LIBYA Law and Practice Contributed by: Salaheddin El Busefi, Heba Gedwar and Mahmud Zahaf, Zahaf & Partners
ted to prove their rights by all legally recognised means of evidence, including witness testimony and circumstantial proof. This reflects the pro- worker orientation of Libyan labour law and its focus on safeguarding substantive rights over formalities. 4.3 Working Time Labour law prohibits working hours that exceed 48 hours per week, or over ten hours a day. There is no set minimum amount of work hours and hours worked in overtime are compensated at the worker’s usual daily rate in addition to a 50% bonus all while ensuring that overtime hours do not exceed three hours per day. 4.4 Termination of Employment Contracts Libya is not an “employment at will” jurisdic - tion. Instead, its labour legislation emphasises job security and protection of employee rights, which are considered matters of public poli - cy. Libyan labour law is generally favourable to workers, and the rules on termination vary depending on the type of employment contract. There are two main types of employment con - tracts in Libya: fixed-term contracts, which are the most common, and indefinite-term con - tracts. A fixed-term contract automatically expires at the end of its term without the need for notice and cannot be terminated ahead of term. However, early termination is only permitted under specific legal grounds, such as unjustified absence, non- performance, submission of false credentials, or commission of a criminal offence, or if the employee is still under probation. Termination for reasons such as underperformance or economic necessity is also possible, though such grounds can be more difficult for employers to justify in
the event of a dispute. If a fixed-term contract is terminated without lawful justification and prior to its term, the employee is entitled to their salary for the remaining duration of the contract. For indefinite-term contracts, either party may terminate the contract by giving the other party at least 30 days’ prior written notice. If the notice requirement is not observed, the terminating party must compensate the other party with an amount equal to the employee’s wage for the notice period or the remaining portion thereof. If the employer issues the notice, the employee is entitled to two hours per day during the notice period to seek alternative employment. In the absence of legal grounds for dismissal – such as breach of work obligations or miscon - duct – an employee may be entitled to an end- of-service benefit equal to one month’s salary and may seek additional damages for unjustified termination, which are determined by the court. With respect to collective redundancies, Libyan labour law allows employers to terminate multi - ple contracts for valid administrative or econom - ic reasons, or where work has ceased entirely or partially for a period of at least two consecutive months. In such cases, employers must: • provide advance notice to affected employ - ees; • notify the competent Employment Office at least two months in advance; and • allow the Employment Office to verify the legitimacy of the reasons for termination. Employees affected by collective redundancies are entitled to the statutory end-of-service award and may also claim further compensation if the termination results in additional harm.
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