A major milestone in national labor regulations occurred with the introduction of Law No. 12-2010, known as the "Employment Relationship Law." First published on the GPC website on January 28, 2010, the law officially entered into force on July 18, 2010, following its publication in the Official Gazette (Issue No. 7, Year 10).
To help employers and HR professionals navigate these updates, we have compiled a comprehensive breakdown of the most critical provisions under the law, categorized by topic.
📋 Hiring Regulations & Workforce Quotas
- Local Recruitment Restrictions: Employers may only hire locals who are registered with an official Employment Office and hold a valid employment seeker card (Art. 8).
- Third-Party Recruitment: Hiring through licensed recruitment agencies is permitted, provided the final employment contract is signed directly between the employee and the employer (Art. 7).
- National Workforce Ratio: National employees must comprise at least 75% of an employer's total workforce (Art. 51).
- Contract Approval: All employment contracts must utilize the standard template drafted by the Labor Authority and require official approval from the authority to take effect (Art. 67).
⏱️ Working Hours, Overtime, & Rest Periods
- Maximum Working Hours: Standard working hours are capped at 48 hours per week, with a daily limit of 10 hours (Clause 13).
- Weekly Rest: Employees are entitled to a weekly rest period of no less than 24 consecutive hours, preferably observed on Fridays (Art. 14).
- Remote Site Flexibility: For employees working in remote locations away from urban centers, weekly rest days and official holidays can be accumulated. However, continuous work at these remote locations cannot exceed 8 weeks (Art. 14).
- Overtime Limits: Overtime work is strictly capped at a maximum of 3 hours per day (Art. 16).
⚖️ Workplace Conduct & Anti-Discrimination
- Expanded Code of Conduct: Employee duties and prohibited acts are strictly detailed. Prohibited actions explicitly include claiming undue influence, practicing mediation or favoritism, and sexual harassment (Art. 11 & 12).
- Equal Opportunity: The law strictly prohibits discrimination based on gender, race, religion, or color (Art. 21). Furthermore, women cannot be assigned to roles deemed physically unsuitable, and there must be strict equality in employment opportunities, benefits, and salaries (Art. 24).
🏖️ Leave Entitlements (Annual, Sick, & Special Leave)
- Annual Leave: The standard allowance is 30 days per year. This extends to 45 days for employees who are either 50 years old or have completed 20 years of service. All employees must take a minimum of 15 continuous days of leave annually (Art. 30).
- Leave Pay-Outs: Upon end of service, employees must be compensated for accumulated annual leave that was postponed due to business needs. If the leave was postponed at the employee's request, compensation is capped at a maximum of 6 months' salary (Art. 32).
- Sick Leave: Employees are entitled to up to 45 consecutive days or 60 intermittent days of sick leave per year, up to a strict maximum cap of 3 months per calendar year (Art. 33).
- Special Paid Leaves: The law grants specific paid leaves, some usable only once during service:
- Pilgrimage (Hajj): 20 days of paid leave to perform pilgrimage to Mecca (Art. 34).
- Marriage: 2 weeks of paid leave (Art. 34).
- Maternity: 14 weeks of fully paid leave, with a mandatory 6-week post-delivery rest period. This extends to 16 weeks for multiple births (Art. 25).
- Bereavement: Female employees are entitled to 4 months and 10 days of paid leave in the event of their husband's death (Art. 34).
🩺 Health, Safety, & Employer Duties
- Medical Examinations: Employers must arrange mandatory medical checkups for employees both prior to employment and periodically during service (Art. 37).
- Insurance & Protection: Employers must provide comprehensive insurance against work-related diseases and hazards, alongside necessary medical care and social protections for employees and their immediate families (Art. 38).
- On-the-Job Training: Employers must provide safety training, inform workers about operational hazards, and enforce the use of personal protective equipment (PPE) (Art. 39).
- Incident Reporting: Any workplace incident resulting in employee disability or loss of life must be reported to the Employment Office within 48 hours (Art. 40).
- Operational Disclosures: Employers are legally required to inform employees regarding company work orders, shift structures, weekly rest days, safety protocols, and the company's registration number with the Social Security Fund (Art. 46).
📉 Loans & Legal Obligations
- Salary Deductions: If an employee borrows money from the employer, the company may deduct up to 25% of their monthly salary to settle the debt (Art. 50).
- Criminal Reporting: Employers are legally obligated to report any criminal offenses committed by an employee to the Public Prosecutor (Art. 53).
🚪 Termination & Contract Renewals
- Termination Conditions: Employment legally terminates upon death, retirement (age 65 for men, 60 for women), medical unfitness, resignation, or conviction of a felony/misdemeanor involving honor or integrity (Art. 42).
- Substance Abuse Policy: Being under the influence or using drugs is legally equated to public drunkenness. It serves as grounds for immediate termination without notice, indemnity, or compensation (Art. 73).
- Fixed-Term vs. Indefinite Contracts: The law retains the distinction between fixed-term and indefinite contracts but reduces the maximum single fixed term from 5 years to 2 years (Art. 70). Supreme Court interpretations clarify renewal terms:
- Contracts under 2 years can be renewed infinitely.
- Contracts of exactly 2 years can only be renewed once; further continuation automatically converts the contract into an indefinite term.
- If both parties continue executing a fixed-term contract after its expiry without an explicit renewal agreement, it automatically becomes an indefinite contract (Art. 70).
💰 End-of-Service Indemnity
The law reinstates the end-of-service indemnity, calculated at half a month's salary for each of the first 5 years of service, and one full month's salary for each subsequent year (Clause 78).
- National Employees: Eligible for indemnity during resignation (Art. 74), administrative/economic layoffs (Art. 72), termination due to employer fault (Art. 75), death, or severe illness (continuous absence of 120 days or intermittent absence exceeding 180 days in a year) (Clause 80). In the event of death, the employee’s family also receives an immediate one-month salary payout (Clause 80).
- Non-National Employees: Eligible for the same calculated end-of-service indemnity provided they do not already receive local social security benefits (Art. 78).
⚠️ Penalties
- Non-compliance or violations of any provisions within this law subject employers to financial fines ranging from L.D 500.00 to L.D 2,000.00.
Below is the link to the full text of the Law (The Law Society of Libya website):
https://lawsociety.ly/en/legislation/law-no-12-of-2010-regarding-the-issuing-of-labor-relations-law/