Dismissals and Termination of Employment in Angola

Permanent employment contract may only be unilaterally terminated by the employer:

1. based on subjective grounds, namely, unlawful or inadequate conduct or behaviour of the employee for which a prior disciplinary process is required (disciplinary dismissal) or
2. based on objective grounds, namely closure of the company (including dissolution and liquidation), elimination of job positions and downsizing;

All of them are in strict compliance with the procedure provided by the law, as further addressed below.

The disciplinary dismissal may occur whenever an employee commits a disciplinary offence that is serious, and its consequences make it immediately and practically impossible for the employment contract to remain in force.

Disciplinary offences that may be deemed sufficient for the employee´s disciplinary dismissal include the following:

1. Serious or repeated insubordination to legitimate orders by any responsible person in a hierarchically superior position;
2. Physical violence or verbal abuse to co-workers, employee or hierarchical superiors;
3. Disruptive misconduct that affects the workplace activities;
4. Theft, fraud, or breach of trust within the company or during working hours;
5. Breach of professional secrecy or disloyalty resulting in serious damages to the company;
6. Serious damages to the company´s assets;
7. Active or passive corruption involving the company´s assets and interests; 
8. Intoxication or substance abuse with negative work repercussions;
9. Breaches of health, hygiene or safety regulations;
10. Sexual harassment;

It is deemed an “objective reason” when the employer is forced to reduce the level of its activities or close certain segments of business, or otherwise reorganise its operations in a way that requires a reduction in the number of employees. The GLL provides for two main types of redundancy procedures:

1. Collective dismissal – When the redundancy affects six or more employees;
2. Individual redundancy – When the redundancy affects up to 5 employees.

The disciplinary dismissal requires a disciplinary procedure that starts with the employer serving the employee with a notice (the ‟Notice”) describing in detail the facts that are deemed a disciplinary offence as well as setting a time and place for the employee to attend a disciplinary interview.

The Notice must be served to the employee in the following 22 business days after the employer becomes aware of the disciplinary offence.

The disciplinary interview starts with the employer or an appointed instructor explaining the facts charged to the employee and then listening to the employee´s defense as well as the comments of those attending the disciplinary interview.

The employer must issue a final decision describing the actions/omissions charged to the employee and their consequences, as well as the result of the disciplinary interview, within three business days to 30 days following the disciplinary interview.

The employee is informed of the dismissal decision in writing.

In case of dismissal for objective reasons, the employer must send an initial notice to the General Inspectorate of Labour (“GIL”), informing them of its intention to dismiss the employees, the reasons for redundancy, and other information deemed useful.

During the following 22 or 15 business days (for collective or individual dismissal, respectively), the GIL may take the actions deemed necessary to obtain clarification on employees´ redundancy and advise the employer of any non-compliance.

Upon elapsing the aforesaid deadlines, if the employer decides to proceed with the dismissal, it is required to serve the employees to be dismissed with advance notice, informing the reasons and termination date as well as a description of the amount, time and payment method of compensations due for the termination of the employment contract for objective reasons.

In case of disciplinary dismissal, no notice period is required. The employee is considered to be dismissed as soon as he/she is effectively notified of the dismissal decision.

In case of objective dismissal, the employer is required to serve the employees to be dismissed with a 60 or 30-days advance notice (for collective or individual dismissal, respectively).

In case of disciplinary dismissal, if the employee is a member of an employee representative body, the preventive suspension of the employee is notified to the respective entity.

If the employee is a member of a union, the disciplinary dismissal is notified to the respective entity, which may issue a written opinion within 10 business days.

An employee representative is not involved in objective dismissal.

In case of disciplinary dismissal, the union is not involved unless the employee is a member of a trade union representative.

In case of objective dismissal, the communication on the collective dismissal must be sent to the trade union.

No approval is required, although GIL will participate in the objective dismissal procedure to verify compliance with procedural requirements and advise the employer of any irregularity verified.

There is a collective dismissal if 6 or more employees are covered by the redundancy, as described above.

Dismissal without ground is not allowed under the GLL.

A dismissal is unlawful if judicially declared null or void if there is no cause or in case of failure to comply with mandatory procedures.

A dismissal may also be deemed as carried out under abusive use of disciplinary power if it is based on:

1.  an employee´s legitimate complaint regarding working conditions and breach of their rights; or
2. due to the employee carrying out or standing for a position as a trade union representative or an employee’s representative body

Employees will always be entitled to receive certain labour credits by reference to the contract’s termination date, such as:

• Salaries until termination;
• Annual paid leave and unused vacation;
• Holiday allowance proportional to the work performed in the termination year;
• Christmas allowance proportional to the work performed in the termination year;
•  Any other outstanding labour credits.

An employee subject to a disciplinary dismissal under abusive use of disciplinary power by the employer is entitled to reinstatement and payment of the salaries due from the termination date until the effective reinstatement date or (alternatively and only if the employee chooses not to be reinstated), payment of compensation in an amount corresponding to five base salaries and 50% of the base salary per year of seniority.

An unfavourable final ruling by the Angolan Labour Courts for unlawful dismissal for objective reasons could trigger the following consequences/effects:

1. Reinstatement of the relevant employees, with the respective seniority and former professional category, or, alternatively, payment of compensation in an amount corresponding to 50% of the base salary per year of seniority.
2. Payment of the salaries due to the employees from the termination date until the date of the final ruling by the Court, up to a maximum of 6 months’ salaries.
3. Employees’ right to an indemnity for all losses suffered (property damages and personal injuries).

In addition to the labour credits described above, each employee made redundant is entitled to severance payment corresponding to one base salary for each year of effective service up to the limit of 5 and 50% per cent for the remaining years.

Non-competition clauses may be negotiated and entered into during the professional relationship.

1. A post-contractual non-compete clause may also be included in the contract. The following limitations and requirements apply: it must be part of a written agreement, namely the employment contract or its amendment;
2. The performance of such activity may cause damages to the employer and be deemed as unfair competition;
3. The obligation may not last longer than three years after the termination of the employment contract
4. The employee must be granted, during the period of limitation of the activity, compensation.

Not applicable.

As a rule, Directors may be removed (with or without cause) by the shareholders upon resolution of the general assembly. Directors may be removed by the court, and those appointed by the state or state entities can only be removed by these entities.

The dismissal, removal and appointment of directors is subject to registration with the relevant Registry of Companies.

The company may request the dismissal of the director with just cause whenever a serious breach of the director´s duties towards the company has taken place, which affects the director´s liability to fulfil the normal performance of his/her duties.

A resolution to dismiss a director with just cause may be passed by shareholders by a simple majority.

If there is cause, any of the shareholders may request that the director be suspended and dismissed by means of a legal action to be submitted to the company.

Where there is no cause, the company´s by-laws may determine specific majority rules for the director´s dismissal.

No notice period. Dismissal takes effect as soon as the director is notified.

Not applicable

Not applicable.

Not applicable.

Not applicable.

Not applicable.

The Angolan Companies Code does not foresee any specific consequences if any requirements are not met. Contractual and legal penalties may be applicable; however, if a resolution to dismiss a director is passed without cause (or deemed by a court to be without just cause following a legal challenge by the director), then the director is entitled to compensation for the damages suffered.

In limited companies (“sociedades por quotas”), if there is no cause, the Director is entitled to the remuneration for the time remaining to complete the mandate or, if the mandate is of undefined duration, a compensation corresponding to six months remuneration.

A decision to dismiss a director without cause (or deemed by a court to be without cause following a legal challenge by the director) entitles the director to compensation for the damages suffered.

Non-competition clauses may be negotiated.

Not applicable.