The Angolan Parliament has approved in general a proposal for a new General Labor Law (“New LGT”) that introduces several changes to the regime in force since 2015. We are still waiting for approval in detail and publication of the final bill. Therefore, this article highlights only, in a very summarized way, some of the novelties that appear in the proposal and that are assumed to be final, with the necessary reservation that adjustments may be made until the law is published.
What’s new in labor laws in Angola?
The proposed law establishes an indefinite employment contract as the rule, thus aligning with the regime that was in force under Law No. 2/00 of February 11. As a result, fixed-term contracts will be required to be made in writing and will only be exceptional, whenever certain conditions are met, either related to the nature of the activity or the functions to be performed by the hired worker, or to the transient needs that justify the temporary hiring of a worker.
The proposal for the new labor rules in Angola does not contain transitional provisions specifically regulating how fixed-term employment contracts in force, without a justification clause, because it was not required by the current law, should be managed at the time the new LGT enters into force. If the general rule is that the law applies to the future, in practice it may be convenient for the employer to conclude an addendum to the contract reinforcing its provisional nature under one of the circumstances that are now expressly defined in the law.
This return to the rule that was in force until 2015 is believed to be based on the observance of the constitutional principles of stability and security in employment.
Another anticipated change in the proposed law is the elimination of the distinction between companies based on their size, with employers, regardless of the type of organization or company, being treated equally. This rule has an impact from the moment of hiring, with no distinction in the criteria for renewing fixed-term contracts, during the execution of the contract, and in the calculation of the amount of compensation for termination of the employment contract by the employer. Now, as under the 2000 law, a single criterion based on the employee’s length of service will be used to calculate compensation.
Regarding labor discipline, the proposal for the new LGT anticipates significant changes. One of them consists of the suppression of the prior inquiry, provided for in the current LGT. Regarding the disciplinary procedure itself, the draft law is more demanding regarding the fundamental elements of the summons, highlighting the legal requirement to identify, at that stage, the disciplinary measure that is intended to be applied, and that a more severe sanction than the one provided for should not be applied at the end of the process. Another noteworthy aspect relates to the fact that the current LGT is not explicit regarding the minimum deadline for conducting the interview after the summons is delivered to the worker – an omission that has caused much discussion in the context of legal proceedings.
The 6 (new) disciplinary measures
For the definitive clarification of this issue, already addressed by the Supreme Court, the proposed law determines that the interview must always take place within a period not less than 5 working days and not more than 10 working days from the date of delivery of the summons to the worker, thus safeguarding a minimum period for the worker to prepare their defense. In the field of labor discipline, an extension of the catalog of disciplinary measures is anticipated, from four to six, namely:
- (i) Verbal reprimand,
- (ii) Written reprimand,
- (iii) Temporary demotion,
- (iv) Temporary salary reduction,
- (v) Suspension without pay, and
- (vi) Dismissal for disciplinary reasons.
The proposal of the new LGT is silent (and may still be corrected in the approval process) regarding the maximum period for which the worker may be subject to temporary demotion.
The regulation of extrajudicial resolution modalities for labor disputes, such as Mediation, carried out at the General Inspection of Labor, or Conciliation, carried out at the Attorney General’s Office of the District Court, is deferred to the future Labor Process Code.
The impact of the new law in Angola
The entry into force of a new General Labor Law in Angola will undoubtedly have an impact on existing labor relations and the way in which new workers are hired. There has been much debate about the balance between strengthening worker protections and the impact that some of the announced rules will have on the competitiveness of the labor market itself. The country is thus paying close attention to the final text, which is expected to be published soon.