Testimonial
Manuel Ramos
TERAO ASIA
Managing Director
We think INS Global is a good solution about starting in a market like China. Understanding the market doesn’t mean you need to set up a company immediately.
5/5
With a PEO (Professional Employer Organisation) or EOR (Employer of Record) service, you can increase set-up speed, improve your market entrance, and surpass your growth expectations. INS Global has close to two decades of experience helping companies of all sizes across many industries expand to new countries smoothly and in full legal compliance. Our PEO in Lebanon will be the perfect partner to help you meet all your local market needs.
A PEO ensures that you and your employees adhere to local labor laws and regulations. With INS Global, you can set up and start operations in just a few days so that there’s no delay in your company schedule.
An EOR in Lebanon can take care of all administrative and legal responsibilities, including payroll, contractor management, and more. Using the expertise of a PEO or EOR makes fast and easy global expansion manageable in a fraction of the time it takes to expand using traditional methods.
Dealing with unfamiliar local labor laws can be complicated and risky. With the assistance of our legal advisors, you won’t ever have to worry about non-compliance fees or fines.
A PEO provides a shortcut to global expansion by offering safe and speedy solutions for every situation.
With a PEO, you can rest assured that not just your payroll is being taken care of. Recruitment, onboarding, and contractor management are services covered by your PEO provider of choice.
Traditional company incorporation can take up to a year before you can even start operations. A PEO allows you to enter new markets and get to work in as little as 3-5 days.
Rather than having to work with multiple partners to benefit from many high-quality services, a PEO handles all your expansion needs through a single point of contact.
Traditional company incorporation requires you to set up a physical branch of the company in the country you wish to work in. This progress typically involves a lot of red tape and paperwork and is easily delayed by circumstances beyond your control.
If you partner with a PEO, the PEO acts as your legal entity so you can enter the new market without having to set up a separate company subsidiary.
With a PEO you can also:
Manuel Ramos
TERAO ASIA
Managing Director
We think INS Global is a good solution about starting in a market like China. Understanding the market doesn’t mean you need to set up a company immediately.
A PEO and EOR are often mentioned together in discussions of employment outsourcing solutions. While they do offer similar services, they are not exactly the same in how they offer them. Once you understand the distinctions between them you can make a better choice about which one to partner with.
A PEO and EOR both function to provide HR services to employees of other companies. Some of these services include payroll, legal compliance, recruitment, and onboarding.
One key difference between the two is that an EOR can legally hire employees on behalf of the client company. An EOR thus remains liable for all responsibilities of the employees they hire.
Consequently, in a PEO agreement, the contract is made between the company and the employee, whereas in an EOR contract, the contract is directed by the company but is officially made between the EOR and the employee.
Contracts can be made both orally and in writing in Lebanon, but it’s always advised that written contracts provide the most security. The contract language should be Arabic and compensation amounts specified in the local currency of the Lebanese pound.
In Lebanon, workers are classed into two categories: employees, which means those who work in offices or any non-manual work, and workmen, meaning those in manual labor.
A typical probation period in the country is three months.
The minimum wage for 2023 is LBP 675,000 per month.
Termination notice periods depend on the length of time the employee has been with the organization. For those who have worked less than 3 years, the minimum required notice is one month. For employees who have worked for 3-5 years, two months’ notice is required. For 6-12 years of service, three months of notice is the minimum.
Mandatory severance pay is one month’s wages for every year of service.
A work week can go up to 8 hours a day, 48 hours a week. Total work hours including overtime are a maximum of 12 hours a day, provided the Ministry of Labor is notified and the employee receives 1.5 times the regular compensation for overtime hours.
Due to the diversity of religious and cultural groups in Lebanon, there are many different holidays and significant dates to observe. As a result, there are 18-25 public holidays in Lebanon, and employers are advised to create clear working calendars for employees based on their backgrounds.
However, employers are only obliged to give fully paid time off to all workers on two days, Labor Day and Independence Day.
Employees who have worked a minimum of 1 year are entitled to 15 days of annual paid leave.
Potential sick leave is 15 days of full pay and 15 days of half pay for employees who have worked a minimum of three months.
The duration of sick leave increases with the employee’s length of service time, going all the way up to 2.5 months for those who have been employed for 10+ years.
Medical certification or doctor’s notice must be provided to qualify for sick leave.
Maternity leave is 10 weeks at full salary.
A paternity leave act has been drafted as part of a push for extended parental leave but is not yet approved. If passed, the act will give 10 days’ leave to fathers and increase maternity leave to 15 weeks.
The current corporate tax rate is 17%.
VAT is 11%.
Income tax is charged at a progressive rate from 2-25%.
Employers are required to withhold all payroll and social security tax contributions for employees. Employers pay 8% tax for maternity and sick leave benefits, 6% for family benefits, and 8% for severance pay.
Employees are expected to pay 3% for medical insurance.
Lebanon has a DTT (Double Taxation Treaty) with nearly 30 other countries worldwide. Details of these can be found here.
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No, it is necessary to use a local entity abroad to comply with each country labor law.
Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.
The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.
In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.
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