Employer of Record in Lebanon

An Employer of Record, or EOR, is a company that legally hires employees on your behalf in another country. If you want to hire someone in Lebanon, but you don't have a registered business entity there, you can use an EOR. The EOR handles all the legal and HR tasks that come with employment. This includes payroll, taxes, benefits, and making sure you follow all of Lebanon's labor laws. Using an EOR like Rivermate allows you to build a team in Lebanon quickly and without the high cost and complexity of setting up a local company.

How an Employer of Record (EOR) Works in Lebanon

Using an EOR simplifies the process of hiring in Lebanon. While the EOR handles the administrative side, you manage your employee's day-to-day work.

Here is how it typically works:

• You Find the Candidate: First, you find the person you want to hire in Lebanon.
• The EOR Hires Them: The EOR then legally hires your chosen candidate under a local employment contract that complies with Lebanese law.
• Onboarding is Handled: The EOR manages the entire onboarding process for your new employee.
• HR and Payroll are Managed: The EOR takes care of all HR functions, including running payroll, withholding taxes, and managing benefits.
• You Manage Your Employee: Your new team member works for your company on a daily basis, just like any of your other employees. The EOR simply acts as the legal employer in the background.

Why use an Employer of Record in Lebanon

Using an EOR in Lebanon helps you avoid the complicated and time-consuming process of setting up your own legal entity. It allows you to enter the Lebanese market and hire talent quickly and safely. This is a major advantage for companies that want to test the market or hire skilled individuals without a long-term commitment to a physical presence.

Here are some key benefits:

• Stay Compliant: An EOR ensures you follow all of Lebanon's labor laws, which can be complex. They handle employment contracts, payroll, and benefits according to local regulations.
• Save Time and Money: Setting up a business entity in a new country can take months and be very expensive. An EOR allows you to bypass this process entirely.
• Access to Local Expertise: EORs have local HR experts who understand the specific requirements for benefits and employment in Lebanon. They can help you offer competitive benefits packages that meet local expectations.
• Sponsor Work Permits: An EOR with a registered legal entity in Lebanon can sponsor work permits for foreign employees, which is a requirement for anyone who is not a Lebanese citizen.
• Reduce Risk: The EOR takes on the legal responsibilities of being the employer, which reduces your risk and ensures that all employment matters are handled correctly.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Lebanon includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Lebanon.

Hiring in Lebanon requires understanding a unique mix of cultural and legal factors. The workforce is diverse and well-educated, with Arabic as the official language, though French and English are common in business. High emigration has led to talent shortages in some sectors like healthcare and technology. The Lebanese Labor Law is the primary source of employment regulation, so it's important to know your obligations.

Employment contracts & must-have clauses

While you can make oral employment agreements in Lebanon, we always recommend a written contract. A written agreement in Arabic avoids misunderstandings and clearly outlines the terms of employment. You can include a translation in another language if needed.

Your employment contracts should include these key details:

• Your company's and the employee's full identification
• The date the employment begins
• A description of the job and duties
• The location of the workplace
• Salary and payment frequency
• Working hours and rest periods

There are two main types of employment contracts in Lebanon:

Probation periods

You can include a probation period in an employment contract. This gives both you and the new employee time to see if the fit is right.

Here are the key points about probation periods in Lebanon:

• The maximum length of a probation period is three months.
• During this time, either you or the employee can end the contract without notice or severance pay.
• You must clearly state the probation period in the employment contract.

Working hours & overtime

The standard workweek in Lebanon is 48 hours, typically spread over six days. An average workday is eight hours.

Here’s how overtime works:

• Any hours worked beyond the standard 48-hour week are considered overtime.
• You must pay employees 1.5 times their normal hourly rate for overtime work.

Public & regional holidays

Lebanon celebrates a number of public holidays. Both Christian and Islamic holidays are officially observed. Keep in mind that the dates for Islamic holidays change each year.

Some of the main public holidays include:

• New Year's Day
• Armenian Christmas Day
• St. Maroun's Day
• Rafik Hariri Memorial Day
• Annunciation Day
• Eid al-Fitr
• Good Friday (both Catholic and Orthodox)
• Labor Day
• Eid al-Adha
• Assumption Day
• Islamic New Year
• Ashura
• Independence Day
• The Prophet's Birthday
• Christmas Day

Hiring contractors in Lebanon

Hiring independent contractors in Lebanon can be a flexible way to bring in specialized skills for specific projects. However, you need to be careful about how you classify workers.

An independent contractor is self-employed, provides their own tools, and controls their own work schedule. They are not entitled to the same benefits as employees, such as paid leave and social security.

Misclassifying an employee as a contractor can lead to serious consequences, including:

• Fines and penalties
• Back payment of taxes and social security contributions
• Legal challenges

An Employer of Record (EOR) can help you avoid these risks. We handle the legal and administrative aspects of hiring, ensuring your workers are classified correctly under Lebanese law. This lets you focus on your business while we take care of compliance.

Navigating compensation and payroll in Lebanon requires understanding the local landscape. The economic climate heavily influences salary structures and employee expectations. For businesses, this means staying informed about market rates, minimum wage requirements, and common practices to attract and retain talent while complying with labor laws.

Payroll cycles & wage structure

In Lebanon, the standard payroll cycle is monthly. You typically pay employees their net salary once a month, often near the end of the month. Bank transfers are the standard and preferred method for payment.

Beyond the basic salary, compensation packages in Lebanon often include various allowances. These can be mandated by law or company policy. Common additions include:

• Transportation Allowance: To help cover commuting costs.
• Education Allowance: Some employers provide allowances for employees' children's schooling.
• Performance Bonuses: These are discretionary and based on individual or company performance.

Overtime & minimums

The standard work week in Lebanon is 48 hours. Any work performed beyond these hours is considered overtime. Overtime is compensated at 1.5 times the regular hourly wage.

As of January 1, 2025, the statutory minimum wage in Lebanon is LBP 18,000,000 per month. All employers must adhere to this minimum wage for all employees covered by the Labor Law.

Employer taxes and contributions

Employers in Lebanon are responsible for making several payroll contributions. These contributions fund social security, healthcare, and other employee benefits.

Employee taxes and deductions

Employees also contribute a portion of their salary to social security. Income tax is also withheld from their pay.

In Lebanon, your employee benefits package is a mix of required contributions and leave, plus any extra perks you offer. The social security system, known as the National Social Security Fund (NSSF), covers health, family allowances, and end-of-service indemnity. All employees, including foreign nationals with the right permits, must be registered. This forms the foundation of your benefits program.

Statutory leave

Here is a breakdown of the legally required leave entitlements in Lebanon.

• Annual Leave: After one year of service, employees get 15 days of paid annual leave. This increases with tenure.
• Sick Leave: Entitlement to sick leave depends on how long the employee has worked for you. It starts at half a month of full pay after three months of service. A medical certificate is necessary to claim sick leave.
• Maternity Leave: Female employees are entitled to 10 weeks of paid maternity leave. You cannot dismiss an employee while she is on maternity leave.
• Paternity Leave: Fathers can take three days of paid leave.
• Bereavement Leave: In the event of a close family member's death, employees get two days of paid leave.
• Marriage Leave: Employees are entitled to one week of paid leave for their marriage.

Public holidays & regional holidays

Lebanon has a number of public holidays, and the dates for some religious holidays can change each year.

Typical supplemental benefits

To attract and keep top talent, many companies in Lebanon offer more than the legal minimum.

How an EOR can help with setting up benefits

Setting up a compliant benefits package in a new country can be complex. An Employer of Record (EOR) simplifies this process for you.

An EOR already has a legal entity in Lebanon, so you do not need to set one up yourself. They handle the administration of all statutory benefits, including NSSF registration and contributions. This ensures you are fully compliant with local labor laws from day one.

An EOR can also help you create a competitive benefits package by advising on local market norms and what candidates expect. They can source and manage supplemental benefits like private health insurance, saving you time and effort. By using an EOR, you can confidently offer your employees in Lebanon a comprehensive and attractive benefits package without getting lost in the details of local regulations.

Letting an employee go in Lebanon involves specific steps. You must follow the country's labor laws to ensure a smooth and compliant process. This means understanding the rules for notice periods and severance pay. A fair and lawful exit protects your business and respects the employee.

Notice periods

When you end an employment contract, you need to give the employee written notice. The length of this notice period depends on how long the employee has worked for your company.

Here are the minimum notice periods required by law:

During the notice period, the employee continues to work and receive their regular salary and benefits. If you do not provide the proper notice, you must pay the employee their salary for the notice period.

You can terminate an employee without notice if they have committed a serious offense.

Severance pay

Employees in Lebanon are often entitled to severance pay, also known as an end-of-service indemnity. This payment is required unless the employee was terminated for serious misconduct.

The standard calculation for severance is one month's salary for each year of service. This is based on the employee's final salary.

How Rivermate handles compliant exits

Navigating employee terminations in a different country can be complex. We make sure the entire offboarding process is handled correctly and in full compliance with Lebanese law.

Here is how we manage it:

• Legal Compliance: We stay up to date on Lebanon's labor laws. We ensure every termination meets all legal requirements for notice and severance.
• Clear Documentation: We handle all the necessary paperwork. This creates a clear record of the termination process.
• Communication: We help you communicate the decision to your employee in a clear and respectful way.
• Final Payments: We calculate and process all final payments, including any outstanding salary, benefits, and severance pay. This ensures your employee receives everything they are entitled to, on time.

We manage these details so you can focus on your business. You can be confident that the process is fair, compliant, and professional.

Getting work authorization in Lebanon involves a multi-step process that requires local sponsorship. Your company must have a registered legal entity in the country to sponsor foreign workers. The process generally takes one to three months. After your employee receives a work permit, they can then apply for a residence permit.

Employment visas & sponsorship realities

An Employer of Record (EOR) with a registered legal entity in Lebanon can sponsor work permits for your employees. This is a common way for companies to hire foreign talent without setting up their own entity in the country. The EOR acts as the legal employer and handles the entire visa and work permit process.

Here are some key points about employment visas and sponsorship:

• Sponsorship is required. Independent contractors and freelancers cannot apply for a standard work visa.
• Work permits are tied to the employer. If the employee changes jobs, they will likely need a new work permit.
• Digital nomad visas are not available. While a tourist visa can be used for short stays, it does not permit legal employment.

Business travel compliance

For short-term business trips, Lebanon offers a visa-on-arrival for citizens of over 80 countries. This visa is typically valid for one month and can be extended for up to three months.

Keep these travel realities in mind:

• Entry restrictions. Travelers with Israeli stamps, visas, or seals in their passports will be denied entry. Even previous travel to Israel, without a stamp, can lead to denial of entry or detention if disclosed.
• Required documents. For a visa on arrival, you will likely need:
  • A valid passport
  • Proof of accommodation
  • A return ticket
  • A local phone number and address
• Overstaying is serious. If you overstay your visa, you must resolve your status with the General Security's Department of Passport and Immigration before you can leave the country.