Labor Law and Policy

Labor is the driving force of any successful business and labor Legislation aims at facilitating the efficient use of labor, Jordan’s current labor laws and policies are examined below.

Labor Legislation

In Jordan, the legal framework organizing labor is mainly comprised of the Jordanian Labor Law of 1996 and its amendments. This Code repeals the Labor Code of 1960, and all amendments made thereto. It governs labor affairs in Jordan. The provisions of the law apply to all employees and employers as defined by Article 2 of the Law. This law was completed by regulations, instructions and decisions issued in accordance with its provisions. Based on ratified conventions, amendments to the labor law were adopted in 2002. These amendments concern some important provisions, mainly: 

• The extension of the coverage of the labor law to some categories of workers in the agriculture sector; 
• The establishment of private employment offices organizing the recruitment of foreign domestic workers, and control of these offices by labor inspectors. This will extend the control of the Ministry of Labor in dealing with the recruitment and working conditions of these workers; 
• The protection of workers from dismissal due to economic and technical factors by adoption of detailed regulation; 
• The regulation of working hours; 
• The inter-relation between employers’ and workers’ organizations 

Other laws, regulations, instructions and orders that affect the labor environment in Jordan include:

• Regulation No. 23 of 1966, as amended, issuing rules governing the public service, defines individual labor relations, paid leave, compensation, temporary assignment and termination of service; 
• The Maritime Law of 1972 which governs maritime employment (seafarers contract of employment, advance payment withholding and authorized remittance of seafarers wages); 
• Order of the Minister of Labor to establish committees to study the cases of termination or suspension of contracts of employment on the basis of the provisions of section 31 of the Labor Law. This Order establishes committees in each governorate where there is a Directorate for work and employment, so as to study the cases of termination of contracts of employment for undetermined periods or cases of suspending such contracts for economic or technical reasons; 
• Regulations No. 36 of 1997 concerning work permit fees for non-Jordanian workers, issued under Article 12 of the Labor Code of 1996. This Act provides for the fees to be paid by the employer for the delivery of work permits; 
• Regulations No. 56 of 1996 concerning labor inspection, promulgated under Article 7 of the Labor Code; 
• Industrial accidents and occupational diseases instructions of 1993; instructions issued by the Social Security Authority which prescribe the procedures to be observed in the event of such an accident, and provide for medical assistance to victims and financial compensation for disability resulting from an industrial accident or the contraction of an occupational disease; 
• Social Security Law No. 19 of 2001. This law provides for the establishment of the General Social Security Institution, which should provide social insurance for all workers under sixteen with certain exceptions (seafarers, domestic servants, agricultural workers). It deals also with labor injuries and occupational diseases, old age, disability and death benefits.

While other legislation exists, the Labor Law organizes most subjects related to the labor environment. Employment is governed as well by an employment contract, which is drawn in Arabic with two copies produced; if no such contract is made, the worker may establish his rights by all legal means of evidence. The duration of the employment contract is set by agreement of the parties. If the worker is employed for an indefinite duration, he shall be considered in service until his employment is terminated in accordance with the provisions of the Law.

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