LIBYA Law and Practice Contributed by: Salaheddin El Busefi, Heba Gedwar and Mahmud Zahaf, Zahaf & Partners
Commercial Code provides that shareholders are only liable up to the amount of their paid-up capital. However, in exceptional cases involving fraud or abuse of the corporate structure, courts may be inclined to look beyond the corporate form. 4. Employment Law 4.1 Nature of Applicable Regulations The legal rules governing the employment rela - tionship in Libya are primarily derived from stat - utory law, particularly the Libyan Labour Law (Law No 12 of 2010), which constitutes the main source regulating employment matters; when Libyan Labour law is silent on a matter, the civil code applies. These rules of the labour law are characterised by their public order nature, meaning they are mandatory and may not be waived by agree - ment. Any violation of such provisions is deemed null and void, and the aggrieved employee may claim compensation for any resulting harm. The Libyan labour law framework is pro-worker, placing strong emphasis on job security, non- discrimination, and the protection of employee rights. For example, it limits working hours to 48 per week, mandates rest periods, and prohibits forced labour or any form of servitude – affirming the fundamental dignity and rights of workers. In addition to statutory law, the following legal rules govern the employment relationship: • Employment agreements (individual con - tracts) define the terms of the working relationship but must comply with minimum standards established by law. Notably, an employment relationship may still be legally
recognised in the absence of a written con - tract if the elements of subordination and supervision are evident. • Collective agreements may be concluded between trade unions and employers or employer associations. Although less wide - spread in practice, collective bargaining plays a role in protecting and enhancing the working conditions of employees, particularly within larger institutions. • Judicial interpretation (case law) may also influence employment relations, especially in disputes where statutory provisions require clarification or supplementation. In summary, the employment relationship in Lib - ya is governed by a hierarchy of legal norms, with statutory labour law at its core, complemented by contracts, collective agreements, and inter - pretative case law – all underpinned by a public policy commitment to worker protection. 4.2 Characteristics of Employment Contracts An employment contract must be concluded using the model form provided by the Ministry of Labour. The contract may not be executed until it has been approved by the Ministry of Labour, which verifies that the contract complies with the required legal form and that its terms are consistent with the provisions of the law. The contract must include all necessary details to clearly define the rights and obligations of both parties. It must be in writing, drafted in Ara - bic, and prepared in three copies. Once certified, one copy is delivered to each party, and the third is retained by the relevant employment office. However, employment contracts can also be concluded verbally if the requirement mentioned above was not met and the employee is permit -
461 CHAMBERS.COM
Powered by FlippingBook