Employer of Record in Lebanon

Hiring independent contractors has boomed in popularity because of the cost savings and flexibility they offer. It can be a great option if you require niche skills or short-term project support. Contractors allow businesses to access specialized skills quickly, without the time and cost of setting up a local entity.

However, it’s important to know the limits of this model: contractors are not a substitute for full-time employees. Relying on them for ongoing, long-term roles can create serious compliance risks, including employee misclassification, which can lead to fines, back taxes, and reputational damage.

Playroll’s contractor management solutions make it simple to compliantly engage, onboard, and pay contractors around the world. We provide clear visibility into agreements, streamline payments, and reduce compliance risks – so you can focus on getting the work done. And when you’re ready to take the next step, we can help seamlessly convert contractors into full-time employees through our global Employer of Record service.

Businesses can only operate smoothly in Lebanon if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Lebanon below, to avoid any compliance issues.

Employment Contract Requirements

While not legally mandated, employers in Lebanon should establish a written employment contract when hiring. Although the Lebanese Labour Code does not specify minimum requirements for contract terms, customary elements to include are:

• Identification of both parties
• Commencement date
• Job responsibilities and duties
• Employee's salary and other benefits

Onboarding Process

We can help you get a new employee started in Lebanon quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Probation Period in Lebanon

The probationary period cannot exceed three months, during which employees are ineligible for any leave, including sick leave, and any leave taken during this period will be unpaid.

In Lebanon, the standard workweek is 48 hours, with overtime compensated at 1.5 times the regular hourly wage. This typically translates to a six-day workweek, with each day comprising eight hours.

Overtime is defined as any work performed beyond the standard 48-hour workweek. Overtime compensation in Lebanon is mandated by law to ensure fair payment for additional work.

• Standard Overtime: Overtime work is compensated at a rate of 1.5 times the regular hourly wage.
 
• Weekend and Public Holiday Work: Work performed during the weekly rest day or on official public holidays is typically compensated at a rate of 2 times the regular hourly wage, in addition to a compensatory rest day.

Growing your team in Lebanon is exciting, but it’s not without challenges. Local labor laws are often nuanced, and hiring without the right legal structure or processes can lead to misclassification, non-compliance penalties, or disputes. An Employer of Record removes that risk by acting as the legal employer on your behalf, taking full responsibility for compliance, contracts, payroll, and employee benefits.

This gives you the freedom to scale at your own pace, whether you're adding one employee or building out an entire function, without the burden of setting up and managing a local entity. You remain in control of day-to-day responsibilities and performance, while the EOR ensures every hire is legally protected and properly supported. It's a strategic way to expand globally without spreading your internal team too thin or exposing your business to legal liabilities in unfamiliar markets.

Navigating payroll taxes in Lebanon can seem complex, but understanding the key elements can simplify the process for employers. The main taxes that employers must manage include income tax withholding, social security contributions, and local levies, with specific rates depending on the employee's salary and location.

In Lebanon, the Social Security Rate stands at 25.50 percent, with 22.50 percent contributed by companies and 3.00 percent by employees as of 2025. Employers need to calculate payroll taxes accurately, file them on time, and ensure that employees receive proper compensation and benefits.

It's crucial to be aware of the various deadlines for tax submissions to avoid penalties. For individual tax returns, the deadline for calendar year 2024 is 30 November 2025, and for calendar year 2025 onwards, it remains 30 November. Self-employed individuals must pay income tax in quarterly instalments due by the 15th day after the end of each quarter.

Using payroll management software, such as Playroll, can significantly help employers streamline the payroll process, stay compliant, and reduce the risk of errors.

Employees expect to be paid accurately, on time, and in full compliance with local standards. When you're hiring in Lebanon, providing a smooth payroll experience is critical to retention and trust. An Employer of Record ensures that employees receive what they’re owed, without errors, delays, or confusion about taxes or benefits.

Key Ways an EOR Supports Payroll in Lebanon:

• Reliable Salary Payments: Ensures employees are paid promptly in local currency.
• Clear Payslips & Documentation: Provides employees with compliant, understandable records.
• Correct Benefits & Contributions: Delivers legally mandated contributions and any changes in compensation, like bonuses.
• Payroll Setup & Processing: Handles salary calculations, tax withholdings, and local reporting obligations.
• Boosts Employee Confidence: Builds trust with compliant, consistent payroll operations.

In Lebanon, employers are required to secure appropriate work permits and visas for their international employees to ensure legal compliance. The process involves understanding the various visa types, such as the Temporary Work Visa, Permanent Work Visa, and Skilled Worker Permit. Employers must navigate steps including obtaining prior approval from the Ministry of Labor, submitting the necessary documentation, and adhering to local labor laws.

Additionally, maintaining compliance involves timely renewals, addressing cultural integration challenges, and ensuring proper sponsorship. Employers should also be aware of associated fees, processing times of approximately 4-8 weeks, and the absence of specific provisions for digital nomads, which necessitate alternative arrangements for remote workers.

Mandatory Leave Entitlement in Lebanon

The annual leave entitlement in Lebanon is 15 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Lebanon

Lebanon observes 20 public holidays in a year.

Paid Time Off in Lebanon

After one year of service, full-time employees are entitled to 15 days of paid annual leave.

Maternity Leave In Lebanon

Female employees in Lebanon are entitled to 10 weeks of fully paid maternity leave.

Paternity Leave In Lebanon

Fathers are entitled to 3 days of paternity leave.

Sick Leave In Lebanon

Upon completing the three-month probation period, employees in Lebanon are eligible for paid sick leave based on their length of employment:

• For service between 3 months to 2 years: 100% salary for half a month and 50% for another half month
• For service between 2 to 4 years: 100% salary for one month and 50% for another month
• For service between 4 to 6 years: 100% salary for one and a half months and 50% for another one and a half months
• For service between 6 to 10 years: 100% salary for two months and 50% for another two months
• For service over 10 years: 100% salary for two and a half months and 50% for another two and a half months

Parental Leave In Lebanon

Lebanon's labor laws do not provide for shared parental leave that can be divided between parents.

In Lebanon, failing to provide the correct employee benefits can have serious consequences. Mistakes in benefits administration may result in fines and harm your reputation as an employer. An Employer of Record ensures statutory benefits and leave are handled correctly, every time, and provides comprehensive options for extra perks to reward your team.

Beyond just avoiding legal issues, a well-managed benefits program builds trust with your employees. An EOR ensures benefits are set up quickly during onboarding, updated when employee status changes, and fully compliant with national regulations. They also manage communication with employees, so there’s no confusion around what’s offered and how to access it. This combination of legal compliance and positive employee experience is hard to replicate without local infrastructure. With an EOR, you can offer peace of mind to your team (and to yourself) knowing that your benefits program in Lebanon is running as it should.

Termination Process in Lebanon

In addition to standard termination scenarios like contract expiration and resignation, an employer can unilaterally terminate employment for reasons such as:

• Economic reasons or restructuring leading to redundancy
• Employee underperformance
• Unexcused absence from work
• Gross misconduct

Notice Period in Lebanon

No notice is required for "non-abusive" terminations, as outlined in Articles 74 and 75 of the Labour Code. Examples include providing false information, negligent conduct causing damages, multiple rule violations, assault, or employer deception. Notice periods for "abusive" terminations, which lack justification under Articles 74 and 75, are based on service length:

• Under 3 years: 1 month
• 3 to 6 years: 2 months
• 6 to 12 years: 3 months
• Over 12 years: 4 months

Severance in Lebanon

Abusive terminations result in an additional Indemnity being payable. This ranges from 2 to 12 months' salary and is determined by factors such as the nature of the work, the employee's age, tenure, family status, health, and the severity of misconduct leading to dismissal. Note that according to Decision no. 1311/1, termination/severance payments are exempt from payroll tax for payments made to employees between 15 February 2024 and 31 December 2025.