GCC Laws
Lebanon
Termination, Resignation & Retirement

Termination, Resignation & Retirement

Q. What are the valid grounds for terminating an employee's contract under Lebanon law?
Valid grounds for termination include serious misconduct, such as dishonesty, insubordination, or actions detrimental to the employer's interests. Additionally, economic or technical circumstances may necessitate termination. It's essential that the employer provides written notice and complies with legal procedures.

Q. ​Is prior notice required before terminating an employee, and what is the notice period duration under Lebanon law?
Yes, prior notice is required. The notice period depends on the employee's length of service:

  • Less than 3 years:
  • 3 to 6 years:
  • 6 to 12 years:
  • Over 12 years:

If the employer fails to provide the required notice, they must compensate the employee equivalent to the wages for the notice period.

Q. What compensation is an employee entitled to upon unjust dismissal under Lebanon law?
In cases of unjust or abusive dismissal, an employee is entitled to severance pay ranging from two to 12 months' wages. The exact amount considers factors like the nature of the work, the employee's age, duration of employment, health and family status, and the severity of the misconduct leading to dismissal. Mondaq

Q. Can an employee resign without serving the notice period, and what are the consequences under Lebanon law?
An employee may resign without serving the notice period; however, they are required to compensate the employer for the unserved notice period, unless otherwise agreed upon. The employer and employee can mutually agree to waive the notice period or modify its duration. Rivermate

Q. What retirement benefits are provided to employees under Lebanon law?
The retirement age is 60 for men and 55 for women. Employees are entitled to end-of-service indemnity, calculated at one month's salary for each year of service, based on the last salary paid before termination. Additional benefits may be provided as per employment contracts or collective agreements. Mondaq

Q. At what age is an employee eligible for retirement benefits under Lebanon law?
The statutory retirement age in Lebanon is 60 years for males and 55 years for females. However, employees may continue working beyond these ages if permitted by their employer's internal regulations or collective agreements. Mondaq

Q. How is the end-of-service indemnity calculated for retiring employees under Lebanon law?
The end-of-service indemnity is calculated based on the employee's last monthly salary. Employees are entitled to one month's salary for each year of service. Part of a year is considered a full year for this calculation. الصفحة الرئيسية

Q. Are employees with long-term service entitled to additional retirement benefits under Lebanon law?
Yes, employees with long-term service are entitled to additional retirement benefits. The collective agreement provides exceptional bonuses based on years of service, such as five months' salary for 25 to 30 years of service and six months' salary for over 30 years. These bonuses are in addition to the standard end-of-service indemnity. الصفحة الرئيسية

Q. What procedures must be followed for an employee to voluntarily resign under Lebanon law?
To voluntarily resign, an employee must submit a written resignation letter to the employer, stating the intention to resign and the intended last working day, adhering to the notice period requirements. The employer may accept the resignation immediately or require the employee to serve the notice period. Upon acceptance, the employer should process the end-of-service benefits and other dues. Mondaq

Q. In cases of termination, what support does the employer provide to assist the employee's transition under Lebanon law?
Employers are encouraged to provide support during termination, such as outplacement services, job placement assistance, or counseling. However, the extent of such support is not mandated by law and varies by employer. Employers must ensure that all legal obligations, including payment of severance and other benefits, are fulfilled upon termination.

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