LEBANON Trends and Developments Contributed by: Zeina Obeid and Lea Maalouf, Obeid & Partners
Under the amended provision of Article 12, an “indi- vidual employment contract” is defined as an agree- ment under which an employee undertakes to perform work for the benefit of the employer, under the latter’s supervision and direction, in exchange for remunera- tion, notwithstanding the place of work. The amended article also requires that the employment contract be concluded in Arabic, though it may be translated to a foreign language if either the employer or the employ- ee is a foreign national who does not comprehend Arabic. Among the new provisions introduced by Law No 3, two are particularly noteworthy. Article 4 of Law No 3 added a new Article 12/1 to the Labour Law, allowing the employer and the employ- ee, where the nature of the work permits, to agree on reduced working hours such that weekly work- ing hours do not exceed 48 hours per week and that daily rest remains unaffected. Further, Article 5 of the Law added a new Article 12/2, which expressly regu- lates part-time employment. As such, part-time work is defined as work whose duration is not less than one-third and not more than two-thirds of the working hours of full-time employees in the same company or, where there are no equivalent full-time employees in that company, of employees within the same sector of activity. To conclude, Law No 3 of 2025 fosters a more flexible, efficient and inclusive labour market; one that reduces the costs associated with traditional work structures while offering pragmatic and sustainable solutions to unemployment and enhancing economic competitive- ness. Foreign Currency Transfers from Lebanon: BDL Basic Decision No 13729 On 1 July 2025, the Lebanese Central Bank ( Banque du Liban , BDL), issued Basic Decision No 13729, imposing new regulatory restrictions on foreign cur- rency transfers from Lebanese banks. Simply put, the Decision prohibits banks from making payments or transfers from foreign-currency accounts opened or funded prior to 17 November 2019, the date marking the onset of Lebanon’s financial crisis.
Under Basic Decision No 13729, Lebanese banks shall refrain from making any payments or transfers from such foreign-currency accounts unless (i) the amounts fall within the limits prescribed by the Central Bank’s regulations, or (ii) prior written approval from the Central Bank has been obtained. In essence, the Basic Decision formalises a set of de facto capital controls that have governed Lebanon’s financial sys- tem since the 2019 crisis. The preamble to the Basic Decision provides substan- tial context for its adoption. It highlights that, follow- ing the 2019 crisis, both resident and non-resident depositors have faced severe restrictions on access- ing their foreign-currency deposits and, in many cas- es, have sought redress before foreign courts. The Central Bank cautioned that satisfying some deposi- tors’ claims while others remain unable to access their funds would undermine and violate equal treatment and financial fairness, principles it deemed fundamen- tal to public order and financial stability. In practice, the Basic Decision is expected to have a twofold impact. Domestically, it provides Lebanese banks with a clear regulatory basis for resisting inter- national transfer requests or demands, thereby for- malising the informal capital controls that have been in place since late 2019. Internationally, it is highly likely to influence foreign court and arbitral proceedings involving Lebanese banks, particularly where deposi- tors seek to compel cross-border transfers or enforce foreign judgments or awards against them. In a nutshell, while the long-term legal implications of the Basic Decision will largely depend on judicial inter- pretation and implementation by Lebanese courts, especially in exequatur and enforcement proceed- ings, the Decision ultimately aims to curb selective payments and uphold financial equality and fairness On 31 July 2025, the Lebanese Parliament approved the draft law on Regulating the Ordinary Judiciary, a long-awaited legislative proposal aimed at strength- ening the independence, integrity and transparency of the country’s judiciary after years of political interfer- ence. The Prime Minister remarked that this legisla- among depositors. Judicial Reform Bill
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