Jordan Labor Law and Employment Policy Overview

Employment Law Overview

• Key Laws and Regulations:
  • Labor Law (No. 8 of 1996)
  • Social Security Law (No. 1 of 2014)
  • Labor Law Executive Regulations (No. 11 of 1997)
• Legal Characteristics:
  • Aims to protect employees' rights and benefits
  • Sets standards for minimum wage, working hours, leave, and severance pay
  • Applies to all employees working in Jordan, regardless of nationality or immigration status

Employment Contract Requirements

• Contract Types:
  • Indefinite-term contracts
  • Fixed-term contracts
• Contractual Provisions:
  • Must include the following terms:
    • Employee's name and job title
    • Employer's name and address
    • Commencement date of employment
    • Remuneration and benefits
    • Working hours
    • Leave entitlements
    • Termination provisions
• Language and Currency:
  • Contracts must be written in Arabic
  • Currency unit is the Jordanian Dinar (JOD)

Working Hours Regulations

• Standard Working Hours: 48 hours per week, 8 hours per day
• Rest Days and Breaks:
  • One rest day per week (usually Friday)
  • Rest period of at least 1 hour for workdays exceeding 6 hours

Leave Policy

• Annual Leave:
  • 14 days per year, increasing to 21 days after 5 years of service
• Public Holidays:
  • 13 official public holidays
• Special Leave:
  • Sick leave: 14 days of paid sick leave per year
  • Maternity leave: 10 weeks of paid maternity leave
  • Paternity leave: 3 days of paid paternity leave

Employee Severance and Termination of Contract

• Notice Period:
  • 30 days' written notice required from both employer and employee
• Severance Pay:
  • One month's salary for each year of service if the employee is not covered by the Social Security Law
• Unfair Dismissal Protection:
  • Employees dismissed for reasons of discrimination, retaliation, or other unfair grounds are entitled to compensation

Tax Laws

• Personal Income Tax:

  • Salary Range (JOD)	Tax Rate
    0 - 5,000	5%
    5,000 - 10,000	10%
    10,000 - 15,000	15%
    15,000 - 20,000	20%
    20,000 - 1,000,000	25%
    1,000,000 and above	30%

• Social Security Contributions:

  • Employee: 7.5%
  • Employer: 14.25%

Health Insurance

• Insurance Policy:
  • Employees are required to participate in the government-run health insurance scheme
• Insurance Coverage:
  • Medical, dental, and vision care

Compensation and Benefits

• Minimum Wage: JOD 260 per month
• Salary Structure:
  • Basic salary
  • Allowances (e.g., housing, transportation)
  • Bonuses

Work Permits and Visas

• Permit Requirements:
  • Foreign employees require a work permit and a residency visa
• Application Process:
  • Employer applies to the Ministry of Labor
  • Employee applies for a visa at a Jordanian embassy or consulate abroad

Confidentiality and Non-Compete Clauses

• Enforceability:
  • Confidentiality and non-compete clauses are enforceable in Jordan
• Common Provisions:
  • Restrict employees from using or disclosing the employer's confidential information after termination
  • Restrict employees from working for competitors after termination

Training and Development

• Legal Requirements:
  • Employers must provide safety training and skill development opportunities to employees
• Government Support:
  • Government provides training subsidies and programs

Workplace Diversity and Inclusion

• Legal Requirements:
  • Discrimination based on gender, race, religion, or other protected characteristics is prohibited
• Enforcement Measures:
  • Employers must develop and implement anti-discrimination policies

Remote Work Policy

• Legal Framework:
  • No specific legal framework supporting remote work
• Tax and Insurance Implications:
  • Remote work may impact tax and social security obligations

Authoritative Website Addresses

• Ministry of Labor: https://www.mol.gov.jo/