Table of Contents

Lebanon

Table of Contents

Currency

Lebanese Pound (LBP)

Payroll Frequency

Monthly

Employer Taxes

22.5%

About Lebanon

Lebanon is a small country with a very high level of influence in the Arab world, with a culture that is diverse and popular throughout the region. A high level of literacy and mercantile culture has also made Lebanon a significant commercial hub for the Middle East. The country borders the Mediterranean Sea between Israel and Syria. Lebanon has been known to have a powerful, unrestricted commercial tradition and a free-market economy. Notably, Lebanon does not inhibit foreign investment; although it continues to face the same challenges of political instability and corruption that affect other nations in the region. Before the civil war (1975-1990), the country was relatively calm and prosperous, with strong financial power and cultural diversity. Its capital, Beirut, was known as the ‘Paris of the Middle East. 6.2 million people live in Lebanon and it has two major ethnic groups: Arab and Armenian. Major languages include Arabic (official), Armenian, French, and English while the primary religions include Islam, Christianity, and Druze. Khalil Gibran, a Lebanese poet, is one of the highest-selling poets of all time.

Employment Relationship

• Permanent Employment

Lebanon's Labor Law does not explicitly define permanent employment. Employees working under indefinite-term contracts are considered to be permanent employees. Lifetime contracts are prohibited in Lebanon.

• Fixed-Term or Specific-Purpose Contracts

Lebanon's Labor Law allows the use of fixed-term employment contracts. Employers do not need to give notice to the employee before the expiration of a fixed-term contract. Generally, employers are not obligated to pay a dismissal indemnity to employees on a fixed-term contract. However, employees working under fixed-term contracts for two years or longer are entitled to the same dismissal indemnity benefits as indefinite-term employees.

• Temporary Employment Contratcs

Lebanon's Labor Law recognizes temporary employees and differentiates them from employees engaged daily. Temporary employees are eligible for dismissal indemnities if they have completed an uninterrupted term of service of at least one year.

Probationary Period

Lebanon's Labor Law allows employment contracts to include a probationary period of up to 3 months. The employer may rescind the contract without indemnity or prior notice during the probationary period.

Working Hours

Lebanon's Labor Law stipulates that regular working hours for employees cannot exceed 48 hours per week. A rest period of nine 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 six hours per day.

Holidays / PTO

• Statutory Holidays

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)

• Paid Annual Leave

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. 

• Sick 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.

• Maternity Leave

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.

• Paternity Leave

Lebanese labor law does not currently grant fathers paternity leave. 

Termination of Employment

• 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.