Establishing compliant employment relationships in Jordan requires a thorough understanding of the local labor law and the specific requirements for employment agreements. A well-drafted employment contract is fundamental, serving as the legal basis for the relationship between an employer and an employee, outlining rights, obligations, and terms of employment in accordance with Jordanian regulations.
Ensuring that employment agreements adhere to the latest legal standards is crucial for businesses operating or employing individuals in Jordan. This includes understanding the different types of contracts permitted, the mandatory clauses that must be included, and the rules governing aspects like probationary periods and contract termination.
Types of Employment Agreements
Jordanian labor law primarily recognizes two main types of employment contracts: fixed-term and indefinite-term agreements. The choice of contract type impacts aspects like termination procedures and employee rights.
| Contract Type | Description | Key Characteristics |
|---|---|---|
| Fixed-Term | Concluded for a specific period or for the completion of a specific project. | Automatically terminates upon the expiry date or project completion. Cannot exceed 5 years for the same work with the same employer. |
| Indefinite | Concluded for an unspecified period. | Continues until terminated by either party in accordance with legal requirements. |
While these are the primary types, contracts can also be full-time or part-time, and can specify the nature of the work (e.g., for a specific job or general employment).
Essential Clauses
Jordanian labor law mandates the inclusion of several key details in any employment contract to ensure its validity and clarity. While specific requirements may evolve, certain core elements are consistently required.
Essential clauses typically include:
- Names and addresses of both the employer and the employee.
- The nature of the work or job title.
- The start date of employment.
- The duration of the contract (if fixed-term).
- The place of work.
- The agreed-upon wage or salary, including details of any allowances or benefits.
- Payment frequency (e.g., monthly, weekly).
- Working hours and rest periods.
- Details regarding annual leave entitlement.
- Provisions related to termination of the contract.
Contracts must be written in Arabic, although bilingual versions are common.
Probationary Period
Jordanian law permits employers to include a probationary period in the employment contract. This period allows both the employer and the employee to assess suitability.
- The maximum duration for a probationary period is typically three months.
- During the probationary period, either party may terminate the contract without notice or severance pay, provided the termination is for a valid reason related to the employee's suitability for the job.
- If the employee successfully completes the probationary period, it counts towards their total length of service.
- An employee cannot be subjected to more than one probationary period with the same employer for the same work.
Confidentiality and Non-Compete Clauses
Confidentiality and non-compete clauses are common in employment agreements, particularly for roles involving sensitive information or specialized skills.
- Confidentiality Clauses: These are generally enforceable in Jordan, protecting the employer's proprietary information and trade secrets during and after the employment relationship.
- Non-Compete Clauses: These clauses aim to restrict an employee from working for a competitor or starting a competing business after leaving the company. Their enforceability is subject to judicial review and depends on several factors, including:
- The scope of the restriction (geographical area, duration, type of work).
- Whether the restriction is reasonable and necessary to protect the employer's legitimate business interests.
- Whether the restriction unduly harms the employee's ability to earn a living.
- Non-compete clauses are more likely to be enforced if they are narrowly tailored and do not impose an excessive burden on the former employee.
Contract Modification and Termination
Modifying an existing employment contract requires the mutual written consent of both the employer and the employee. Unilateral changes to essential terms by the employer may be considered a breach of contract.
Termination of an employment contract must adhere strictly to the provisions of Jordanian labor law.
- Fixed-Term Contracts: Typically terminate automatically upon expiry. Early termination by either party without a legally valid reason may result in penalties (e.g., compensation equivalent to the remaining contract period).
- Indefinite Contracts: Can be terminated by either party by providing the legally required notice period. The notice period is typically one month, but the contract or collective agreement may specify a longer period. Termination without a valid reason or without proper notice can lead to claims for unfair dismissal and severance pay.
- Termination for Cause: The law specifies grounds for immediate termination without notice or severance pay, such as gross misconduct by the employee.
- Severance Pay: Employees are generally entitled to severance pay upon termination, calculated based on their length of service, unless the termination is for specific reasons defined by law (e.g., resignation without cause, termination for gross misconduct).
Understanding these requirements is vital for managing employee relationships compliantly in Jordan.
