Key elements for Employment in Iraq

Types of leaves:

1. Paid leave:  Staff is entitled to 20 days of fully paid leave per year prorate. This amount of leave increases incrementally the longer an employee serves. However. Staff working in difficult or dangerous work conditions, such as work environments with health hazards, are entitled to 30 business days of paid vacation annually

2. Staff are eligible to claim 30 days of fully paid sick leave for every year of service. With a maximum cap of 180 days. After the thirty-day mark, social insurance covers any paid sick leaves. Staff to show documented medical proof to claim any paid sick leaves.

Probation Period:

Contract of employment in Iraq should include a provision that subjects the staff to a probation period to be agreed upon between both parties. If the staff does not have a professional degree that proves his/her skill in the assigned work. The probation period can exceed three months as of the date of the commencement of work. The worker shall only be subjected to one probation period with the same employer. The employment contract can be terminated by giving seven days advanced notice by both parties for the contract termination during that period.

Termination of Employment in Iraq

contracts of Employment in Iraq shall be terminated in any of the following cases according to the Iraqi labor law:

• Death of the worker; in this case, the employer must pay to the family of the worker the equivalent of two month’s wage, provided that the worker had spent in the service of the employer at least one year.
• The worker has been sentenced by virtue of a final judgment of a court to imprisonment for a period of more than one year. If the judgment is for less than one year, the employer shall return to his work but is not entitled to the wages corresponding to the period of arrest or imprisonment.
• Death of the employer, if the contract has been concluded for consideration related to the person of the employer and the contract may not be completed with his heirs.
• If the enterprise is liquidated by virtue of a judicial judgment or if the enterprise is deliberately liquidated subject to the provisions of the previous point.
• When the two parties mutually decide to terminate it in writing.
• On the expiry of the contract period, if it is for a determined period.
• When the worker has fulfilled his work or has provided the service if the contract is concluded for a specific job or a specific service
• When the worker decides to resign provided he sends a notice to the employer at least (30) thirty days in advance; if the worker quits without notice or before the expiry of the notice period specified in the contract, the worker shall pay to the employer compensation equivalent to the notice period or fraction thereof.
• In the case of force majeure

The employer may terminate the employment contract in one of the following cases:

• The worker has contracted an illness that makes him unable to work and has not been cured within (6) six months, as substantiated by an official medical report.
• If the employee has become incapacitated to the extent of (75%) seventy-five percent or more and is unable to work, as substantiated by an official medical report.
• When the employee has reached the age of retirement, and he shall be entitled to the end-of-service gratuity under the workers’ Pension and Social Security Act.
• The working conditions in the enterprise call for a reduction in the volume of work, subject to the Minister’s consent.
• The worker commits a breach of any of his essential obligations under the contract.
• In case the worker assumes a false identity or submits forged documents
• If it has been proved that the worker under probation is not sufficiently qualified to perform the work.
• If the worker has committed a serious error causing material damage to the work, workers, or the production, under a judicial judgment. 

Shull is your partner for employment in Iraq 

Shull is an Employer of Record (EoR) service provider in Iraq and Kurdistan. Which assists businesses to operate in the country without the hassle of paying staff salaries, paying personal income tax, and filing social security.

Shull’s full payroll and EOR services assists in remote employment in Iraq where a foreign company, i.e. a non-resident business, payrolls a resident staff in Iraq and the KRI. This applies to both local and foreign employees. The only option for a non-resident company to payroll its employees (local and foreign) in Iraq is to use a fully outsourced service like Global Employment Outsourcing (GEO) which will employ and payroll the staff on their behalf.

Key elements to be considered when payroll is constructed:

• A month consists of 30 days
• Basic salary: Social Security in total is 17%
• The employer contribution is 12%
• Employee contribution is 5%
• Personal income tax (PIT) in KRI is 5% after the first IQD1,000,000 while in the rest of Iraq it has multifactor formula that takes into consideration different aspects such as marital status and number of dependents. Click here to read more. 
• Allowance up to 30% of basic salary is not subject to the income tax deduction

Do you have more questions about Employment in Iraq?

Shull Employment Solutions is the best recruitment agency, Employer of records (EOR), and professional employment service in Iraq and Kurdistan. We serve our local and international clients from different industries and across Iraq. If you would like to read more about Iraq market opportunities Click here.

If you have any further inquiries about the employment law and its force regulations in Iraq or Kurdistan Region, then get in touch with us and get your questions answered. Fill out the form below to reach out to us. 

 

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