On 6 March, two new statutes were gazetted aimed at defining the minimum content of an employment contract and regulating the general rules on labor local content and the hiring of foreign non-resident employees. Both statutes immediately entered into force:

• Presidential Decree No. 40/17, of 6 March 2017 – Approves the model fixed term and unlimited term employment contracts establishing the minimum content of such agreements. The statute repeals the former models approved by Executive Decree No. 80/01, of 28 December 2001.
  
  
• Presidential Decree No. 43/17, of 6 March 2017 – Approves the general rules on labor local content and the hiring of foreign non-resident employees, repealing the former regimes approved by Decree No. 5/95, of 7 April 1995 and Decree No. 6/01, of 19 January 2001.
  
  The new regime consolidates many of the former rules set out by Decrees No. 5/95 and Decree 6/01. However, a large set of amendments were approved:
  
  
  • The 70/30 ratio continues to be the default local content rule applicable to every company’s workforce. Nevertheless, the new statute clarifies that the concept of “national workforce” for purposes of 70% quota covers both Angolan national employees and foreign resident employees;
    
    
  • The fine for breaching the local content rule now varies between 7 and 10 times the company’s average monthly salary;
    
    
  • The hiring of a foreign non-resident employee is no longer subject to the minimum term of 3 months. The position of said employee must correspond to one of the positions described in the job qualifier approved by the General Inspectorate of Labor;
    
    
  • The registration with the Employment Centre of the employment contract entered into with a foreign non-resident continues to be mandatory within 30 days from commencement of work. The registration entails the payment of a 5% registration fee that is now levied over all remuneration set out in the contract and not only the base salary. Company must cancel such registration upon termination of the contract;
    
    
  • The registration of the employment contract encompasses the need for employer to submit a copy of the job qualifier approved by the General Inspectorate of Labor;
    
    
  • The foreign non-resident employee’s remuneration needs to be paid in Kwanzas and the benefits or allowances paid by employer (either in cash or in kind) cannot exceed 50% of base salary.
    
    The Angolan Central Bank is given special powers to oversee the foreign exchange transactions of the amounts to be transferred under the employment contracts. Lack of compliance with this new rule is subject to a fine ranging between 5 and 10 times the company’s average monthly salary.
    
    
  • The fines for lack of registration of the employment contract and/or failure to cancel it upon termination also range between 5 and 10 times the company’s average monthly salary.
    
    

For more information, please contact the following Miranda Alliance’s members:

Jayr Fernandes
[email protected]

Elieser Corte Real
[email protected]

Nuno Gouveia
[email protected]