Employment law in Jordan
Employment law in Jordan is governed primarily by the Jordanian Labor Law (Labor Law No. 8 of 1996, amended over time) and related regulations. These laws provide a legal framework to regulate the relationship between employers and employees, outlining rights and obligations, ensuring fair labor practices, and providing protections for workers in various sectors. Below is an overview of key aspects of employment law in Jordan:
1. Employment Contracts
Written Contracts: While not mandatory, written employment contracts are strongly recommended for clarity and to prevent disputes. The contract should outline the terms and conditions of employment, including salary, job duties, and benefits.
Types of Employment Contracts:
Permanent/Indefinite-Term Contracts: These contracts have no fixed end date and establish a long-term employment relationship.
Fixed-Term Contracts: These contracts are for a specific period or project. The duration of the contract is agreed upon at the outset, and once the contract term ends, it may either be renewed or the employee’s relationship with the employer ends.
Probationary Period: The probation period for new employees is typically up to 3 months, during which either party can terminate the contract with short notice (e.g., 7 days). Employees in the probation period are entitled to the same benefits as permanent employees, except for job security.
2. Working Hours
Standard Working Hours: The Jordanian Labor Law sets the standard workweek at 48 hours, usually spread over 6 days (8 hours per day). Working hours for employees should not exceed 8 hours per day and 48 hours per week.
Overtime: Employees who work beyond the standard working hours are entitled to overtime compensation. Overtime pay is calculated at 125% of the regular hourly wage for the first two extra hours worked per day, and 150% for any additional hours.
Rest Periods: Employees are entitled to a 30-minute rest break for every 6 hours of work. Additionally, employees must have at least one day off per week (usually Friday), with certain sectors requiring employees to work on holidays with additional compensation.
3. Minimum Wage
Minimum Wage Law: As of 2025, Jordan's minimum wage for full-time workers is JD 260 (Jordanian Dinars) per month (approx. $366 USD). The minimum wage may vary for specific categories of workers (such as domestic workers, minors, or part-time employees) based on government regulations.
Payment of Wages: Wages must be paid regularly, usually on a monthly basis. Payment must be made in cash, bank transfers, or any other legally agreed method, but employers cannot pay wages in kind (e.g., goods or services).
4. Leave and Holidays
Annual Paid Leave: Employees are entitled to a minimum of 14 days of paid vacation per year, which increases to 21 days after completing 5 years of service with the same employer.
Sick Leave: Employees are entitled to 14 days of paid sick leave per year. Additional sick leave may be granted, but beyond the initial 14 days, it is usually unpaid unless otherwise stated in a collective agreement or employer policy.
Public Holidays: Jordan has several official public holidays, such as New Year's Day, Eid al-Fitr, Eid al-Adha, Independence Day, and Labour Day. Employees who are required to work on a public holiday are entitled to double pay or compensatory leave.
Maternity Leave: Female employees are entitled to 10 weeks of paid maternity leave. This includes 6 weeks of leave post-childbirth and 4 weeks prior, subject to certain conditions. Employers are required to pay full salary during maternity leave, which is usually covered by the Social Security Corporation.
Paternity Leave: Male employees are entitled to 3 days of paid paternity leave following the birth of their child.
5. Termination and Dismissal
Notice Period: Employees or employers wishing to terminate an employment relationship must provide written notice. The notice period varies based on the length of employment:
1 month notice for employees employed for 1 to 5 years.
2 months notice for employees employed for more than 5 years.
Dismissal for Just Cause: Employers can dismiss employees without notice or severance pay for reasons such as gross misconduct, theft, fraud, or violating workplace policies. The employer must provide proof of the reason for dismissal.
Severance Pay: Employees who are terminated without cause or those who resign for valid reasons (e.g., harassment, unsafe working conditions) are entitled to severance pay. Severance pay is calculated as 1 month’s salary for each year of employment.
Redundancy: In the case of redundancy (e.g., the closure of a business), employees may be entitled to severance pay or compensation as per the terms of the labor law or individual contracts.
6. Employee Rights and Protection
Anti-Discrimination: The Jordanian Labor Law prohibits discrimination based on gender, race, religion, or nationality. Employers must treat employees equally with regard to pay, benefits, and promotions.
Harassment and Abuse: Employees are protected against harassment (including sexual harassment) in the workplace. Employers are required to establish policies to prevent and address harassment.
Health and Safety: The law obligates employers to ensure that workplaces meet health and safety standards to protect employees from accidents and health risks. Employers must provide necessary equipment and training for safety.
Workplace Injuries: Employees who sustain injuries or illnesses due to their work are entitled to compensation through the Social Security Corporation. Employers must ensure that their employees are registered with the Social Security Corporation to receive benefits in the event of an accident or occupational illness.
7. Social Security and Benefits
Social Security: The Social Security Law mandates both employers and employees to contribute to the Social Security Corporation (SSC). The SSC provides benefits such as:
Pensions (retirement benefits).
Disability benefits.
Unemployment benefits.
Health insurance.
Workplace injury compensation.
Employer Contribution: Employers contribute 14.25% of the employee’s monthly salary to the SSC, while employees contribute 7.5% of their salary to the fund. This is a mandatory contribution and covers various employee benefits.
8. Trade Unions and Collective Bargaining
Trade Unions: Workers in Jordan have the right to form and join trade unions. The Jordanian Labor Law encourages the formation of unions and provides protections for unionized workers. Trade unions play a significant role in collective bargaining, representing employees’ interests in negotiating better wages, benefits, and working conditions.
Collective Bargaining: Collective bargaining agreements (CBAs) are common in various sectors and provide frameworks for negotiating wages, working hours, and other employment conditions. Employers must comply with the terms of these agreements once they are ratified.
9. Foreign Workers
Work Permits: Foreign nationals wishing to work in Jordan must obtain a work permit from the Ministry of Labor. Work permits are typically issued for specific job roles and employers, and the employee’s residence permit is also tied to their employment.
Rights of Foreign Workers: Foreign workers in Jordan are entitled to the same rights and protections as Jordanian employees under the Labor Law, including the right to minimum wages, vacation leave, sick leave, and protection against unfair dismissal.
Conclusion
Employment law in Jordan is designed to balance the interests of both employers and employees, ensuring fair treatment, reasonable working hours, and providing protections such as sick leave, maternity leave, and severance pay. The legal framework encourages workers’ rights through social security programs, minimum wage guarantees, and anti-discrimination policies. Trade unions play a critical role in representing workers, and collective bargaining agreements help negotiate favorable terms for employees. Employers in Jordan must ensure they comply with these laws to maintain fair and legal labor practices, while employees have robust protections against unfair treatment and exploitation.
RELATED Blog
0 comments