The analysis on the adjustment of Iranian employment agreements in light of the spread of COVID-19 pandemic
The analysis on the adjustment of Iranian employment agreements in light of the spread of COVID-19 pandemic and possible modifications in such agreements under the Iranian Labor Law.
The present article has been prepared by Iran Best Lawyer in order to provide you with our analysis on the Iranian employment agreements in light of the spread of COVID-19 pandemic and possible modifications in such agreements under the Iranian Labor Law.
Summary:
With consideration given to the spread of COVID-19 pandemic, the current situation should be considered as force majeure and an unpredictable event which should be studied under Article 15 of the Iranian Labor Law (the “ILL”). The aforementioned Article regulated the possibility of employment agreement’s suspension at the event of force majeure.
According to the general principles of ILL, any kind of modification in relation to the concluded employment, could be exercised through the parties’ mutual consent.
THE SUSPENSION OF EMPLOYMENT AGREEMENT in Iran UNDER THE SPREAD OF COVID-19 PANDEMIC
Is there any legislation regarding adjustment of employment agreement in terms of COVID-19 pandemic?
The situation of the spread of COVID-19 pandemic shall be considered as force majeure and should be governed under Article 15 of the ILL. This Article declares: “Where an entire workplace or part thereof must cease operating because of force majeure or the occurrence of an unforeseeable event beyond the control of either party, or it becomes temporarily impossible for workers and their employer to fulfil their obligations, the employment contracts of the workers concerned shall be suspended. Determination of such cases shall be at the discretion of the Ministry of Labor and Social Affairs”.
In practice, the Ministry of Labor and Social Affairs, by issuance of the several instructions regarding the COVID-19 pandemic, has confirmed that the spread of this virus should be considered as a case of force majeure.
Therefor and by virtue of the aforementioned Article, the situation resulted from COVID-19 shall be construed as a case of force majeure and unforeseeable event which are beyond the control of either party. Accordingly, the employer shall be deemed to be authorized to suspend the employment agreement.
Furthermore, in the duration of suspension of the Agreement due to the force majeure, the employer is not obliged to pay the wages to the employees and the latter should receive the unemployment insurance coverage based on Article 2 of the Unemployment Insurance Law via referring to Social Security Organization (the “SSO”).
According to Article 20 of the ILL, in the case that “… the employer refuses to reinstate the worker after the period of suspension, such refusal shall constitute “unlawful dismissal” (in the absence of a valid reason), and the worker shall be entitled to apply to the Board of Inquiry (i.e. labor court) within 30 days”. Therefore, after the duration of force majeure, the employer cannot prevent the employee from returning to work.
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The analysis on the adjustment of Iranian employment agreements
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