Mauritius

The employment contracts and conditions are governed by the provisions of the Workers’ Rights Act 2019 (WRA), as amended from time to time. The stipulated conditions include working hours, compensation, leave periods, termination of the contract and any other employment rules and/or employee benefits.

At the time of signature of the contract, neither the employer nor the employee are able to fully appraise the reality of the employment. The probation period is decided contractually and offers a ‘round of observation’ to both parties- an appraisal of the employee’s ability to fulfil his obligations and the employer’s ability to offer a position that suits the employee.

The probation period is defined in the contract of employment and can stretch for a period between one to six months. Should the employer not be fully satisfied with the employee’s performance, the probation period can be further extended, during which corrective measures and adjustments are carried out. The employer normally reserves the right not to proceed with the confirmation of the contract if the probation period is not successful. However, under the WRA, the employer may not unilaterally and without adequate notice terminate the employee’s employment.

1. Annual leave

Full-time workers are entitled to 20 (twenty) days annual leave and 2 days additional leave on full pay after 12 (twelve) months of continuous employment with the same employer. Unused annual leave is refundable. A worker with less than 12 (twelve) months of continuous employment nevertheless has 1 day of annual leave after every 6 months of continuous employment without any absence.

2. Sick leave

Full-time workers are entitled to 15 (fifteen) days sick leave on full pay after 12 (twelve) months of continuous employment with the same employer. The worker is entitled to accumulate a maximum of 90 (ninety) days of sick leave for unused sick leave. A worker with less than 12(twelve) months of continuous employment nevertheless has 1 day of sick leave after every 6 months of continuous employment without any absence.

3. Maternity leave

Female employees are entitled to 14 (fourteen) weeks of maternity leave on full pay to be taken before confinement, provided that at least 7 weeks of maternity leave will be taken immediately following confinement, or after confinement. She may be entitled to Rs 3,000 (three thousand) as maternity allowance following 12 (twelve) months of continuous employment with the same employer.

4. Paternity leave

Where the spouse of a full-time male employee, who has been in continuous employment for 12 (twelve) consecutive months, gives birth to a child, the male employee will be entitled to 5 continuous working days of paternity leave on full pay which shall be taken within 2 weeks of the birth of the child. To effect paternity leave, a medical certificate confirming the birth of the child and a written statement signed by the employee stating that himself and his spouse live under the same roof must be produced.  If the employee has been in employment with an employer for less than 12 (twelve) months, the worker is still entitled to paternity leave. However, such paternity leave will be without pay.

5. Employer-paid leave

Under a new “vacation leave” entitlement, employees will be eligible for 30 (thirty) days’ paid leave after every 5 consecutive years of service. The 5 consecutive years start running as from 2019. This would be in addition to the minimum of paid annual leave of 20 (twenty) days. The vacation leave can be taken all at once or in multiple periods, but unused vacation leave will not accumulate. Calculation of service for the subsequent five-year period commences only once staff members have used all their current vacation leave entitlement.

6. Adoption leave

Female employees are eligible for 14 (fourteen) weeks of paid adoption leave after 1 year of service. Male employees are entitled to 5 days of paid paternity leave for an adoption irrespective of length of service. Previously, 1 year of service was required.

7. Other leave entitlements

Staff are now entitled to paid leave for a variety of life events, including their first marriage (6 days), the marriage of a child (3 days) and the death of an immediate family member (3 days).

An employer may terminate an employee’s contract of employment by giving at least 30 (thirty) days’ notice (or such extended period provided in writing in the contract of employment). Such notice may be given in writing or orally. The employer must state the reason of termination. A certificate of employment shall be remitted to the employee within 7 days upon the termination of their employment.

Alternatively, an employer may terminate an employee’s contract on grounds of poor performance or alleged misconduct. 

In the case of poor performance, the employee shall be given at least 7 days to answer any charge against them on a disciplinary hearing. The employer shall terminate the contract only if the employer cannot, in good faith, take any other course of action. Termination is in effect within 7 days of completion of the disciplinary hearing.

In the case of any alleged misconduct, the employer must notify the employee of the charge within 10 days of the employer becoming aware of the alleged misconduct and should allow the employee at least 7 days to answer the charge on a disciplinary hearing. Again, the employer shall terminate the contract only if the employer cannot, in good faith, take any other course of action, and the termination is in effect within 7 days of completion of the disciplinary hearing.

A contract of employment may in no event be terminated by an employer by reason of discrimination, an employee being a member participating in trade union activities, or an employee filing a complaint against their employer for breach of their conditions of employment.

As far as reduction of workforce is concerned, companies with 15 (fifteen) or more employees and an annual revenue exceeding Rs 25 000 000 (twenty-five million) are subject to information and consultation requirements before implementing temporary or permanent reductions in force (RIF). Prior to initiating a RIF, management must notify the union or employee representatives and negotiate possible means to avoid a RIF (e.g., retirements, reducing working time or re-deploying staff). If no agreement is reached, the company must provide 30 (thirty) days’ written notice of the RIF and its reasons to the Redundancy Board. The Redundancy Board has been set up to deal with cases of RIF and closure of enterprises for economic, financial, structural, technological or any similar reasons. The Board shall complete its proceedings within 30 (thirty) days from the date of notification by the employer (although any extension of time shall be agreed between the parties). If RIF grounds are deemed unjust, the Board may order reinstatement and/or payment of severance equal to 3 months’ pay per year of service.

Written mutual agreements to address disputes relating to termination or the non-payment of wages are now valid only if the employee had received advice from a relevant independent advisor (i.e., a qualified lawyer, a trade union official or an officer of the Ministry of Labour). Previously, such advice was not required.

Non-citizens wishing to either work, retire or reside in Mauritius can choose between an Occupation Permit, a Residence Permit or a Permanent Residence Permit.

Working in Mauritius

1. Occupation Permit

The Occupation Permit (OP) is a combined work and residence permit which allows foreign nationals to work and reside in Mauritius under the following 3 specific categories: Investor, Professional or Self-Employed. An application for the OP, when complete, is processed in 5 working days except for regulated activities.

2001. Investor: An Investor, as characterized under the Immigration Act 1970, is a shareholder and director in a company incorporated in Mauritius under the Companies Act 2001. The latter is eligible to apply for an Investor OP under the following options:

–       minimum transfer from abroad of USD$ 100,000 (one hundred thousand) into the company’s bank account; and

–       director and shareholder of the company.

1. Professional: A professional, as characterized under the Immigration Act, is an expatriate employed in Mauritius by virtue of a contract of employment. The criteria for this permit are as follows:

–               minimum basic salary of Rs 60,000 (sixty thousand), approximately USD$1,500 (one thousand five hundred);

–               minimum basic salary of Rs 30,000 (thirty thousand), approximately USD$ 750 (seven hundred and fifty) (for ICT/ BPO Sector)

Professionals may also apply for a short-term OP for a period not exceeding 9 months. The OP may be extended only once for a period not exceeding 3 months.

iii.           Self-employed: A Self-Employed is defined as a non-citizen engaged in a professional activity under the services sector only and registered with the Registrar of Businesses under the Business Registration Act 2002; operating a one-person business activity, working exclusively for his/her own. The self-employed criteria are as follows:

–               an initial transfer of USD$ 35,000 (thirty-five thousand) or its equivalent in freely convertible foreign currency to his/her local bank account in Mauritius; and

–               for renewal of permit, the business activity should generate a business income of Rs 800,000 (eight hundred thousand) Mauritian Rupees per year, an approximate of USD$ 19,950 (nineteen thousand, nine hundred and fifty).

The procedures for obtaining this permit are outlined below:

A registration form should be filled in and submitted to the Economic Development Board (formerly the Board of Investment). An investor or self-employed must provide details about his/her business project concerning a proposed investment level, the amount to be transferred to Mauritius and the expected annual business turnover/income. In the case of a professional, the employer must submit a copy of the contract of employment.

To be eligible for a work permit in Mauritius, the applicant should be between 20 (twenty) and 60 (sixty) years old. Exceptions to this requirement may be made for workers with specific expertise.

The application for a Work and Residence Permit requires the following documents:

–       completed application form

–       4 passport photos;

–       copies of the data pages of the applicant’s passport;

–       completed data sheet;

–       copies of the professional and academic qualifications of the applicant;

–       description of the job issued by the employer;

–       details of the prior work experience of the prospective employee;

–       certificate of health issued to the applicant by the Ministry of Health and Quality of Life;

–       a copy of the employer’s Certificate of Incorporation and its business registration card;

–       the Contract of Employment that has been approved by the Labour Division with a minimum salary of Rs 30,000 (thirty thousand) Mauritian Rupees; and

–       proof that the job opening and the number of employees required were posted in 2 or more newspapers in A5 format.

1. Procedure of obtaining a Mauritius Working Visa
2. Foreign nationals will need a Residence Permit as well as a Work Permit to be employed in Mauritius legally. Because both permits are necessary, applicants may fill out a common form for both permits. The form can be found on the website of the Ministry of Labour, Industrial Relations, Employment, and Training. Applicants should note that applications must be submitted online through the e-Work Permit Portal.
3. Upon entering the e-Work Permit Portal, applicants will be prompted to register and proceed with the application process.

While there is a common application for Residence and Work Permits, employees should be aware that these permits are issued through separate entities. Residence Permits are granted by the Passport and Immigration Office, while Work Permits are issued by the Ministry of Labour, Industrial Relations, Employment, and Training.

The employer may apply for a Mauritius work permit on behalf of the prospective employee. If this is the first time the company has applied for a work permit, a completed application form must be submitted along with a certified copy of the bylaws of the company.

Other Unique and Important Considerations for Foreign Workers in Mauritius

There are a few more things employees should keep in mind regarding employment in Mauritius:

1. Expatriates who are married to Mauritian citizens do not require a work permit. Employees may apply for a Permanent Residence Permit after 3 years of living in Mauritius. Despite the name of this permit, it is valid for 10 years.

1. Work permit applications from companies outside of Mauritius will only be accepted if they are incorporated in Mauritius as a foreign company. If your company does not have an established presence in Mauritius, you can still meet this requirement by using a global PEO as your Employer of Record.

Residency in Mauritius

1. Premium Visa

Exempted non-citizens include individuals coming to Mauritius for temporary purposes such as for tourism, for business or social visits, as crew members, as diplomatic or consular officers, as army officers in connection with the defence of Mauritius, to take up position in the public service of Mauritius, and as students attending an educational or training establishment in Mauritius. Exempted non-citizens are allowed to enter and remain in Mauritius as long as they hold the status of exempted persons.

The Premium visa is valid for a period of one year renewable. Travel and health insurance would be required. The source of income should be outside Mauritius.

To qualify, you must meet the following criteria:

• be able to produce proof of your long stay plans, accommodation and the purpose of your visit;
• have sufficient travel and health insurance;
• work remotely from the island but cannot enter the Mauritius labour market;
• main place of business and source of income and profits should be outside of Mauritius; and
• meet other basic immigration requirements.

Documents required include:

• A valid passport;
• Copy of air ticket (including reservation for return ticket);
• A passport size photograph;
• A valid email address;
• Pre-booking for accommodation after quarantine period;
• Travel and health insurance for the period of stay;
• Copy of marriage certificate (for dependent spouse, if any);
• Letter certifying parental consent for dependent child where the child is accompanied by only one parent; and
• Proof of funds to meet the cost of stay in Mauritius (minimum amount of USD$ 1500/EUR 1300 per month for each applicant and minimum amount of USD$ 500/EUR 400 per month for each dependent below 24 years old). Proof of funds can be in the form of a bank statement/bank attestation or an employment contract for a professional working remotely.

1. Retired Non-citizen

A non-citizen of Mauritius, who is retired and aged 50 or above, may apply for a Mauritius Residence Permit as a Retired Non-citizen. The validity of a Residence Permit for retirees is up to 10 years renewable. An initial transfer to Mauritius of at least USD$ 1500 (one thousand, five hundred) or its equivalent is required. Thereafter, at the end of each year, the Retired Non-Citizen should submit evidence of transfer of funds into his or her bank account in Mauritius equivalent to a monthly amount of at least USD$ 1500 (one thousand, five hundred).

A Retired Non-citizen is not allowed to engage into gainful activity in Mauritius. However, the Retired Non-Citizen may invest in any business venture provided that he is not employed in the business, does not manage the business, and does not derive any employment benefits from the business.

The process to apply for a Mauritius Residence Permit as a retired non-citizen is as follows:

• A registration form should be filled in and submitted to the Economic Development Board (formerly the Board of Investment Mauritius (BOI)). The applicant must indicate the annual amount and the name and relevant coordinates of the bank through which the transfer will be made. Upon BOI being satisfied, a registration certificate will may be issued to the applicant.
• After registration, an application for a Residence Permit should be made on the “Application for Residence Permit – Retired Non-citizen” form.

Documents needed include:

• Copy of passport details (personal data and visa pages);
• copy of birth certificate (If not in English or French, an authorized translated copy to be produced);
• four recent passport sized photographs;
• a medical certificate issued by a doctor in Mauritius, together with reports of HIV test, Hepatitis B Surface Antigen and chest x-ray;
• bank guarantee of Rs 50,000 (USD$1200 ) made in favour of the Government of Mauritius; and
• residence Permit fee of Rs 10,000 payable by a bank cheque drawn to the order of the Government of Mauritius.

For spouse and dependents, (if any), an application for a normal residence permit should be made on the form “Application to enter Mauritius” and submitted along with the following documents:

• copy of marriage certificate or documentary evidence of civil partnership/common law partner;
• copy of passport details of each dependent (personal data and visa pages);
• copy of birth certificate of each dependent;
• copy of certificate of adoption in case of a legally adopted child;
• four recent passport sized photographs of each dependent;
• medical certificate issued by a doctor in Mauritius for each dependent; and
• bank guarantee in favour of the Government of Mauritius, as a security deposit, for each dependent. For the amount required, please enquire at the Occupation Permit Unit.

The Workers’ Rights Act coverage

All employees earning up to Rs 600,000 (six hundred thousand) Mauritian Rupees a year are covered by the WRA (previously up to Rs 360,000 under the Employment Rights Act 2008 “ERA”). As with the ERA, certain significant WRA provisions also apply to employees earning above the ceiling (e.g., severance, family leave).

2. Retirement Gratuity calculation and the Portable Retirement Gratuity Fund (PRGF)

The mandatory minimum gratuity will be payable to employees at retirement (age 60 or by agreement) or upon death or permanent disability. Employers may meet the gratuity requirement via the provision of a qualifying retirement plan.

The existing defined benefit gratuity formula (15 days’ pay multiplied by years of service) will be retained and applied separately to service with each employer. Payment will continue to be based on the greater of the employee’s final month’s earnings or average monthly earnings over the prior 12 (twelve) months, including commissions (up to Rs 1.2 million) and any other regular payments.   

4. Employers must contribute monthly to individual PRGF accounts for all non-exempt employees at a percentage of monthly pay (expected to be 4.5% when published).
5. When an employee separates from his or her employer (voluntarily or involuntarily), the value of the employee’s PRGF accumulated account balance in respect of service with the employer is compared with the calculated retirement gratuity amount for that service.

If the PRGF balance is less than the gratuity, the employer must make a top-up contribution to the PRGF. If it is greater, the employer may use the surplus to meet unpaid ongoing or past service PRGF contributions. The benefit ultimately paid out (upon retirement, death or permanent disability) is the PRGF account balance.

1. Working time

Overtime is now defined as daily working time in excess of a “normal” workday (i.e., nine hours for a five-day workweek). Previously, work was only considered overtime when in excess of 90 (ninety) hours over a two-week period.  The maximum workday (inclusive of overtime) is 12 (twelve) hours (previously undefined). Staff with children under age four may request a flexible work schedule, and employers must grant such requests unless there are reasonable business grounds to refuse.

2. Compensation

The mandatory end-of-year bonus (payable to workers in employment as of 31 December) is now also payable in the event of dismissal for any reason or upon resignation (with eight months of service). In addition, earnings used in calculating the bonus amount (one-twelfth of the employee’s total cash compensation — both fixed and variable — during the calendar year) now also includes commissions (previously excluded).

A Wage Guarantee Fund Account has been created (within the existing Workfare Fund) to pay workers’ wages due or unpaid PRGF contributions in the event of employer bankruptcy (up to Rs 50,000 (fifty thousand) per employee). The existing Workfare Fund provides retraining and unemployment benefits and is funded by employer and employee contributions of 1.0% of pay (payable by each).

3. Fixed-term and part-time contracts

Whereas the prior act had no specific provisions on fixed-term and part-time employment contracts, the WRA restricts the use of fixed-term agreements to specific instances where the nature of the work involved requires it (such as seasonal work and specific projects) and provides that part-time employees should be treated no less favourably than comparable full-time workers (pro rata to hours of work, as appropriate).