COUNTRY

Lebanon

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ل.ل (LBP)

The official name of Lebanon is the Lebanese Republic. It is located in the Western portion of Asia. Arabic is the official language, but local dialects are spoken throughout the nation. Lebanon offers a robust agricultural industry and has made recent strides to diversify the country’s economy. The country offers a large skilled workforce and investment-friendly government.

Written Agreements

Lebanon's Labor Law allows for both written and oral contracts of employment. Written agreements must be made in the Arabic language. However, they may be translated into a foreign language if one or both parties are not familiar with Arabic. Any clause that waives or limits the liability of the employer or employee is null and void. Any clause which waives or limits any warranties or guarantees prescribed by law is null and void.

Oral Agreements

Lebanon's Labor Law recognizes the validity of oral employment contracts but provides no further guidance on their use.

Implied Agreements

If a person does work on behalf of another person for remuneration, then a contract of employment is implied.

Lebanon's Labor Law stipulates that regular working hours for employees cannot exceed 48 hours per week. A rest period of 9 uninterrupted hours must be provided to employees every 24 hours. Also, all employees must be granted a weekly rest of not less than 36 uninterrupted hours.

By order of the Minister of the National Economy, these normal working hours may be reduced for specific work categories, including arduous or unhealthy work. In emergency cases, daily working hours can be increased to 12 hours per day.

Minors under age 18 are prohibited from working over 6 hours per day.

New Year’s Day (January 1), Islamic New Year (date may vary), Christmas at Armenian Orthodox denominations (January 6), Feast of Saint Maron (February 9), Anniversary of Ashura (date may vary), Prophet’s birth anniversary (date may vary), Feast of annunciation (March 25), Good Friday (date may vary), Labor Day (May 1), Feast of Virgin Mary (August 15), Eid Al Fitr (date may vary), Independence Day (November 22), Eid Al Adha (date may vary), Christmas (December 25)

Per Lebanon's Labor Law, starting at the end of the first year of employment, employees are entitled to an annual leave lasting 15 working days with full pay. The employer may choose the leave dates according to work requirements. Employees cannot be dismissed or served with a dismissal notice during their annual leave.

According to Lebanon's Labor Law, employees are entitled to sick leave based on a medical report from a doctor as follows:

  • For employees who have worked for 3 months to 2 years, the duration of sick leave is 15 days with full salary and then 15 days with half salary.
  • For employees who have worked for 2 to 4 years, the duration of sick leave is 30 days with full salary and then 30 days with half salary.
  • For employees who have worked for 4 to 6 years, the duration of sick leave is 1.5 months with full salary and then 1.5 months with half salary.
  • For employees who have worked for 6 to 10 years, the duration of sick leave is 2 months with full salary and then 2 months with half salary.
  • For employees who have worked for more than 10 years, the duration of sick leave is 2.5 months with full salary and then 2.5 months with half salary.

If the duration of sick leave is more than 1 month, the employer has the right to reduce the employee's annual leave entitlement to 8 working days. Sickness benefits are to be paid by the employer.

Upon presentation of a medical certificate stating the presumed date of delivery, Lebanon's Labor Law grants pregnant employees 10 weeks of maternity leave for the period before and after delivery. Employees are to receive their full pay from their employer while on maternity leave. Employers are prohibited from dismissing or serving a notice of dismissal on an employee taking maternity leave unless it is proven that the employee was working elsewhere during her leave.

Lebanon grants 3 days fully paid paternity leave to male employees.

Minimum Wage

Lebanon's minimum wage is set by a commission comprised of representatives from the Ministry of the National Economy, employer associations, and employee unions. Wages must be paid at least monthly to salaried employees and at least twice a month to non-salaried employees. The minimum wage was last set in 2024 to LBP 18,000,000 (Lebanese pounds).

Overtime, Holiday & Vacation Pay

Lebanon's Labor Law generally stipulates that employees' regular working hours cannot exceed 48 hours per week. A rest period of nine uninterrupted hours must be provided to employees every 24 hours. All employees must be granted a weekly rest, which must not be less than 36 uninterrupted hours. The statutory maximum work hours may be reduced by the Ministry of National Economy for particularly hazardous work or may be increased in some instances, such as in restaurants and cafes.

An employer can increase the daily maximum working hours to 12 per day in cases of emergency, provided that:

  • The Social Affairs Service is informed within 24 hours of the intervening case and of the time necessary to perform the work
  • The employee is paid at least 150% of their regular hourly wage for performing the overtime

Minors are prohibited from performing overtime work.

Lebanon's Labor Law does not contain specific provisions regarding the rate of pay employees are entitled to for performing work on a weekly rest day or public holiday.

Employees are entitled to their normal salary while on annual leave.

Notice Period

Lebanese labor law mandates that employers give prior notice to an employee before dismissal or pay compensation in lieu of notice. The statutory minimum duration of the notice period is as follows:

  • 1 month, if the employee has been employed for less than 3 years
  • 2 months, if the employee has been employed for 3 to 6 years
  • 3 months, if the employee has been employed for 6 to 12 years
  • 4 months, if the employee has been employed for more than 12 years.

The notice of dismissal must be in writing.

Severance Benefits

Lebanese labor law mandates the provision of severance benefits to employees who have been dismissed for reasons other than their behavior or negligence. Employers are required to pay a termination indemnity equal to 1 month's salary per year of service for employees who have worked for the employer for at least 1 year and 1 half-month of salary for employees who have worked for less than 1 year. This severance pay cannot be more than 10 months' wages for wage earners employed in professions, in handicraft or by master-craftsmen.

Pension

Lebanon introduced amendments to their social security system in December 2023 to replace its old lump-sum benefits with new pension benefits paid by the National Social Security Fund. The new scheme is expected to be implemented within the next 2 years, and its contribution rates are yet to be determined. Insured members' retirement age is 64 years.

Under the new pension scheme, each insured member will have an individual account where they can contribute, and where the interest will accumulate. They will be eligible for pension if they have contributed for at least 15 years. The amount of pension will depend on the age of the employee, number of years of contributions, and a conversion factor.

Under the old system, there is no pension scheme. Instead, the benefit is paid as a lump sum. To be eligible for this benefit, employees must have reached the age of 60 and have at least 20 years of service. The amount of benefit paid to retired employees is equal to the final month's earnings multiplied by the years of service (up to 20 years) and an additional half month's salary for each year of work beyond 20 years of service.

Dependents/Survivors Benefits

The amendments made to the social security law in Lebanon in December 2023 introduced survivors pensions for insured members' families. Beneficiaries include surviving spouse who had been married for at least 2 years or have a child, children under the age of 18 years or 25 years if they are studying. The pension for spouses continue till they die or remarry, and the remaining share is transferred to the children. The amount of pension depends on whether the insured members was receiving pension or not. Survivors' pension is 80% of the insured members calculated pension, distributed as - 40% of the pension will be paid to the surviving spouse and the other 40% will be divided equally among dependent children.

Under the existing system, family benefits are provided to survivors of a deceased insured person. Survivors include spouses, children, parents, and siblings of the deceased. The deceased must have been insured for at least six years. Benefits are equal to 100% of the last monthly wage multiplied by the number of years of contribution, divided among the survivors. A funeral grant of 150% of the legal monthly minimum wage is also provided to survivors.

Upon the death of the insured employee due to work-related injury or disease, the disability pension of the deceased employee is transferred to their beneficiaries. The widow or widower is entitled to 100% of the employee's pension for three years.

Invalidity Benefits

The amendments made to the social security law in Lebanon in December 2023 introduced disability pensions for insured members. Under the new pension scheme, each insured member will have an individual account where they can contribute, and where the interest will accumulate. Insured members will be eligible for disability pension if they have lost at least two-thirds of their ability to work and have paid contributions for at least 3 years before the date of confirmation of the disability. The pension is calculated based on the years of contribution, age of the member, and conversion factor.

Under the existing system, the National Social Security Fund of Lebanon provides disability benefits to insured employees assessed as having disability of over 50% (the disability prevents them from doing their work and causes their employment contract to be terminated). The benefit is paid as an end-of-service lump sum benefit equal to the employee's last monthly salary before the disability began, multiplied by the number of years of contributions made. The minimum benefit is 20 times the insured person's final monthly salary.

A disability pension is also paid to employees who have suffered a work injury or occupational disease causing a total or partial permanent disability. If the disability is more than 30%, a pension equaling their last wages is paid for 12 months (though this may be extended to up to 24 months). Employees with less than 30% permanent disability receive a lump-sum amount proportionate to their percentage of disability. In case of temporary disability, the employer must pay the full wages for the first ten days of the disability and 75% of the employee's daily wages after that until full recovery, death, or certification of permanent disability. People who require constant care are eligible to receive additional financial assistance.

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