Issues arising on termination of the employment relationship

Terminating employment

An individual employed under an unlimited term contract must be given at least 30 calendar days' notice of termination. Where an employee is subject to a fixed term, either party may only terminate the contract where certain specific circumstances arise. In each case, where the reason for termination is not valid, the defaulting party may be liable to pay compensation to the other party, to be determined by the Court.

An employer is obliged to pay an end of service gratuity to expatriate employees who are not covered by the Social Security Fund. End of service gratuity is calculated by reference to length of service.

The Libyan Labour Law contains an exhaustive list of reasons from which either party may terminate employment without notice, due to the conduct of the other party.

Collective disputes

The Libyan Labour Law contains a workforce disputes procedure. In addition, an employee may not be dismissed by reason of participation in a labour association or trade union.

For further information please contact Rebecca Ford and Sara Khoja.

Saudi Arabia