|
LABOUR
Productive Labour - The key to profitability
Availability
Manufacturing companies establishing bases in Lesotho have no shortage of job applicants. People are Lesotho’s most important natural resource and with a population of 2.1 million (2000) which is growing by 2.6% annually, Lesotho has an abundant, well motivated, educated adaptable and easily trained labour force. There are about 26,000 new entrants into the labour force per annum. The labour force lives within easy access of the three major industrial estates thus ensuring low absenteeism and punctuality.
Quality
Lesotho’s literacy rate is high at 75%. This index will increase substantially following the Government’s implementation of the Free Primary Education Programme which came into effect from January 2000. More importantly, English is taught in all schools from pre-school upwards. This facilitates ease of communication in the work place.
Forty thousand pupils enter high school every year and the National University of Lesotho produces nearly 900 graduates per annum in the arts, science and business. Lesotho also has three vocational training institutes which produce a range of skilled technicians and craftsmen with skills in electrical/electronics engineering, carpentry, joinery and construction.
Basotho workers are quality conscious and easily trainable. They are world renowned for their manual dexterity as can be seen from the intricate hand woven mohair tapestries and sophisticated hand crafted jewellery which are exported to the most discerning markets of Europe, the Nordic countries and the United States. The many foreign clothing manufacturers in Lesotho bear testimony to this manual dexterity.
Return
to top
Remuneration
Lesotho’s labour cost is competitive by world standards and is considerably lower than that of its neighbour, South Africa.
Basic minimum wages are fixed and reviewed periodically by a Statutory Wages Advisory Board on the basis of macro economic conditions and key cost-related indicators. This is a tripartite board composed of government, private sector employers and employee representatives (mainly trade unions).
Employers are required by law to pay at least the minimum wage to their employees.
Return
to top
Industrial Relations
The Government of Lesotho recognises that harmonious industrial relations is the sine qua non for attracting new investment and the basis for the high productivity needed to boost employment and living standards. Mechanisms are in place to ensure that industrial action may only be taken after extensive consultation aimed at resolving worker management disputes. Lesotho-based trade unions exist to facilitate communication between workers and management.
The main representative body for employers is the Association of Lesotho Employers (ALE) which represents the interest of investors by providing diverse back-up support services to its member companies, particularly in all dealings involving employees, government and or trade unions. Applications for membership or enquiries should be addressed to:
The Executive Director
Association of Lesotho Employers
P O Box 1509
MASERU 100
Tel: +266 22315736
Return
to top
Regulations
Lesotho labour laws have been consolidated into a new Labour Code gazetted as Order No 24 of 1992 which guides both employers and employees on proper procedures in all aspects of industrial relations. Some of the basic regulations conducive to harmonious industrial relations if properly complied with are highlighted below:-
All employers are required by law to pay at least the statutory minimum wage to their employees.
Every employer to whom a wage order applies shall display a copy of the order in each work place where the order applies.
An employee shall not be dismissed, whether adequate notice is given or not, unless there is a valid reason for the termination of employment.
An employee shall at the time of dismissal be entitled to have an opportunity to defend himself/herself against the allegations made, unless in light of circumstances, and reason for dismissal, the employer cannot reasonably be expected to provide this opportunity.
Return
to top
An employee who has completed more than one year of continuous service with the same employer shall be entitled to receive, upon termination of his/her services, a severance payment equivalent to two weeks’ wages for each completed year of continuous service with the same employer.
An employee who has been fairly dismissed for misconduct shall not be entitled to a severance payment.
The normal working hours for any employee shall not be more than 45 hours per week.
No employee shall be required to work continuously for more than five hours without a rest period of not less than one hour.
Where the continuous nature of work so requires, an employer may request or permit an employee to work overtime in addition to the normal working hours for up to 11 additional hours in any one week. Payment of overtime shall not be less than one and one quarter times an employee’s wage rate.
Return
to top
An employer shall allow a weekly rest period of 24 continuous hours which shall whenever practicable include Sunday as the day of rest.
An employee shall be entitled to a minimum of 12 working days holiday on full pay and shall take at least six working days holiday in a continuous period during the calendar year in which the holiday falls.
There are 12 annual public holidays and employees shall be given a day off with full pay on all public holidays. If an employee works on a public holiday, he or she shall be entitled to be paid double the normal wage rate for an ordinary working day; or by agreement with his/her employer be paid the normal wage rate in addition be entitled to take an ordinary working day off with pay, in lieu of the public holiday.
Return
to top
During continuous employment with the same employer an employee is entitled to sick leave as follows:
In the first six months of employment absence due to illness may be unpaid
After six months a maximum of 12 days sick leave on full pay.
After 12 months sick leave on full pay for up to 12 days and thereafter sick leave on half pay for up to 24 days. Entitlement of sick leave may not be carried forward from year to year.
Sick leave may not be granted unless an employee produces a certificate signed by a registered medical practitioner or if the incapacity for work has been deliberately self inflicted.
An employer shall grant six weeks statutory maternity leave to a female employee calculated from the day of confinement and certified by a registered medical officer.
An employer may not be liable to pay wages during this period unless he/she wishes to do so or the terms of the contract so require.
Dismissal of an employee during statutory maternity leave shall automatically be an unfair dismissal and an employer who contravenes this rule shall be guilty of an offence and liable to a fine.
Return
to top
An employer shall be obliged to provide transport to every employee whose work is such as to require him/her to come to work or return home during the hours of 8.00 pm. to 5.00 am. The employee shall be delivered to the nearest practicable place to his/her home within a 10km radius of the employee’s place of employment.
Tripartite Boards/Committees
The Labour Code provides for the following tripartite bodies in which government and workers are represented:
National Advisory Committee on Labour
Wages Advisory Board
National Council on Occupational Safety and Health
Detailed information on these issues as well as other regulations and procedures is contained in the Labour Code which may be purchased from:
The Government Printer
P O Box 268
MASERU 100
Lesotho
Tel: + 266 22313023
The custodian to the Labour Code is the Labour Commissioner who can be contacted at the following address where the need arises:
Department of Labour
Private Bag A116
Maseru 100
Tel: +266 22322564/5
Return
to top |
