Lebanon © Copyright Lex Mundi Ltd.

2010

LABOR AND EMPLOYMENT DESK BOOK

LEBANON
Moghaizel Law Offices

CONTACT INFORMATION
Fadi Joseph Moghaizel
Moghaizel Law Offices
+ 961 1 425 222
fadi.moghaizel@mlof.com

1. Do you have a plant closing law in your jurisdiction and if so, what does it require?
(For U.S. jurisdictions, please answer: Is there a Baby WARN Act in your state and if so,
what does it require?)

No.

2. Are there special rules on releases/waivers in your jurisdiction?

No.

3. What are the equal employment opportunity/ non-discrimination categories in your

jurisdiction (For U.S. jurisdictions, please answer: Are there protected categories
beyond Title VII in your state?)

male/female

4. What are the minimum wage and overtime rules (and exemptions) in your jurisdiction?

Minimum statutory monthly wage is LL 500,000 which is currently equivalent to US $

332.Overtime salary must exceed by 50% the regular salary.

5. Is there employment-at-will, or some other rule, in your jurisdiction? What are the
exceptions?
Lebanon © Copyright Lex Mundi Ltd. 2010

There is no employment at will, but during the probation period (maximum of three months),
either party may terminatate the employment without incurring any liablity.

6. What are the legal obligations upon terminating an employee in your jurisdiction?

According to the Lebanese Labor Code, each the employer and the employee are entitled to
terminate the employment contract entered for an indefinite period of time, provided one
gives the other proper written notice. Therefore, an employer who wants to dismiss a member
of staff must give him/her a written notice of termination. The length of notice is specified by
law and cannot be reduced. It varies with the length of the employee’s employment:

a) Under three years: One month prior notice.

b) Three years to six years: Two months prior notice.
c) Six years to twelve years: Three months prior notice.
d) Over twelve years: Four months prior notice.

If the cause of termination are not stated clearly in the notice, the employee is entitled to ask
the employer to clarify the reasons for the dismissal. The employer’s answer will enable the
employee to determine whether to file an unfair dismissal claim or not.

An employer wishing to dismiss an employee is not bound to let him/her carry on working
during the notice period. The only legal obligation on the employer is to pay the applicable
wages during that time (“giving wages in lieu of notice”).

If the employer requests from the dismissed employee to carry out work during the notice
period, this latter should be allowed to leave work for one hour a day in order to look for
another job.

The termination notice should not be served during leaves mentioned under paragraph c above
and to pregnant employees. This restriction does not apply if the employee is hired by another
employer during the said leaves.

If the employer misuses the right to terminate the employment contract, the employee will be
entitled to a compensation for unfair dismissal determined in light of several factors such as
the nature of employment, age of the employee, period of employment, family status,
employee’s health, etc. provided that such compensation is not less than two months and does
not exceed twelve months. In addition, the employee is entitled to all other legal indemnities
such as the notice period salary, and all his/her contractual allowances.

If the employee has unfairly terminated his/her employment agreement, he/she shall be bound
vis-à-vis the employer to a one to four months compensation for unfair termination. Also,
he/she could, in lieu of notice, pay the due amount to his/her employee.

7. Are there any family and/or medical leave laws in your jurisdiction, and if so, what do
they require? (For U.S. jurisdictions, please answer: Are there family and/or medical
leave laws in your state beyond FMLA and if so, what do they require?)
Lebanon © Copyright Lex Mundi Ltd. 2010

Sick Leave:

Employees who have been working for the same entity for a period exceeding the probation
period (three months), are entitled to a paid sick leave as follows:

a) From three months to two years employment: 100% of the salary payable for half a
month and 50% of the salary payable for another half month.
b) From two to four years employment: 100% of the salary payable for one month and 50%
of the salary payable for another month.
c) From four to six years employment: 100% of the salary payable for one and a half month
and 50% of the salary payable for another one and a half month.
d) From six to ten years employment: 100% of the salary payable for two months and 50%
of the salary payable for another two months.
e) Above ten years employment: 100% of the salary payable for two and a half months and
50% of the salary payable for another two and a half months.

The sick leave is granted pursuant to a medical report. The employer is entitled to delegate a
physician to check the health conditions of the sick employee. When the sick leave exceeds
one month, the employer is entitled to reduce the employee’s annual leave to eight days
instead of fifteen.

Other Leaves:

Pursuant to the Lebanese labor law, the employee who lost his/her father, mother, spouse, one
of his/her children, grand-children, any of his ascending relatives is entitled to a two days
fully paid leave; but pursuant to applicable rules of the Ministry of Labor, the employee
whose father, mother, spouse, one of his/her children, sister, or brother, passes away is
entitled to a paid leave of three days. Also, pursuant to the applicable rules of the Ministry of
Labor, in case of death of the employee’s uncle, ant, cousins, brother/sister-in-law,
father/mother-in-law, he/she shall be entitled to one day paid leave.

The employee who gets married is entitled to a one week paid leave, for one time only.

Maternity Leave:

Pregnant employees are entitled to a paid leave of seven weeks for delivery, in addition to
their annual paid leave.

The employer may not terminate the employee’s employment agreement during any of the
above leaves and may not terminate the employment of the pregnant woman, otherwise such
termination shall be deemed abusive and the employee would be entitled to abusive
termination (unfair dismissal) compensation.

8. Please list any miscellaneous, interesting or oddball laws in your jurisdiction, and state
under what circumstances they pertain.
Lebanon © Copyright Lex Mundi Ltd. 2010

9. Does your jurisdiction have a law requiring employers to give employees access to, or a
copy of, their personnel records?

No.

10. Does your jurisdiction outlaw or restrict drug tests, alcohol tests, genetic tests or any
other kind of testing?

No.

11. Does your jurisdiction have any special rules on the payment of sales commissions?

No.

12. What are the basic rules on enforcing non-competes and related agreements in your
jurisdiction?

Article 11 of our Labor Code states that it is prohibited for a person to enter into an
employment agreement for the duration of his life and to undertake not to practice a specific
profession.

Article 83 of the Lebanese Code of Obligations and Contracts (our civil code enacted in
French in 1932) states that a person may commit not to carry out a specific profession or
industry for a limited time or within a determined radius.

In Lebanese law, it is important that the employee remain able to work in his field in his
country. That is why non-compete clauses may not cover the entire Lebanese territory. They
must be limited to a specific area and must not prohibit the employee from doing the only
work he can do.