STATEMENT FROM THE LEBANESE PRIVATE SECTOR
While the Lebanese Private Sector Network, acknowledges the right of every employee to a fair and just end of service indemnity, the suggested governmental approach is highly detrimental to the formal economy.
Having to settle a difference between the official rate and the current exchange rate with a retro-active effect will simply drive the private sector companies to offload some of its employees or face a huge burden that it cannot bear.
More so, this will only penalize, to a massive extent, law abiding and transparent companies who have been regularly settling their dues to the NSS including the EOS, while giving the stakeholders of the informal economy a free hand in continuing to infringe on the laws and escape this burden, thus exerting an unlawful competitive edge, which in turn encourages corruption and tax evasion.
However, this uncertainty can be mitigated, should the Government wish to do so by issuing a decree, whereby all EOS settlements for the years 2021 and 2022 are cut off as per the official rate, set by the Central Bank.
The 15,000 L.L/ dollar rate, as declared by the ministry of finance should come into effect as of 1/1/2023, and as such, all new EOS contributions will be calculated and accumulated for all employees enrolled in the NSS and EOS services.
This solution equates the employers’ as well as the employee’s rights and gives everyone a new start that is fair, and without any prejudice or injustice; and allows the companies to survive while preserving their workforce.
The Lebanese Private Sector Network urges the Government and the Ministry of Finance to amend this damaging decision, which will inevitably have severe repercussions on the legal formal economy and all law abiding enterprises; knowing that those enterprises have not spared any effort during the past three years , in the absence of strategic governmental policies, to keep their businesses afloat whilst struggling to provide their employees a decent living standard with adequate purchasing power. These companies have provided welfare solutions to their employees especially on the social, medical, and educational levels, hence attempting to make up for the state’s shortcomings.