Definitive Guide to Hiring in Lesotho

Hiring in Lesotho

Hiring employees compliantly in Lesotho means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Lesotho so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Lesotho; or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Labor Laws in Lesotho

Employment laws in Lesotho are uniquely suited to the country’s way of life, and crucial to understand if you want to employ local talent in this country. Get the details on Lesotho employment laws and Lesotho policies here.

Employee Probation Period

Annual Leave in Lesotho

Holidays in Lesotho

Maternity Leave Lesotho

• The general duration of maternity leave is twelve weeks and comprises 6 weeks before and 6 weeks after the confinement
• If the pregnant woman contracts any illness or has any complications while being pregnant, they can be allowed to take leave for up to eight weeks.

Paternity Leave Lesotho

Sick Leave in Lesotho

Working Hours in Lesotho

• Normal working hours are 45 hours a week in five or six-day reference period. 
• In a 05-day workweek, the daily working hours are 09 hours while in a 06-day workweek, daily working hours are 08 hours for five days and 05 hours for sixth day

Overtime in Lesotho

• The general overtime work must not exceed 11 hours per week.
• For overtime work, a supplement is paid in addition to the pay received by the employee for corresponding work during normal working hours.
• The overtime supplement is at least 25%, i.e., workers are paid 125% of their normal wage for overtime hours.

Termination of Employment in Lesotho

• Employment relationship may be terminated by either party.
• Dismissal must be objectively justified on the basis of circumstances relating to the operational requirements of the undertaking or connected with the employee (capacity or conduct).
• Employers are required to provide a written statement for the reasons of dismissal to a dismissed employee. 
• The prohibited grounds for dismissal include marital status; pregnancy; maternity leave; family responsibilities; filing a complaint against the employer; race; color; sex; religion; political opinion; social origin; nationality/national origin; trade union membership and activities; lawfully taking leave (authorized absence from work) and HIV status.

• Statutory written notice period is provided under the Labor Code, which states that unless otherwise stipulated in collective agreement, the notice period will be as follows:

• 07 days’ notice for less than 6 months of service;
• 14 days’ notice for less than 1 year of service;
• one-month notice for more than 1 year of service;
• three-month notice for more than 10 years of service;

• The Labor Code has made provisions for a severance pay that is directly linked to the length of service of the employee.
• For any employee who has completed more than one year of continuous service with the same employer, a severance payment equivalent to two week’s wages is paid for each completed year of service. 

Notice Period in Lesotho

• Statutory written notice period is provided under the Labor Code, which states that unless otherwise stipulated in collective agreement, the notice period will be as follows:
  • 07 days’ notice for less than 6 months of service;
  • 14 days’ notice for less than 1 year of service;
  • one-month notice for more than 1 year of service;
  • three-month notice for more than 10 years of service;

Severance in Lesotho

• The Labor Code has made provisions for a severance pay that is directly linked to the length of service of the employee.
• For any employee who has completed more than one year of continuous service with the same employer, a severance payment equivalent to two week’s wages is paid for each completed year of service. 
• Amount of severance pay is capped at a certain level and the amount is updated regularly by the Minister in consultation with the Wages Advisory Board.
• Severance pay is not paid to employees who have been dismissed by the employer for misconduct.

Lesotho Salary and Wages

13th/14th Month Salary in Lesotho

• No 
• There is no statutory requirement to pay the 13th or the 14th month salary.
• There is no evidence that bonuses are customary, however employees can negotiate bonuses with the employers.

Immigration in Lesotho

• Lesotho offers several visa categories that cover a number of reasons for foreign nationals to enter the country. 
• Some of the most common visas in Lesotho include:
  • Tourist visas 
  • Business visas 
  • Official and diplomatic visas 
  • Student visas 

• Lesotho doesn’t offer a work-specific visa. 
• Foreign employees can travel to Lesotho on the basis of a general tourist visa and apply for a work and residence permit after they arrive.

• In order to obtain a visa for traveling to Lesotho, applicants will need to provide the following documents:
  • A completed visa application 
  • A valid passport with a blank page for the entry stamp 
  • A recent passport photograph 
  • Proof of vaccination against yellow fever 
  • Proof that the applicant has travel health insurance 

• Employees should bring the following documents with them to apply for a work and residence permit in Lesotho:
  • A letter of invitation from the employer in Lesotho 
  • A valid passport 
  • A passport photo 
  • A completed application 
  • Proof of accommodations in Lesotho

Value Added Tax (VAT) in Lesotho

• VAT is levied on the supply of goods and services within and outside Lesotho by taxable persons in Lesotho, and on imports.
• The standard VAT rate is 15% (increased from 14% as from 1 April 2018). 
• The VAT rate for electricity is 9% and telecommunications is 12%. 
• Banking services, except for the leasing of bank deposit boxes and insurance services, are exempt from VAT. 
• Zero-rated supplies include maize meal, maize grain, beans, peas, lentils, milk, bread, agricultural inputs (fertilizers, seeds and pesticides), paraffin, livestock and poultry feed. 
• Exports also are zero-rated (although exports of natural resources will be exempt. 
• Sanitary towels are zero-rated as from 1 April 2019.

Payments And Invoicing 

• The assessment year in Lesotho is the 12-month period from 1 April to 31 March.
• Where both spouses of a married couple earn income, each is separately assessed and each is entitled to the single person’s abatement.
• Taxpayers generally must submit an annual tax return no later than the last day of the third month following the end of the assessment year (except for tax on employment income that is withheld by the employer).

Payroll Accrual in Lesotho

Payroll Accruals Additional Information

Accrued Benefits in Lesotho

Why use Global Expansion to hire in Lesotho

Establishing a branch office or subsidiary in Lesotho can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Lesotho labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Lesotho law to maintain its good standing as an equal-opportunity employer.

Global Expansion makes it easy for you to expand into Lesotho. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Lesotho Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.