Hiring in Lesotho: the work permit, the contract and a salary worked through, step by step

Move someone who is already in Lesotho

A work permit names the employer, the place and the job. When the holder leaves that employment, the employer reports it to the Director, National Employment Service. A move to a new employer needs a permit for the new employment. A renewal is applied for in the same way as the permit itself.

A citizen of Lesotho needs no permit. Their move turns on the notice their contract sets, which is at least a month once they have worked there for a year.

Check the role is open to a non-citizen

No employer may employ someone who is not a citizen of Lesotho without a valid work permit. Nor may that person accept the employment. The Director, National Employment Service grants a permit only after certifying that no citizen of Lesotho in the labour market database qualifies for the job.

Once asked, an employer shows the Director within four days that every non-citizen it employs holds a valid permit.

Set the contract up right

A contract of employment can be oral or written. At the time of contracting, the employer tells the worker whether they are paid by the month, the week, the piece or the task, and at what rate. A contract can be open-ended, for a fixed term, or for a specific piece of work.

A fixed-term contract ends on its date without notice. Where it provides for renewal, the employer gives notice of either ending or renewing it. Not renewing a fixed term that the worker reasonably expected to be renewed on the same or similar terms counts as a dismissal.

A probation period lasts up to four months, and longer only with the Labour Commissioner's leave in writing. For management and professional posts, the parties can agree up to a year. During it, or at its end, the worker can be dismissed on a week's notice.

Pay is in legal tender, or by electronic transfer with the worker's consent. A worker on a contract of more than a month is paid at intervals of no more than a month.

The normal week is up to 45 hours: nine a day over a five-day week, or eight on five days and five on the sixth. No one works more than five hours in a row without a rest of at least an hour. Everyone has a weekly rest of at least 24 hours in a row. Where the work's continuous nature needs it, the day can run to 12 hours, with the extra hours paid at 1.25 times the normal rate at least. Where the work needs it, hours can be set by the month instead: 195 ordinary hours, with no more than 260 in all. Work on the weekly rest day or a public holiday is paid at twice the ordinary day's rate.

Know the employee test before you engage a contractor

The Labour Act 2024 sets out the signs of an employment relationship. Among them, the work is done under another party's instructions and control, and personally by the worker. It is part of the organisation, done mainly for another's benefit, and in set hours or at a set place. The worker is paid periodically, may have no other income, and carries no financial risk.

A non-citizen engaged in Lesotho to provide temporary services is not treated as employed under the work permit rule. A role that needs a work permit goes through employer of record.

Work out what a salary costs you and what the employee takes home

Take a resident employee on LSL 20,000 a month, paying into no pension or retirement annuity fund.

Income tax is the only deduction in this example. Other deductions are made only as the Labour Act allows.

Income tax is withheld each month on the year's band and credit, divided by twelve. The first LSL 6,480 of a month's pay is taxed at 20%, which comes to LSL 1,296. The remaining LSL 13,520 is taxed at 30%, which comes to LSL 4,056. The personal tax credit of LSL 1,020 a month then comes off the LSL 5,352. A resident whose gross pay is no more than LSL 5,100 a month pays no income tax. A non-resident pays a standard rate of 25%.

Contributions to an approved pension or retirement annuity fund come off pay before tax. This example has none.

The employer insures its liability for workplace injury under the Workmen's Compensation Act, with an insurer the Minister approves. Nothing is taken from the employee's pay for it, and its cost is not shown. Income tax withheld is paid to the Revenue Services Lesotho by the 15th of the next month.

Know the leave your people are entitled to

End employment on the law's terms

An open-ended contract ends on notice: a week under six months' service, two weeks from six months to a year, and a month after a year. Notice is given in writing. The employer can pay instead of notice. For serious misconduct of a kind that makes it unreasonable to keep the worker on through the notice, no notice is owed.

A dismissal needs a valid reason: the worker's capacity, the worker's conduct, or the operational requirements of the business. The worker has the chance to answer the allegations at the time, unless the employer cannot reasonably be expected to give it. For a dismissal for capacity or conduct, the reasons are given in writing at the time of dismissal or within two weeks. Where no written statement is given, the Labour Court or an arbitrator can award two weeks' wages on top of any other relief.

Where the Labour Court or an arbitrator finds a dismissal unfair, it can order reinstatement without loss of pay, where the worker wants it and it is practicable. Otherwise it can award compensation it considers just and equitable.

Severance, after more than a year of continuous service, is two weeks' wages for each completed year. It is not owed on a fair dismissal for misconduct.

When employment ends for a reason other than dismissal, all wages are due on the last day and paid by the next working day. On a dismissal, they are paid on the day. A worker employed for more than a month gets a certificate of service on request.

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