IRAQ Law and Practice Contributed by: Ahmed Al-Janabi, MENA Associates in association with AMERELLER
The Labour Law provides for both definitive and indefinite employment agreements, but it does not determine a maximum or minimum duration for the employment contract. The employment contract must specify the fol - lowing: • the employer’s and employee’s details; • the type of project; • the type of work to be performed, and its duration and start date; • working hours; • wages; • bonuses and allowances to be paid; and • the date, place and method of payment. It must be in Arabic (other than in the Kurdistan Region, where the contract may be in Kurdish), although a bilingual contract may be used for ease of reference. In case of conflict, the Arabic (or Kurdish) version would prevail. 4.3 Working Time According to the applicable labour law in Iraq, working hours must not exceed eight hours per day or 48 hours per week, except in special circumstances listed in the law. Employees are entitled to at least one day of rest per week. As such, a limit of 40 working hours per week would allow for a two-day weekend due to the cap of eight working hours per day. Working hours may be extended by the employ - er in certain circumstances in order to prevent an imminent hazard, such as in the case of force majeure, in which case the Ministry of Labour and Social Affairs’ approval is required. The hours may also be extended up to 56 hours per week if the work circumstances so require and the right to a day off during the week is not affected. In addition, the Ministry of Labour
and Social Affairs shall determine the maximum hours for overtime on a case-by-case basis when approving exceptions to working hours. The working hours may also be extended for the following reasons: • to manage an exceptional increase in work at the time of festivals or seasonal work, or for other justifiable reasons; • to repair or maintain devices, tools and machinery which, if they become inoperative, will affect the employer’s operations or result in a considerable number of employees being unable to perform their duties; • to avoid the deterioration of substances or products; and • to establish annual inventory and accounts, prepare for sales or open for the season. There are a few limitations on overtime work, with the following two being particularly note - worthy: • in regular work environments, the maximum total overtime hours should not exceed four hours per day; and • employees may not work 40 hours of over - time in 90 days or 120 hours of overtime within one year. The wage for overtime must be increased by 50% or 100%, depending on the type and nature of the work. Normally, an employee working overtime is entitled to a 50% increase on normal hourly wages for any work considered as over - time. In the case of night, arduous or hazardous work, employees must receive a 100% increase on normal hourly wages for work considered as overtime.
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