Jordan
Capital: Amman
Currency: Jordanian Dinar- JOD
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
- Must include the following terms:
- 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
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Personal Income Tax:
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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%
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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/