In Lebanon, the Code of Labor stipulates the notice periods required for employment termination, which are based on the employee's length of service with the company.

Length of Service and Notice Period

The notice period varies as follows:

• For less than three years of service, one month's notice is required.
• For three to six years of service, two months' notice is required.
• For six to twelve years of service, three months' notice is required.
• For twelve years and above, four months' notice is required.

These are the minimum legal requirements. However, the employment contract can specify a longer notice period if both parties agree.

Probationary Period

During the typical three-month probationary period in Lebanon, either the employer or the employee can terminate the contract without providing notice.

Payment Instead of Notice

Instead of working the full notice period, the employer or employee can opt to pay the other party a sum equivalent to their regular wages for the remaining notice period. This option must be mutually agreed upon.

Severance pay, also known as end-of-service indemnity, is a right that employees in Lebanon can claim under certain circumstances when their employment is terminated.

When is Severance Pay Granted?

In Lebanon, employees can claim severance pay in the following situations:

• If the employer terminates the employment contract without a valid reason, leading to an unfair or abusive dismissal.
• Upon retirement.
• If the employee resigns due to compelling reasons, such as cases of employer misconduct.

How is Severance Pay Calculated?

The calculation of severance pay in Lebanon is based on:

• The length of service, with employees entitled to one month's salary for each year of service.
• The final salary, as severance pay is calculated based on the employee's last salary received before termination.

For instance, an employee who worked for a company for 10 years with a final salary of $2,000 would be entitled to a severance payment of $20,000 (10 years x $2,000).

Who Pays the Severance Pay?

Typically, the National Social Security Fund (NSSF) in Lebanon pays the severance pay. However, in cases where the termination is deemed unfair or abusive, the employer may be liable to pay severance directly to the employee.

The termination of employees in Lebanon must adhere to specific legal requirements to ensure fairness and protect both the employer and employee's rights.

Types of Termination

There are two main types of termination:

• Voluntary Termination: An employee can voluntarily terminate their contract by providing written notice according to the period specified in their contract or the Lebanese Labour Law.
• Involuntary Termination: An employer can terminate an employee for valid reasons, which can include economic or technical reasons, such as restructuring or closure, and performance or disciplinary reasons, such as poor performance, misconduct, or a breach of contract.

Notice Requirements

Both the employer and employee must provide written notice of termination. If the employer initiates the termination, they must provide a valid reason in the termination letter, particularly in cases of performance or disciplinary issues.

Dispute Resolution

In cases of unfair dismissal, employees can file a complaint with the Lebanese Ministry of Labor or seek legal recourse through the Lebanese Labour Courts.