Guide to employment, payroll and benefits in

Lesotho

Rivermate offers complete payroll, benefits and compliance services for

Lesotho

01. Overview

Last updated: 

August 19, 2021

Currency
Lesotho Loti
Capital
Maseru
Ease of doing business
59.4
Language
English
Population
2142249
GDP growth
-2.29%

02. Grow your team in

Lesotho

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Lesotho

, particularly if you don't have established local relationships. You can hire employees in

Lesotho

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Lesotho, officially the Kingdom of Lesotho, is a small enclave on the South African border. It is by far the largest of the world's three independent states entirely surrounded by another country, the other two being Vatican City and San Marino. It is also the only state of its kind outside of the Italian peninsula, and the only one that isn't a microstate. Lesotho has a population of about 2 million people and a land area of just over 30,000 km2. Maseru is the country's capital and largest city. Sesotho and English are the official languages. Lesotho was formerly known as the British Crown Colony of Basutoland, but on October 4, 1966, it proclaimed independence from the United Kingdom. It is now a fully independent country that belongs to the UN, Commonwealth of Nations, African Union, and Southern African Development Community. The name Lesotho means "land of the Sotho" in English.

04. Public holidays

05. Types of leave

Paid time off

Public holidays

Sick days

Maternity leave

Paternity leave

Parental leave

Other leave

06. Employment termination

Termination process

Employment contracts in Lesotho can be oral or written, but it is better to have a robust, written contract in English that details the employee's remuneration, perks, and termination criteria.

Notice period

The following are the required notice periods. The notice period is one month for employment of one year or more. The notice period is two weeks for employment lasting more than six months but less than one year. The notice period is one week for employment of less than six months.

Severance pay

The severance payment is tantamount to half of the monthly salary of the employee multiplied by the number of years the employee has worked for the company.

Probation period

The Labour Code establishes a four-month probationary period as the maximum. After completing the probationary period successfully, the employment automatically converts to a permanent position for an indefinite period.

07. Working hours

General

In a five- or six-day reference period, normal working hours are 45 hours per week. Daily working hours are 9 hours for a five-day workweek, while for a six-day workweek, daily working hours are 8 hours for five days and 5 hours for the sixth.


Working hours provisions do not apply to employees in family businesses or to employees in management positions.


Compensation for working on a weekly rest day/public holiday is 100%, which means that workers earn 200 percent of their normal wage rate on weekly rest days and/or public holidays. Employers have the option of paying double wages or providing a fully compensated compensatory rest day on public holidays.

Overtime

Overtime (time worked in excess of normal working hours) is permitted only in exceptional and time-limited circumstances. Overtime work in general cannot exceed 11 hours per week, with the exceptions noted above.


Overtime pay is paid in addition to the employee's pay for comparable work performed during normal working hours. The overtime supplement is at least 25%, which means that employees are compensated at 125 percent of their regular wage for overtime hours worked.

08. Minimum wage

General

Lesotho's minimum wage varies according to sector and can range between 686 and 5,711 maloti per month.

09. Employee benefits

General

When creating a Lesotho benefits management plan, your first priority should be to include statutory benefits. Employees have the right to at least 12 working days of annual leave per year, or one day for every month of continuous employment with your company. They can also choose to receive a cash payment and take only six days of statutory annual leave. Lesotho also observes ten public holidays, which are required to be paid days off for employees under the Public Holidays Act.

Maternity leave should be at least 14 weeks long, and female employees should be paid at least two-thirds of their regular salary while on leave. Employees should have free access to medical and midwife care, and they should be protected from dismissal or other discriminatory treatment while on leave.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Lesotho

to hire a team takes time, money, and effort. The labor law in

Lesotho

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Lesotho

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Lesotho

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Lesotho

via our Employer of Record / PEO solution.

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