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Libya Reassigns Workers from Distressed Companies to Public Sector

January 13, 2026
Libya Reassigns Workers from Distressed Companies to Public Sector
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Libya’s government appointed by the House of Representatives has issued a series of decisions aimed at settling the status of workers affected by the withdrawal of foreign firms and the collapse of national companies, as part of broader efforts to address employment instability and protect workers’ rights.

According to an official statement, the government adopted three decisions and referred them to the House of Representatives for inclusion in the draft 2026 state budget, ensuring the necessary financial allocations to implement the measures.

Decision No. 510 of 2025 focuses on employees of foreign companies that have withdrawn from Libya. The decision provides for the appointment and regularisation of affected workers, enabling their reintegration into the public labour market. It also addresses the settlement of their administrative and financial status, while regulating the conditions of those eligible for retirement or suffering from medical incapacity through the Social Security Fund.

In parallel, Decision No. 511 of 2025 targets workers employed by distressed or dissolved national companies. Under this measure, eligible employees will be reassigned to ministries and public administrative units in line with their professional specialisations and institutional needs. The decision also guarantees the settlement of their administrative and financial entitlements.

The third measure, Decision No. 512 of 2025, concerns employees of the National Mills Company in Benghazi. It stipulates the appointment and regularisation of staff, alongside the resolution of their employment and social security conditions in a manner that safeguards their full legal rights.

The government said the decisions form part of a comprehensive approach to addressing the social and economic consequences of stalled investment projects and company closures, particularly in sectors that employ large numbers of workers.

All three decisions were issued on 31 December and were published on the government’s official Facebook page on Wednesday. Officials stressed that the measures aim to enhance job security, reduce unemployment, and ensure fair treatment for workers affected by years of economic disruption across Libya.

Tags: libyaLibyan GovernmentOsama HammadPublic Sector
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