Are Government Holidays Binding on Iraq’s Private Sector?

Official Holidays in the Private Sector Under Iraqi Labor Law No. 37 of 2015

Between Legal Obligation and Temporary Government Closures

In light of the recurring decisions issued by the Council of Ministers to suspend official working hours on certain occasions or due to exceptional circumstances, an important question arises for private sector companies: Are these closures binding on private businesses?

To answer this question, it is necessary to refer to the provisions of Iraqi Labor Law No. 37 of 2015, which clearly regulates workers’ rights in relation to official holidays and the rules governing work during such periods.

First: Official Holidays Under Labor Law

Iraqi Labor Law grants employees the right to rest during officially recognized public holidays while receiving full pay for those days.

These holidays are considered fundamental employee rights, and employers may not deny them, even if they are not expressly stated in the employment contract. Accordingly, official holidays established by law are legally binding on all sectors, including the private sector.

Second: The Difference Between Official Holidays and Temporary Closures

1. Official Public Holidays

These are holidays established by applicable laws and legislation, including religious and national occasions officially recognized by the state.

• Employees are entitled to time off
• They are entitled to full pay

2. Temporary or Local Government Closures

These are administrative decisions issued to suspend work in certain government institutions or public offices due to circumstances such as:

• Security conditions
• Weather conditions
• Local events
• Decisions by local authorities

These closures do not constitute official public holidays and are not binding on the private sector, unless expressly stated in:

• Employment contracts
• Internal company policies or regulations

Third: Working During Holidays

Employers may require employees to work during official holidays or weekly rest days if the nature of the work so requires.

However, in such cases:

• Employees must be compensated in accordance with overtime provisions under the Labor Law
• They must receive the legally mandated additional pay

This ensures a fair balance between operational needs and employee rights.

Fourth: Official Holidays and Annual Leave

The Labor Law also confirms that official holidays are not counted as part of an employee’s annual leave.

• They cannot be deducted from annual leave balances
• They are considered a separate and protected entitlement

Legal Conclusion

• Official public holidays established by law are binding on all entities, including private sector companies
• Temporary government closures are not binding on the private sector unless expressly incorporated into contracts or internal regulations

Compliance with labor law provisions remains essential to maintaining workplace stability, protecting employee rights, and ensuring proper legal adherence within organizations.