Timor-Leste

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Country Snapshot

The GPS Country Snapshot includes 25 sections of information about labor law compliance in Timor-Leste. See a sample of popular sections below.

Termination of Employment

According to Timor-Leste's Labour Code, employers are required to give notice as follows to dismiss employees due to market, technological and structural reasons:

  • 15 days for employees who have worked for less than or equal to 2 years 
  • 30 days for employees who have worked for more than 2 years. 

Non-observance of the period of advance notice requires the payment of remuneration corresponding to the number of days not observed in the advance notice.

If an employee wants to terminate the contract, they have to give a notice of at least 30 days. No notice is required to terminate a contract during probation. Also, dismissing an employee for misconduct requires a disciplinary hearing prior to dismissal and no notice period.  

Work Permits

Foreign nationals who wish to work in Timor-Leste under an employment contract lasting more than 120 days in a year require a work visa. The work visa is valid for a maximum period of 1 year and it may be extended for equal periods and allows multiple entries. It takes around 15 days to process.

Foreign employees must also apply for a temporary residence permit that is issued for up to 2 years and can be. Those who have stayed in the country for over 5 years become eligible to apply for a permanent residence permit. 

Paid Annual Leave

Female employees in Timor-Leste have the right to paid maternity leave for a minimum period of 12 weeks, 10 weeks of which must be taken after delivery, without loss of remuneration and seniority rights. In case of miscarriage, employees are granted 4 weeks' leave. In case of any medical complications, additional prenatal leave is granted on doctor's recommendation.  

Employees are entitled to 100% of their wages for the duration of maternity leave, paid by the employer. Since 2021, Timor-Leste has implemented a social security scheme where maternity benefits are paid by social security, provided the employee has paid at least 6 contributions in the last 12 months.

Working Hours

The standard daily working hours for employees are 8 hours, limited to a maximum of 44 hours per week. All employees have the right to a remunerated weekly rest period of at least 24 consecutive hours. The working time of employees is defined by their employers or collective agreements.

Maternity Leave

Female employees in Timor-Leste have the right to paid maternity leave for a minimum period of 12 weeks, 10 weeks of which must be taken after delivery, without loss of remuneration and seniority rights. In case of miscarriage, employees are granted 4 weeks' leave. In case of any medical complications, additional prenatal leave is granted on doctor's recommendation.  

Employees are entitled to 100% of their wages for the duration of maternity leave, paid by the employer. Since 2021, Timor-Leste has implemented a social security scheme where maternity benefits are paid by social security, provided the employee has paid at least 6 contributions in the last 12 months.

Minimum Wage

All employees must be paid no less than the minimum remuneration defined by law or by the collective agreement for the respective category. The national minimum wage was last determined in 2012 by the National Working Committee as USD 115 per month.

Country Profile

The GPS Country Profile contains detailed information on over 60 topics related to labor law compliance within Timor-Leste.
  • Type of Employment Relationship
  • Permanent Employment
  • Fixed-Term or Specific-Purpose Contracts
  • Temporary Employment Contracts
  • Part-time Employment
  • Young Worker Employment
  • Vendors and Independent Contractors
  • Types of Contracts
  • Probationary Period
  • Termination of the Contract of Employment
  • Grounds for Termination
  • Notice of Dismissal
  • Fair Dismissal
  • Redundancy
  • Unfair Dismissal
  • Suspension of Contract of Employment
  • Severance Benefits
  • Hours of Work
  • Work Week and Timekeeping
  • Night Work and Shift Work
  • Overtime
  • Remote Work
  • Required Time Off
  • Public Holidays
  • Annual Leave
  • Sick Leave
  • Maternity
  • Other Forms of Leave
  • Social Insurance and Retirement
  • Social Security Contribution
  • National Retirement Scheme
  • Dependents’/Survivors Benefit
  • Life and Disability Insurance/Benefit
  • Statutory Allowances
  • Compensation and Benefits
  • Minimum Wage (Basic Wage)
  • Bonuses, Profit Sharing and Other Compensation
  • Medical Insurance
  • Work Environment
  • Workplace Safety and Health
  • Prohibition of Discrimination
  • Prohibition of Harassment
  • Data Protection and Privacy
  • Whistleblowers and Retaliation
  • Workers’ representation in the organization
  • Freedom of Association
  • Registration and Recognition of Unions
  • Trade Union Personality
  • Collective Bargaining and Agreements
  • Disputes and Settlements
  • Strikes and Lockouts
  • Unfair Labor Practices
  • Taxation of Compensation and Benefits
  • Income Tax
  • Taxation of Employee Benefits
  • Tax Filing and Payment Procedures
  • Double Tax Relief and Tax Treaties
  • Visas and Work Permits
  • Visas
  • Work Permits and Residence Permits

 Country Snapshot

Get the full Country Snapshot with 25 sections of information about labor law in Timor-Leste.