Fixed-Term Contracts in Mozambique: Limits & Renewals

A fixed-term contract in Mozambique is a type of employment contract entered into to perform temporary tasks, for as long as necessary, under Article 41 of Labour Law 13/2023 (Labour Code).

It has a maximum duration of 2 years, can be renewed up to 2 times, and automatically converts into an open-ended contract if these limits are exceeded or if it is used for permanent company needs.

If you currently have a fixed-term contract, or if your company is preparing to hire under one, this guide brings together the practical rules: when this contract type is lawful, what the written agreement must include, how renewal terms work, and when the contract becomes open-ended. Everything comes with references to specific articles of Labour Law 13/2023, in force since 21 February 2024.

The essentials in 30 seconds

• Fixed-term contracts last for a maximum of 2 years and can be renewed up to 2 times by mutual agreement (Article 43(1)).
• They only cover temporary tasks: replacing an absent worker, exceptional or seasonal increases in production, specific projects, among 7 other cases under Article 41(2).
• Failing to state the term or rationale, breaching legal limits, or using fixed-term contracts for permanent needs converts the contract into an open-ended contract (Articles 40, 42, and 43).
• To prevent renewal, notice must be given 15 days in advance (for contracts of 3 months to 1 year) or 30 days in advance (for contracts over 1 year) — Article 43(5).
• Contract expiry at the end of the term does not entitle the worker to severance pay (Article 136(3)).

What is a fixed-term contract in Mozambique

Law 13/2023 recognizes three types of employment contract duration: open-ended, fixed-term, and unfixed-term (Article 42(1)). Open-ended contracts are the standard rule in Mozambique — if a contract does not specify its duration, it is presumed to be open-ended (Article 42(2)). Fixed-term contracts are the exception, and that exception comes with one central requirement: the task must be temporary.

A fixed-term contract is one where both parties set a specific start date and end date. Article 41(1) states that this contract can only be signed "to perform temporary tasks and for the period necessary for that purpose."

In other words: duration is not a negotiable detail — it is a direct result of the task itself. A 3-month seasonal campaign calls for a 3-month contract; an 18-month construction project calls for an 18-month contract.

An unfixed-term contract applies when you know the task is temporary, but you cannot accurately predict when the justification for it will end — specifically in the cases outlined in Article 41(2) (Article 45). This is a more restrictive option: it only applies when the duration simply cannot be foreseen, and it comes with its own limits, which we cover below.

When fixed-term contracts can be used: the 7 temporary needs

Article 41(2) of Labour Law 13/2023 lists the situations that the law considers temporary needs. The list is illustrative (“among others”), but it serves as the starting point for assessing whether hiring on a fixed-term basis is lawful:

• Replacing a worker who, for any reason, is temporarily unable to perform their duties (paragraph a));
• Exceptional or abnormal increase in production (paragraph b));
• Seasonal activity (paragraph c)) — typical examples include agricultural campaigns and peak tourist seasons;
• Activities that do not address the employer's permanent needs (paragraph d));
• Specific and temporary work, project, or activity, including civil construction, public works, and contracted industrial repairs (paragraph e));
• Services complementary to the above, namely subcontracting and outsourcing of services (paragraph f));
• Execution of non-permanent activities (paragraph g)).

The contrast lies in paragraph 3 of the same article: permanent needs are defined as vacancies included in the company's staffing plan, or those that, even outside the staffing plan, correspond to the normal cycle of production or operations.

If the role is part of the normal cycle — a line operator, a retail sales assistant, an administrator — fixed-term hiring strays from the standard rule, and the law provides for the consequence: conversion into an open-ended contract (Article 43(4)).

In everyday practice, legitimate cases appear mostly in construction, agricultural campaigns, cover during maternity or sick leave, and contracted projects. The retail sector uses this option during seasonal peaks. When the same position reopens repeatedly, the right question to ask is always: is this a disguised permanent need?

What the contract must contain in writing

A written contract is the general rule for employment agreements (Article 39(1)), with one narrow exception: fixed-term contracts for tasks lasting no longer than 90 days may be made verbally.

In addition, Article 39(4) requires a written contract, among other cases, for fixed-term contracts lasting more than 90 days. The document must be dated and signed by both parties, and must contain 8 mandatory clauses (Article 39(2)):

• identification of the employer and the worker;
• job category and agreed tasks or activities;
• place of work;
• duration of the contract and terms for its renewal;
• amount, method, and frequency of remuneration payment;
• start date of performance;
• statement of the agreed term and its justifying reason — this is the specific clause for fixed-term contracts (paragraph g));
• date of signing and, for fixed-term contracts, the termination date (paragraph h)).

The reason cannot be just a generic reference: Article 39(3) requires the justification to explicitly mention the facts behind it, establishing the link between the reason given and the fixed term. Simply writing "6-month term" without explaining why leaves the contract improperly drafted.

There are two key effects you should know. First, the lack of a written document does not affect the validity of the contract or the rights acquired by the worker, but it is presumed to be the employer's fault, leaving them subject to all legal consequences (Article 39(6)). Second, failing to state the term or the justifying reason in a fixed-term contract converts the agreement into an indefinite-term contract (Article 40(7)).

Durations and renewals: the 2-year limit

The core rule is set out in Article 43(1): a fixed-term contract is entered into for a period of no more than 2 years and may be renewed up to 2 times by mutual agreement, without prejudice to the rules governing micro, small, and medium-sized employers.

In the absence of an express declaration, renewal occurs automatically: the contract renews for a period equal to the initial term, unless the contract states otherwise (Art. 44). There is also a detail that simplifies tracking: a fixed-term contract whose initial agreed term is renewed is considered a single contract (Art. 44(3)) — renewals count within the same contract, not as new contracts.

If either party does not intend to renew, advance notice is mandatory (Art. 43(5)):

• 15 days, if the contract term is between 3 months and 1 year;
• 30 days, if the contract duration is more than 1 year.

Failure to give this notice entitles the affected party to compensation equal to the remuneration the employee would have received during the notice period (Art. 43(6)). Pay special attention to non-renewal clauses: if one exists and you continue working after the contract expires, it converts into a permanent contract (Art. 43(7)).

There is a special regime for smaller businesses: micro, small, and medium-sized employers can freely enter into fixed-term contracts during their first 8 years of operation (Art. 43(3)). This gives start-up companies legal leeway when they might not yet have a permanent workforce.

When a fixed-term contract converts into an open-ended contract

Conversion is the law's automatic penalty for misusing this contract type. Here are the situations provided for by law:

• Exceeding maximum duration or renewals — once 2 years or 2 renewals are exceeded, the contract is deemed to be open-ended (Article 43(2)); the parties can still choose the regime under paragraph 4 of the same article;
• Entering into a contract outside the scope of Article 41 — performing a task that is not temporary, or violating the limits in Article 43, converts the contract into an open-ended one (Article 43(4));
• No term or reason specified — omitting this information converts the contract into an open-ended one (Article 40(7)); the same applies if the duration is simply not stated (Article 42(2));
• Continuing work after a non-renewal clause — converts the contract into an open-ended one (Article 43(7));
• Long-term uncertain-term contract — an uncertain-term contract exceeding 6 years of service, whether continuous or interrupted by a period of no more than 6 months, converts into an open-ended one (Article 43(4));
• Remaining at work after expiry — in an uncertain-term contract, if the employee remains working after the date the expiry takes effect, 7 days after the return of the replaced employee, or after completing the activity for which they were hired, they are considered hired under an open-ended contract (Article 46(2)).

For uncertain-term contracts, notice of expiry must be communicated to the employee with a notice period of 15 days (length of service over 6 months and not exceeding 3 years) or 30 days (over 3 years and not exceeding 6 years) (Article 46(3)).

Furthermore, termination or dismissal without just cause of an uncertain-term worker entitles them to compensation of 45 days per year of service, or a pro-rata amount if length of service is less than 1 year (Article 46(7)).

Probationary period in fixed-term contracts

Fixed-term contracts can include a probationary period, but with shorter limits than open-ended contracts (Article 48(2)):

• 3 months for fixed-term contracts lasting over 1 year;
• 1 month for fixed-term contracts lasting more than 6 months and less than 1 year;
• 15 days for fixed-term contracts lasting up to 6 months;
• 15 days for contracts of unfixed duration when expected to last 90 days or more.

You can reduce this duration through a collective agreement or individual contract (Article 49), but reducing it does not allow you to extend the period later. For the complete rules on probationary periods in other contract types, our guide on Probationary period in Mozambique: rules and deadlines provides a full comparison.

End of contract term: notice of termination, just cause, and compensation

The ways a contract can end are set out in Article 135: expiry, mutual termination agreement, notice of termination by either party, and termination for just cause. At the natural end of the term, the rule is straightforward: the contract expires because the term has ended or the work is completed (Article 136(1)(a)) — and this expiry does not entitle the worker to compensation (Article 136(3)).

However, there are three situations where financial compensation comes into play. The first is termination by the employee of a fixed-term contract before its end date: this requires a minimum notice of 30 days; if you give less notice, you owe the employer compensation for losses and damages, up to a maximum of one month's pay (Article 140(2)).

The second is just cause: if you terminate a fixed-term contract for just cause, you are entitled to compensation equal to the salary you would have earned between the termination date and the agreed end date (Article 139(3)). The third is unfulfilled notice of non-renewal by the employer (Article 43(6)), which we covered earlier.

For the full picture on compensation and dismissal procedures, read our guides End of contract vs dismissal and Dismissal in Mozambique: compensation and just cause.

You can also read

• Employment contracts in Mozambique: types and rules — the general framework before looking at fixed-term contracts;
• Workers' rights in Mozambique: a practical guide — annual leave, statutory leave, and protections regardless of contract type;
• Labour Law 13/2023: what changed — the context of the law in force since 2024;
• Job vacancies open now on Inademy — if you are looking for work, here is the list with filters by sector and province.

In summary

Fixed-term contracts in Mozambique are for temporary tasks, run for a maximum of 2 years with 2 renewals, and require both the duration and reason in writing. Exceed any limit and the law converts it into an open-ended contract. Only sign yours once the clauses are verified — if in doubt, confirm your situation with an employment lawyer or the General Labour Inspectorate.

Frequently asked questions

How many times can a fixed-term contract be renewed?

Up to 2 times, by agreement between the parties (Article 43(1)). The renewal is considered part of a single contract (Article 44(3)), and the complete cycle — initial duration plus renewals — cannot exceed the limits in Article 43. If exceeded, the contract converts into an open-ended contract.

Does the end of a fixed-term contract entitle you to compensation?

In principle, no: expiration of the contract term does not give you a right to compensation (Article 136(3)). There are exceptions: non-renewal notice not given by the employer (Article 43(6)), termination for just cause (Article 139(3)), and resignation by the employee with less than 30 days' notice, which reverses the liability (Article 140(2)).

What happens if I keep working after the end of the term?

It depends. If there was a non-renewal clause and you continue working, the contract converts to an open-ended contract (Article 43(7)). For unfixed-term contracts, continuing to work after expiration, after the replaced employee returns, or after the project is completed creates a presumption of open-ended employment (Article 46(2)). In practice: do not keep working "by mistake" if you do not want this conversion.

Do small companies have a special scheme?

Yes. Micro, small, and medium-sized employers can freely enter into fixed-term contracts during the first 8 years of their activity (Article 43(3)). After that, the general rules of the same article apply.

Can a fixed-term contract be made verbally?

Only in one narrow case: a fixed-term contract for tasks lasting no more than 90 days (Article 39(1)). Beyond 90 days, a written contract is mandatory (Article 39(4)(b)) — and the lack of a written document does not invalidate the contract, but is presumed to be the employer's fault.

Can I terminate a fixed-term contract before it ends?

Yes, you can. Resignation on the employee's initiative requires at least 30 days' notice (Article 140(2)); with shorter notice, you must compensate the employer for losses up to a limit of 1 month's pay. If there is just cause — such as employer behavior that culpably violates your rights — termination entitles you to compensation equal to the remuneration due until the end of the term (Article 139(3)).

Sources

This guide is based on Law No. 13/2023 of 25 August (Labour Code, Official Gazette No. 165, Series I), in force since 21 February 2024: Articles 39, 40, 41, 42, 43, 44, 45, 46, 48, 49, 135, 136, 138, 139, and 140.

If there is any conflict between your actual contract and this text, the official authority is the Ministry supervising the Labour sector and the General Labour Inspectorate — and your specific situation may have unique details that an employment lawyer can confirm.

Official source: Law No. 13/2023 (Labour Law) is available as a PDF on the website of Mozambique's Supreme Court (Tribunal Supremo): official text (PDF).