Libya– Employer of Record

Libya is a developing nation that is quickly taking strides in the digital and business world. The country is a great place to find talent for any organization. As it offers a wide range of highly skilled and motivated individuals that can help a company reach its goals. Companies in Libya are also able to benefit from the country’s very low cost of living which makes it very attractive for employers.

Hiring in Libya

Employment contracts in Libya are under the Labour Law of 1977. This law sets out the rights and obligations of employers and employees in the country. It includes provisions related to minimum wages, working hours, holidays, overtime, termination of contracts, and other related matters. Furthermore, the law also sets forth the procedures for the formation of an employment agreement between the employer and the employee.

Working Hours in Libya

The average working hours in Libya vary depending on the sector and the job. Generally, the normal working hours in Libya range from 8 to 10 hours per day, with a maximum of 12 hours per day. The standard working week is 48 hours, with a maximum of 60 hours per week. Overtime is common, but only after authorization from the Ministry of Labor. Workers have the right to one day off each week, usually on Fridays.

Holidays in Libya

• February 17th Revolution
• Labour Day
• Eid al-Fitr
• Arafat Day
• Eid Al-Adha
• Hijri New Year
• Martyrs’ Day
• Liberation Day
• Birthday of Prophet Muhammed
• Independence Day

Vacation Days in Libya

Annual leave in Libya is an important part of the country’s labor policies. Employees have a right to a minimum of 20 working days of paid leave per year. And this may extend depending on the individual’s contract and position.

During this time, employees are free to use their leave as they wish, such as for vacation, religious holidays, or to take care of personal matters.

There are also special provisions for employees who are injured or become ill while on the job. Thus, allowing them to take additional leave days without penalty.

Sick Leave in Libya

• Employees can take up to three months of sick leave each year, if they have a doctor’s certificate.
• During their sick leave, employers have to pay for the employee’s medical expenses, as well as providing at least 50% of the employee’s salary.
• Employees who are sick for more than three months will receive a minimum pension from the government.

Parental Leave in Libya

• Mothers have a right to three months of maternity leave at full pay.
• This leave can extend to six months under certain circumstances.
• Additionally, mothers have access to an additional two months of leave without pay.

Supplementary Benefits in Libya

The labor law in Libya requires all employers to provide health insurance coverage for their employees. This coverage must include protection against illness and injury, as well as access to medical care. Employers also have to pay for any medical expenses associating with the employee’s illness or injury. Employees have a right to receive a percentage of their wages in the event of an illness or injury that prevents them from working. Additionally, employers must provide coverage for any medical emergencies while the employee is on the job.

Health Insurance in Libya

Libya offers a range of supplementary benefits to its citizens. These include medical and health benefits, educational benefits, housing and infrastructure benefits, and subsidies for food and fuel.

Termination Process in Libya

Employment termination in Libya is legally governed by the Libyan Labour Law No. (17) of 2010. This law stipulates that employees must receive with fair and reasonable notice prior to termination, and that employers must pay any unpaid wages and benefits within 15 days of termination.

Furthermore, employers may not terminate employees in cases of pregnancy, maternity leave, or any other case relating to the employee’s gender. And must provide a written notice and payment of compensation in the event of termination.

Therefore, employers in Libya must comply with the legal requirements when terminating employees.

Taxes in Libya

In Libya, employees are subject to income tax, which is calculated based on their total income. The income tax rate is 10% on the total income earned for the year. With an additional 5% for income earned above a certain threshold.

Employees also have to pay social security contributions, which makes up 7% of their total income. Tax declarations must go to the relevant authorities before the end of the fiscal year. As a result, this can be done online or in person at a tax office.

Why choose us?

Connect Resources is an excellent choice for an Employer of Record in Libya. We have a wealth of experience in the region, and offer a full range of services to ensure compliance with local labor laws. Our team of experts provides comprehensive assistance in the areas of recruitment, payroll management, and employee benefits. Additionally, we offer a secure platform for managing employee data, reducing the administrative burden for employers. With our knowledgeable and personal approach, Connect Resources is the ideal partner for employers in Libya.