Iraqi Labor Law

Employment terms should be recorded in a clear written contract signed by the employer and the worker.

• The contract should identify the employer and the employee.
• It should state the nature of the work and the employee’s duties.
• It should identify the workplace and commencement date.
• It should specify the wage, payment method, and payment frequency.
• It should state whether the contract is for a fixed term, an indefinite term, or a specific task.

Employment contracts used in Iraq should be prepared in a form that can be understood and enforced locally.

• An Arabic version is advisable for official use and local enforcement.
• A bilingual Arabic-English contract may be used for foreign employers or employees.
• The contract should identify which language prevails if the two versions differ.

A fixed-term contract should clearly identify its duration and the circumstances in which it expires or may be renewed.

• Repeated renewals or continued employment may affect the legal characterization of the relationship.
• The use of a fixed-term contract should reflect a genuine operational or project-based requirement.

Any probationary arrangement should be expressly stated in the employment contract and comply with the limitations imposed by law.

• The contract should state the duration of the probationary period.
• Probation should not be used to remove statutory employee protections.

The employment contract should state the employee’s wage and any allowances, benefits, bonuses, or other compensation.

• The agreed wage must comply with any applicable statutory minimum.
• Deductions should only be made where permitted by law.
• Employers should provide a clear record of payments and deductions.

Wages should be paid regularly and within the periods required by the employment contract and applicable law.

• Employers should retain payroll records and proof of payment.
• Payment practices should be consistent and transparent.

Employment and compensation decisions should comply with the Labor Law’s principles concerning equality and non-discrimination.

• Employees performing comparable work should be treated consistently.
• Recruitment, promotion, wages, and termination decisions should be based on lawful and objective considerations.

Normal working time is generally limited to eight hours per day and 48 hours per week, subject to statutory exceptions and the nature of the work.

• Employers should document daily and weekly working schedules.
• Special rules may apply to shift work, intermittent work, hazardous work, or other designated activities.

Working schedules should provide employees with the daily breaks and weekly rest periods required by law.

• Rest arrangements should take account of working conditions and the nature of the employee’s duties.
• Weekly rest should be scheduled and recorded.

Work performed beyond normal working hours should be authorized, recorded, and compensated in accordance with the Labor Law.

• Employers should maintain reliable overtime records.
• The applicable overtime rate may depend on whether the work is performed during the day, at night, on a rest day, or on an official holiday.
• Statutory limitations on overtime should be observed.

Employees are generally entitled to at least 21 days of paid annual leave after completing one year of service.

• Longer leave may apply to hazardous or physically demanding work.
• Entitlement may increase according to length of service.
• Employers should maintain accurate leave balances and approval records.

Employees may be entitled to paid sick leave subject to the conditions, supporting medical evidence, and limits established by law.

• The employer may request a medical certificate from an authorized medical body.
• Repeated or extended absence should be handled in accordance with statutory procedures.

Female employees are entitled to statutory maternity protections and leave in accordance with the Labor Law.

• Employers should not require an employee to work during legally protected periods.
• Employment decisions should not unlawfully penalize an employee for exercising maternity rights.
• Additional protections may apply to nursing mothers and employees with family responsibilities.

Employees are entitled to official holidays and other forms of leave provided by law.

• Work performed on a public holiday or weekly rest day may attract additional compensation.
• Special leave may be available for circumstances recognized by law.

Employers should adopt clear workplace rules addressing attendance, conduct, safety, confidentiality, use of company property, and disciplinary procedures.

• Rules should be communicated to employees.
• They should be applied consistently and without discrimination.
• Internal rules must not reduce rights granted by law.

Disciplinary action should be based on a documented violation and imposed through a fair and proportionate process.

• The employee should be informed of the alleged violation.
• The employer should investigate the facts before imposing a sanction.
• Written warnings and other records should be retained in the employee’s personnel file.
• The sanction should be proportionate to the misconduct.

Employers should maintain organized personnel records for each employee.

• The file should include the employment contract and identification documents.
• It should contain payroll, leave, attendance, disciplinary, and performance records.
• Employee information should be handled confidentially.

Employers must provide a work environment that protects employees from occupational risks and foreseeable harm.

• Workplace risks should be identified and assessed.
• Appropriate preventive measures should be implemented.
• Employees should receive necessary safety information and training.

Employers should provide suitable personal protective equipment where the nature of the work requires it.

• Protective equipment should be provided without improper cost to the employee.
• Equipment should be maintained, replaced, and used correctly.

Work-related accidents and occupational illnesses should be documented, reported, and handled under the applicable legal and social security procedures.

• The employer should preserve accident records and medical reports.
• Serious incidents may require notification to the competent authorities.

A foreign national generally may not work in Iraq without the work authorization required by the competent authorities.

• The employer should confirm work-permit eligibility before employment begins.
• A residence permit does not necessarily replace the requirement for a work permit.
• Work authorization should remain valid throughout the employment period.

Foreign employees should maintain valid passports, visas, residency documents, and other immigration approvals.

• The employment contract should be coordinated with the employee’s immigration status.
• Employers should monitor expiration and renewal dates.

Foreign workers lawfully employed in Iraq are generally entitled to the employment protections applicable to their work.

• Employment terms should not unlawfully reduce statutory rights.
• Additional obligations may arise from immigration rules, bilateral arrangements, or the employee’s assignment structure.

An employer may be required to register with the competent social security authority and maintain the registrations required for its workforce.

• Registration obligations should be addressed when establishing operations in Iraq.
• Company records should be updated when employee numbers or business details change.

Eligible employees should be registered under the applicable social security system.

• Employers should maintain records of employee registration.
• New hires and departures should be reported as required.

Employers should calculate, deduct, and remit social security contributions in accordance with applicable legislation.

• Payroll records should show employee and employer contributions.
• Payments and statutory filings should be completed within the required periods.

An employer should terminate employment only on a lawful ground recognized by the employment contract and applicable legislation.

• The reason for termination should be genuine and documented.
• Different procedures may apply to misconduct, poor performance, redundancy, expiry of a fixed term, disability, retirement, or business closure.

Where notice is required, it should be provided in writing and within the applicable statutory or contractual period.

• The notice should identify the effective termination date.
• Failure to provide required notice may result in compensation becoming payable.

Termination for poor performance should ordinarily follow documented instructions, evaluation, notice of deficiencies, and a reasonable opportunity to improve.

• Performance expectations should be communicated clearly.
• Warnings and improvement measures should be documented.
• The process should distinguish poor performance from misconduct.

Termination for misconduct should be supported by an appropriate investigation and evidence of a sufficiently serious or repeated violation.

• The employee should have an opportunity to respond.
• The employer should apply its disciplinary rules consistently.
• Immediate dismissal should be reserved for circumstances permitted by law.

When employment ends, the employer should calculate and settle all amounts lawfully due to the employee.

• Outstanding wages and approved expenses should be paid.
• Unused leave should be addressed in accordance with the law.
• Notice compensation or end-of-service benefits may be payable depending on the circumstances.
• The employer should document the final settlement carefully.

The departure process should address the employee’s employment documentation, company property, confidential information, and continuing obligations.

• Company equipment, documents, access cards, and data should be returned.
• Post-employment confidentiality obligations should be reviewed.
• Any certificate or confirmation required by law should be provided.