Employ Candidates Compliantly in Lesotho

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  1. Overview: Lesotho
  2. Global HR Compliance
  3. Global PEO and payroll
  4. Expand without a company set up
  5. Contractor vs. employee: which is better?
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Global HR Compliance in Lesotho

Any enterprise could not function properly without a thorough learning of the labor legislation of the country in which it carries out business. If the company does not develop internal regulations in accordance with the local legislation of Lesotho, then it will inevitably face a number of problems. Any conflicts that employees initiate in such a situation will be resolved not in favor of the company.

The knowledge, skills and experience of the specialists of Acumen International will become your competitive advantage. We provide the possibility of forecasting risks, indicate a map of day-to-day operations.

The war for global talent has never been tougher. Attracting and keeping sought-after international employees requires knowledge. Whether your company is already engaging or planning to engage global workforce in Lesotho, you need to trust that your operations are executed without flaw and without any unnecessary risks.

Businesses of all sizes face a devastating lack of information and support on global employment, taxation, and immigration in Lesotho. There’s a common and significant gap between what’s required to be 100% compliant and what most organizations actually have at their disposal.

Acumen International can fill the gap in fragmented Global HR Compliance knowledge

We are experts in global workforce employment in Lesotho, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.

We act as an information service for corporate clients, agencies, and independent contractors and freelancers. Our Global HR Compliance service in Lesotho will help you:

  1. Navigate legislation and local nuances of Lesotho. You need to know what is acceptable and what can expose you to employment litigation as well as employee / independent contractor misclassification risk in Lesotho.
  2. Avoid areas of possible risk. Certain areas and activities can create unnecessary risk, such as employer-employee relations. We can help you with worker classification, payroll and tax calculations, and social cost contributions.
  3. Handle currency exchanges and local invoicing in Lesotho. We save you time and effort, freeing you from having to understand complicated regulations and tax calculations written in the local language and subject to frequent changes.
  4. Create employment contracts and handle compliant engagements. Our objective is to assist you with international HR compliance issues and offer you the best payment and taxation options in Lesotho.
  5. Manage expatriate immigration and visa support nuances in Lesotho. Acumen International provides information about the best scenarios of expat immigration and employment.
  6. Handle global recruitment issues. We can help you select the person and then employ him with our help. We advise you on local employment laws and implied compliance risks to determine the most cost-effective, compliant, and risk-free solution for you.
  7. Withdraw from the region in the least risky and most cost-effective way. If you choose to do so, we can help you withdraw from the region as simply as possible.

Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.

With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Lesotho.

Hiring and Firing Workforce in Lesotho Guide

# Employment contracts
According to the Labour Code of Lesotho there are following types of employment contracts:

  • A contract of employment may take the form of a contract without reference to limit of time, a contract for one period of fixed duration or a contract to perform some specific work or to undertake a specified journey.
  • A contract without reference to limit of time is a contract which contains no termination date. It may be terminated by either party, subject to the provisions of the Code concerning dismissal and notice of termination.
  • A contract for one period of fixed duration shall set forth its date of termination. Such a contract shall, subject to the provisions of section 66 concerning dismissal, automatically terminate on that date and no notice of termination shall be required of either party.
  • A contract to perform some specific work or to undertake a specified journey shall terminate upon the completion of the work or journey. No notice of termination shall be required of either party, but an employer who terminates such a contract before its completion shall pay the employee all wages and other remuneration that would have been owing to the employee if he or she had continued to work until the completion of the contract.

# Minimum (Statutory) Employment Rules and Regulations in Lesotho

# Hours of work:
Except as otherwise provided in the Labour Code, the normal hours of work for any employee shall be not more than 45 hours per week, calculated as follows:

  • for an employee who ordinarily works a five-day week, nine hours of work on any day;
  • for an employee who ordinarily works a six-day week, eight hours of work on five days and five hours of work on one day.

No employee shall be required to work continuously for more than five hours without being given a rest period from work of not less than one hour during which time he or she shall not be required or permitted to perform any work.

Provided that:

  • a driver of a motor vehicle, whose sole duty during the rest period is to be or to remain in charge of the vehicle and its load (if any), shall not be deemed to be working during such rest period; and
  • a period of work interrupted by rest periods of less than one hour shall be deemed to be continuous.

# Probation period:
An employee may initially be employed for a probationary period not exceeding four months. At any time during the continuance of the probationary period or immediately at its end, the employee may be dismissed with one week’s notice.

The probationary period may be extended beyond a period of four months only with the leave in writing of the Labour Commissioner.

# Annual leave:
An employee shall be entitled to one working day’s holiday on full pay in respect of each month of continuous employment with the same employer. An employee shall be entitled in each year to a minimum of 12 working days’ holiday on full pay, to be taken at such times as may be agreed between the employer and the employee.

The employee shall take at least six working days’ holiday in a continuous period during the calendar year the holiday is due.

Where, under the terms of a contract of employment or a collective agreement, an employee is entitled to more than the statutory minimum number of days of holiday in any year, the employee may carry over such additional holiday, not exceeding 18 days in all from one calendar year to the next.

Public holidays, weekly rest days and days of absence from work due to an illness or accident certified by a medical officer shall not be counted as holidays on full pay.

Any employee whose employment has terminated after at least three months of continuous work with the same employer shall be entitled to be paid one day’s full pay in respect of each completed month of employment for which the employee has earned but not taken a holiday with full pay. Any agreement by an employee whereby he or she purports to relinquish his or her right to the statutory minimum working days of holiday with full pay as provided for in the Code shall be null and void. When an employee wishes to receive a cash payment in lieu to taking no more than six days of statutory annual leave, the employee and employer may so agree; in such a case the payment shall be made, in accordance with the provisions of this section, at the end of the calendar year the holiday is due. In the absence of an agreement with the employee, it shall be an offence for the employer not to allow the employee to enjoy the number of days of holiday with pay in a particular year to which the employee is entitled in excess of the statutory minimum number of days’ including any additional days of holiday entitlement carried over from the previous year.

# Parental leave:
A pregnant female employee shall give notice of her anticipated confinement by delivering to her employer a written certificate signed by a medical officer or a registered nurse or midwife certifying that the employee’s confinement will probably take place within six weeks from the date of the certificate.

On receipt of notice the employer shall immediately permit the female employee in question to absent herself from work until her confinement, and thereafter the employer shall not permit or require her to return to work until the expiry of six weeks immediately after her confinement. This period of absence shall be known as statutory maternity.

Within 21 days immediately after her confinement, a female employee shall deliver to her employer a written certificate signed by a medical officer or a registered nurse and midwife certifying the date of confinement. Where a female employee delivers to her employer a written certificate signed by a medical officer or a registered nurse or midwife certifying his or her opinion that the employee is suffering from an illness arising out of her confinement and is consequently unfit to return to work, the employer shall not permit or require her to return to work until the expiry of eight weeks immediately after her confinement.

The leave before the anticipated date of confinement shall be extended by any period elapsing between the anticipated date of confinement and the actual confinement; the period of statutory maternity leave to be taken after confinement shall not be reduced on that account.

# Sick leave:
During the first six months of continuous employment with the same employer any absence owing to sickness may be unpaid. After six months’ continuous employment with the same employer an employee shall be entitled, as a minimum, to sick leave on full pay for up to 12 days in the second six months’ continuous employment with the same employer.

After 12 months’ continuous employment with the same employer an employee shall be entitled to sick leave on fall pay for up to 12 days and thereafter to sick leave on half pay for up to 24 days in each period of 12 months’ continuous employment.

Entitlements of sick leave may not be carried forward from one year to another. An employee shall not be entitled to paid sick leave under this section unless he or she produces to the employer a certificate of incapacity signed by a registered medical practitioner or by a person in charge of a dispensary or medical aid center acting on behalf of a registered medical practitioner. In the case of sick leave extending beyond six working days, the employer may require the employee to be examined by another registered medical practitioner, with the expenses of the examination and any travel expenses to be borne by the employer.

# Overtime:
Where the continuous nature of the work so requires, an employer may request or permit an employee to work overtime in addition to the normal hours provided, for up to 11 additional hours during any one week. In respect of the additional hours, the employer shall pay the employee for such overtime at a rate not less than one and one quarter times his or her normal wage rate.

# State minimum salary:
The Lesotho minimum wage is 1,178 maloti ($102) per month to 1,285 maloti ($112) per month and varies by sector. The minimum wage rate are set annually. Lesotho’s minimum wage was last changed in January 2014.

# Employee dismissal:
For contracts without reference to limit of time, either party may terminate the contract upon giving the following notice:

  • where the employee has been continuously employed for one year or more, one month’s notice;
  • where the employee has been continuously employed for more than six months but less than one year, a fortnight’s notice.
  • where the employee has been continuously employed for less than six months, one week’s notice.

An employee shall not be dismissed, whether adequate notice is given or not, unless there is a valid reason for termination of employment, which reason is:

  • connected with the capacity of the employee to do the work the employee is employed to do (including but not limited to an employee’s fraudulent misrepresentation of having specific skills required for a skilled post);
  • connected with the conduct of the employee at the workplace; or
  • based on the operational requirements of the undertaking, establishment or service.

Any other dismissal will be unfair unless, having regard to all the circumstances, the employer can sustain the burden of proof to show that he or she acted reasonably in treating the reason for dismissal as sufficient grounds for terminating employment.

The following shall not constitute valid reasons for termination of employment:

  • trade union membership or participation in trade union activities outside working hours or, with the consent of the employer, within working hours;
  • seeking office as, or acting or having acted in the capacity of, a workers’ representative;
  • the filing in good faith of a complaint or grievance, or the participation in a proceeding against an employer involving the alleged violation of the Code, other laws or regulations, or the terms of a collective agreement or award;
  • race, colour, sex, marital status, pregnancy, family responsibilities, religion, political opinion, national extraction or social origin;
  • absence from work in accordance with the provisions of the Code or as authorised by the employer.

Acumen International can help you fast-track your possibilities of entering and expanding your business in Lesotho by providing you with our Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any need to set up a legal entity first or afterwards.

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