Employer of Record in Lesotho

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Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Lesotho . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our Employer of Record (EOR) solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Lesotho.

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1. Grow your team in Lesotho with Rivermate as your Employer of Record (EOR) / PEO

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 Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Summary

Lesotho is a landlocked nation enclaved by South Africa. Its official name is the Kingdom of Lesotho (Sotho: Naha ea Lesotho). It is a hilly nation with the highest mountains in Southern Africa, located in the Maloti Mountains. Lesotho has a population of roughly 2 million people and an area of little more than 30,000 km2 (11,600 sq mi). Maseru is its capital and major city. Sesotho and English are the official languages.

Lesotho was originally 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 autonomous state that belongs to the UN, the Commonwealth of Nations, the African Union, and the Southern African Development Community (SADC). Lesotho translates approximately as "land of the Sotho."

Hiring talented employees in a short span is not an easy task. Partnering with an Employer of Record (EOR) like Rivermate in Lesotho is your best option, giving your organization enough time to focus on other aspects of international expansions like project management and inventory management. The EOR takes care of all the compliance and legal issues while helping you speed up hiring using their knowledge of domestic employment practices and virtual onboarding tools. Top EORs also have provisions for the e-signing of documents to enable faster onboarding.

3. Public holidays

4. Types of leave

There is no information about the types of leave for this country.

Paid time off

Public holidays

Sick days

Maternity leave

Paternity leave

Parental leave

Other leave

5. Employment termination

There is no information about employment information for this country.

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.

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.

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.

6. Working hours

There is no information about the working hours for this country.

General working schedule

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 (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.

7. Minimum wage

There is no information about the minimum wage for this country.

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

8. Employee benefits

There is no information about the employee benefits for this country.

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.

9. Taxes

There is no information about the taxes for this country.

Corporate tax

Lesotho is a tax-free jurisdiction. Corporations are not subject to income, capital gains, profit, or other types of direct taxes, regardless of their residency status.

Individual income tax

Lesotho is a tax-free jurisdiction. Corporations are not subject to income, capital gains, profit, or other types of direct taxes, regardless of their residency status.

VAT, GST and sales tax

Lesotho is a tax-free jurisdiction. Corporations are not subject to income, capital gains, profit, or other types of direct taxes, regardless of their residency status.

10. VISA and work permits

There is no information about VISA and work permits for this country.

According to the Lesotho visa rules, certain passengers who want to enter the Lesotho border must apply for an e-Visa before arrival. This visa was created in order to provide the Lesotho government the ability to let visitors into the nation.

The Lesotho visa policy includes the e-Visa, which enables people to get this visa and utilize it to enter the country. Following acceptance, you will be entitled to enter, travel through, or reside in Lesotho, as well as depart Lesotho, according to the terms of your visa.

There are various standards that must be satisfied in order to get a Lesotho visa, and the application's success is reliant on certain facts. The nation from which the passenger holds a passport, the amount of time the traveler wishes to remain, and the reason for the traveler's visit to Lesotho are all required. Lesotho's Ministry of Foreign Affairs has just established the e-Visa, which is now accessible to nationals of over 100 countries. The e-Visa lets visitors to Lesotho for either tourism or commercial reasons, and allows them to remain in the Kingdom of Lesotho for up to 30 days each entry.

This procedure is completed entirely online and is a simple method to use. Once issued, this e-Visa is an electronic visa that must be shown to immigration officers upon arrival in Lesotho.

There are several countries that are excluded from the Lesotho visa policy, and its citizens do not need to apply for a visa before visiting the country. This list includes a large number of nations, which may be found below.

Lesotho's visa policy includes just one kind of visa. Travelers planning to visit Lesotho who do not have a passport that qualifies them for a visa exemption must apply online.

11. Employer Of Record service terms

There is no information about the Employer of Record (EoR) service terms for this country.

Employment contracts

Employment contracts in Lesotho may be oral or written, but it is best practice to have a firm, written contract in English that specifies out the conditions of the employee's remuneration, benefits, and termination criteria in place. In Lesotho, an offer letter and job contract should always mention the salary and any other remuneration amounts in Lesotho Loti rather than a foreign currency.

With Rivermate being your Employer of Record (EoR) in Lesotho, you do not have to worry about the employment contracts, as we take care of that.

Minimum assignment length

There is no set length for assignments. This is usually indicated in the employment contract for fixed-term employments.

Payment currency

Lesotho loti (LSL)

South African rand (SAR)

13.Opening a subsidiary in Lesotho

There is no information about the working hours for this country.

How to set up a subsidiary

The establishment of a subsidiary in Lesotho has become simpler and less time-consuming because to the country's One-Stop Business Facilitation Centre. However, learning how to establish up a Lesotho subsidiary and determining which rules you must obey remains a complex procedure. We propose that you start by searching for a potential site for your subsidiary. Varied cities or areas in Lesotho may have unique subsidiary laws, much as states in the United States may have different legislation. Always select an area with the best laws.

Next, choose the sort of subsidiary that will best serve your company's objectives. A limited liability corporation (LLC) is the most common entity and will provide you with the most flexibility and a wide variety of operations. However, if you simply need to conduct a few things in Lesotho, you may want to seek a different incorporation structure.

The following stages are included in the Lesotho subsidiary establishment process:

1. Making a letter of intent to do business in Lesotho

2. Creating an appointment letter from your company's headquarters

3. Providing a resumé, work permit, and proof of identification for a corporate representative

4. submitting an application for the establishment of the firm

5. Creating incorporation articles

6. Registering a one-of-a-kind business name with the Registrar

Subsidiary laws

According to Lesotho's subsidiary rules, all LLCs must have at least one shareholder, with a maximum of 50 for registration. Under the Companies Act, your company's directors will be held accountable for the violation of duty of its shareholders. Any big deals must also be approved by shareholders through a special resolution.

Lesotho residents must possess at least 51 percent of a company's shares for specified trade permits or purchase of a title to property through lease from the government if the country want to encourage their employment. Every year, your company's financial accounts must be audited by a licensed auditor.

13. Why choose Rivermate as your Employer of Record / PEO in Lesotho

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 (EOR) 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 (EOR) / PEO solution.

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