Employment Regulations
Key Factors to Consider When Employing in Liberia:
Employment in Liberia is mainly governed by the Liberia Labour Practices Law, 1956.
Contracts
Liberian employment law recognises both fixed-term and indefinite duration contracts.
The maximum duration permitted for an oral fixed term contract is 6 months and 2 years for a written fixed-term contract. Fixed term contracts are deemed to automatically terminate at the end of the specified period, unless stated otherwise. Renewals may not exceed 18 months.
Employment contracts may either be written or oral. However, all fixed term contracts exceeding 6 months must be in writing.
Employee Entitlements
Statutory Working Hours
Working hours cannot exceed more than 8 hours per day or 48 hours a week. Employees are also entitled to an uninterrupted period of 24 hours rest per week.
Medical Leave
Not provided for in the law.
Annual Leave Accrual Entitlement
Workers who have been with the same employer for 3 years are entitled to 2 weeks leave (by number of working days), increasing to 3 weeks for 4 years of service.
Employees in 5 years of service with the same employer are entitled to 4 weeks leave.
Maternity Leave in Liberia
As one of the most generous policies in the world, female employees are entitled to 3 months paid maternity leave.
Employment Termination
Severance / Redundancy Pay
Unless guilty of a gross breach of misconduct, employees are entitled only to severance payments equivalent to their remaining wages due.
Employees may also be entitled to redundancy/severance payments in cases where the company is bankrupt, in liquidation etc.
Termination of Employment
An employee may be dismissed if he or she is guilty of a “gross breach of duty” or a “total lack of capability to perform”.
Examples of “gross breach of duty” include:
- Unprovoked assault on the employer
- Persistent disregard for safety measures imposed by the employer
- Disclosure of company working secrets
An employer may terminate the employment contract provided he or she gives at least 2 weeks written notice (casual employee) or 4 weeks (salaried employee). Compensation in lieu of notice may be given. However, employees guilty of a gross breach of duty may be terminated without notice or severance pay.
Probation Period
Under Liberian employment law, probationary periods may not be less than 1 month and cannot exceed 3 months.
Pension Requirements
All Liberian companies and employees are required to participate in the national social security scheme.
Social Insurance: Both the employee and employer’s monthly mandatory social security contribution is 3% of gross monthly remuneration.
Workmen’s Compensation: Only the employer is required to contribute to workmen compensation, equal to 1.75% of the gross monthly remuneration.
