Payroll and Benefits Guide Libya

Termination Process

Employers can terminate a fix term contract by giving the following reasons – business, personal or worker’s’ misconduct. It requires notice and a written explanation for the termination.

If the reason is misconduct, a warning needs to be given and the employee gets a chance to explain his or hers actions.
Employers can terminate an employment agreement for the following reasons:

• Expiration of a contract
• Medical reasons that would prevent the employee from fulfilling their duties.
• Conviction of a crime
• For termination initiated by either the employee or employer- a letter of resignation or termination must be sent to the other party.

At the end of the employment term, the employer must provide a certificate that states:

• Start and end date of the employment.
• Type of work performed.
• Salary information (optional)
• Other benefits received (optional)

Notice Period

The notice period in Libya is typically 30 days for both the employee and employer.
A notice period is required if an employee’s employment contract has been terminated due to an employee’s failure to fulfil their obligations, the employer falsifying their identity, financial loss due to mistakes made by the employee in question, and safety instructions not being followed by the employee.

Taking an example of an employee that has been absent from work without justification for more than 20 days in a year or more than ten consecutive days in one period. In that case, a written warning must be issued before dismissal on the 5th consecutive day or the 10th day of absence within the year.

Severance Pay

Severance pay for Libyan nationals is not required; however, it is for ex-patriates. Ex-patriates are entitled to half a years’ salary for every year of employment up to 5 years.

Probation Period

The probation period in Libya is typically six months.