Hire in Jordan

In Jordan, employment contracts can be categorized as either indefinite or definite. For fixed-term contracts, the maximum duration allowed is five years and there are no restrictions on renewals. However, if a fixed-term contract reaches its expiration without a renewal clause or without termination by either party, it automatically converts into an indefinite-term contract. This extends indefinitely.

In the event that an employer decides not to renew a fixed-term contract, they are required to provide the employee with a written notice period of 30 days. If the contract specifies a longer notice period, the employer must adhere to that duration accordingly.

Jordanian law does not prohibit pre-employment checks.

The probation period in any case shall not exceed three months.

During the probation period, the employer reserves the right to terminate the employee’s employment without prior notification or any compensation.

Upon successful completion of the probationary period and continuous employment, the employee’s contract will be considered indefinite. The period of probation will then be counted as part of the employee’s total service duration.

Under a six-day workweek, the legal working time is set at 48 hours, excluding designated rest and meal breaks. On the seventh day, employees are entitled to a paid weekly holiday.

In Jordan, private businesses commonly observe Friday as their weekend holiday, while banks and government offices typically close on both Fridays and Saturdays.

Any work hours exceeding the regular 48 hours per week must be compensated as overtime as per the terms outlined in the employment contract or collective agreements. The usual practice for overtime pay is to calculate it at a rate of 120% of the regular salary.

Moreover, if an employee works on their designated weekly day off or during religious or official holidays, they are entitled to additional compensation, with a minimum rate set at 150% of their usual pay.

There is no statutory requirement for employers to keep attendance and retain records. However, this practice is recommended.

According to Section 21 of Jordan’s Labor Code, the following circumstances constitute the termination of an employment contract:

• The contract’s term has expired or the task itself has been finished.
• The employee passes away or is rendered unable to work because of a disease or disability.
• Unless the contract took into account the employer’s personality, the death of an employer shall not result in the termination of the employment contract.

Ordinary termination (with notice) and extraordinary termination (without notice) are distinguished in the Jordanian Labor Code.

Ordinary Termination: The employer or employee must provide written notice of termination at least one month before the desired last day. If the employer gives notice, he may or may not release the employee from employment for the duration of the notice term, with the exception of the final seven days of the notice period. The employee is always entitled to his salary during the notice period. Employees who leave their jobs on their own initiative and before the end of the notice period are not entitled to pay during that time and must pay the employer the equivalent of their own wages during that time.

If the employment agreement is for a fixed term, it may be terminated before that time by either the employer or the employee for any of the reasons listed in section 29 of this Code. These reasons are as follows:

• the work is different from what was agreed upon in the contract
• circumstances necessitate a change of residence
• medical reasons

In this case, the employee is still entitled to all benefits and entitlements outlined in the contract. The employer may seek damages from the employee if the worker terminates the contract for a specific amount of time for any cause other than those mentioned above.

Employees are protected against dismissal in the following scenarios:

• On authorized holidays, sick leave or maternity leave
• Pregnant employees in their sixth month of pregnancy or after
• During the military service period

Terminated employees may file a complaint with the labor court alleging unfair dismissal;. If this is successful, they may be given reinstatement or compensation equal to half a month’s salary for each year of employment (minimum of two months’ salaries). They may also receive notice pay, severance pay, etc.

During the probationary period, the employer reserves the right to terminate the employee’s employment contract without the need for prior notice or compensation.

Upon completion of the probation period, if the employer decides to terminate the employee’s contract, they must provide a written notice at least 30 days in advance. This notice cannot be withdrawn unless both parties mutually agree.

However, certain situations specified by labor law, such as employee misconduct, may not require prior notice. Examples of such misconduct include absences exceeding 20 days without cause or prior notice.

In the event of termination, the employer has the option to exempt the employee from work during the notice period or require them to continue working, except for the final seven days. Regardless of the work arrangement during the notice period, the employer is obligated to pay the employee’s wages throughout this period.

In the event of termination, the employee shall be entitled to receive severance pay equivalent to 50% of their total salary for each year of service. The calculation will be based on their most recent salary, with a minimum of two months’ salary as the guaranteed amount.

The specific amount of termination payment and severance pay will be in accordance with the prevailing Jordanian law applicable at the time of termination.

Post-termination limitations are allowed in Jordan, provided that they follow the following broad guidelines:

• The restriction covenant does not go beyond what is necessary to protect the legitimate business interests of the corporation.
• The restrictive covenant is reasonable in terms of territory and duration.

Salaries in Jordan must be paid no later than seven days after their due date.

There is no statutory requirement for employers to provide employees with payslips. However, this practice is recommended.

• Each year of service grants an employee the right to 14 days of paid annual leave. However, if an employee has maintained continuous employment with the same firm for five years, they are eligible for an extended annual leave of 21 days. It is possible to carry forward any unused annual leave to the following year. However, the accumulated leave cannot exceed a maximum of two years.

  If an employee’s contract is terminated before they can utilize their entitled annual leave, they are entitled to compensation for the remaining leave days.

  It is important to note that any agreement in which an employee relinquishes their right to annual leave, whether wholly or partially, will be deemed invalid and unenforceable. The employee’s right to annual leave cannot be waived or compromised by such agreements.

All employees are entitled to 14 days of sick leave with full pay based on a report from a physician accepted by the employer.

Maternity Leave

A female employee is entitled to a total of ten weeks of paid maternity leave, which includes time both before and after childbirth. The postpartum leave period shall not be less than six weeks.

Following the conclusion of the maternity leave, the working mother is granted a paid breastfeeding break for one year from the date of delivery. This break is limited to a maximum of one hour per day.

Employers with a workforce of ten or more employees must offer up to one year of unpaid leave to female employees for childcare purposes. Upon completion of this leave, the employee has the option to return to work. However, if the employee engaged in paid work elsewhere during her absence, she forfeits her right to reclaim her position.

Paternity Leave

A male employee is entitled to three days of paid leave following the birth of a child.

Leave for pilgrimage

Each employee is eligible for up to 14 days of paid absence to perform the duty of pilgrimage. This may occur only once over the duration of the contract and only if the employee has worked for the employer for at least five years.

Study leave

On the employer’s recommendation, every employee is eligible for up to 14 days of paid leave to participate in a workers’ educational course approved by the Ministry of Labor or the General Workers Union.

Additionally, employees enrolled in an approved university, college or institute are entitled to four months of unpaid leave every year.

Spouse leave

Each working spouse is entitled to a maximum of two years of unpaid leave to accompany their spouse if he or she relocates for a new career outside Jordan.

Public holidays are flexible in Jordan. The following holidays are generally observed nationwide:

• • New Year’s Day
  • Labor Day (May 1)
  • Independence Day (May 25)
  • Eid Al Adha/ Feast of Sacrifice (3 days)
  • Eid Al Fitr/ End of Ramadan (3 days)
  • Islamic Hijra New Year
  • Mawlid an-Nabi/ The Prophet’s Birthday
  • Christmas (December 25)