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Employer of Record in Lebanon

Employer of Record in Lebanon

Skuad's Lebanon EOR (Employer of Record) solution helps you expand your business into Lebanon without setting up a separate entity. Our tech-enriched global HR platform enables companies to expedite the onboarding of remote teams, manage their payroll, benefits, etc., compliantly. Skuad helps you streamline the global expansion process with the able assistance of our international network.

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Lebanon at a Glance

Lebanon, officially known as The Lebanese Republic, is one of the smallest countries located in Western Asia. It is situated across the Mediterranean, bordered by countries of Syria, Cyprus, and Israel. Lebanon is a commercial hub for the Middle East.

Capital - Beirut

Area - 10,452 sq km (4,036 sq miles)

Population - 6.8 million

Currency - Lebanese Pound (LBP)

GDP - $51.9 billion (2019)

Languages - Arabic

What You Must Know Before Employing in Lebanon

The Lebanese Code of Labour, 1946, is the main source of employment law in the country. There are several domestic laws relating to foreign employment, social security, occupational health, and others. The decisions of the Labour Ministry and government decrees also regulate employment in the country. Below are some of the key entitlements and other aspects of employment laws in Lebanon.

To carry out business operations in Lebanon a company should be aware of all aspects of Lebanon's employment laws and regulations. Though they might look complex, they are similar to those of other countries. To mitigate the challenges of setting up an office or adhering to compliance matters in the country, partnering with a local payroll provider who is well aware of Lebanon laws for local and foreign citizens can help make the process easier.

Entitlements Explanations
Statutory Working Hours Working hours are 48 hours per week.
Overtime Eligibility Any employer can ask an employee to work overtime whenever required. However, the number of hours worked per day should not exceed 12 hours, including overtime. The Social Affairs Service should be informed about the employees' overtime hours within 24 hours. If an employee works overtime, they must be compensated one and half times their usual hourly wage.
Paid Public Holidays The public holidays in Lebanon for 2021 are as follows:
  • New Year’s Day (1 January)
  • Armenian Orthodox Christmas Day (6 January)
  • St. Maroun Day (9 February)
  • Rafik Hariri Memorial Day (14 February)
  • Feast of the Annunciation (25 March)
  • Good Friday (2 April)
  • Easter Sunday (4 April)
  • Good Friday (Eastern Church) (30 April)
  • Labour Day (1 May)
  • Orthodox Easter Day (2 May)
  • Martyrs’ Day
  • Eid Al-Fitr (13 May)
  • Resistance and Liberation Day (25 May)
  • Eid Al Adha (20 July)
  • Hijri New Year (10 August)
  • Assumption Day (15 August)
  • Ashura (19 August)
  • Birthday of Prophet Mohammed (19 October)
  • Independence Day (22 November)
  • Christmas Day (25 December)
Holiday Pay

Every employee is entitled to holiday pay. There are two compulsory holidays that employers should give paid holidays for Independence Day and Labour Day.

In Lebanon, an employee also gets paid for ‘Rest Hours’ every week, which are 36 hours.

Medical Leave In Lebanon, Sick leaves are granted based on the employee's duration of service. In the total duration of leave, half of the days are fully paid, and others are half paid. It is as follows:
Duration of Employment Sick leave
3 months - 2 years Upto one month
2 - 4 years Upto two months
4 - 6 years 3 Two and half months
6- 10 years 4 months
More than 10 years 5 months
Maternity Leave

In Lebanon, a female employee is granted 10 weeks of maternity leave from the employer. In addition to it, employees can avail benefits through social security in the form of reimbursements.

There is no statutory paternity leave. In general practice, A male employee can take leave on a child's birth.

Annual Leave Accrual Entitlement

Every employee is entitled to 15 days fully paid annual leave after completion of one year in employment. Employers must provide annual leave.

Extra benefits can be claimed if possible through a collective agreement between employer and employees.

Employee Protection and Anti-Discrimination Rights The Lebanese labor law prohibits gender discrimination and protects employees from harassment. Special protection to children and women is granted. Foreign employees are entrusted with specific rights and grants. In order to address the harassment, bullying, and other related victimization mechanisms were established with the approval of the Labor Ministry.
Confidentiality of Personal Information Lebanon labor law doesn't contain special provisions on Data Protection. However, E-Transactions and Personal Data Law, 2018 of the country need to be followed to process data of individuals.

To ensure compliance with the Lebanese employment laws, Contact Skuad today.

Learn more about Skuad here.

Contractors vs. Full-Time Employees

The main differences between contractors and full-time employees are as follows:

  • Contractors are hired for a certain duration or specific tasks and paid as per the payment terms agreed under the contract. In contrast, a full-time employee is a permanent employee and is paid based on hours worked per week. Full-time employees can avail of all legal and government benefits which are absent for contractors.
  • An employee under contractual employment is not considered a part of an organization's staff. An employer is responsible for all full-time employees; however, no such responsibility is claimed with contractors.

The choice of employment type depends on the size, resources, nature of work, and organization requirements. Both types of workers can be employed where independent contractors are limited to specific or technical tasks, and permanent employees are allotted regular work. It is one of the key decisions that the company needs to make before hiring the workforce.

For independent contractors, the organization doesn't take any responsibility for payroll taxes, whereas, for permanent employees, it can withhold and pay such taxes. The same applies to social security measures. Managing any type of employment is an extra responsibility that requires half of the resources and strength of a company. Skuad takes up this responsibility and recruits employees based on your business's needs and for particular tasks. It also manages its payroll and benefits, all in compliance with the local laws. Book a demo here to learn more about Skuad's services.

Hiring in Lebanon

If there is a work permit (for foreign workers), employers can employ persons across the globe in Lebanon under a contract of employment. However, the first preference should be given to nationals as per the mandate of Lebanon's government. There are various platforms available online through which employees can be recruited in Lebanon. Some of them are as follows:

  1. www.Indeed.co
  2. www.jobsforlebanon.com
  3. www.bayt.com

The main advantage of hiring through these platforms is the easy access they offer without any workload on your HR management team. It gives access to a wide range of candidates in large numbers from varying backgrounds. Employers can directly contact job-seekers and vice versa. However, one of the drawbacks of hiring in this manner is the huge task of quality assessment of the candidates.

Moreover, you will have to dedicate your internal staff and resources to manage each potential employee in compliance with the local laws, which can be time-consuming and expensive. During a business expansion, all these tasks in the company divert your main focus; hence working with an ally like an EOR can make the process more streamlined and easy. As a Lebanon EOR service provider, Skuad can assist the companies by recruiting and hiring both full-time and contract-based employees while ensuring 100% compliance with the local laws.

Talk to us here to learn more.

Probation Period

In Lebanon, every employee should undergo a three-month probation period for performance assessment. During the probationary period, an employee can't avail any benefits of employment.

Termination of Service

Topics Explanation
Notice for Termination of Employment The Notice period before termination is dependent on employee duration of service, which is as follows:
Employment Duration Notice Period
Below or up to three years 1 month
Between 3 to 6 years 2 months
Between 6 to 12 years 3 months
More than 12 years 4 months

You can avail yourself of Skuad's Lebanon EOR services to manage your expansion in a timely, hassle-free manner in compliance with the local laws.

Talk to Skuad experts for more details.

EOR Solution in Lebanon

When you decide to expand your business operations in Lebanon, you must choose whether you want to set up an in-house HR team or partner with a payroll outsourcing service to manage your HR needs.

Outsourcing Employment Through an Employer of Record

Expansion of business operations in a foreign country can be a long, tedious, and expensive process, especially if you choose to set up a separate legal entity with in-house teams to look after the recruitment and hiring of employees. Instead, you can expedite your business expansion plans by hiring an expert EOR service provider to cater to all your staffing requirements.

Skuad's comprehensive EOR Lebanon services ensure that all the processes relating to payroll management, taxation, drafting of legal documents, work permits, and visas are handled smoothly and comply with the local laws. With our tech-enriched HR platform, you can leverage the multitude of business opportunities in Lebanon to your benefit. We offer tailor-made EOR solutions for all your expansion needs!

To avail yourself of our services, speak to Skuad experts today.

Types of Visas in Lebanon

Whether for relocating employees or hiring new employees, the employers and employees must make sure that they have a working visa that complies with the country's labor laws. There are different visas that Lebanon offers for people willing to enter the country. These varied visas are as follows

  • Tourism visas & Transit visas
  • Business visas
  • Student visas
  • Family reunification visas
  • Work visas, having a validity of 3 months

The different types of visas state the duration of the time an individual can stay in the country. Initially, employees should obtain a work visa to enter and work in Lebanon. Later, they can apply for resident visas.

Documents required to obtain Work Visa
  • Visa application form that is duly filled by the candidate.
  • Recent passport size photo
  • Passport having a validity of at least 6 months
  • Copy of the applicant’s passport’s main page
  • Pre-Approval from Labour Ministry obtained by a company representative
  • Letter of Appointment
  • Payment slip of visa fee
Procedure to get work Visa in Lebanon
  • The foreign national must begin by filling up the visa application form and collecting all the documents required to process the work visa.
  • When the paperwork is complete, the applicant should reach out to the consulate, the embassy, or the diplomatic representative to schedule an appointment.
  • The processing of the applicant's visa takes 14-20 days for the complete processing of the visa.
  • The employee can enter Lebanon once they receive the visa. However, work visas are not expandable in Uruguay, so the worker must apply for a residence visa within 3 months.
  • The employee should be held with Work Permits along with a visa to work in Lebanon.

Talk to us and get more information and guidance related to types of visas and work visa requirements in Lebanon. Skuad can handle all your visa requirements and ensure the expansion process does not get delayed.

Work Permit

Without a work permit, foreign workers are not allowed to work in Lebanon. A local partner is essential to get all the work done. Skuad's local EOR partner can sponsor work permits in Lebanon on your behalf so that you can hire workers remotely without setting up a separate entity in Lebanon.

Can Skuad Sponsor work Permit in Lebanon Yes
Processing Time 3 to 4 weeks
Work Permit Process

Step 1: Skuad's local partner in Lebanon, acting as an employer, sponsors the work permit for the employee and submits the application form along with the labor ministry pre-approval form to the Directorate of General Security.
Step 2: General Security approves and issues the work permit.
Step 3: The employee can work in Lebanon with the work permit until its expiration.

Skuad takes care of all these requirements, and its tech-enriched HR platform enables client companies to manage their workforce activities remotely.

Contact us here to learn more.

Things You Must Know to Set Up Payroll in Lebanon

Management of Payrolls is a crucial task in HR and should be complied with Lebanon's policies on Taxes and Social security funds. Only a registered employer should provide payroll in most countries, including Lebanon.

The first step would be to set up a local subsidiary that will help the company hiring, setting up payrolls, work legally in the country and provide benefits and compensation to the employees. It requires time and effort to set up a subsidiary in Lebanon while complying with its laws. Skuad can help with payroll management via its unified employment platform while completely being compliant with Lebanese employment laws.

Taxes in Lebanon

Employer Taxation

Tax Explanation
Corporate Tax Corporate Income Tax (CIT) is imposed on companies in Lebanon at a rate of 17%.
Withholding Tax (For Non-Residents) The WTH Tax in Lebanon is imposed at a rate of 2.25% on the sale of equipment and materials. For services, the tax rate is 7.5% of the total revenue.
Payroll Tax The payroll tax rates range between 2 % to 25%. The employer withholds on behalf of the employee.
Social Security The Social security contributions on behalf of employer is as follows:
Employer contribution

Sickness and maternity benefit scheme - 8 7%
Family benefit schemes - 6 %
For service indemnity - 8.5%

Employee Taxation

Tax Explanation
Personal Income Tax Rates Every resident should pay personal income tax in Lebanon. The tax slabs are as follows:
Income Tax rate
Net taxable income not exceeding 6 million 2%
Net taxable income over 6 and not exceeding 15 million 4%
Net taxable income over 15 and not exceeding 30 million 7 %
Net taxable income over 30 and not exceeding 60 million 11 12 %
Net taxable income over 60 and not exceeding 120 million 15 16%
Net taxable income over 120 and not exceeding 225 million 2021%
Net taxable income exceeding 225 million 25%
Tax Returns Tax returns should be filed every year by the end of January.
Social Security contribution Sickness and maternity benefit scheme- 2%

Skuad takes care of onboarding and management of remote teams. It also handles taxes, social security contributions, and payroll of all employees recruited. Through this, businesses can ease the processes at the time of expansions to save time and resources.

Bonuses

Employers in Lebanon are not compelled to provide bonuses to their employees, but they may do so if they like.

Learn more about Skuad.

Incorporation: How to Set Up a Subsidiary in Lebanon

A company can expand into a new country by incorporating a subsidiary of the parent/holding company. The business laws of Lebanon deal with various forms of subsidiaries, including a limited liability company (LLC), a representative office, and a joint-stock company. LLCs are the most favored form of business vehicle opted by companies. This is because an LLC is considered a separate legal entity, which reduces the risk for the partners and shareholders.

The registration and incorporation of a subsidiary in Lebanon include the following steps:

  • Firstly, upon approval of shareholders, board meetings, the bylaws, registration commercial circular, and other documents such as the Power of Attorney and shareholder details must be submitted to the Commerce Registry.
  • A temporary bank account should be opened to deposit the capital of the company.
  • Applicable stamp duty and fees need to be paid.
  • A unique Tax Identification number is issued to the company along with an incorporation certificate. Meanwhile, the other formalities of tax, social benefits, and National Health Insurance registrations have to be made.

The entire registration process takes approximately 4 weeks upon submission of the required documents. The companies execute all these processes through a local notary or partner.

Skuad's EOR services can fast-track your expansion process, allowing you to start your business operations in Lebanon immediately. Right from recruiting the right employees to managing your payroll, Skuad's EOR Lebanon services will handle all the compliances for you so that you can commence business operations on time. Skuad, which has a global network across 120 countries, can facilitate your subsidiary incorporation in Lebanon. Talk to Skuad experts here.

PEO

A Professional Employer Organization (PEO) is an organization that provides services such as HR consulting, employee payroll management, insurance liabilities, and others in a joint partnership with businesses. An EOR also provides similar services; however, the difference lies in the arrangement or association between the EOR company and the business.

  • A PEO acts as a co-employer who shares equal control of employees with the company; however, this has its own risks and expected challenges.
  • On the other hand, in an EOR, no such arrangement is required as they take full responsibility for employee recruitments, taxes, and all other HR services without the client losing administrative control. Foreign workers can be recruited at ease with the help of an EOR in compliance with all regulatory requirements.

A company can choose either PEO or EOR based on its requirements and expansion strategy. However, EOR comes with a better package of services when the company doesn't have any entity set up in the country.

Skuad's EOR solutions help companies seeking to expand their business internationally to do so without having to deal with the hassle and liability of complying with the local labor and employment laws. If you already have an entity set up in Lebanon, you can avail yourself of our PEO services. Talk to Skuad experts to learn more.

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