Hiring employees in Lebanon is particularly attractive for employers expanding into the Middle East. It’s a country with workers who are often bilingual, have a strong skillset, and share a cultural connection between both Western and Eastern markets.

Lebanon has well-educated workers and strengths in sectors such as technology, finance, engineering, marketing, and education. However, employers must ensure they are highly familiar with local labor laws in Lebanon, plus the ever-changing economy, to ensure they are compliant when hiring in this country.

This guide will provide a 9-step guide to hiring in Lebanon, along with advice on strategic advantages of the Lebanon market, statutory employee benefits, and ways Remote People can help make it easier to hire in Lebanon.

Why Expand Your Business to Lebanon

Strategic Advantages of the Lebanon Market

There are several strategic advantages of the Lebanese market for international employers.

Many professionals working in Lebanon have experience speaking a range of different languages, such as Arabic, French, and English. These workers are highly educated and often have niche experience in sectors such as international business, finance, technology, and customer-facing roles.

While the local economy faces challenges such as a recent banking collapse, hyperinflation, and currency devaluation, Lebanon remains an attractive country for foreign investment due to competitive labor costs and good cultural adaptability.

Importance of Being Aware of Lebanon's Labor Laws

Companies hiring in Lebanon must make themselves aware of the local labor laws that ensure fair, lawful employment relationships.

Lebanon’s primary labor law is the Lebanese Labour Law of 1946. This law dictates how various elements of employment must be run, including employment contracts, wages, working hours, and leave entitlement.

Other relevant acts include:

  • Social Security Law
  • Minimum Wage Decrees
  • Occupational Safety and Health Regulations
  • Code of Obligations and Contracts
  • Trade Union Law
  • Foreign Workers Regulations

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Step 1: Define Your Hiring Needs

The first step when hiring in Lebanon is to understand your hiring needs.

This could vary from business to business, but typically involves thinking about what roles would help the future of your business, and how many new workers you should employ.

Think carefully about your long-term goals so that you’re achieving these as well as improving your business in the short-term.

Step 2: Familiarize Yourself with Compliance Requirements

The next step is to make sure you fully understand the compliance requirements of employing in Lebanon.

This means thinking about what mandatory benefits your employees will be entitled to, such as the right to earn a minimum wage, overtime, annual leave, and public holidays.

You should also consider your tax obligations and social security contributions that you will be responsible for as an employer.

Step 3: Choose Your Hiring Method

The third step is to choose a hiring method. There are three primary hiring options in Lebanon; we’ve detailed these in the sections below.

Establishing a Legal Entity

Establishing a legal entity in Lebanon is the way that many employers hire workers when they want full control over the hiring process.

This involves choosing a business structure, preparing documents, and registering with the Ministry of Economy, Trade Register, and Ministry of Finance. You’ll then need to open a local bank account and obtain the necessary licenses to commence hiring in this country.

While this option is the best way of fully controlling your hiring in this country, it can take time and is also more expensive than other methods.

Using an Employer of Record (EOR)

An Employer of Record can be highly useful in supporting companies that are new to hiring in Lebanon.

EORs act as the legal employer of foreign workers, making sure that they have access to all statutory benefits they are entitled to and that aspects such as contracts and payroll are handled appropriately.

Instructing an EOR is a great option if you’re looking to hire quickly in Lebanon without committing to setting up a legal entity.

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Hiring Independent Contractors

You can also hire independent contractors in Lebanon. This is a good option if you want to stick to short-term hires or mainly work on project-based work.

However, employers must ensure that all contractors are classified correctly and retain their independence to reduce risks with misclassification.

Step 4: Develop a Recruitment Strategy

When you’re confident with an employment method, you can start developing your recruitment strategy.

This involves drafting job descriptions including information on the job role, responsibilities, salary, and benefits, and then posting these adverts on popular job sites/professional networks.

Some examples of high-traffic job sites that you could post job adverts on include:

Step 5: Conduct Interviews and Assessments

When conducting your interviews and assessments, make sure you’re bearing in mind cultural norms to make potential employees feel comfortable and respected.

Candidates tend to value transparency around points such as salary, benefits, and job stability, and interviews are typically professional and conversational.

Step 6: Know the Legal Limitations of Background Checks

Carrying out background checks on potential employees is a normal practice in Lebanon. These checks must be carried out lawfully and only when relevant to a role, and handle any personal data transparently and confidentially.

Checks should be done consistently across all candidates to comply with anti-discrimination laws.

Step 7: Draft Employment Contracts

The next step is to put together your employment contracts.

All contracts should include an appropriate job title, job description, probationary/notice periods, and benefits such as annual leave and sick pay.

Employers are strongly advised to have contracts reviewed by legal professionals to limit any misunderstandings in the future.

Step 8: Register with Authorities and Set Up Payroll

When you’re ready to bring your employees on board, you must first register them with the local authorities and set up payroll processes.

They must be registered with the National Social Security Fund (NSSF) to ensure that social security funds are collected, and that they have a unique tax number for tax deductions.

Now is also a good time to enrol them in any health/pension schemes you may be running as part of your company.

Step 9: Onboard Your New Employees

The last step is to welcome your new employees to the team. You should double-check they have access to all necessary training and resources they need, and are introduced to their team members on their first day.

You should also take some time to explain company policies and procedures to avoid any confusion occurring in the future.

Key Employment Laws and Regulations

The Lebanon Labor Code

The Lebanese Labour Law of 1946 sets out a legal framework for working relationships in Lebanon, including employee rights and employee obligations.

It explains in detail how contracts must work, and rules around wages, working hours, leave entitlement, and termination procedures.

Social Security Regulations

Lebanon’s Social Security System is designed to assist workers in the event of illness, old-age, maternity, and unemployment. The rates of social security in Lebanon are as follows:

ContributorContribution TypeRate
EmployerMaternity and sickness8%
 Family benefit schemes6%
 End-of-service indemnity8.5%
EmployeeMedical care3%

Employment Standards and Employee Rights

Unions and Works Council

Trade unions are legally recognized in Lebanon, with employees having the right to both join and set up a trade union.

Lebanon has formal structures such as the Labour Code and the Arbitration Labour Councils, which are responsible for representing worker rights.

Types of Employment Contracts

There are two main employment contracts that are recognized in Lebanon, including indefinite contracts and fixed-term contracts.

Indefinite contracts are the most popular among full-time workers and have no set end date. Fixed-term contracts tend to be used for employees who are carrying out project-based or temporary work, and will have a defined duration/end date.

Working Hours and Overtime

Standard Working Hours

Full-time workers in Lebanon typically work 48 hours per week. They are entitled to one day off per week of at least 36 consecutive hours.

Overtime Regulations

Overtime hours are usually paid at 1.5 times an employee’s normal rate.

If overtime hours occur on a weekly rest day or holiday, some employers will offer their workers double pay.

Leave Entitlements

Annual Leave

Employees in Lebanon are entitled to at least 15 days of paid annual leave per year, once they’ve completed one year of continuous service.

Part-time employees are entitled to annual leave on a pro rata basis.

Sick Leave

Sick leave in Lebanon varies depending on the length of service with an employer.

Full-time workers who have worked for between 4 months and 2 years are entitled to 2 weeks of sick leave at full pay, and an additional 2 weeks at half pay.

Maternity and Parental Leave

Female employees are entitled to take 10 weeks of paid maternity leave if they have a baby. Male employees are entitled to 3 days of paid paternity leave.

Termination and Severance

Notice Periods

Notice periods in Lebanon vary depending on service length. For example, employees must give:

Length of ServiceNotice Period
Under 3 years1 month
3–6 years2 months
6–12 years3 months
Over 12 years4 months

Severance Pay

Employees who have been dismissed without fault are entitled to severance pay, which is also known as end-of-service indemnity.

This is usually payable as one month’s salary per year of service, or half a month’s pay for shorter service lengths.

Mandatory Contributions

Social Security Contributions

The rates of social security in Lebanon are as follows:

ContributorContribution TypeRate
EmployerMaternity and sickness8%
 Family benefit schemes6%
 End-of-service indemnity8.5%
EmployeeMedical care3%

Health Insurance and Pension

Healthcare is primarily provided through Lebanon’s Social Security System. However, many employers choose to offer private health insurance as a supplementary benefit.

The NSSF covers the old-age pension for both public sector workers in Lebanon via social security contributions.

New mandatory pensions have been introduced in Lebanon in 2023, which provides an updated, contributory pension scheme for private sector workers.

Optional Benefits

Supplementary benefits are encouraged in Lebanon, which are additional perks that employers can offer in addition to the mandatory benefits employees are entitled to as standard.

Some examples of popular supplementary benefits in Lebanon include:

  • Private health insurance
  • Performance bonuses
  • Flexible working
  • Transport allowances
  • Advanced training opportunities
  • Enhanced annual leave entitlement

How to Hire Employees in Lebanon – Our Take

Employing workers in Lebanon can be significantly easier when partnering with Remote People.

Remote People supports companies hiring in Lebanon through Employer of Record (EOR) services, managing the legal employment of workers on your behalf. This ensures employees are hired compliantly, receive all statutory benefits, and are legally authorized to work in the country.

Our EOR services also cover key employment responsibilities such as payroll processing, employment contract preparation, and social security contributions. This reduces administrative burden and allows you to focus on growing your business.

Contact Remote People to learn how we can support your expansion into Lebanon efficiently and compliantly.