Summary of the Liberian Labour Laws

1. Introduction to Liberian
Labour Law
Anthony Valcke
Country Director
American Bar Association - Africa Rule of Law Initiative

2. Overview
Compulsory employment conditions
Conditions not covered by law
Employing foreign workers
Disciplinary measures
Drafting employment contracts
Labour dispute procedures

3. 1. Compulsory employment
conditions
Equal treatment
Wages
Probation
Working hours
Overtime
Holiday
Other leave
Sick leave and medical treatment
Benefits
Social security and tax issues

4. A. Equal Treatment
Article 18 of the Constitution:
• Liberian citizens entitled to “equal opportunity
for work regardless of sex, creed, religion,
ethnic background, place of origin or political
affiliations”
Abusive language
• §72: racist remarks prohibited
 $1000.00 fine may be imposed by Labor Court
 deportation if offender is alien

5. B. Wages
 Article 18 of the Constitution:
• All entitled to equal pay for equal work
 Liberianization policy
• §75: “no alien employee shall be employed at a rate
different from that paid to Liberian citizens in similar
positions who have equal competence or length of
service”
• §1507.2: “equal treatment in respect of wages and
conditions of employment” between “alien” and
Liberian employees “having due regard to efficiency
and length of service”

6. Wages
Payment of wages
• at least monthly §1511.6
• in legal tender (i.e. money) §1511.2
• directly to employee or his family §1511.3
• not with alcohol §1511.1.(2)
• cannot oblige employee to spend wages
No deduction allowed except as allowed
by law §1511.7

7. C. Probation
§1500-A. Probation period:
• not less than 1 month
• not more than 3 month
Best practice:
• hold performance evaluation half way through
probation period
• evaluation should be made in writing and
employee asked to sign

8. D. Working Hours
§50: working day is 8 hours
§701.1: maximum hours of work
• 8 hours per day
• 48 hours per week

9. Working hours
§701.2: “flexi-time”?
• employee who works less than 8 hours on any
day of the week may be required to work
overtime on other days of the week
 max. 9 hours per day
 max. 48 hours per week
 no overtime pay specified

10. Working hours
 §704: Daily rest
• employees working 5+ hours a day
 30 mins. break included in 8 hours
 periods exceeding 30 mins. not included in 8 hours
 §801: Weekly rest
• all employees
 weekly rest period of no less than 24 hours per week
 §705, 804: Notices at work
• employer should post:
 “notice showing hours at which work begins and ends and daily rest
periods” and
 “weekly rest program or schedule”

11. E. Overtime
§703: Overtime pay
• overtime “shall be paid at a rate not less than
fifty percent above the normal rate”
 Example
 regular wage for first 8 = $1.00 per hour
 overtime pay = $1.50 per hour or above
§706: Overtime records
• Employer “shall keep an accurate record of”
overtime work

12. Authorised overtime
 §701: Exceptional circumstances
• “Preparatory or compulsory work”- §701.4
 max. 56 hours per week
• “work performed at irregular intervals” - §701.3(a)
• “work in which attendance at place of employment is
chief requisite” - §701.3 (b)
 max. 12 hours per day / 72 hours per week
• “industry of seasonal nature” - §701.5
 max. 56 hours per week
 max. average 48 hours per week calendar year
►in all cases:
• overtime payable

13. Authorised overtime
 §702.1: Exemptions to 8 hour work day
• actual or imminent disaster or accident
• urgent repairs to “plant, equipment, machinery or other property”
• prevent damage to perishable goods
 no max. specified
• “work of vital public importance”
 needs prior authorization from MOL
 no max. specified
• “exceptional pressure of work”
 max daily extra 2 hours
 max. 200 hours in calendar year (i.e. max. 100 days of overtime)
►in all cases:
 overtime probably payable
 must notify MOL as soon as possible

14. F. Holiday
§802: Right to be paid on public holidays
§802: Right to rest on public holidays
• work on public holidays authorised if:
 technical/economic reasons
 nature of work means it “is carried on continuously”
 necessary for “normal operation”
 supplying public needs
 or authorised “exemptions” under §702.1
• overtime payable for all hours worked - §803

15. G. Other leave
 §901: right to paid annual leave
• first year of employment: 0 weeks
• second year of employment: 0 weeks
• third year of employment: 2 weeks
• fourth year of employment: 3 weeks
• fifth year of employment onwards: 4 weeks
 §51: employees must be allowed leave to vote
• no deduction from salary allowed
 right of employer to make deduction from salary under §5.2
of Elections Law – now repealed

16. Other leave
Regulation No 3 (p.203)
• female employee has right to paid maternity
leave of 3 months
• leave at full pay
• termination of employee for reason of
pregnancy is unlawful
 compensation for wrongful dismissal is min. 3
months’ wages

17. H. Sick Leave & Medical Treatment
 Not provided by law
• Supreme Court decision
 12 sick days allowed per year
 Medical treatment
• employer must provide medical treatment for
accidents at work - §3556
 Incapacity following occupational injury/disease
suffered at work
• compensation payable under §§3500-3667

18. I. Benefits
No obligation to pay benefits
• employer remains free to decide whether to
pay medical insurance, education, transport,
telecommunications
• only consideration is equal treatment

19. J. Tax and Social Security
 Employers under obligation to deduct tax at
source from employee’s salaries and pay to
Ministry of Finance monthly - §905, Tax Code
• tax rates in table set out at §200, Tax Code
 Employers under obligation to deduct 3% social
security contribution at source from employee’s
salaries and pay to NASSCORP
 Employers under obligation to pay 4.75% social
security contribution (in addition to 3%
employee’s contribution) to NASSCORP

20. K. Other compulsory conditions
§74 child labor prohibited
• child under 16 cannot be employed except
with MoL authorisation

21. 2. Conditions not covered by law
Relocation of employees
• employer decides own policy
 obliged to repatriate foreign employees
In-country travel
• employer decides own policy
Additional benefits
• employer decides own policy
Only condition: “equal work, equal pay”

22. 3. Employing foreign workers
Liberian workers to be preferred
• Exemptions
Repatriation obligations
Working permits
Residence permits

23. Liberianization policy
 Liberian workers to be preferred
• §75: all employers must hire Liberian workers
 except agricultural and unskilled laborers
• §75: unlawful to hire alien employee
 except “administrative, supervisory, or technical
positions”
 or
 unless first consulted “lists of qualified Liberian” kept
by MOL
» AND
 no qualified Liberian available (list exhausted)
» OR
 no qualified Liberian from the list is “capable of performing
the job to be filled”

24. Repatriation obligations
 §1504.1: employer must pay for repatriation of foreign
employee when:
• expiry of period of service
• on termination of contract
 due to employer’s inability to fulfill contract
 due to employee’s sickness or injury
 following notice of termination
 except if court orders otherwise
 §1504.3: expenses include travel and subsistence:
 from date of termination of contract until date of repatriation
 except for delay due to employee - §1504.4
 §1504.2: includes family if brought by employer

25. Working permits
Issued by MOL
Leaflet from MOL available explains
procedures
Different categories

26. Residence permits
Issued by BIN
• can apply after 90 days of residence
Leaflet available from BIN explains
procedures
Visa applications should technically be
accompanied by permit from MOL stating
no qualified Liberian for such employment.
• §1507-A. Liberian to have employment
preference (but see also §75).

27. 4. Disciplinary measures
 Possible measures
 Termination
• fixed-term contract
• indefinite term contracts
• oral contracts
 Redundancy pay
 Best practices
 Disciplinary measures
• not covered by law

28. Disciplinary measures
 Possible measures
• Warning letter – appropriate for all first-time minor
offenses and some serious offenses
• Suspension without pay – for repeated minor
offenses and some serious offenses
• Demotion – for unsatisfactory performance or serious
offenses
• Termination – for major offenses that amount to a
“gross breach of duty” or “ serious breach of duty”
depending on the contract
 gross breach of duty: §1508 (2) for fixed-term contracts
 serious breach of duty: §1508 (5) for indefinite contracts

29. Disciplinary measures
Minor offenses:
• late arrival at work
• early departure from work
• unauthorized absence (less than one day)
• minor insubordination
 first-time offense: warning letter
 repeated offense: suspension
 persistent offenses: termination

30. Disciplinary measures
Serious offenses:
• falsifying timesheets/logbook
 first-time offense: warning letter
 repeated offense: suspension (or demotion if in
senior position)
 persistent offenses: termination

31. Disciplinary measures
Gross breaches of duty
• persistent disregard of safety regulations (posted
notices)
 first-time offense: warning letter
 repeated offense: suspension / demotion / termination
 persistent offenses: termination
• assaulting another member of staff
• disclosure of confidential information
 immediate termination is justified §1508.2

32. Disciplinary measures
 Gross breaches of duty
• unauthorized absence (more than one day)
 first-time offense: suspension (or demotion if in senior
position)
 repeated offense: suspension / termination
 persistent offenses: termination
• contract should specify other “gross breaches of duty”
 insubordination
 harassment of other staff
 unauthorized use of NGO property
 failure to perform (needs clear job description and regular
appraisals)
 drunkenness
 theft, assault and other criminal behavior
 other serious misconduct (sleeping on duty etc.)

33. Disciplinary measures
§71: unlawful to dismiss group for act of
individual
• group may be dismissed for action by whole
group
 group may NOT be dismissed for act “which
cannot be attributed to a definite individual”
Fines not allowed!
• §1511.8 (a): no employer may “impose a fine
upon an employee for any cause whatsoever”

34. Termination for cause
NO redundancy benefits payable – only unpaid salary
 Fixed-term contract:  Indefinite term contract:
►Termination for cause ►Termination for cause
• gross breach of duty • serious breach of duty -
§1508.2 includes but is not §1508.5 defined
limited to:  any gross breach of duty
 unprovoked assault on
other staff  lack of skill or manifest
 failure to comply with inefficiency
safety regulations (posted  “other serious offence
notices) against obligations under
 disclosure of confidential contract”
information
 persistent absences
 10 consecutive days
 20 cumulative days over 6
month period
NOTE: Contract can specify “other gross breaches of duty”

35. Termination without cause
redundancy benefits payable – plus unpaid salary
 Fixed-term contract:  Indefinite term contract:
►Termination without cause ►Termination without cause
• obligation to pay remaining • one month’s notice (or one
month’s pay in lieu of
time under contract notice)
plus
§1508.1 • obligation to pay “one and
a half month salary for
each completed year of
service”
No termination without cause
after 10 years of employment
§1508.3

36. Redundancy
 Regulation No 5
• employee has right to “severance / redundancy payment”
 what is redundancy?
 “when the employer is compelled by economic conditions or other reasons … to
discontinue a given business or part of it which results in loss of employment”
 “four weeks’ remuneration for each completed year” of employment
• employee has right to “severance payment”
 what is severance?
 “employment is severed or terminated on account of bankruptcy, dissolution,
closure, or cessation of operations”
 “four weeks’ remuneration for each completed year” of employment
• In both cases
 employee must be given one month’s notice
 employer must notify MoL
• temporary redundancy
 employer may be temporarily made redundant
 temporary redundancy may last up to 3 months
 pay at 50% of salary

37. Termination
Best practice:
• contract should specify other gross breaches
of duty:
 insubordination
 harassment of other staff
 unauthorized use of NGO property
 failure to perform (needs clear job description and
regular appraisals)
 drunkenness
 theft, assault and other criminal behavior
 other serious misconduct (sleeping on duty etc.)

38. Best practices
Consider providing opportunity for
employee to resign
• No obligation to pay redundancy pay
• No notice period for resignation under law
 any notice period specified in contract may be
waived by consent of the employer and employee

39. Best practices
Record all disciplinary measures taken
• make file note of any verbal warnings
All documents served on employee should
be acknowledged in writing
Refusal to sign acknowledgement form
• supervisor to indicated this on form
• two employees should be called to witness
refusal by employee to sign form

40. 5. Drafting employment contracts
Contracts in general
Minimum conditions
Term and duration
Suggested provisions

41. Contracts in general
 § 1500: Contract of employment
• “any agreement between employer and employee containing the
conditions and terms of employment”
 no definition of employer !
 no definition of employee !
• categories of contracts
►oral
 contracts of less than 6 months deemed oral
 contracts of indefinite duration deemed oral
►written
►individual
►collective
►definite (fixed-term)
►indefinite period

42. Term of contract
 Fixed-term:
• Maximum term: 2 years - §1505.1
• Max. term of renewal: 18 months - §1505.2
• contract expires on end date
 no need to send notice of expiry of contract
 no right to redundancy
 no notice period
 contract terms can be more generous
 new contract needs agreement of employer and employee
 no right to be re-hired

43. Term of contract
Indefinite term contract
• No term
• can be ended without cause by giving notice
 WARNING: §1508.3 has been amended:
 compensation = 1.5 months pay for each year of service
 no termination without cause for employees with 10
years completed with same employer

44. Minimum contract provisions
 §1503
• name of employer
• name of employee, his origin
• place of employment
• place of engagement
• nature of employment
• notice period(s)
• wages
• benefits (if any)
• repatriation (if alien worker or employment outside
Liberia) (see also slide 24)
• other special conditions

45. Additional contract terms
Contracts should also specify
• job description
• working hours
• overtime rates
• holiday
• right to take disciplinary measures
• list of “gross breaches of duty” (see slide 37)
• right to deduct social security and taxes

46. Attestation of contracts
§1503.2: compulsory attestation by MOL
• MOL has accepted to attest standard form
contracts plus list of all employees, positions
and date of hire
• no fees payable
• attestation not legally binding on courts
§1505.4: renewed contracts
• renewed fixed-term contract may be
exempted from attestation at MoL’s discretion

47. 6. Labour dispute procedures
Industrial action
Outline of dispute hearing process before
Ministry of Labour and appeal process
before Labour Court

48. Industrial Action
Employees have a right to form or join
union
Strikes no longer unlawful

49. Labour disputes procedures
Employee
complaint
Ministry of labor
investigation
Employer
Mediation Hearing
Decision by Hearing Officer
Appeal to Labor Court
Appeal to Supreme Court

50. That’s it, folks!