Lesotho’s labour landscape has undergone a significant shift with the enactment of the New Labour Act, 2024, replacing the outdated Labour Code Order 1992. This new legislation introduces critical reforms aimed at strengthening worker protections, enhancing employer accountability, and aligning national law with international labour standards.
Key reforms include:
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Working Hours and Overtime: Employers must comply with newly defined maximum hours and ensure fair compensation for overtime.
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Fair Wage Practices: The Act mandates sector-specific minimum wages, wage transparency, and prohibits unlawful deductions.
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Leave Entitlements: Statutory provisions now govern annual, parental, and sick leave, ensuring job security during such periods.
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Termination and Severance: Clear procedural safeguards are in place for lawful dismissals, with defined severance obligations.
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Health and Safety: Employers are required to implement Occupational Health and Safety (OHS) measures, with penalties for non-compliance.
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Dispute Resolution: Internal grievance procedures and alternative dispute resolution mechanisms are prioritised to reduce litigation.
The Ministry of Labour and Employment has been given expanded enforcement powers, including conducting inspections, reviewing employment practices, and issuing penalties. Non-compliance may result in substantial fines, suspension of operations, or reputational harm.
What Employers Should Do:
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Review and update employment contracts and workplace policies.
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Train management and HR on the new compliance obligations.
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Establish clear internal grievance mechanisms.
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Maintain accurate employment and wage records.
The New Labour Act represents a step forward in fostering fair, transparent, and enforceable labour practices in Lesotho. It enhances worker protections while creating a more predictable regulatory environment for businesses, ultimately contributing to economic stability and growth.