New Labor Laws Affect Employers of Foreign Workers
March 13, 2017
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Two new statutes effective immediately regulate rules on the hiring of foreign employees. The first statute establishes the minimum content of agreements for model fixed term and unlimited employment contracts and the second statute imposes new rules on the local labor quota. Both statutes repeal previous related rules.
Key Provisions
Key rules that the statutes implement include the following:
- Foreign employees are no longer subject to a minimum three-month term for certain positions approved by the General Inspectorate of Labor.
- A foreign employee’s salary must be paid in Kwanzas and the benefits or allowances paid by an employer (in cash or in kind) cannot exceed 50% of the base salary.
- An employer must still employ 70 local workers for every 30 foreign workers per the national quota, but the new statute clarifies that Angolan nationals and foreign employees qualify as local workers in this context.
- Employers must continue to register an employment contract entered into with a foreign national within 30 days at the Employment Centre. The registration now includes the payment of a registration fee of 5% of the total salary as stated in the contract, not only the base salary, as was previously required. Companies must still deregister upon termination of the contract.
- Employers must submit a copy of the job description approved by the General Inspectorate of Labor during registration of the employment contract.
Penalties for Noncompliance
Employers that violate the new rules are subject to the following penalties:
- Breaching the local worker rule: between seven and ten times the company’s average monthly salary.
- Foreign exchange transaction violations involving employment contracts: fines between five and ten times the company’s average monthly salary.
- Failing to register or cancel an employment contract: fines between five and ten times the company’s average monthly salary.
What This Means for Employers and Foreign Nationals
Employers must comply with the new statutes to avoid fines. Affected companies should contact their immigration professional for further advice.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
