In Lesotho, the Labour Code stipulates the minimum notice periods required for employment termination, which are applicable to both employers and employees initiating termination. The notice period required increases with the employee's length of service. For employees who have worked for less than six months, a seven days' notice is required. For those who have worked for less than one year, a fourteen days' notice is required. If the employee has worked for more than one year, a one month's notice is required, and for those who have worked for more than ten years, a three months' notice is required.

Notice Periods Based on Length of Service

• Less than six months: Seven days' notice
• Less than one year: Fourteen days' notice
• More than one year: One month's notice
• More than ten years: Three months' notice

While the Labour Code sets these minimums, employment contracts can stipulate longer notice periods if both parties agree.

Exceptions to Notice Periods

There are certain situations where notice periods might not apply as outlined by the Labour Code:

• Fixed-term contracts: If an employment contract has a pre-determined end date, no notice period is necessary upon its completion.
• Probationary period: During the probationary period, either party can terminate the employment with one week's notice. However, the probationary period itself cannot be extended beyond four months without written approval from the Labour Commissioner.
• Summary dismissal: In cases of serious misconduct by the employee, employers can dismiss them summarily, without notice or pay in lieu of notice.

In Lesotho, labor laws mandate severance pay for employees who meet certain conditions, providing financial support upon termination.

Eligibility Criteria

To qualify for severance pay in Lesotho, employees must meet the following conditions:

• Service duration: The employee must have completed more than one year of continuous service with the same employer.
• Reason for termination: Severance pay generally applies if the employer initiates the termination. It may not apply in cases of employee resignation or summary dismissal due to misconduct.

Calculation of Severance Pay

The Labour Code provides a specific formula for calculating severance pay entitlements:

• Two weeks' wages per year of service: An employee receives two weeks worth of their normal wages for each full year of continuous service.

Important Considerations

• Severance pay caps: The Labour Code may periodically impose a maximum limit on severance pay. The responsible Minister determines this cap in consultation with the Wages Advisory Board.
• Exclusion due to misconduct: Employees may lose their severance pay rights if summarily dismissed for serious misconduct.
• Contractual agreements: Employment contracts may provide for more favorable severance pay arrangements, such as a gratuity, provided they meet or exceed the minimum severance pay requirements set by law.

In Lesotho, the termination process must adhere to procedures outlined in the Labour Code to ensure fairness and prevent legal disputes.

Types of Termination

There are several types of termination:

• Termination by notice: Either the employer or employee can terminate a contract of employment by providing notice.
• Summary Dismissal: An employer may terminate employment immediately without notice for serious misconduct by the employee. Examples may include gross insubordination, theft, or serious negligence.
• Termination by mutual agreement: The employer and employee may mutually agree to terminate the employment contract.
• Termination due to operational requirements: Employers may terminate employment due to economic, structural, or technological reasons, subject to procedural fairness requirements outlined in the Labour Code.

Procedural Fairness

Regardless of the reason for termination, employers must uphold procedural fairness to avoid wrongful dismissal claims:

1. Valid reason: The employer must have a valid reason for termination, such as poor performance, misconduct, or operational requirements. The Labour Code provides guidelines on what constitutes fair reasons for dismissal.
2. Written notice: The terminating party (employer or employee) must provide written notice of termination.
3. Opportunity to be heard: The employee must be given a fair opportunity to respond to allegations and present their side of the situation before termination takes effect. This could involve a disciplinary hearing or a meeting.

Disputes and Resolution

If disputes over termination arise, they can be addressed through the following means:

• Conciliation and Mediation: Services provided by the Department of Labour.
• Labour Court: If conciliation fails, either party can refer the matter to the Labour Court for adjudication.