IRAQ Law and Practice Contributed by: Ahmed Al-Janabi, MENA Associates in association with AMERELLER
4. Employment Law 4.1 Nature of Applicable Regulations Employment relationships are governed by Iraqi Labour Law No 37 of 2015, which takes a par - ticularly employee-friendly stance and makes it difficult to terminate employment agreements. The Kurdistan Region still uses the old labour law, as the new one has not yet been passed by the Kurdistan Parliament. Collective bargaining agreements are regulated by the Labour Law and include negotiations between the employer or group of employers or their associations on one hand and one or more workers’ associations or elected representatives on the other. The purposes of these collective bargaining or negotiations are set out in the Labour Law as follows: • co-operating between the workers’ associa - tions and the employers or the employers’ associations in order to achieve the workers’ social development; • improving the work terms and conditions; • regulating the work relationships between workers and employers; • regulating the relationship between the employers or their associations and the work - ers’ associations; and • settling labour disputes that may arise between workers and employers. 4.2 Characteristics of Employment Contracts An employment contract may be concluded in verbal or written form. If the employment con - tract is not concluded in writing, the employer and the employee shall both have the burden to prove the existence of such contract and any rights or claims based thereon.
Companies Registrar within four days of being implemented. Copies of all final accounts, the annual plan and related reports must also be sent. Any managerial changes must be approved through a shareholders’ resolution by the parent company and then submitted to the Registrar. The Registrar is entitled to obtain any document from the company for the purpose of carrying The general assembly of shareholders com - prises the members of the company and is the highest authority of the company. The general assembly may remove and determine the wages and powers of the managing director, and must also approve the LLC’s budget, final accounts and annual plan. The managing director carries out the day-to-day business operations of the LLC, and may be a foreign national. In the case of a joint stock company, which is also a pos - sible entity option in Iraq, a board of directors appoints and dismisses the managing director and is responsible for the administrative, finan - cial and organisational duties of the company. 3.5 Directors’, Officers’ and Shareholders’ Liability Directors and officers have a duty to serve the company’s best interests and are liable to the general assembly in carrying out these duties. They must also disclose any direct or indirect interests regarding any transactions with the company, and will be held liable if such duties are proven to be violated. The inspectors would be appointed by the Companies Registrar, which in turn would inform the relevant authorities so that the appropriate action may be taken in case of a breach. The company would be guided by the Companies Registrar based on the findings of the inspection report. out its responsibilities under law. 3.4 Management Structures
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