Jordan

Jordan, situated in the Middle East and bordered by Syria, Iraq, Saudi Arabia, Israel, and the Palestinian West Bank, features diverse landscapes from the fertile Jordan Valley to the arid Eastern Desert and mountainous highlands. It has a rich history, including being part of the Ottoman Empire and under British Mandate before gaining independence in 1946. Today, it is a constitutional monarchy with King Abdullah II as the head of state.

The nation has a predominantly Arab population with a significant number of Palestinian refugees. Islam is the major religion. Classified as an upper-middle-income country, Jordan's economy is driven by services, industry, and tourism, with key industries including phosphate mining and pharmaceuticals. Despite its role as a regional mediator, Jordan faces challenges like unemployment, water scarcity, and regional conflict impacts.

The workforce, characterized by a low labor participation rate and high youth unemployment, is predominantly employed in the service sector. Industry and agriculture employ fewer people, often migrant workers. The workforce faces issues such as skill mismatches, a large informal sector, and pressures from a substantial refugee population.

Cultural aspects of work in Jordan include the importance of family, indirect communication styles, and a hierarchical structure. "Wasta" (connections) plays a crucial role in career advancement. The service sector, particularly tourism and finance, dominates the economy, while emerging sectors like renewable energy and creative industries show growth potential.

In Jordan, employers have multiple tax obligations including contributing 14.25% of an employee's gross salary to the Social Security program, which offers retirement, disability, and survivor benefits, along with coverage for work-related injuries. Employers must also withhold progressive income tax ranging from 5% to 30% based on the employee's income, and report and pay this tax usually on a monthly basis. Additionally, a 1% National Contribution Tax is applicable for individuals earning over JOD 200,000 annually.

Other taxes that may affect employers include property taxes and stamp duties, depending on the business type and industry. It's important to note that tax laws can change, and consulting with a Jordanian tax professional or referring to the latest regulations is recommended for compliance.

Employees themselves contribute 7.5% of their gross salary to the Social Security fund. Specific professions such as medicine and law may have additional withholding taxes. Jordan also imposes a Value-Added Tax (VAT) at a standard rate of 16%, with certain services being zero-rated or exempt, and a requirement for businesses exceeding JOD 31,250 in annual revenue to register for VAT.

Furthermore, Jordan offers tax incentives to attract businesses, including exemptions from income and social service taxes in Free Zones and Development Zones, typically for 10 years, along with reductions for businesses in the industrial sector and other specific industries. Businesses are advised to consult with tax advisors or the Jordan Investment Commission to understand applicable incentives and ensure compliance.

In Jordan, the Labor Law ensures that employees receive 14 days of paid annual leave per year, increasing to 21 days after five years with the same employer. Unused leave can be carried over, but not beyond two years. If employment is terminated, employees are compensated for unused leave. Agreements forfeiting leave rights are invalid.

Jordan observes national holidays such as New Year's Day, Labor Day, Independence Day, Army Day, King Abdullah II's Accession to the Throne, and Christmas Day. Religious holidays include Eid al-Fitr, Eid al-Adha, Islamic New Year, and Prophet Muhammad's Birthday, with dates varying annually based on the lunar calendar.

Additional leave types include 14 days of paid sick leave, 10 weeks of maternity leave, three days of paternity leave, and other specific leaves like pilgrimage leave after five years of service. The government may adjust holiday observances, and it's advised to check official announcements for accurate dates.

In Jordan, employee benefits are regulated by law, with mandatory provisions including social security contributions, paid leave, and severance pay. Employers and employees contribute a total of 21.75% towards the social security pension scheme, which offers retirement, disability, and survivor benefits. Employees are entitled to at least 14 days of paid annual leave, public holiday leave, paid sick leave, and maternity leave, with some provision for paternity leave.

Additional optional benefits provided by some companies include transportation allowances, flexible work arrangements, professional development opportunities, and life and disability insurance. These benefits help improve employee satisfaction and competitiveness in the job market.

The public healthcare system is supported by government funding and mandatory social security contributions, providing free or subsidized services. Private health insurance is optional. Retirement security is primarily ensured through the Social Security System and optional employer-sponsored plans, which may include defined benefit or defined contribution plans.

Overall, Jordanian employers are required to offer a baseline of benefits but often extend beyond these to attract and retain talent, with variations depending on the company's industry, size, and budget.

Jordan's labor law, as outlined in the Jordanian Labour Code (Law No. 8 of 1996), provides a comprehensive framework for employment practices, including termination, anti-discrimination measures, working conditions, and health and safety regulations.

Termination of Employment:

• Lawful grounds for dismissal include mutual agreement, contract expiry, employee resignation, death, imprisonment, force majeure, and dismissal for cause (e.g., misconduct, incompetence).
• Employers must give at least one month's written notice for termination, with compensation required for failure to do so. Employees must also adhere to notice periods based on their payment structure.

Severance Pay:

• Severance is mandated, with one month's salary per year of service for indefinite contracts, and the remainder of wages for the term for fixed-term contracts.

Anti-Discrimination:

• Discrimination on the basis of gender and disability is explicitly prohibited. However, comprehensive legislation covering other characteristics like race, religion, age, or sexual orientation is lacking.
• Redress mechanisms include complaints to the Ministry of Labour, the National Centre for Human Rights, and civil courts.

Employer Responsibilities:

• Employers are urged to create a discrimination-free workplace, provide diversity training, and establish clear grievance procedures.

Working Conditions:

• The standard workweek is capped at 48 hours over six days, with a maximum of 8 hours per day.
• Employees are entitled to rest breaks, a weekly rest day, and public holidays.

Health and Safety (H&S):

• Employers must conduct risk assessments, develop safe work procedures, provide personal protective equipment, and offer health and safety training.
• Employees have rights to a safe workplace, necessary information and training, and can refuse unsafe work.
• The Occupational Safety and Health Department enforces H&S regulations through inspections and penalties.

Overall, Jordan's labor laws aim to protect employee rights, ensure safe working conditions, and provide mechanisms for addressing workplace issues, though gaps in anti-discrimination laws remain.

In Jersey, employment contracts are governed by the Employment (Jersey) Law 2003, which mandates a written statement of employment terms to be provided to employees within four weeks of their start date. This statement includes essential details such as the names of the employer and employee, job description, pay, working hours, and other employment conditions.

Additional components of an employment contract may include a formal Contract of Employment, Employee Handbook, Offer Letter, and any Side Agreements or Addendums. These documents collectively define the broader contractual relationship, which may also include implied terms not explicitly stated.

Jersey recognizes various types of employment contracts, such as Permanent Contracts, which provide long-term job security, and Fixed-Term Contracts, which are suitable for temporary or seasonal roles. Employment agreements must clearly outline terms regarding pay, working hours, leave entitlements, termination notice periods, redundancy procedures, and disciplinary measures. They may also include clauses on confidentiality and restrictive covenants like non-compete and non-solicitation clauses, which must be reasonable in scope and duration to be enforceable.

The legal framework does not specifically regulate probationary periods, but common practice in Jersey ranges from three to six months, allowing both employers and employees to assess suitability. During probation, termination rules are more flexible, though certain conditions apply for extending the probationary period.

Confidentiality and non-compete clauses are critical for protecting business interests but must adhere to strict legal standards regarding reasonableness and enforceability to ensure they do not unduly restrict an employee's future employment opportunities. Employers are advised to seek legal counsel when drafting these clauses to comply with Jersey employment law.

• Legislation and Remote Work in Jordan: Jordan lacks specific legislation for remote work, relying on Labour Law No. 12 of 2016 and the Civil Service Bylaw of 2020 to guide remote work practices.

• Importance of Clear Contracts: Due to the absence of specific remote work regulations, it is essential for employment contracts to clearly define remote work arrangements, including work hours, expectations, and data security responsibilities.

• Technological Needs: A strong internet connection is crucial for remote work in Jordan, despite regional disparities in connectivity. Employers should provide necessary technology and software to facilitate effective remote communication and collaboration.

• Employer Considerations and Responsibilities: Employers need to ensure data protection through access controls, encryption, and reliable data backup solutions. Developing a formal remote work policy and providing training on remote work tools are recommended practices.

• Work Arrangements and Employee Well-being: Employers should address potential challenges like work-life balance and feelings of isolation in remote work settings. Support programs for employee well-being are advised.

• Part-time and Flexitime Work: The Labour Law recognizes part-time work and outlines minimum wage requirements, but does not specify benefits compared to full-time roles. Flexitime arrangements are possible with employer approval, though not explicitly regulated.

• Job Sharing: Not directly addressed in Jordanian labor law, job sharing can be established through employment contracts, with reimbursement policies similar to those for part-time work.

• Data Protection and Privacy: The Data Protection Law No. 35 of 2017 and Labour Law No. 12 of 2016 emphasize the importance of data protection and fair treatment. Employment contracts should specifically address data security responsibilities, and employers must implement measures to protect data privacy.

• Best Practices for Secure Remote Work: Employers should encourage the use of separate devices for work and personal use, secure communication channels, and establish clear procedures for reporting data breaches to ensure a secure remote work environment.

Jordan's labor law sets a standard working week at 48 hours across six days, with a daily maximum of 8 hours, extendable to 11 hours under certain conditions. For specific sectors like hotels and restaurants, the weekly limit can increase to 54 hours. Overtime is permissible with employee consent, compensated at a minimum rate of 125% for regular overtime and 150% for rest days or holidays. The law caps annual overtime at 30 days and daily overtime hours at 10.

Employees are entitled to a one-hour break after four consecutive hours of work, and Friday is the standard weekly rest day, although exceptions are allowed with ministerial approval. Night shifts, defined as work between 8:00 pm and 6:00 am, do not attract special pay unless stipulated by the employer, while safety measures must be maintained. Working on weekends and specifically on the designated rest day incurs a minimum overtime pay of 150%.

• Salary Variations by Industry: In Jordan, industries like pharmaceuticals, IT, and finance typically offer higher salaries compared to sectors such as hospitality, education, or construction.

• Influence of Experience and Qualifications: Higher salaries are often commanded by professionals with extensive experience and specialized qualifications.

• Impact of Location: Salaries are generally higher in Amman due to its higher cost of living and the presence of multinational companies and specialized industries.

• Cost of Living Considerations: Salaries in Jordan are influenced by the cost of living, including housing, transportation, and food costs. The government has set a minimum wage to ensure a basic standard of living.

• Minimum Wage Details: The standard minimum wage is JOD 260 per month. Exceptions include lower wages for migrant workers in Qualified Industrial Zones and no specific minimum wage for domestic workers, although wage discrimination is prohibited.

• Employee Benefits: Mandatory benefits in Jordan include social security contributions, paid leave, and health insurance. Employers may also offer bonuses and allowances such as performance-based bonuses, holiday bonuses, and allowances for transportation, housing, meals, and education.

• Payroll Cycle Overview: The payroll process involves collecting timekeeping information, calculating gross and net pay, making deductions, distributing payments, and keeping records. Payroll frequency can vary, affecting employee satisfaction and retention.

The Employment (Jersey) Law 2003 sets out the minimum notice periods required for both employers and employees in Jersey during employment termination. Employers must provide a notice ranging from one week for less than two years of service to a maximum of 12 weeks for 12 years of service. Employees must give notice from one week for less than 26 weeks of service to four weeks for five years or more. Notice must be in writing unless delivered in the presence of a witness, and the termination date should be within 14 to 60 days of the notice.

In Jordan, the Jordanian Labour Law (Law No. 8 of 1996) governs employment termination and severance pay. Severance, calculated as one month's salary per year of service, applies in cases like employer-initiated termination (except for gross misconduct) and resignation under specific conditions. Exceptions include gross misconduct and resignation without valid reasons. Employment termination can be ordinary (with at least one month's notice) or extraordinary (without notice in cases of serious misconduct). Fixed-term contracts automatically expire at the end of the term unless renewed.

In Jordan, the distinction between employees and independent contractors significantly affects employment rights, social security contributions, and tax obligations. Employees are under the employer's control, integrated into the company, and receive regular salaries with tax and social security deductions. In contrast, independent contractors have more autonomy, minimal company integration, and handle their own tax and social security payments.

Misclassification of workers can lead to legal consequences, including fines and back payments for benefits like minimum wage and social security. Independent contractors can choose business structures like sole proprietorships or commercial establishments, each with different liability and registration requirements.

Contract negotiation for freelancers involves setting clear fee structures, payment terms, and project scopes, ideally documented in a written contract in Arabic for enforceability. Building personal relationships is crucial in Jordanian business culture.

Freelancers commonly work in IT, creative industries, marketing, consulting, and professional services. They must manage their taxes and can voluntarily contribute to social security for future benefits. Protecting intellectual property (IP) is essential, with default ownership rights granted to freelancers, though specific rights can be transferred through contracts.

Tax obligations for freelancers include income tax on net profits and potential sales tax registration if turnover exceeds JOD 18,000. Consulting a tax advisor is recommended to ensure compliance and optimize tax benefits. Freelancers can also consider insurance options like health, income protection, and public liability insurance to mitigate risks associated with independent contracting.

Overview of Occupational Safety and Health in Jordan

Jordan's occupational safety and health (OSH) framework is primarily governed by the Labor Law (No. 8 of 1996), which sets forth comprehensive standards for workplace safety and health. The Ministry of Labor (MoL), through its Occupational Safety and Health Directorate, plays a pivotal role in enforcing these regulations, supported by the Social Security Corporation (SSC) which handles compensation claims for work-related injuries and illnesses.

Employer Responsibilities and Worker Rights

Employers in Jordan are tasked with numerous responsibilities to ensure a safe working environment. These include providing personal protective equipment, conducting risk assessments, educating employees about hazards, and maintaining first aid facilities. Workers, on the other hand, have rights to a safe workplace, access to safety information, and participation in safety committees, along with obligations to adhere to safety protocols and report hazards.

Regulatory and Inspection Framework

The MoL is the key entity responsible for workplace inspections, which are conducted without prior notice and focus on various safety aspects like machinery, chemical hazards, and emergency preparedness. The frequency and procedures of these inspections are designed to adapt to different industry needs and risk levels.

Challenges and Areas for Improvement

Despite a structured legal and regulatory framework, Jordan faces challenges such as limited enforcement resources, a significant informal sector, and general lack of awareness about OSH standards, especially in smaller enterprises. These issues underscore the need for enhanced training and stricter enforcement to improve workplace safety standards across the country.

Accident Reporting and Compensation

Employers must report serious accidents and fatalities to the MoL within 24 hours and all injuries to the SSC for compensation purposes. The SSC manages claims for various benefits related to work injuries, with specific processes in place for claim submission and evaluation. Disputes over compensation may be addressed in labor courts, ensuring legal recourse for workers.

Jordan's labor dispute resolution involves specialized Labor Courts and voluntary Arbitration Panels. Labor Courts, structured into First Instance Courts and a Court of Appeal, handle disputes related to wages, working conditions, and unfair dismissals among others, starting with conciliation and potentially moving to trial if necessary. Arbitration Panels, chosen often through employment contracts, offer a less formal dispute resolution process, ending in a binding award.

Additionally, Jordan conducts compliance audits and inspections across various sectors to ensure adherence to laws and regulations, with entities like the Ministry of Labor and the Social Security Corporation playing significant roles. These inspections are crucial for maintaining fair labor practices and safe working conditions.

Whistleblower protections in Jordan are limited, with some safeguards against retaliation provided under specific laws like the Anti-Corruption Commission Law. Practical advice for whistleblowers includes reporting anonymously if possible and seeking legal counsel.

Jordan has ratified numerous International Labour Organization conventions, influencing its labor laws to include provisions like freedom of association and minimum wage requirements. Despite progress, challenges remain in areas such as child labor enforcement and gender discrimination in the workforce. The government continues to collaborate with the ILO to enhance compliance and enforcement of labor standards.

Understanding communication and negotiation in Jordanian workplaces involves recognizing the importance of indirect communication, hierarchical structures, and the role of non-verbal cues. Jordanians prioritize relationship building and maintaining social harmony, often using indirect language to avoid confrontation. Formality is observed, especially towards superiors, with a strong emphasis on titles and respectful greetings. Non-verbal communication, such as eye contact and body language, plays a crucial role in conveying respect and building trust.

Negotiations in Jordan are relationship-oriented, with a focus on building long-term partnerships. Indirect communication and haggling are expected, and negotiations may involve multiple rounds, requiring patience and persistence. It's important to prepare thoroughly, focus on mutual benefits, and be ready to make concessions while paying attention to non-verbal cues.

Jordanian business culture is also characterized by a well-defined hierarchical structure where authority is centralized, and decisions flow from the top down. This structure impacts business functions, potentially slowing down decision-making but providing clarity and accountability. Cultural acceptance of hierarchical authority and a preference for clear rules are highlighted by Hofstede's cultural dimensions.

Additionally, understanding Jordan's statutory holidays and regional observances, such as Eid al-Fitr, Eid al-Adha, and Independence Day, is essential for operating successfully. These holidays can significantly affect business operations, with various closures and reduced hours. Cultural considerations like Friday prayers and Ramadan also influence business practices, emphasizing the need for cultural sensitivity and adaptation in professional settings.