Rivermate | Jordan flag

Jordan

Dispute Resolution and Legal Compliance

Understand dispute resolution mechanisms and legal compliance in Jordan

Rivermate | Jordan landscape

Labor courts and arbitration panels

Jordan employs a specialized court system and arbitration mechanisms to manage labor disputes. This system's structure and function are detailed below:

Labor Courts

Labor Courts in Jordan have jurisdiction over individual and collective labor disputes that arise from the Labor Law of Jordan (No. 8 of 1996 and amendments). These disputes can include wage and compensation claims, disagreements over working conditions, unfair dismissal or termination, and collective bargaining disagreements.

The structure of the Labor Courts is as follows:

  • First Instance Courts: These courts, located in major cities, handle initial labor disputes.
  • Court of Appeal: This higher court reviews decisions from First Instance Courts.

The process within the Labor Courts is as follows:

  • Filing a Claim: Cases are initiated by filing a claim with the relevant labor court.
  • Conciliation: The court often attempts conciliation to reach an amicable settlement.
  • Trial: If conciliation fails, the case proceeds to trial, with evidence presented and a judgment issued.

Arbitration Panels

Arbitration is a voluntary alternative to labor courts, often agreed upon in employment contracts or collective bargaining agreements. The panels are usually formed with an arbitrator selected by each disputing party, and these two select a third, neutral arbitrator.

The process within the Arbitration Panels is less formal than court proceedings, with a focus on evidence and arguments specific to the dispute. A binding award is issued by the arbitration panel.

Typical Cases Handled

Both labor courts and arbitration panels typically handle the following types of cases:

  • Wage and hour disputes
  • Wrongful termination claims
  • Discrimination and harassment allegations
  • Breaches of employment contracts
  • Disputes over benefits and leave entitlements
  • Interpretation of collective bargaining agreements

Compliance audits and inspections

Compliance audits and inspections in Jordan play a critical role in ensuring businesses adhere to laws and regulations. Various government agencies in Jordan have authority to carry out audits and inspections, depending on the industry and focus. These include the Ministry of Labor, the Social Security Corporation (SSC), the Jordan Standards and Metrology Organization (JSMO), and other industry-specific regulators.

Who Conducts Compliance Audits and Inspections

The Ministry of Labor enforces the Jordanian Labor Law (No. 8 of 1996) through labor inspections, focusing on issues like wages, working hours, safety, and social security compliance. The SSC conducts inspections to ensure businesses register employees and pay social security contributions in accordance with the Social Security Law (No.1 of 1978). The JSMO is responsible for product quality and safety standards, and may conduct inspections of production facilities. Other industry-specific regulators, like the Jordan Food and Drug Administration (JFDA), have specialized inspectors for their respective sectors.

Frequency of Audits and Inspections

The frequency of compliance audits and inspections varies. Some agencies conduct scheduled inspections based on risk assessments or specific timelines. Government agencies often investigate specific complaints of alleged violations. Many companies proactively engage in internal audits or hire external auditors to ensure compliance and minimize risks.

The Importance of Compliance

Jordanian businesses must comply with all relevant laws and regulations. Audits and inspections hold businesses accountable. Labor inspections, specifically, play a vital role in upholding workers' rights, ensuring fair pay, safe working conditions, and preventing exploitation. Audits in sectors like food and product safety protect consumers and maintain quality standards. Proactive compliance demonstrates a company's ethical practices and helps avoid legal trouble and damage to their reputation.

Consequences of Non-Compliance

Failure to comply with Jordanian laws and regulations can lead to fines and penalties. Regulatory agencies may impose fines for various violations. Non-compliance can result in suspension of licenses, forced closure of facilities, or product recalls. In severe cases, businesses and their managers may face civil or criminal charges. News of violations can negatively impact a company's reputation and customer trust.

Reporting and whistleblower protections

In Jordan, there are several avenues through which individuals can report violations of laws and regulations. These include government agencies, internal reporting within organizations, non-governmental organizations (NGOs), and the media. For instance, the Ministry of Labor, the Anti-Corruption Commission (ACC), and the National Center for Human Rights all have dedicated mechanisms for reporting specific types of violations.

Whistleblower Protections in Jordan

Despite some progress, legal protections for whistleblowers in Jordan remain limited. The Anti-Corruption Commission Law (No. 62 of 2006) provides some protection for those reporting corruption, including confidentiality and protection from retaliation. Jordan also has a Witness Protection Program, but its scope and effectiveness for whistleblowers in non-criminal cases is unclear. The Labor Law (No. 8 of 1996) offers limited protection against unfair dismissal, which could theoretically be applied in some retaliatory situations against whistleblowers.

Practical Considerations for Whistleblowers

When considering reporting a violation, it's important to consider whether reporting anonymously is a viable option to minimize the risk of reprisal. It's also crucial to thoroughly document the violations, including dates, times, individuals involved, and any available evidence. Given the limited protections, it's strongly advised to seek confidential legal advice before making a report. Assessing whether reporting internally, to a government agency, or through an NGO is the most appropriate and secure path, given the nature of the violation, is also important.

Challenges Faced by Whistleblowers in Jordan

There are several key challenges faced by whistleblowers in Jordan. The country lacks a comprehensive whistleblower protection law, leaving individuals vulnerable to potential retaliation. Public knowledge about reporting channels and rights as a whistleblower may be limited. There are also concerns about the effectiveness of existing protections and their consistent enforcement.

International labor standards compliance

Jordan has ratified a significant number of core International Labour Organization (ILO) conventions, reflecting its commitment to uphold international labor standards. These include conventions prohibiting forced labor, upholding workers' rights to form and join trade unions, protecting workers against anti-union discrimination, ensuring equal pay for men and women, prohibiting discrimination in employment, setting the minimum age for employment, and prohibiting the most hazardous and exploitative forms of child labor.

Domestic Labor Laws

Jordan's primary labor legislation, the Labor Law No. 8 of 1996 (and its amendments), is significantly influenced by the ratified ILO conventions. Key provisions include freedom of association, minimum working age, regulation of working hours and overtime, stipulation of minimum wage requirements and other benefits for workers, and outlining employer responsibilities for ensuring safe and healthy working conditions.

Areas of Compliance and Challenges

While Jordan has made notable progress in aligning its labor laws with international conventions, some challenges and areas for improvement remain. These include enforcement of laws against child labor, especially in the informal sector, persistent gender discrimination in the labor market despite legal protections, vulnerability of migrant workers to exploitation and abuse, and limited resources and capacity hindering the effective enforcement of labor laws.

Ongoing Efforts

The Jordanian government, in collaboration with the ILO and other stakeholders, is continually working to improve compliance with international labor standards. Key initiatives include strengthening labor inspection, raising awareness among employers and workers about labor rights and obligations, and improving the capacity of labor institutions to effectively implement and monitor labor laws.

Rivermate | A 3d rendering of earth

Hire your employees globally with confidence

We're here to help you on your global hiring journey.