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:
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.
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 valid for up to 2 years, which is renewable. Those who have stayed in the country under this type of permit for 6 years become eligible to apply for a permanent residence permit.
Employees are entitled to at least 12 days' paid annual leave after the first year of work. The period of leave is defined by agreement between the employee and the employer and it shall be incumbent upon the employer to define it in the absence of an agreement.
Where an employer prevents an employee from enjoying their leave within the 12 months from being eligible, the employee will have the right to a compensation corresponding to the double of the remuneration of the unused days of vacation.
In cases of termination of the employment contract, the employee shall have the right to proportional vacations at the rate of 1 day per each month worked.
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.
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.
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.
Salary must be paid at regular intervals with periods not exceeding 1 month. Remuneration must be paid to the employee on the due date or, if this is Saturday, Sunday or holiday, on a business day immediately preceding.
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