Termination of Employment Contracts in Lebanon

Lebanese law does not recognise at-will employment. An employer must have a valid reason to terminate an employee, except during the probationary period. Termination must be based on serious causes, such as misconduct, negligence or economic necessity. If the termination occurs without legitimate cause, the employer is liable for compensation. Thus, Lebanese law follows a just-cause model, not an at-will employment principle.

Yes, Lebanese law provides dismissal protection to all employees under the Labor Law, regardless of company size or the length of service, though tenure affects compensation. Certain groups enjoy enhanced protection, such as pregnant women and employees under medical leave. Termination of these categories without legal justification is automatically void and gives rise to reinstatement or higher damages.

The general remedy is payment of damages, not reinstatement. Lebanese courts rarely order reinstatement unless the dismissal violates specific protective provisions (e.g., union activities or maternity). In most cases, if termination is found unlawful, the employer must pay compensation in lieu of notice and damages determined by the Labor Arbitration Council.

Under Article 54 of the Labor Law, the severance equals:

One month's salary for each year of service and half a month's salary for any period of service less than one year.

As for compensation it is up to ten (10) months salary for employees who worked for the owners of liberal professions, crafts and industries.

The employer’s right to terminate for serious cause must be exercised within 15 days of becoming aware of the employee’s misconduct or breach. After that period, the employer loses the right to rely on the alleged cause for dismissal. For terminations based on economic or organizational reasons, notice must be provided one month in advance for employees with less than three years of service and, two months for longer service and, three months if more than six years and less than twelve years have passed, and four months if twelve years or more have passed.

Written notice is mandatory. An oral, email, or facsimile termination without an original signed document is not legally sufficient and may render the dismissal invalid. The written notice must specify the reason for termination.

Nonetheless, termination can be proven by other means.

Yes, a termination signed by a person without formal authority may be contested. However, if the company can later prove that the signatory had internal authorization or acted as a representative, the termination may still be upheld. It is therefore best practice to have termination notices signed by the legal representative.

Lebanese law does not require a mandatory pre-dismissal meeting, except where the company’s internal regulations or a collective union agreement provides otherwise. However, in practice and as requested by the Ministry of Labour, employers should conduct a written warning or disciplinary hearing before dismissal for cause.

In single termination cases, the employee may submit their resignation in writing to the administration. They must continue performing their duties until the administration decides on their request. The authority responsible for appointments will make the decision regarding the resignation. If the resignation is not rejected within two months of submission, it will be considered automatically accepted. Furthermore, the employee has to go to the Labor Ministry within 1 month time period for the Ministry to try to mediate. When a company intends to conduct collective layoffs for economic reasons, it must notify the Ministry of Labour at least one month in advance. The Ministry may mediate or impose conditions to mitigate the impact on employees. Failure to comply renders the termination invalid and exposes the employer to compensation claims.

In Lebanon, most private-sector companies do not have formal employee representative bodies. However, where a union or workers’ committee exists, the employer should notify or consult with it before dismissing members or conducting collective layoffs.

The time frame depends on the situation.