domestic work as a means to guarantee their livelihood, achieve self-support, and support their families.
• Economic Advancement: Domestic work has enabled some female workers to build their houses and guarantee their children's education. Having a salary makes them feel independent and "freer to express their opinions".
• Vulnerability: Despite the importance of the work for economic security, this necessity is often used by employers to oppress and harass women, jeopardizing their goals.

Guide to Domestic Worker Contracts and Law in Mozambique

For expatriates living in Mozambique, employing domestic staff, known locally as empregadas (maids), is a common practice, providing essential household support. However, this labor relationship is governed by unique legal requirements and customs. Understanding the Domestic Labour Regulations (Decree 40/2008 of 26 November) is crucial, as this sector is governed by special legislation.

Here is a comprehensive overview of the legal, contractual, financial, and termination aspects governing domestic employment in Mozambique.

1. Legal Basis and Contractual Formalities

While domestic work is one of the main sources of paid work for urban Mozambican women, it is historically marginalized and often classified as a "non-profession". Domestic work is defined as a subordinate service rendered on a regular basis to a household.

Contract Modality and Form

Unlike general employment contracts, the domestic employment contract is not bound to be in writing. However, a contract may be reduced to writing when its object is the provision of domestic work for a specified term. If no term is agreed upon, the contract is presumed to be permanent. Contracts can be fixed-term or unspecified term, with unspecified termination dependent on a future and uncertain event.

Essential Contractual Clauses

A written agreement can take the form of a contract or a simple declaration, specified as Form I in the annex of the Domestic Labour Regulations. This document should contain several mandatory elements:

• F
• ull identification of the employer and the employee.
• The wage and form of payment.
• The place of work.
• The Social Security beneficiary number.
• The duration of the contract.
• The date of signature and the signature of the parties.

Working Arrangements

Contracts can be structured to include lodging and/or board, or without them. A domestic employee is considered housed (with lodging) when, in addition to monetary payment, they receive non-monetary compensation comprising lodging or board and lodging. Contracts may be full-time, part-time, or even for the performance of "work for one or a few days a week".

2. Remuneration and Financial Obligations

Remuneration is what the domestic employee is entitled to in return for their work, as agreed in the contract.

Payment Structure

• Cash vs. Kind: Remuneration may be paid in cash or in kind. However, the cash portion of the overall pay cannot be less than 75%.
• Payment in Kind: Payment in kind may include the employee's board, lodging, or both. Critically, the employer is not allowed to force the domestic employee to acquire goods or services supplied by the employer or by a person indicated by the employer.
• Timing: Unless otherwise stipulated, the obligation to pay the cash remuneration is due at the end of each month of work.
• Calculation: For the purpose of calculating compensation and indemnities, the pay value will only be expressed in money. Remuneration may be fixed based on time units (hours, days, weeks, or months).

Taxes and Social Security

• Tax Responsibility: For tax purposes, the employer does not have any responsibility for retention at source of the domestic employee's tax.
• Social Security: The domestic employee is responsible for registering him or herself with the Compulsory Social Security system under the self-employed workers' regime.

3. Working Conditions and Employer Authority

The employer has disciplinary power over the domestic employee. However, under no circumstances shall corporal punishment or other punishments affecting the employee's physical or moral integrity be applied for non-compliance with obligations.

Working Hours

Normal effective working hours cannot exceed 54 hours per week and 9 hours per day. For workers living on the premises, only the hours they are as a matter of fact working are considered normal working hours. The working hours schedule must be agreed upon between the contracting parties.

Rights and Holidays

The domestic employee is entitled to the enjoyment of public holidays with the respective payment. Work may be provided on a public holiday if agreed, provided the employee is granted a day off or equivalent payment.

Probationary Period

A domestic employee may be submitted to a probationary period not exceeding 90 days. During this period, either party may discontinue the contract immediately, without having to declare just cause and without any right to compensation.

4. Termination and Final Remuneration

Domestic employment contracts can be terminated by agreement, expiry, dismissal, denunciation (notice), or rescission (just cause).

Termination Based on Notice (Denunciation)

The domestic employee may denounce the contract by giving a prior notice of 3 days for each year of service, with a maximum notice period of thirty days. If the employee fails to comply with the notice period, they must compensate the employer in an amount equal to the remuneration for the period of prior notice not complied with.

Termination Based on Just Cause (Rescission)

Just cause for rescission may be invoked by either party based on material facts or circumstances that render the continuation of the contract morally or materially impossible.

Party Invoking Just Cause Examples of Just Cause Final Compensation Source Data
Employer (Dismissal) Refusal/neglect of work; unauthorized absence; disobedience; failure to observe hygiene measures. Dismissal for just cause does not grant the employee the right to compensation in this specific context.
Employee (Rescission) Employer violates the employee's rights/guarantees; application of an abusive sanction; change of the employer's residence. The employee has the right to compensation in an amount equal to ten days for each year of actual service.

Job Abandonment (Rescission by Employee Action) If the employee abandons the job (failure to show up within five days after the end of a temporary impediment), they must indemnify the employer at a value corresponding to 10 days for each year of actual service. The employee must indemnify the employer.

Final Documentation

Whenever a domestic labor relation is terminated, the employer must provide the domestic employee, if requested, with an employment certificate. This certificate must indicate the identity of the parties and the length of service. The certificate shall not contain any other references, unless the domestic employee specifically requests them in writing.

Mozambican labor law specifically mandates compensation (indemnification) calculated based on the employee's years of service in several termination scenarios.

This compensation, often referred to as severance pay, is typically calculated based on a formula that ties the employee's tenure to their salary level relative to the national minimum wage.

1. Compensation for Termination without Just Cause (Indefinite/Permanent Contracts)

When an employer terminates a permanent employment contract with notice for objective reasons (such as structural, technological, or market reasons), the employee is entitled to minimum compensation calculated per year of service.

The minimum amount of compensation payable varies depending on the employee's basic wage (including seniority bonus) compared to the national minimum wage (NMW):

Employee Wage Level (Relative to NMW) Minimum Compensation per Year of Service Source Data

1 to 7 times the national minimum wage 30 days' pay for every year of service
8 to 10 times the national minimum wage 15 days' pay for every year of service
11 to 16 times the national minimum wage 10 days' pay for every year of service
Greater than 16 times the national minimum wage 3 days' pay for every year of service

Note: The New Labour Law introduced different tiers for higher salaries, such as 15 days' pay for between seven and eighteen minimum wages, and 5 days' pay for more than eighteen minimum wages, but the principle of calculation per year of service remains constant.

2. Compensation for Unlawful Termination

If a dismissal is declared unlawful by the court, the employee is entitled to receive compensation corresponding to 45 days of salary for each year of service. The basis for calculating this compensation typically comprises the basic wages and length of service bonuses.

Under the New Labour Law, the termination or dismissal of an employee on an uncertain period contract (open-ended contract) without just cause entitles the employee to compensation corresponding to forty-five days for each year of service, or compensation proportional to the time spent if their seniority does not reach one year.

3. Compensation in Domestic Labor

Even within the specialized legal framework of domestic work, compensation is tied to years of service in specific circumstances:

If the domestic employee rescinds the contract due to the employer's actions, the employee has the right to compensation equal to ten days for each year of actual service . If the employee abandons the job (a rescission by employee action), they must indemnify the employer at a value corresponding to 10 days for each year of actual service.

The value of "Compensation after Termination" is often a cuase of disputes with an employee. Here is a brief explanation:  

The compensation model used in Mozambique is a  structured, tiered system designed to ensure that severance pay (compensation provided when a permanent employment contract is terminated by the employer for objective reasons, such as economic or structural reorganization) is fair, but calculated based on the employee's standing in the Mozambican economy.

Essentially, the law uses the National Minimum Wage (NMW) as a measuring stick to decide which severance formula applies to a terminated employee. The rule establishes a sliding scale where the minimum required compensation rate (measured in days' pay per year of service) is highest for those earning the least and decreases for those earning significantly more than the NMW.

Here is a breakdown of what that complex regulation means for a layperson:

1. The Benchmark: National Minimum Wage (NMW)

In Mozambique, the NMW is not a single number; it varies by sector, such as manufacturing, non-financial services, and banking. For example, the highest minimum wage is set for the financial services sector (banks and insurance) at MZN 17,881.32, while the lowest might be MZN 5,800 for the fisheries sector.

When calculating severance, the authorities determine: "How many times greater is the employee's monthly pay than the NMW for their specific sector?" The employee's monthly pay, in this context, includes their basic wage and length of service bonus (seniority bonus).

2. The Sliding Scale of Compensation

Once the employee's salary is measured against their sector's NMW, they fall into one of four brackets, which determines the minimum mandatory severance rate the employer must pay for each year of service:

Employee's Wage Bracket (Compared to NMW) Minimum Compensation Rate (Days of Pay) Explanation Source Data
1 to 7 times the NMW 30 days' pay per year of service This rate applies to the vast majority of lower and middle-income workers, ensuring they receive the highest level of severance protection.
8 to 10 times the NMW 15 days' pay per year of service Compensation is halved for these higher-earning professionals.
11 to 16 times the NMW 10 days' pay per year of service Compensation continues to drop as the income level rises substantially above the national average.
Greater than 16 times the NMW 3 days' pay per year of service The highest earners receive the lowest statutory minimum rate for this type of termination.

In essence

 the compensation formula functions as an inverse safety net: It provides maximum statutory protection (30 days' pay per year) to those closest to the economic floor, while requiring minimal statutory compensation (3 days' pay per year) for high-earning employees who are financially more secure.

This minimum compensation is paid when the employer terminates a permanent contract due to market, structural, or technological reasons. The employer and employee can, however, agree to a more favorable compensation package than these legal minimums.