Overview
Lesotho’s labour legal framework was modernised in 2024, clarifying hiring, working‑time, leave, minimum wages and severance, and strengthening dispute resolution. For investors, the system now offers predictable working hours, codified leave, annual minimum‑wage schedules by sector/grade, and a refreshed Workmen’s Compensation regime (benefit ceilings updated by Regulations 2025).
Labour market snapshot (fast facts)
| Indicator (most recent official) | Value | What it means for investors |
| Working‑age population (15+) | 1,510,701 (2024) | Size of potential talent pool. |
| Labour force (persons) | 786,298 (2024) | People working or seeking work. |
| Labour Force Participation Rate (LFPR) | 52.0% (2024) | Moderate participation; varies by sex. |
| Unemployment rate (total) | 30.1% (2024) | Ample applicants for entry/intermediate roles. |
| Youth unemployment (15–24) | 48.8% (2024) | Strong pipeline for learnerships & entry roles with training. |
| Top employment sectors (share of employment) | Agriculture 18.0%; Manufacturing 11.6%; Construction 8.9%; Wholesale/Retail 13.6% | Benchmark wage offers, skilling, and sourcing. |
Legal and Institutional Framework – Quick Reference
| Instrument / Institution | What it does | Investor impact | Where to act / link |
| Labour Act, 2024 (Act 3 of 2024) | Consolidates labour law; rules on contracts, hours, leave, severance; establishes/renews institutions. | Baseline for employment terms, policies, payroll and compliance. | Full text on LesLII |
| Ministry of Labour & Employment (MoLE) | Policy, administration and enforcement of labour standards; hosts statutory bodies and services. | Primary counterpart for compliance, inspections and guidance. | See MoLE site |
| National Employment Services (NES) – under MoLE | Administers work permits to non‑citizens; registers private employment agencies. | All expatriate hires require valid NES work permits; keep approvals on file. | Forms in Labour Act (Fourth Schedule) |
| Minimum Wages (Legal Notice, annual) | Minister issues binding sector/grade minimum wages by legal notice, following Advisory Board input. | Must pay at/above schedule; post notice at the workplace. | Check latest notice on MoLE |
| Directorate of Dispute Prevention & Resolution (DDPR) | First‑instance conciliation/arbitration of most labour disputes under the 2024 Act. | Faster, lower‑cost resolution prior to courts. | See DDPR (via MoLE) |
| Labour Court & Labour Appeal Court | Judicial bodies for labour matters and appeals. | Ensure contracts and discipline withstand judicial scrutiny. | See LesLII for decisions |
| Labour Inspectorate (MoLE) | Inspects workplaces for compliance (wages, hours, leave, safety); issues directives and prosecutes offences. | Prepare for inspections; keep registers, payslips, permits and policies current. | Contact via MoLE |
| Workmen’s Compensation Act 1977 & Regulations 2025 | Sets liability for work injuries; 2025 Regulations update benefit ceilings and costs (effective 1 Feb 2025). | Budget for statutory compensation and/or WCA insurance cover. | Regs 2025 (Gazette): link |
Wages and Pay
Minimum wages are set annually by Legal Notice with sector‑specific schedules. Apply the correct sector and grade rate and post the wage notice at the workplace.
Check latest notice: Ministry of Labour and Employment (MoLE)
Working Time, Overtime and Pay Calculations
| Topic | Core rule (Labour Act, 2024) |
| Ordinary hours | ≤ 45 hours/week (e.g., 5‑day: 9 hrs/day; 6‑day: 8‑8‑8‑8‑8‑5). |
| Rest break | Break of ≥ 1 hour after ≤ 5 hours continuous work. |
| Daily extension & Overtime | Where required, up to 12 hours/day; overtime paid at ≥ 1.25× normal hourly rate. |
| Monthly averaging | Ordinary hours may be averaged at 195 hrs/month; total incl. Overtime ≤ 260 hrs/month. |
| Public holidays | If worked: 2× daily rate or normal pay + paid day off in lieu. |
| Sector exceptions | E.g., security 60 hrs/week (special rules); mining special shift/rest rules. |
| Hourly rate calculation | Monthly → hourly: divide by 195 (or 260 for security); weekly → 45. |
Statutory Leave and Family Benefits
| Leave type | Entitlement |
| Annual leave | 1 working day per completed month (min 12 days/year). Carry‑over allowed for days above statutory minimum (≤ 18 days). Cash‑in‑lieu (≤ 6 days) by agreement. |
| Sick leave | After 6 months’ service: in next 6 months 12 days on full pay; after 12 months: 12 full‑pay + up to 24 half‑pay days per 12‑month cycle (with medical proof). |
| Maternity | Protected absence: 7 weeks pre‑ and 7 weeks post‑confinement (statutory leave may be unpaid unless employer/CBA provides pay). Stillbirth: 3 weeks. Nursing: 1 hour/day for 6 months on return. |
| Paternity | 14 days per birth. |
| Bereavement | 5 days for immediate family members. |
| Education leave | Reasonable paid time for training/education by agreement. |
Hiring, Contracts, Termination and Severance
Written contracts are strongly advised; probation is permitted. Dismissal must be for fair reasons (capacity, conduct, or operational requirements). Automatically unfair grounds apply. Notice or pay in lieu is provided for.
Statutory severance (after >1 year) is 2 weeks’ wages per completed year at the final wage rate; not payable if fairly dismissed for misconduct. If an employer offers a more advantageous separation benefit (e.g., pension/provident gratuity), the better of the two applies.
Probation on Employment
Employers may engage an employee on probation for up to four months. During probation (or immediately at its end), the employer may dismiss on one week’s notice. Extending probation beyond four months requires written leave from the Labour Commissioner. For management or professional posts, the parties may agree to a longer probation – up to one year. Employees on valid probation generally cannot bring an unfair-dismissal claim, except in limited situations (for example, dismissals alleged for operational requirements or where written-reasons provisions are engaged).
Probation – Quick Reference (Labour Act, 2024)
| Topic | Rule in the Act | Practical takeaway |
| Maximum duration | Probation not exceeding 4 months. | The default cap is four months. |
| Notice during probation | Dismissal with one week’s notice anytime during probation or at its end. | Use one week’s notice (or pay in lieu if agreed). |
| Extension past 4 months | Only with written leave from the Labour Commissioner. | Obtain written approval before any extension over four months. |
| Managers / professionals | Parties may agree to probation up to one year. | Longer probation is permitted (by agreement) for these roles. |
| Unfair dismissal rights | Probationers are generally excluded from unfair-dismissal claims, with specific exceptions. | Most unfair-dismissal claims are barred during probation; limited exceptions apply. |
Notes: Always confirm the exact section numbering and cross-references in the official consolidation, and keep written terms of probation (including duration and evaluation criteria) in the employment contract.
Foreign Skills and Permits
No non‑citizen may work without a valid work permit issued by the Director of National Employment Services (NES). NES certifies that no qualified citizen is available before issuing a permit. Use prescribed Fourth Schedule forms.
- NES contact: Ministry of Labour and Employment
Occupational Injuries: Workmen’s Compensation
Lesotho’s Workmen’s Compensation Regulations, 2025 update caps and the minimum payout for work-related injury, disability and death under the Workmen’s Compensation Act. They take effect 1 Feb 2025.
Workmen’s Compensation Regulations 2025
| Benefit | Ceiling / amount |
| Fatal cases (dependants) | Up to M 300,625 + burial up to M 20,875 |
| Permanent total/partial incapacity | Up to M 334,000 |
| Medical treatment | Up to M 41,750 |
| Appliances | Up to M 28,875 |
| Transport | Up to M 6,263 |
| Minimum compensation | M 7,513 |
Practical Compliance Checklist
- Classify your sector and grade; apply the latest Minimum Wages Notice; post the schedule.
- Draft contracts with hours, overtime method (≥1.25×), leave entitlements, termination terms, and severance reference.
- Set rosters that respect 45‑hour weeks, rest breaks, and monthly averaging limits (≤195 ordinary / ≤260 incl. Overtime).
- Arrange Workmen’s Compensation coverage (or insurance) and OSH procedures; train supervisors on incident reporting.
- If hiring expatriates, apply through NES using the Fourth Schedule forms; keep permits on file.
- Consider an occupational pension/provident fund arrangement with clear remittance timelines (Pension Funds Act, 2019).
Helpful Links
- Labour Act, 2024 (Act 3 of 2024) – LesLII
- Ministry of Labour and Employment (MoLE) – homepage
- Minimum wages – latest Legal Notice (via MoLE)
- Workmen’s Compensation Act, 1977 – LesLII
- Workmen’s Compensation Regulations, 2025 – Gazette
- Lesotho Labour Force Survey (latest) – Bureau of Statistics
- World Bank – Lesotho country data (labour & macro)