1.3.1. Labour Laws, Rates & Basic Conditions
of Employment
The Ministry of Employment and Labour is
Ministry responsible for formulating and
implementing labour market policies. The
Ministry has an inspectorate that is responsible
for ensuring compliance with the country’s
labour laws; the Ministry is also responsible
for issuing work permits.
Ministry of Labour & Employment
Post : Private Bag A116, Maseru 100
Tel : Ministry +266 22322602
Tel : Labour Commissioner +266 22322181
Fax : +266 22325163
E-mail : Labour Commissioner: labcom@leo.co.ls
Web : psemployment@lesotho.com |
The Government set the minimum wage for worker
in different sectors. The current list can be
found in Table X.
The labour laws are conducive to supporting an
industrialized workforce. The basic conditions
of employment can be found in Table Y.
Table X: MINIMUM WAGES 1 October 2006 – 30
September 2007
|
Ref |
Sector |
Monthly Wage
(Maloti)
|
Weekly Wage
(Maloti)
|
Daily Wage
(Maloti)
|
| |
Clothing, Textile & Leather
Manufacturing |
660.00 |
164.00 |
35.00 |
|
A.1. |
Textile General Worker |
660.00 |
164.00 |
35.00 |
|
A.2. |
Textile Machine Operator – Trainee |
710.00 |
177.00 |
37.00 |
|
A.3. |
Textile Machine Operator – Trained
|
|
|
|
| |
Construction |
|
|
|
|
B.1. |
Construction worker |
818.00 |
205.00 |
43.00 |
|
B.2. |
Construction
machine operator |
1 442.00 |
341.00 |
78.00 |
| |
Wholesale & Retail |
|
|
|
|
C.1. |
Retailers (excl. small business) :
mini-supermarket, bakery, cafes, filling
station |
810.00 |
202.00 |
43.00 |
|
C.2. |
Wholesaler, supermarket, furniture shop |
830.00 |
207.00 |
44.00 |
| |
Hospitality Sector |
|
|
|
|
D.1. |
Restaurants, caterers, guest houses |
800.00 |
200.00 |
42.00 |
|
D.2. |
Hotels, motel, lodge |
840.00 |
215.00 |
44.00 |
| |
Service Sector |
|
|
|
|
E.1. |
Security guard – trainee |
800.00 |
200.00 |
42.00 |
|
E.2. |
Security guard – trained |
982.00 |
245.00 |
52.00 |
| |
Transport Sector |
|
|
|
|
F.1 |
B/EB/C1 (with <12 months service with
same
C/EC1 employer)
EC |
909.00
1030.00
1274.00 |
225.00
249.00
319.00 |
55.00
62.00
79.00 |
|
F.2. |
B/EB/C1 (with >12 months service with
same
C/EC1 employer)
EC |
940.00
1030.00
1318.00 |
235.00
258.00
330.00 |
58.00
62.00
82.00 |
|
F.3. |
Certified auto-electrician, motor
mechanic, panel beater |
1442.00 |
341.00 |
78.00 |
|
G. |
Small Business |
|
|
|
| |
<12 months service |
480.00 |
119.00 |
25.00 |
| |
>12 months service |
490.00 |
122.00 |
26.00 |
| |
General Minimum Wage |
|
|
|
|
H.1. |
<12 months service with same employer |
686.00 |
172.00 |
38.00 |
|
IH2. |
>12 months service with same employer |
697.00 |
175.00 |
39.00 |
|
I. |
General Minimum Wage |
|
|
|
| |
<12 months service with same employer |
686.00 |
172.00 |
38.00 |
| |
>12 months service with same employer |
697.00 |
175.00 |
39.00 |
Source: Labour Code Wages Order 2006 (Legal
Notice No. 165; Govt. Gazette Supplement 2 to
Gazette 49 of of 29th September 2006.
Wage Rate Notes: Selected Definitions
“textile general worker” means a person employed
in the clothing, textile and leather
manufacturing sector doing all manner of tasks
other than machine operator;”
“textile machine operator-trained” means a
person who operates machinery within the
clothing, textile and leather manufacturing
sector and who has completed more than six
months within the industry or who has been
certified as such. It also includes a person who
operates standard or specialised single or
multiple needle sewing machine in garments,
glove and miscellaneous products in textile and
kindred material including shoe sewing;”
“textile machine operator-trainee” means a
person who is a machine operator in clothing,
textile and leather manufacturing sector but who
has not completed six months within the industry
or who has not been certified as such;”
“general minimum wage” applies to any person
employed in any other sector other than those
that appear herein;” [i.e. a person not engaged
in a small business; in the textile, clothing &
leather manufacturing; in construction; in the
wholesale & retail sector; in the hospitality
sector; in the service sector; and, in the
transport sector]
Table Y: Lesotho’s Basic Conditions of
Employment
|
Issue |
Summary |
Labour Code Ref. |
| |
|
|
|
Core |
|
|
|
- discrimination |
Prohibited : concerning race, colour,
sex, marital status, religion, political
opinion, national extraction |
s5; s200 |
|
- freedom association |
Employers & employees allowed to join
trade union and/or employer organisation
of their own choice |
s6 |
|
- forced labour |
Prohibited |
s3; s7 |
|
- child labour |
Illegal to employ anyone under age of
15. Certain limitations on employment of
young persons (under 18) |
s3; s124 – 129 |
|
Wages |
|
|
|
- Normal |
Minimum wages: i. trainee general worker
M643.00 per month; ii. trained textile
machine operator M686.00 per month;
iii. Trainee textile machine operator
M643.00 per month [wef :1 Oct. 2005] |
Labour Code Wages Order 2005 |
|
- overtime rates |
2 weeks pay for each year of completed
service with same employer. Benefit not
paid when worker is fairly dismissed for
misconduct. Terminal benefits paid
include pro-rata leave & notice pay |
s118 |
|
- termination benefits |
2 weeks pay for each year of completed
service with same employer. Benefit not
paid when worker is fairly dismissed for
misconduct. Terminal benefits paid
include pro-rata leave & notice pay |
s79 |
|
Working Hours |
|
|
|
- normal |
45 hours per week (maximum for 5 day a
week worker is 9hrs per day; maximum for
6 day a week worker is 8hrs per day for
5 days, and 5 hours on 1 day) |
s117 – 118 |
|
- overtime |
Maximum overtime allowed 11 hours per
week. Exemptions under special
circumstances. |
s118 |
|
- night work |
Allowed. Payment set by firm &
employee/union agreement; failing which
rates set by Minister
Employers required to provide (but
reasonable cost can be charged to
worker) transport to and from work (to
the nearest place within 10km radius of
the employees’ place of employment) for
workers working between 8 p.m. and 5
a.m. |
s3; s130 – 131 |
|
Leave |
|
|
|
- annual |
12 days paid leave (i.e. 1 days paid
leave for each month of service with the
same employer) |
s120 |
|
- pubic holidays |
11 paid days per annum. Public holidays
on falling on Sunday do not carry over
to Monday |
s121 |
|
- sick |
1st 6 months of employment all sick
leave unpaid
2nd 6 months of employment with same
employer (12 days paid leave)
After 1 year with same employer 12 days
sick leave on full pay; thereafter sick
leave for up to 24 days (on half pay)
for each period of 12 months continuous
service |
s123 |
|
- maternity |
6 weeks prior to birth; and 6 weeks
after birth. Employees with 1years
continuous service with the same
employer shall be paid 2 weeks maternity
pay limited to two confinements
Employers & employees to agree on paid 1
hour per day baby feeding arrangements
for 6 months |
s119(5); s133 – 137
Labour Code wages Order 2005
|
|
- educational leave |
Employees allowed reasonable paid
time-off for training (incl.
shop-steward training) |
s122 |
|
Probation |
|
|
|
- probation |
Probation is for a period not exceeding
4 months |
S75 |
|
General |
|
|
|
Other |
No training levy(firms earning DCC to
contribute 3% of payroll for training);
no annual bonus, medical or retirement
fund contributions; employers must take
out an insurance policy to cover
injuries arising out of industrial
accidents (about0.3% of payroll); wages
can be paid by electronic transfer |
|
1.3.2. Basic Utility and Service Costs
Lesotho offers businesses competitive rates for
electricity, water and sewerage.
Lesotho Electricity Corporation (LEC)
Physical Address: 53 Moshoeshoe Road,
Industrial Area Maseru, Lesotho
Postal Address: PO Box 423, Maseru 100,
Lesotho
Tel : +266 22 312 236
Toll free : 800 22000 (local)
Fax : +266 22 310 093
E-mail : Info@lec.co.ls
Web : www.lec.co.ls |
The following are the electricity tariffs (with
effect from 1 January 2006 – increases come into
effect on 1 January of each year)
|
USAGE |
TARIFF
(Maloti) |
MAXIMUM DEMAND CUSTOMERS
NOTE |
Commercial LV
-
Demand (kW)
-
energy charge (kWh)
|
133.3000
0.0819 |
-
for consumers using
electricity entirely/predominantly
for purposes other than industrial
purposes, regularly having a maximum
demand usage of 50kW measured in any
30 minute period in the course of a
meter reading period
-
a demand charge per kW of the
maximum demand for each meter
reading period, with a minimum
charge of M1 593.46 per month
-
energy charge for all units
consumed
|
Commercial
MV
-
Demand (kW)
-
energy charge
|
132.6000
0.0740 |
-
for major non-industrial
consumers wanting medium voltage.
Costs of metering equipment to be
borne by consumer
-
a demand charge per kW for all
kW of the maximum demand for each
meter reading period, with a minimum
charge of M1 593.46 per month
-
energy charge for all units
consumed
|
Industrial
LV
-
demand (kW)
-
energy charge (kWh)
|
133.3000
0.0819
|
-
for consumers using electricity
for industrial purposes who
regularly have a maximum demand in
excess of 25kW measured in any 30
minute period during the course of a
meter reading period
-
a demand charge per kW for all
the kW of the maximum demand for
each meter reading period, with a
minimum charge of M1 274.70 per
month
-
energy charge for all units
consumed
|
Industrial
MV
-
demand
-
energy charge (kWh)
|
132.6000
0.0740
|
-
for major industrial consumers
wanting high voltage. All high
voltage metering equipment must be
born by consumers
-
a demand charge per kW for all
kW of the maximum demand for each
meter reading period, with a minimum
charge of M1 274.70 per month
-
energy charge for all units
consumed
|
| |
NOTE : |
-
LEC encourages consumers to
install “power factor correction
equipment” to reduce costs.
-
Additional 5% VAT applies to all
bills.
|
The supply of water is the responsibility of the
Water and Sewerage Authority (WASA) and the
following charges currently apply for industrial
use:
Lesotho Water & Sewage Tariffs From 1 April 2006
Returned to sewers: WASA assumes that water
returned to sewers is 85% of kilolitres billed.
However, wet industries receive special
treatment through the concessionary Waste water
Tariffs for Wet Industries Notice 2000 which
applies the following costs:
Water and Sewage Authority
Physical Address:
Postal Address: P O Box 426, MASERU 100,
Lesotho
Tel: +266 - 22312449
Fax: +266 - 22310006 |
|
Untreated effluent: |
M1.07 per kilolitre |
| |
|
|
Treated effluent: |
M0.50 per kilolitre for the
first year of operation
and M0.63 per kilolitre for subsequent years |
|
Standing Charge (For all customers) |
M2.95
(nominal account administration fee) |
| |
|
|
Domestic Customers – Water |
Band Rates |
|
A. 0 to 5 Kilolitres |
M1.95 per 1 000 litres |
|
B. 6 to 10 Kilolitres |
M3.25 per 1 000 litres |
|
C. 11 to 23 Kilolitres |
M5.79 per 1 000 litres |
|
D. above 23 Kilolitres |
M8.00 per 1 000 litres |
Non Domestic customers- Water
|
All consumption |
M4.66 per 1 000 litres |
WASA classifies any industry that utilises 2,000
(two thousand) kilolitres per day as a wet
industry.
Factories requiring large volumes of non-potable
water may be able to source water directly at a
much lower cost.
All types of customers – Sewerage /
Industrial Waste Water
Sewerage is charged M3.40 for 85% of water
consumed (plus VAT)
|
