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  • Legal system, currency, language

    Constitutional. Kwanza Portuguese.

    Last modified 24 Jun 2020

  • Corporate presence requirements & payroll set-up

    A foreign entity can engage employees in Angola with proper payroll registrations, subject to business, corporate and tax considerations. The employer is responsible for withholding from an employee's pay, and delivering to the tax authority, income tax and contributions to Angolan Social Security. The level of income tax is defined by the government and varies in line with the employee's salary.

    Last modified 24 Jun 2020

  • Pre-hire checks

    Required

    Immigration compliance and pre-hire medical examinations.

    Permissible

    Reference and education checks are permissible.

    Last modified 24 Jun 2020

  • Immigration

    Criminal and medical checks must be issued by competent authorities and a criminal record issued by the home country and a medical certificate issued by a doctor in the home country.

    The visa/work permit requirements for overseas nationals to work in Angola are: having a recognized travel document valid for the Angolan territory for at least 6 months; being of legal age; not being included in the national list of undesirable persons prohibited from entering into the national territory; not constituting a danger to public order or to social security interests; complying with all health regulations established by the Ministry of Health for entry into the national territory; having an employment contract or promissory employment contract; having a certificate of professional and educational qualifications and curriculum vitae;  and obtaining a positive opinion of the competent Ministry.

    Last modified 24 Jun 2020

  • Hiring options

    Employee

    Indefinite term contract (which is the rule), fixed-term or open-term (i.e., a term contract whose termination date has not yet been defined, but that will be terminated as soon as the underlying need for contracting is no longer verified: e.g., as a contract to cover absence), part-time contract, telework contract and contract under service commission regime (a particular type of contract for high-level employees which provides flexibility for termination - not common). There are no restrictions or requirements for a fixed or open-term contract. Part-time, fixed-term and open-term employees may not be discriminated against due to their status.

    Independent contractor

    Independent contractors can be engaged directly by the company or via a personal services company. Engagement may be subject to misclassification exposure.  The factors that will tend to indicate an individual is an employee (rather than e.g., a self‑employed independent contractor) are:  Existence of a work schedule, scheduling of vacation, the worker’s legal subordination to the company, the company’s authority, direction and disciplinary powers, and control of punctuality and attendance over the individual; integration in the structure of the company, and use of work tools belonging to the company, etc.

    In the event of misclassification, is the relationship can be converted into an employment relationship on a permanent basis and the employer could be liable to pay a fine for non-compliance.

    Agency worker

    Agency workers can only be engaged to fulfil a temporary need for work. The agency work contract duration depends on the underlying reason for hiring (typically not exceed 12 months). Agency workers have the right to equal treatment to employees in relation to pay and other regular benefits.

    Last modified 24 Jun 2020

  • Employment contracts & policies

    Employment contracts

    Written employment contracts are common, but not mandatory, except for fixed-term, part-time, telework, and service commission regime contracts, and contracts with foreign employees and  under-age employees,. Employment contracts cannot contain conditions that are less favorable to employees than mandatory employment legislation.

    Probationary periods

    Permissible.

    Employment contracts for an unlimited period of time may be subject to a probation period corresponding to the first 60 days of performance of work; the parties may, by written agreement, reduce or waive this period.

    The parties may extend the probation period, in writing, to up to 4 months, in case of employees who perform highly technical, complex work that is difficult to evaluate, and to up to 6 months in case of employees who perform management duties.

    In an employment contract for a limited period of time, the parties may set forth a probation period, in writing, and its duration cannot exceed 15 days in case of non-qualified employees or 30 days in case of qualified employees. Angolan law does not define qualified and non-qualified but the common practice is that qualified employees correspond to positions that involve technical complexity, a high degree of responsibility or special qualifications, as well as those carrying out functions of trust.

    Policies

    Employers with more than 50 employees must, in order to organize the work and labour discipline, draft and approve employee handbooks, guidelines, instructions, service orders and work rules defining rules for the technical organization of work, performance of work and work discipline, delegation of powers, employee job descriptions, safety, hygiene and health protection of work, performance indicators, remuneration system, working hours for the several sections of the company or work centre, control of entrances and exits and circulation within the premises of the company, and surveillance and control of production.

    Employer with 50 or fewer employees may, but are not required to, implement employee handbooks on the matters described above.

    Third-party approval

    Whenever the employee’s handbook or any other rules and regulations establish any rules on performance and discipline, remuneration systems, work performance or safety, hygiene and health protection at work, the employer must forward such regulations for information and registration purposes to the General Labour Inspectorate.

    Last modified 24 Jun 2020

  • Language requirements

    Portuguese. Nevertheless, the employment contracts/other documents can be drafted in a bilingual template.

    Last modified 24 Jun 2020

  • Minimum employment rights

    Employees entitled to minimum employment rights

    All employees are entitled to minimum employment rights.

    Working hours

    Maximum daily and weekly working hours are 8 hours per day and 44 hours per week. Overtime pay is required for hours worked in excess of these limits. These limits are inapplicable to employees who perform direction and leadership duties, duties of inspection, or provide direct support to the employer. In case the employee usually performs his/her work outside the company's premises, an exemption regime may also be agreed upon by the parties, in which case those limits shall not apply. Typically, employees under the exemption regime are entitled to an exemption bonus.

    Overtime

    Overtime is allowed to deal with an extraordinary increase in workload, or to prevent serious damage, or if due to majeure force. It is subject to maximum limits: (a) 2 hours per day; (b) 40 hours per month and (c) 200 hours per year.

    Overtime must be compensated with additional payment (increase of hourly rates) up to 30 hours per month: 50 percent. 30 percent, 20 percent and 10 percent depending on whether it is a large, medium, small or micro company dependent on number of employees and turnover. A company which is a subsidiary or branch in Angola of a company with headquarters abroad will always be qualified as a large company. Overtime that exceeds that limit is paid for each hour at an additional: 75 percent, 45 percent, 20 percent and 10 percent depending on whether it is a large, medium, small or micro company.

    Wages

    The minimum wage is established by Presidential Decree. It is set out as a general minimum wage, but there is also a minimum wage for trade and extractive industry groups, transport services and manufacturing groups and agriculture groups. Under the Decree currently in force, the general minimum wage is Kz 21,454.10. The following sector-specific minimum wages also apply:

    • trade and extractive industry groups: Kz 32,181.15;
    • transport services and manufacturing groups: Kz 26,817.63; and
    • agriculture groups: Kz 21,454.10.

    Vacation

    Minimum 22 working days per year (plus 12 public national holidays).

    Sick leave & pay

    Employees are entitled to take off as much time as they need for sick leave. For large and medium companies: In case of incapacity to work due to illness or common accident, pay is required, in the amount corresponding to 100 percent of the base salary for a period of 2 months. For as long as the employee is not entitled to protection in case of illness or common accident from the social security authorities, the employer must pay to the employee 50 percent of salary from the third to the 12th month.

    In case of small and micro companies: The employee is paid, in case of illness or common accident, the amount of 50 percent of the base salary, within 90 days, after which the contract is terminated by expiration if the condition of illness remains.

    Maternity/parental leave & pay

    A pregnant employee is entitled to a paid maternity leave of 3 months. The amount of the maternity allowance is equal to the average of the 2 best monthly salaries from the 6 months preceding the commencement of the maternity leave. The maternity allowance is paid directly by the employer to the employee and, subsequently, the Social Security services reimburse the employer in full. Fathers are not entitled to any leave on the birth of a child; it is only considered as a justifiable reason for absence from work for 1 day.

    Last modified 24 Jun 2020

  • Discrimination

    Discrimination based on the following protected characteristics is prohibited: race, colour, gender, ethnic origin, marital status, origin or social rank, religious beliefs, political opinion, union affiliation and language.

    Last modified 24 Jun 2020

  • Benefits & pensions

    Both employer and employee have to pay contributions to Social Security in Angola to cover various employee benefits (i.e., maternity leave payment and retirement pension). The employer must withhold the contribution due by the employee and deliver both contributions (employer and employee) to Social Security every month.

    Current general rates are 3 percent of the gross wage for the employee and 8 percent for the employer.

    Employees with a minimum contributory period (35 years) qualify for a retirement pension at age 60 or in cases of total incapacity.

    Employers have no legal obligation to provide complementary/supplementary social benefits in addition to the social coverage provided for by the social public scheme. However, some companies – mostly large companies or multinational companies who have their own schemes worldwide – set up and provide private complementary health and pension schemes to their employees.

    Last modified 24 Jun 2020

  • Data privacy

    The Data Privacy Law No. 22/11, June 17, governs Angolan data privacy and determines, in general terms, how to collect, use, disclose, store and give access to "personal information."

    There is no specific regulation on employee data privacy.

    Last modified 24 Jun 2020

  • Rules in transactions/business transfers

    Provided that the same business activity is maintained, the new employer takes the position of the former employer in the employment contracts and takes its position in respect of the rights and obligations arising from the employment relationships This is the case even if the employment contract is terminated before the transfer. The new employer takes its position as the employer of such former employees in respect of due and non-paid credits. All credits, rights and obligations of the employer arising from the execution and implementation of the employment contract, its violation or termination, are subject to a statute of limitations of 1 year starting on the day following the day of termination of the contract. The employees keep the same seniority and  acquired rights which they had in the service of the former employer.

    The new employer undertakes the obligations of the former employer limited to those incurred during the 12 months prior to the modification, provided that up to 22 business days prior to the modification, the new employer gives notice to the employees that they must claim their credits up to the second business day prior to the date scheduled for such modification. Within 22 business days following the modification of employer, the employees have the right to terminate the employment contract with prior notice, but this does not confer any right to compensation.

    Last modified 24 Jun 2020

  • Employee representation

    Employee representative bodies are permissible, but not mandatory.

    Trade Unions are not common in Angola.

    In order to carry out their duties, trade union representatives are entitled to 4 paid hours a month, but must notify the employer in advance of the date and number of days they require for the exercise of trade union functions. Employers are obliged to provide a suitable place for workers' meetings whenever this is requested by the union representatives.  Special protections against dismissal are granted to employees who perform, or have performed, duties as Union Representatives, either as leader or delegate, or members of the employees’ representative body performing union related activities.

    Last modified 24 Jun 2020

  • Termination

    Grounds

    Unilateral termination by the employer: dismissal based on objective grounds (redundancy reasons); disciplinary dismissal with just cause (based on serious breach of the employee's duties).

    Termination without cause (with notice): only for employees hired under an employment contract of service commission regime (a particular type of contract for high-level employees which provides flexibility for termination - not common).

    Other termination causes: mutual agreement, termination by the employee (termination with notice or constructive dismissal with just cause), expiration (fixed-term and open-term contracts, retirement).

    Employees subject to termination laws

    All employees.

    Restricted or prohibited terminations

    Special protection against dismissal is granted to: employees who perform, or have performed, duties as Union Representative, either as leader or delegate, or member of the employee’s representative body performing activities; women covered by the regime of maternity protection; war veterans as per the definition provided by the applicable law; employees under the legal age; employees with a reduced work capacity or with a disability degree equal or higher than 20 percent.

    As a general rule, a copy of the notice served on the employee must be forwarded to General Labour Inspectorate.

    Third-party approval for termination/termination documents

    Except in respect of protected employees, third-party approval is not required to terminate an employment.

    Mass layoff rules

    If economic, technological or structural circumstances occur, which can be clearly demonstrated and which involve an internal reorganization or conversion, or the reduction or the shutting down of activities, which makes it necessary to eliminate or significantly change job positions, the employer may terminate the employment contracts of the employees who perform such job positions.

    Collective dismissal rules will be triggered if the dismissal involves at least 20 employees.

    Information to the General Labour Inspectorate is required. However, there is no need to obtain approval for termination.

    The General Labour Inspectorate may undertake the diligence deemed necessary to a better clarification of the situation and, in case of a collective dismissal, during the period in which the evaluation of the General Labour Inspectorate occurs, the employer may promote a meeting with the representative body or with the Committee appointed for the purpose of exchange of information and clarification, and may forward the conclusions of the meetings to the General Labour Inspectorate.

    Notice

    For individual dismissals based on objective grounds (up to 20 employees): the employer must forward, at least 30 days in advance, prior notice of dismissal to the employee or employees who occupy the job positions to be extinguished or transformed.

    For collective dismissal: the prior notice is 60 days.

    Notice periods in case of term contract: 15 business days if its duration is equal to or higher than 3 months.

    Statutory right to pay in lieu of notice or garden leave

    Payment in lieu of notice is permitted (and required if the notice period is not honoured).

    Garden leave is allowed during the notice period.

    Severance

    Fair dismissal based on objective grounds (redundancy/collective dismissal):

    • Large companies: compensation corresponds to 1 base salary for each year of effective service up to the limit of 5 and an additional 50 percent of the base salary multiplied by the number of years of service that exceed such limit;
    • Medium companies: compensation corresponds to 1 base salary for each year of effective service up to the limit of 3 and an additional 40 percent of the base salary multiplied by the number of years of service which exceed such limit;
    • Small companies: compensation corresponds to 2 base salary and an additional 30 percent of the base salary multiplied by the number of years of service which exceed the limit of 2 years;
    • Micro companies: compensation corresponds to 2 base salary and an additional 20 percent of the base salary multiplied by the number of years of service which exceed the limit of 2 years.

    Fair disciplinary dismissal: no severance.

    Higher severance payments may be agreed and are usual as a way to avoid litigation.

    Last modified 24 Jun 2020

  • Post-termination restraints

    A clause of the employment contract which restricts the activity of the employee for a period of time, which may not exceed 3 years from the termination of the contract, is lawful if the following conditions are met: (a) such clause is included, in writing, in the employment contract, or in its addendum; (b) the activity performed may cause real damage to the employer and may be considered as unfair competition; (c) the employee is paid a salary during the period of restriction of work: the corresponding amount will be included in the contract or its addendum, and it must be taken into account, in its calculation, the fact that the employer may have incurred in significant expenses in the professional training of the employee.

    A clause which requires an employee who benefits from professional improvement or higher level education at the expense of the employer to remain at the service of the same employer for a certain period of time, provided that such period does not exceed 1 year, in case of training of professional improvement and up to 3 years in case of courses of high level education, is also lawful if established in writing. In this case, the employee may release himself/herself from remaining at the employer’s service by repaying to the employer the amount of the expenses incurred by the employer, in proportion to the remaining time until the term of the agreed period. The employer that hires the employee within the period of restriction of activity in the company is jointly liable for the damages caused by the employee or for the amount not returned by the employee.

    Last modified 24 Jun 2020

  • Waivers

    In principle, statutory rights cannot be waived and any waiver of such rights will be null and void.

    Last modified 24 Jun 2020

  • Remedies

    Discrimination

    Fine corresponding to 5 to 10 times of the average salary paid by the company.

    Unfair Dismissal

    The employee may challenge the validity of the dismissal before the labour courts.

    If the relevant court declares the dismissal to be unlawful, by final judgment, the employer must immediately reinstate the employee in the same job position and benefiting from the same previous conditions, or, alternatively, shall indemnify the employee (compensation is different depending on whether it is a large, medium, small or micro company and the cause of dismissal).

    In addition to reinstatement or the compensation, the employee is entitled to the base salaries he/she would have received if he/she  had continued to perform work, until the date on which the employee finds a new job or up to the date of final judgment, whichever comes first, with a maximum limit of 6 months of base salary for large companies, 4 months to medium companies and 2 months for small and micro companies.

    Failure to inform and consult

    Not applicable.

    Last modified 24 Jun 2020

  • Criminal sanctions

    Typically, non-compliance with employment laws leads to administrative proceedings which may lead to the payment of fines. If such non-compliance is based on violation of rights that deserve protection under criminal law, it may also lead to this type of judicial proceedings.

    Last modified 24 Jun 2020

  • Key contacts
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Criminal sanctions

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Angola

Typically, non-compliance with employment laws leads to administrative proceedings which may lead to the payment of fines. If such non-compliance is based on violation of rights that deserve protection under criminal law, it may also lead to this type of judicial proceedings.

Last modified 24 Jun 2020

Argentina

Breaches of labor law do not entail a criminal breach or sanction unless such a breach or offense is specifically regulated by the National Criminal Code as a crime. In that case, criminal sanctions will be applied for the breach of criminal law and not for the breach of labor law.

REGULATIONS AMID COVID-19 PANDEMIC


Given the coronavirus disease 2019 (COVID-19) pandemic and recommendations from the World Health Organization, the national government has enacted several measures related to employment in order to avoid the spread of COVID-19 and mitigate its consequences. These measures have been continuously adapted to the epidemiological situation of the country, and applied differently in each province, taking into account the number of cases and  health resources, among others. The following summarizes the measures  currently in force:

  • Double compensation

By means of Decree No. 34/19, the national government declared a public emergency in occupational matters for 180 days. As a result, in the event of an unjustified dismissal within this period, the worker shall be entitled to receive double the amount of mandatory severance. On June 10, 2020, Decree No. 528/20 extended this measure for another 180 days. By means of Decree 39/2021, this measure has been extended until December 2021. In addition, a cap of ARS500,000 has been established as applicable to the amount to be paid as double severance.

  • Ban on dismissals

On March 31, 2020, the national government banned wrongful and economic (lack-of-work) dismissals for a 60-day period. In addition, employee suspensions based on force majeure reasons or lack-of-work, or reduction -of -work were banned for 60 days. This measure has been continuously extended over the past year and, most recently on January 22, 2021, it was extended for another 90 days, by means of Decree 39/2021. Any As a result, any dismissal or suspension violating this decree will be void.

  • Restrictions on public circulation

Through Decree No. 1033/2020, the national government has reserved the use of public transport for essential services workers (eg, on-duty judiciary workers, personnel involved in public procurement, health workers, security forces, food industries, waste collection, deliveries and people attending a force majeure situation, among others). Therefore, private workers who not considered essential under this provision may commute by private means of transport (usually financed by the employer).

  • Emergency assistance to work

Decree No. 332/2020 – which was recently extended for the 2020 tax period through Administrative Resolution of the Federal Tax Bureau (AFIP) No. 4898/2020 – has created an Emergency Assistance to Work and Production Program (Programa de Asistencia al Trabajo y la Producciòn) for employers and workers affected by the health emergency and the economic situation. This program essentially consists in the following benefits:

  1. Deferment or reduction of up to 95 percent of contributions to the social security system payment. This benefit will only be applicable for employers with up to 60 workers. If the limit of 60 employers is exceeded, the Preventive Crisis Procedure shall be applicable.
  2. If certain considerations are met, private companies up to 100 workers may be entitled to a compensatory wage paid by the national government under the terms of Law No. 14,250 and its amendments.
  3. Workers who meet the requirements set forth in Law Nos. 24,013 and 25,371 have access to economic benefits for unemployment in accordance with considerations stipulated therein.

Such benefits are applicable only under certain circumstances:

Workers and activities declared as essential within the health emergency will be exempt from the application of this decree.

  • Sanitary measures in the workplace

Places and activities allowed to reopen shall adopt the following sanitary measures among any additional measure taken by specific activities:

  • Social distancing (minimum 2 meters)
  • Strict policies regarding hand hygiene, use of facial masks and gloves, if necessary
  • As much as possible, activities must be held outdoors or in naturally ventilated places – air conditioner use is still not advisable
  • Avoid overcrowded places or meetings – up to 10 people gathered in outdoor spaces is allowed
  • Improve daily cleaning and disinfection and
  • Temperature screening and health questionnaires shall be considered if people enter a given place (eg, shops, public entities and workplaces).
  • COVID-19 as an occupational disease

By means of Decree 367/2020, occupational risk insurers (ART) must consider COVID-19 " to be an occupational disease," and the insurer may not "refuse to provide coverage" for workers considered essential. Through Decree No. 39/2021 issued on January 22, this provision has been extended to every worker currently performing its tasks and duties in their workplace.

The Labor Ministry, by means of the resolution No. 5/2020, set up a specific procedure to be followed if an employee reports a case of COVID-19.  Further, it has been decided that workers affected by COVID-19 are able to make submissions online to the Central Medical Commission (Comisión Medica Central) and the Jurisdictional Medical Commission (Comisión Médica Local) through the online “Distance Procedures System” (TAD).

  • Telecommuting provisions

By means of Decree No. 673/2020, the Telecommuting Law No. 27,555 was enacted, regulating dependent work provided from employees at home or from a place other than the employer’s facilities or workplace. Certain modifications were introduced to the Labor Contract Law (LCL) incorporating section 102 (bis) to the title “Modalities of the Employment Contract,” which set up the teleworking concept. This law also establishes minimum legal requirements to execute teleworking. More rights and duties for “teleworkers” have been determined: right of reversibility (ie, the employee shall be entitled to exercise the option to return to the workplace at any time), right to digital disconnection (ie, the employee shall only be requested to perform its tasks within working hours), trade union rights and right to privacy.

On January 20, through Executive Decree No. 27/2021, the legal framework applicable to the Telecommuting Law was approved. The Executive Branch regulated 11 (out of 19) sections of the Telecommuting Law including the right to digital disconnection; the conditions under which caretaking tasks may be performed by teleworkers; limits and conditions for reversal; how work equipment shall be provided, and expenses thereto reimbursed; union representation of teleworkers; health and safety conditions; and right to privacy.

Last modified 23 Feb 2021

Australia

There are criminal sanctions for breach of relevant work health and safety laws, workers' compensation laws and taxation laws. The Queensland and South Australian labor hire licensing laws provide for terms of imprisonment in respect of some breaches.

Last modified 4 Dec 2020

Austria

Criminal sanctions are not generally a concern.

Last modified 13 Apr 2021

Bahrain

Criminal sanctions may be imposed for a variety of reasons, including but not limited to the breach of health and safety obligations, breach of immigration laws, breach of data protection laws and breach of confidentiality.

Last modified 13 Aug 2020

Belgium

Most legal dispositions with regard to labor law are subject to criminal or administrative sanctions in case of breach.

Last modified 19 Feb 2021

Brazil

Violation of employment laws and discrimination can trigger criminal sanctions.

Last modified 24 Aug 2020

Canada

The main areas where criminal sanctions arise are under occupational health and safety legislation and related Criminal Code provisions. Both employees and directors can be subject to criminal sanctions.

Last modified 4 Feb 2020

Chile

Not applicable for this jurisdiction.

Last modified 13 Feb 2020

China

Limited circumstances, such as failure to pay salary in bad faith, may result in criminal sanctions.

Last modified 16 Jan 2020

Colombia

Employees may be subject to criminal sanctions if they do not honor their non-disclosure or confidentiality agreements.

Employers may be subject to criminal sanctions if they perform actions to reduce enrollment to unions or to discourage such enrollment.

Last modified 13 Apr 2021

Czech Republic

Illegal employment of foreigners may, under limited circumstances ,constitute a criminal offense, as could avoiding tax and health and social security payments.

Last modified 13 Feb 2020

Denmark

Non-compliance with employment law can lead to criminal sanctions. Examples include employing a person without a valid work permit, failing to report and pay holiday pay, reading private emails, disclosure of trade secrets, breach of anti-discrimination provisions and failure to inform and consult in relation to collective redundancies, or business transfers.

Apart from fines relating to a breach of the rules on work permits and to the lack of reporting and paying of holiday pay, criminal sanctions related to employment legislation are rarely seen.

Last modified 16 Jan 2020

Finland

Typically, employers face criminal prosecution in connection with alleged discrimination, or where breach of occupational health and safety obligations has caused damage to an employee, or if the employer has not complied with working-hour regulations. Failure to comply with the Employment Contracts Act or with information obligations in connection with the transfer of an undertaking may also be sanctioned with a criminal fine.

Last modified 10 Aug 2020

France

Yes (eg, for discrimination, harassment, offense of obstruction, or where an employee is discovered undertaking "concealed" work).

Both the company's representative and the company as a legal entity can be held criminally liable.

Last modified 23 Feb 2021

Germany

Significant frequent violation of works council information and consultation rights could lead to criminal charges; however, this rarely occurs.

Last modified 4 Dec 2020

Hong Kong, SAR

The provisions of the EO are enforced, first by criminal law sanctions (where the usual penalty is a fine, except for payment-of-wages offenses, which can give rise to a sentence of imprisonment), and secondly, by way of civil remedies at the instance of the aggrieved employee. Further, in some instances, liability can be passed to the individual decision-maker of the employing company.

Last modified 15 Jan 2020

Hungary

Not applicable for this jurisdiction.

Last modified 16 Jan 2020

India

Sanctions for violating labor statutes include both imprisonment and fine. The extent of such penal provisions will depend on the statute and the nature of the breach.

The Code on Wages, 2019, SS Code and OSH Code also provides for a single authority viz. inspector-cum-facilitator to carry out inspections of the compliance status of establishments under these codes and advise employers and employees on better compliance. Further, the inspector-cum-facilitator is required to give an opportunity to the employer to comply with the provisions of the said code within a stipulated timeline before initiation of certain prosecution proceedings. Additionally, the labor codes allow for the compounding of offenses, at any time before or after initiation of the prosecution.

Last modified 5 Mar 2021

Indonesia

Imposed on employers who breach the Manpower Law, including where employers participate in anti-union activity; intentionally and without any rights or illegally access computers and/or electronic systems owned by somebody else for the purpose of obtaining electronic information and/or electronic documents; violate workplace health and safety regulations; fail to submit written annual reports on their industrial relations to the Minister of Manpower; or fail to pay overtime due.

Last modified 19 Jun 2020

Ireland

Failure to notify the Minister for Business, Enterprise and Innovation about mass layoffs is a criminal offense, although prosecution is rare. Employing a non-EEA or Swiss national without the required work permit is also a criminal offense. Failure to provide employees with a written statement containing 5 core terms of employment within 5 days of them commencing employment is also a criminal offense.

Last modified 4 Feb 2020

Israel

Failure to comply with various labor laws (such as minimum wage, work hours, unlawful discrimination and prohibited termination) is a criminal offense and may result in criminal proceedings (at least in theory).

Last modified 25 Feb 2020

Italy

None. Under certain circumstances, failure to fulfill a court decision can lead to criminal liability.

Last modified 4 Feb 2020

Japan

Some violations are subject to criminal sanctions. For example, violations of the worker dispatch law or failing to pay wages (including overtime allowances) may result in criminal sanctions.

Last modified 1 Dec 2020

Kenya

Although criminal sanctions are not a general concern in employment and labor practices, failing to comply with the provisions of the labor laws is punishable in a court of law either by imprisonment or fines.

Last modified 9 Jan 2020

Kuwait

Criminal sanctions may be imposed for a variety of reasons, including but not limited to the setting up of a trade union, breach of health and safety obligations, breach of immigration laws, breach of data protection laws and breach of confidentiality.

Last modified 5 Feb 2021

Luxembourg

Some of the mandatory labor law rules are criminally punishable by fines and/or imprisonment, notably:

  • Publishing a job offer without informing the Administration of Employment (ADEM)
  • Hiring an employee without arranging a compulsory medical examination
  • Hiring an employee from outside the EEA without authorization
  • Paying wages below the minimum social wage
  • Failing to comply with the rules on paid leave
  • Failing to comply with the rules on public holidays

Last modified 1 Dec 2020

Malaysia

None specific to employers.

Last modified 19 Jun 2020

Mexico

Employees may be subject to criminal sanctions if they do not honor their non-disclosure agreement.

Employers may be subject to criminal sanctions if they pay to their employees less than the minimum wage or employ children under 15 years old.

Last modified 5 Apr 2021

Morocco

Ranges from fines (up to EUR30,000) to the closure of the company.

Last modified 7 Apr 2021

Mozambique

Possible, but separate from labor process.

Last modified 5 Mar 2021

Myanmar

If any employer fails to sign an employment contract, it can be punished with imprisonment for not more than 6 months, a fine, or both.

If anyone violates any matters contained in an employment contract, he/she shall be punished with imprisonment for not more than 3 months, a fine, or both.

Employers or employees may be criminally liable for certain violations and subject to a fine, imprisonment, or both.

Last modified 1 Feb 2019

Netherlands

Criminal sanctions are not generally a concern.

Last modified 22 Jun 2020

New Zealand

Generally, none. However, there are criminal sanctions for breach of relevant health and safety laws.

Last modified 15 Feb 2021

Nigeria

Criminal sanctions are not applicable.

Last modified 6 Jul 2020

Norway

Willful or negligent breach of the Working Environment Act by the proprietor, employer or person managing the undertaking in the employer's stead is liable to a fine, imprisonment up to 3 months, or both. In particularly aggravating circumstances, the penalty may be up to 2 years' imprisonment. This does not apply to breach of provisions regarding appointment and termination.

Last modified 16 Jan 2020

Oman

Criminal sanctions may be imposed for a variety of reasons, including but not limited to breach of health and safety obligations, breach of immigration laws, breach of data protection laws and breach of confidentiality.

Last modified 5 Apr 2021

Peru

According to the Criminal Code, violation of employment laws and discrimination may trigger criminal sanctions in the following cases:

  • Harassment, sexual harassment, sexual blackmail and the spreading of images, audiovisual or audio materials with sexual content
  • Forced labor
  • Forcing or preventing an employee from joining a union or
  • Deliberate infringement of Health and Safety at Work regulations and endangering the lives, health or integrity of employees in a serious way.

COVID-19 Special Regulations

Home office

The employer may instruct employees to work from home until July 2021. In case of employees at high risk of a COVID-19 infection, the employer must prioritize home office.

Furlough

If the employer cannot maintain its workforce because its financial situation has been affected by the COVID-19 crisis and/or can’t apply the home office, it is possible to furlough employees. The application must be approved by the Labor Administrative Authority. The furlough may last until April 5, 2021, at most.

COVID-19 Health and Safety Plan

Peru is under lockdown measures as of March 16, 2020. The economic reactivation process started in May of 2020 and consists of 4 stages. If the employer’s activities are allowed, according to such reactivation process, it is necessary to elaborate and register a COVID-19 Health and Safety Plan prior the restarting of operations after quarantine.  

Last modified 18 Sep 2020

Philippines

Criminal penalties may be imposed for violations of the Labor Code of the Philippines and relevant Special Laws as provided therein, such as but not limited to: illegal recruitment, sexual harassment, child labor, non-remittance of SSS, PhilHealth, and Pag-Ibig contributions, and violations of collective bargaining agreements amounting to unfair labor practices.

Last modified 22 Jun 2020

Poland

An employer may be fined from PLN 1,000 to 30,000 for committing offenses specified in the Polish Labor Code which relate to the employer's basic obligations.

Last modified 19 Jun 2020

Portugal

There are criminal sanctions related to employment issues such as improper use of child labor, violation of the autonomy or independence of trade unions, discriminatory acts, disobedience to the labor authority, fraud in respect of withholding taxes or social security contributions and breach of safety rules.

Generally, legal persons are held criminally accountable for felonies committed by their legal representatives and de facto or de jure administrators in their name or on their behalf and to their benefit.

Last modified 14 Jan 2020

Qatar

Criminal sanctions can be imposed for a variety of reasons, including, but not limited to, the breach of health and safety obligations, breach of immigration laws, breach of data protection laws and breach of confidentiality.

Last modified 3 Mar 2020

Romania

Infringement of health and safety rules can lead to criminal sanctions (where human life has potentially been put in jeopardy). Criminal liability is also triggered in cases of repeated breach of the obligation to pay minimum salary or repeated refusal to permit labor inspectors access to any of the company's locations, or to provide them with requested documentation, etc.

Last modified 4 Feb 2020

Russia

Criminal sanctions are not generally a concern for employers acting as legal entities.

Last modified 15 Feb 2021

Saudi Arabia

Not generally a concern under Saudi Labor Law.

Last modified 10 Aug 2020

Singapore

Criminal sanctions include fines or imprisonment for offenses under the EA or other applicable statutes. Offenses under the EA include, but are not limited to, wrongful detention of an employee by the employer after a contract of services have been determined, obstructing an employee appearing before an inquiry held by the Commissioner, fraudulently inducing an employee to emigrate out of Singapore to work and failure to pay salary as stipulated.

Any director, manager, secretary or other officer of the company may also be charged with the same offense and punished upon conviction if it can be shown that the offense is committed with the consent or connivance of any act or default of such persons.

Last modified 15 Feb 2021

Slovak Republic

Non-payment of wages or severance pay may be punished by a prison sentence of up to 12 years, depending on the circumstances of and motive for the non-payment, and on the damage caused.

Last modified 22 Feb 2021

South Africa

Employment law is largely decriminalized; however, specific legislation renders some behavior a criminal offense – for example, fraudulent behavior. Law enforcement bodies must be notified if the employer knows or suspects that the employee has viewed child pornography. Section 34 of the Prevention and Combating of Corrupt Activities Act, 2004 requires an employer to report certain criminal offenses committed by an employee. These include criminal offenses such as theft, fraud, forgery and extortion involving an amount over ZAR100,000. It also includes corruption regardless of the amount involved.

Last modified 17 Feb 2021

South Korea

If the ruling of unfair dismissal is finalized by the court and the employer does not comply with the reinstatement order from RLRC, the employer may be subject to an imprisonment of up to 1 year or a criminal fine of up to 10 million KRW.

Last modified 10 Aug 2020

Spain

There are criminal sanctions related to employment issues, such as those linked to work-related accidents and social security fraud.

Generally, legal persons will be held criminally accountable for the felonies committed in their name or on their behalf, and to their benefit, by their legal representatives and de facto or de jure administrators. Legal persons will also be criminally accountable for the felonies committed when perpetrating the corporate activities, and on account, and to the advantage, thereof.

Last modified 23 Feb 2021

Sweden

An employer who intentionally or negligently fails to comply with an order or prohibition issued by the Swedish Work Environment Authority pursuant to certain regulations may be fined or sentenced to imprisonment for a maximum of 1 year.

Last modified 4 Feb 2020

Switzerland

Failure to comply with health and safety legal requirements; undeclared or illicit work; sexual or psychological harassment.

Last modified 7 Apr 2021

Taiwan, Republic of China

Not a concern.

Last modified 5 Apr 2021

Thailand

LPA and LRA both provide criminal sanctions including penalties of both fine and imprisonment. Further, in some instances, liability can be passed to the director of the employing company.

Last modified 19 Jun 2020

Tunisia

Most employment offenses in Tunisia lead only to fines at the low rate of TND 24 - 60. However, some specific offenses can result in imprisonment including:

  • Intentional interference with the free selection of members of the Consultative Commission or with the selection of workers’ delegates.
  • Repeat offenses regarding the formation of unions.
  • Foreign workers working illegally who continue to work after being ordered to stop.
  • Offenses concerning dangerous or unhealthy work environments.
  • Interference with those who inspect establishments for compliance with health and safety provisions.
  • Illegal strikes or lockouts.
  • Failure to comply with requisition measures.

Last modified 8 Sep 2020

Turkey

Criminal sanctions are not generally a concern, except in cases such as sexual harassment or an occupational accident.

Last modified 4 Feb 2020

Uganda

Violation of certain provisions of the Employment Act can trigger criminal sanctions. For example a person who records or causes to be recorded wrong, inaccurate or deficient information in an employee's records of service with an intention to defraud the employee or employer or any public authority, or who acts to conceal such fraudulent acts, commits an offense, as does an employer or employee who fails, without justifiable cause, to reply to a labor officer's written request for information within a period of 14 days from the time the request was received by the employer or the employee, as the case may be.

Last modified 1 Dec 2020

Ukraine

Ukrainian labor law provides for the following categories of liability for violations of the labor law:

  • Financial penalties of up to approx. US$13,000
  • Administrative fines for violations of the Code of Administrative Offenses
  • criminal sanctions, including imprisonment, for company officers for gross violations of labor laws (eg, intentional and unjustified failure to pay salary for a period exceeding one month)

Last modified 1 Dec 2020

United Arab Emirates

Criminal sanctions can be imposed for a variety of reasons, including but not limited to the setting up of a trade union, breach of health and safety obligations, breach of immigration laws, breach of data protection laws and breach of confidentiality.

Last modified 4 Dec 2020

United Kingdom

Failure to notify the Secretary of State about mass layoffs is a criminal offense. Prosecution is fairly rare, but there has been an upward trend in prosecutions in recent years. Otherwise, criminal sanctions are not generally a concern.

Last modified 13 Apr 2021

United States

Employers may be criminally liable for certain violations of wage and hour laws. In limited circumstances, employers may be vicariously liable for the criminal acts of their employees. Employers may be liable for monetary statutory penalties (such as double or treble damages) for violations of wage and hour and other laws.

Last modified 1 Jun 2019

Venezuela

There are criminal penalties set in the labor law when an employer:

  • Refuses to execute a re-instatement order
  • Violates strike rights
  • Fails to comply with or obstructs actions or procedures from the labor authorities or
  • Illegally or fraudulently closes or ceases operations.

In these cases, the employer’s representatives or managers would be subject to criminal liability with imprisonment between 6 and 15 months.

Employers may also be held liable where an employee dies due to a serious breach of health and safety obligations in the workplace, subject to imprisonment between 8 and 10 years.

Last modified 22 Feb 2021

Vietnam

Employers may be criminally liable for certain violations, such as unlawfully dismissing an employee or using force or threats which cause an employee to resign, and subject to a fine, imprisonment, or both.

Last modified 16 Jan 2020

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