Constitutional. Kwanza Portuguese.

Last modified 24 Jun 2020

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.

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Required

Immigration compliance and pre-hire medical examinations.

Permissible

Reference and education checks are permissible.

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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.

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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.

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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.

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

Last modified 24 Jun 2020

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%. 30%, 20% and 10% 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%, 45%, 20% and 10% 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% 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% of salary from the third to the twelfth month.

In case of small and micro companies: The employee is paid, in case of illness or common accident, the amount of 50% 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 two 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 one day.

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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.

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Both employer and employee have to pay contributions to Social Security in Angola to cover various employee benefits (e.g., 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% of the gross wage for the employee and 8% 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.

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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.

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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 one 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.

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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.

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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%.

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% 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% 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% 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% 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.

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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.

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

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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