In Libya, the labor law stipulates specific notice periods for terminating employment contracts.

Minimum Notice Period

According to Law No. (58) of 1970 on Labour, the minimum notice period required for termination depends on the employee's salary structure:

• For employees with a monthly salary, employers must provide at least 30 days' written notice before terminating the contract.
• For employees with other salary structures (e.g., daily or hourly wages), the minimum written notice period is 15 days.

This applies to both the employer and the employee initiating the termination for indefinite term contracts (contracts without a pre-defined end date).

Notice Period for Specific Situations

The law doesn't differentiate the notice period based on the employee's length of service. However, some exceptions exist:

• If the termination is due to proven employee misconduct, the employer might not be obligated to provide a notice period, but legal advice is recommended in such situations.

In all termination cases, the notice must be provided in writing.

Employer Obligations During Notice Period

The law grants employees specific rights during the notice period:

• Employers must grant employees a minimum of two hours within their regular working hours throughout the notice period to search for a new job.

Compensation in Lieu of Notice

If the employer fails to provide the required notice, they are liable to compensate the employee for the wages they would have earned during the unserved notice period.

This applies vice versa as well. If the employee leaves without providing the stipulated notice, they might be obligated to pay the employer compensation equivalent to the wages for the unserved notice period.

In Libya, severance pay is primarily governed by Law No. 12 for 2010 Concerning Labor Relations. The entitlements vary based on the nationality of the employee and the circumstances of termination.

Entitlement Based on Nationality

Libyan nationals are generally not legally entitled to severance pay upon termination of their employment contract. However, foreign or expatriate employees have different entitlements.

Severance Pay for Foreign/Expatriate Workers

When termination is driven by economic reasons, foreign employees are entitled to 15 days' salary for every year of service for the first five years of employment, and 30 days' salary for every year of service after the initial five years.

If a fixed-term contract ends, foreign employees are entitled to a severance payment equivalent to half a month's salary for each year of service.

If the employer involuntarily terminates the employment contract, foreign employees are entitled to a severance payment as calculated for economic reasons, regardless of the reason for termination.

Calculation of Severance Pay

Severance pay is usually calculated based on the employee's basic salary and does not necessarily include allowances or bonuses.

Disputes and Resolution

In case of any disputes regarding severance pay, they can be raised with the Libyan labor authorities for resolution.

In Libya, the termination of an employee's contract follows specific steps outlined in the Libyan labor law.

Types of Termination

The Libyan labor law recognizes several types of employment termination:

• Resignation by Employee: The employee voluntarily terminates their contract.
• Termination by Employer: The employer terminates the employment relationship. This can be either involuntary termination, where the employer ends the contract for reasons that are not the fault of the employee, or disciplinary dismissal, where the employer terminates the employment due to employee misconduct.
• Expiry of Fixed-Term Contract: Employment ends at the conclusion of a predetermined contract period.

Legal Requirements for Termination

For indefinite term contracts, either party must provide written notice. Exceptions exist in cases of proven misconduct. For fixed-term contracts, these usually terminate automatically upon expiry; if terminated beforehand, the law grants certain rights to any aggrieved party.

Termination Reasons & Procedures

Employer-Initiated Termination

For the employer to lawfully terminate an employee in Libya, they need a valid reason for the termination, such as economic factors, the employee's incapacity, or proven and serious misconduct. The employer is required to provide written notice that clearly establishes the ground(s) for termination. If the termination is due to misconduct, the employer must follow any disciplinary procedures outlined in the company's policies or in Libyan labor law.

Employee-Initiated Resignation

In the case of the employee voluntarily resigning, they are obliged to submit a written resignation letter to the employer.

End of Service Benefits

The employer is obliged to issue the employee a certificate of service that details the employment dates and type of work performed.