Bilateral teleoperation systems have attracted significant attention in the last decade mainly because of technological advancements in both the communication channel and computers performance. In addition, non-linear multi-degree-of-freedom bilateral teleoperators along with state observers have become an open research area. In this article, a model-free exact differentiator is used to estimate the full state along with a chattering-free second-order sliding mode controller to guarantee a robust impedance tracking under both constant and an unknown time delay of non-linear multi-degree-of-freedom robots. The robustness of the proposed controller is improved by introducing a change of coordinates in terms of a new nominal reference similar to that used in adaptive control theory. Experimental results that validate the predicted behaviour are presented and discussed using a Phantom Premium 1.0 as the master robot and a Catalyst-5 virtual model as the slave robot. The dynamics of the Catalyst-5 system is solved online.