Angolan Employment Law: A Guide for Employees and Employers

In Angola, employees are protected by the General Employment Law, which regulates the termination of employment contracts and provides for various rights and benefits. In this article, we will explore the key aspects of Angolan employment law, including redundancy, management representation, and taxation.

Redundancy and Management Representation

Employees are not entitled to management representation in corporate transactions such as mergers and acquisitions.
However, employees’ representatives may be consulted by the company in collective redundancies, but this is not mandatory.

Termination of Employment Contracts

The General Employment Law protects the right of employees to employment stability, prohibiting and severely sanctioning the termination of employment contracts on grounds other than those set out in the law or by mutual agreement. An employee can only be terminated for just cause, which includes:

Gross misconduct
Insolvency
Reduction in workforce due to economic reasons

Redundancy Entitlements

In the event of redundancy, employees are entitled to compensation depending on the size of the company. For large-sized companies, the compensation is equal to:

The basic monthly salary at the termination date multiplied by the number of years of service (up to five)

For medium-sized companies, the compensation is equal to:

The basic monthly salary at the termination date multiplied by the number of years of service (up to three)

Taxation

In Angola, employees are taxed on their employment income. Tax resident employees pay a progressive rate of up to 17% on their income, while non-tax resident employees are subject to the same taxation regime as tax resident employees.

Employers must:

Withhold income tax and social security contributions on behalf of their employees
Submit monthly tax returns
Provide receipts showing the amount of employment income paid to employees and tax withheld

Employees pay 3% of their salary as a social security contribution, while employers pay an additional 8% towards social security each month.

Conclusion

Angolan employment law provides for various rights and benefits for employees, including protection against unfair termination and entitlements in the event of redundancy. Employers must comply with taxation and social security obligations to ensure compliance with Angolan labor laws.

Sources:

General Employment Law
Angolan Tax Authorities
International Labor Organization

Note: This article is based on publicly available information and should not be considered as a legal advice. It is recommended that you consult with a qualified attorney or expert in Angolan employment law for specific guidance on your situation.