Labor law and Social Security in Iran
The current Iran Labor Law has been ratified after Islamic Revolution on September 24th, 1989. The Iranian labor law consists of twelve chapter as follows:
Chapter one of the Iranian Labor Law
The first chapter is dedicated to the general definitions and principles. The technical definition of an employer, employee and work place.
Who are subject to the Iran Labor Law?
According to Article one of the Iran Labor Law, the employers, employees and work places in all of the industries (in private section) in Iran is subject to the Iran Labor Law. It is worth mentioning that the state and government employees are not subject to the Iran Labor Law.
The definition of an employee in accordance to the Iran Labor Law
An employee is a natural individual who is employed by the employer and works at the request of the latter against receipt of salary. According to the above definition, in Iran, it is not possible for a legal entity to enjoy from privileges of an employee.
The difference between an employee and a contractor in Iran
Labor Law & Social Security
The difference between the concepts of an employee and a contractor is a controversial topic in Iran law which has led to numerous lawsuits in Iran. There are lots of employers in Iran who are not willing to conclude an employment agreement with their employees in order to avoid relevant costs and liabilities such as obligatory insurance, minimum wage and etc. Considering the fact that the difference between these two legal terms has not been clarified in Iranian laws and regulations, it is important to consult with the lawyers who are specialist in the field of labor law in Iran to prevent from any unpleasant consequences.
The definition of an employer in accordance the Iran Labor Law
An employer is a real individual or legal entity that the employee works at his request against receipt of agreed salary. According to the Iranian labor law, the managers, directors and supervisors of the work place shall be considered as the representatives of the employer and therefore, an employer is also responsible regarding the actions of the above-mentioned representatives towards the employees.
The definition of a work place or work shop in Iran Labor Law
A work place or a work shop is a place in different types of industries where the employees perform their tasks and duties. The concept of a work place in Iran’s law could be varied from a small crafts workshop to a very prestige office.
Chapter two of the Iranian Labor Law
The subject of chapter two of the Iran labor law is employment agreement. According to the definition, an employment agreement in Iran could be concluded orally or in writing for a temporary or indefinite time. Considering the complexity of the process of dismissal of an employee in Iran, nowadays, the vast majority of the employment agreements in Iran have been drafted based on temporary formats.
Termination of an employment agreement in Iran
According to Article 21 of the Iran Labor Law, an employment agreement will be terminated in one of the following situations:
- Death of employee;
- Retirement of employee;
- Permanent total disability of employee;
- Expiration of the employment agreement;
- Fulfillment of the task (only applicable for agreements for specific tasks), and
- Resignation of employee.
Chapter three of the Iranian Labor Law
Chapter three of the Iran Labor Law explains the working conditions including fees and salaries, extra payments, withholding taxes, fees or charges which should be deducted from employee’s salary, working hours, overtime, leave days and holidays, working conditions of women and working conditions of juniors.
Chapter four of the Iranian Labor Law
Chapter four of the Iran Labor Law discusses the technical protection and health issues at work place. The chapter defines the High Council of Technical Safety for observation of the mandatory rules and regulations of technical safety and the Ministry of Health and Medical Education for observation of the provisions related to health and environment hygiene.
There is also one department in the Ministry of Labor and Social Affairs named Department for Inspection which is authorized to control the work places over the health and hygienic issues.
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