1. Obligation of the branch of the foreign company to provide information regarding its employees: As the social security system applies on a compulsory basis to all employees, whether nationals or foreigners, who work in Libya in terms of employment contracts, the law requires all employers to furnish the respective local social security people's committee with some information in this respect. This information includes the name of each employee, the date of commencement of his/ her employment, his/ her salary and the department wherefrom he / she receives his/ her pension, if applicable.
2. Obligation to pay social security contributions for each employee: According to article 32 of the social security law, the employer should pay directly to the social security fund its share of the contribution rate prescribed by law in respect of each employee. Such share is fixed at 35% of the total required contribution rate. The employer must continue paying such contribution up to the date of termination of the employment of the respective employee.
However in case of delay in payment of the employer's share of the said contribution, the employer is liable to pay a delay penalty equal to 5% of any unpaid amounts for each year of delay or part thereof . (Article 46 of the social security Law)
Moreover in its capacity as employer, the branch of the foreign company is subject to a legal obligation to guarantee all social security dues.
The successor of said branch is one equally liable jointly with the previous owners of the company branch for all their obligations towards the social security fund.
However in case of disposal of one element of the assets of the branch of the foreign company to a third party by way of sale, merger, assignment, legacy, inheritance or otherwise, liability of the successor shall be limited to the value of any such element thus disposed of.
3. Civil liability for injuries suffered at work: In terms of article 26 of the social security law, any employer is liable to pay damages to the employee or to his / her, theirs, in case of death caused by injuries suffered by the employee as a result of any accident at the work place, if the injury takes place during working time, due to the employer's failure to take the required safety precautions, or as a result of violation of other relevant labour laws or regulations.
However in case the social security fund would have paid compensation to the injured employee for an injury resulting from an accident which would have occurred at the place of work, then the fund shall be entitled to claim whatever compensation it would have paid to the employee, if such an injury is attributable to the employer's failure to comply with relevant labour laws and regulations, including those dealing with occupational safety measures and precautions.
4. Penalty for failure to comply with the social security law in respect of compulsory social security for all employees: If the manager of the branch of a foreign company does not abide by the requirement of compulsory contribution to the social security system for the benefit of any employee working with the branch, such manager shall be liable to a fin to fifty dinars for every employee in respect of whom the offence took place.
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