Libya: An Overview of the Main Provisions of the Libyan Labour Law

Employment and labour relationships in Libya are regulated by the Libyan Labour Law, its amendments and its executive regulation. ‘Law No. 12 of the year 2010 concerning Labour Relations’ (hereinafter ‘Labour Law’), was issued on the 28th January 2010.

The Labour Law includes sections on general provisions, partnership relations, contractual relationships and regulatory relations (public employment). The sections on general provisions and contractual relationships are essential for understanding how the Labour Law governs the employment relationships of national and foreign personnel in Libya.

The Labour Law is applicable to all employees and labour relations in Libya, whether they are statutory, contractual, or participatory. It also applies without regard to the form of remuneration for the work provided by the employee. Below, this article will provide a comprehensive overview of the relevant sections and provisions of the Labour Law.

General Provisions

The Labour Law states clearly that non-nationals are prohibited from engaging in any work without obtaining authorisation from the competent authority, which is the Labour Office. It is then up to that authority to issue a decree, specifying the regulations and conditions for employing foreigners and the professions in which foreigners may be accepted.

Employers are required to maintain a separate file for each worker, including their relevant personal details. This file should also document the worker's leave, allowances, assigned tasks, and any penalties incurred.

Working Hours

An employee weekly working hours should not exceed forty-eight (48) hours per week. Additionally, it should not exceed ten (10) hours per day.

Also, employees should enjoy a weekly rest day of not less than full day (24 hours), preferably on Friday. If the employee works during their weekly rest day, they must be given an alternative rest day as a substitute within the three following days, or else be paid, in addition to their usual pay, an additional payment equivalent to their regular pay rate for the hours worked on their rest day.

The employee shall be entitled to a daily break period of one (1) hour for prayer, meals, and rest. In determining this period, the employee shall not work for more than six (6) consecutive hours. In turn, such breaks should be organised in a way such that the employee does not work for more than six (6) consecutive hours.

Overtime

In case of the employee working overtime, they shall receive, in addition to their regular remuneration, an additional payment of no less than 50% increase on the regular remuneration, provided that the total hours of overtime work does not exceed three (3) hours per day.

Leave Entitlements

Maternity Leave

The Labour Law is clear on maternity leave entitlements. Female employees have the right to maternity leave with compensation for a duration of fourteen (14) weeks, upon presenting a medical certificate indicating the expected date of childbirth.

The mandatory period of maternity leave after childbirth is? six (6) weeks.

Annual Leave

Annual leave for employees shall be thirty (30) days per year.

For employees above the age of fifty (50), annual leave is increased to forty-five (45) days per year.

For employees that have completed more than twenty (20) years of employment, their annual leave is also increased to forty-five (45) days per year.

Emergency Leave

Employees are entitled to emergency leave for compelling reasons. In such cases, the employee is unable to obtain prior permission from their superiors for their absence.

On their return to work, employees who have taken emergency leave, must provide a justification for their absence.

Emergency leave cannot exceed three (3) days at a time, and the total number of days shall not exceed twelve (12) days per year. This right is forfeited if not used within a year.

Emergency leave is not counted as part of annual leave.

Sick Leave

The Labour Law gives employees the right to paid sick leave for a period not exceeding forty-five (45) consecutive days or sixty (60) non-consecutive days per year.

Sick leave is granted based on a medical report from an accredited doctor.

Special Leave

An employee has the right to special leave with full pay in the following cases:

A. To perform the Hajj pilgrimage. This can only be granted once during the period of employment, and for a period of twenty (20) days.

B. Marriage. It shall be for a period of two (2) weeks and shall be granted only once during the entire period of employment.

C. For a woman upon the death of her husband. This shall be for a period of four (4) months and ten (10) days.

D. Academic assessments (for the specified duration of examination).

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Unauthorised Leave

In the case an employee is absent from work without authorised leave, they shall be deprived of remuneration for the days in which they were absent without authorisation.

Employment Contracts

An employment contract is defined in the Labour Law as an agreement that is concluded between an employer and an employee whereby the employee undertakes to work under the management and supervision of the employer in return for remuneration. Clearly, the provisions of the contract must be in accordance with the Labour Law.?

It is imperative that the contract contains all the necessary details that specifies the rights and obligations of the parties. The contract shall be in writing, prepared in Arabic and available in three copies. The individual employment contract is exempt from registration fees.

Probation

The probationary period is thirty (30) actual working days, starting from the date the employee commences work. If the probationary period expires without a decision to terminate the contract, the employee shall be considered to have been confirmed in their employment.

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Contract Term

In accordance with the Labour Law, employment contracts may be concluded for either a fixed or unlimited term, or for a particular assignment/job.

In cases where a fixed term contract continues to be performed by both parties after its expiry without an agreement to renew it, it is considered renewed for an indefinite period.

The maximum duration for a fixed term contract is two (2) years, which may be renewed once, after which it becomes an unlimited term contract.

Contract Notices

A fixed-term contract expires upon the completion of its term without the need for notice or warning. However, if the contract is indefinite, either party may terminate it after notifying the other party in writing, registered and with proof of delivery, at least thirty (30) days before termination.

If the contract is terminated without observing the notice period, the terminating party shall compensate the other party by paying an amount equal to the employee’s wage for the duration of the notice period or the remaining part thereof.

Contract Termination

If the term of the employment contract is fixed, the contract terminates upon its expiry date, unless renewed, without penalties or compensation being payable by the employer.

When there is no specified term, the employer may terminate the contract only for valid, true and acceptable reasons relating either to the employee’s performance of their work or their behaviour towards their colleagues during their employment. In such cases, the employer must serve the employee with thirty (30) days’ notice prior to the termination.

Termination of an employment contract during any type of vacation or sick leave is a violation of the law.

If an employer fails to comply with the rules laid down for terminating an unlimited term contract, they may be sued by the employee.

Consequently, this is why it is recommended that companies document clearly and in detail all the termination steps that they have followed. This will help them to determine that the termination procedures that were followed were reasonable.?

Severance

Non-national employees are entitled to end-of-service compensation upon the completion of their service, calculated based on half a month's salary for each year of service until the end of the fifth year, and one month's salary for each year thereafter.

The condition here is that the non-national employee is not benefitting from social security provisions.

Furthermore, national employees in certain instances are also entitled to a severance payment, such as in the event that the employment contract is terminated due to financial reasons or for restructuring purposes.

Penalties

An employee may not be accused of a violation discovered more than thirty (30) days prior, nor may a penalty be imposed on them more than sixty (60) days after the violation is proven. Also, the employer cannot impose more than one (1) penalty on the employee for a single violation.

Zahaf and Partners Law Firm continues to closely monitor developments and will provide updates when and where necessary. For specialised legal advice, contact us via our email [email protected] or on our website www.zahaflaw.com?

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