IRAQ Law and Practice Contributed by: Ahmed Al-Janabi, MENA Associates in association with AMERELLER
4.4 Termination of Employment Contracts
compensated for the notice period. These cases are as follows: • employee’s illness causing incapacity to work, lasting for more than six months as evidenced by an official medical report; • employee’s disability of no less than 75% with incapacity to work as evidenced by an official medical report; • employee reaching retirement age; • if the work exigencies required downsizing the project, with prior ministerial approval; • breach of contractual obligations; • if the employee assumed a false identity or submitted false documents; • if the employee was on probation and did not show efficiency during this period (provided that the employee is notified seven days prior to termination); and • if the employee has committed, by virtue of final judgment, a grave mistake causing heavy loss to work, workers or production. As part of the disciplinary action, the Labour Law provides for termination in case of the employ - ee’s unsatisfactory performance. This case may be applied when the employee has received the necessary work instructions, was notified in writ - ing of the unsatisfactory performance and con - tinued to perform the work in an unsatisfactory manner 30 days after being warned. As a general rule, the employee shall be entitled to severance pay of two weeks for each year of service in case of termination for the causes listed above. However, they shall not be entitled to this compensation if termination was for one of the following cases: • the employee was sentenced to imprison - ment; • the employee breaches contractual duties;
The Labour Law sets out severe restrictions for employers terminating employment relation - ships. An employment agreement may only be terminated for the following reasons listed in the Labour Law: • death of the employee; • if the employee is sentenced, by a final court decision, to imprisonment of more than one year; • death of the employer, if the employment rela - tionship was based on personal considera - tions and the contract may not be continued with their heirs; • liquidation of the project by virtue of a final court decision, or in case of voluntary liquida - tion or closure, provided that prior ministerial approval is obtained; • the written mutual agreement of the employer and the employee; • expiry of the contract (for fixed-term con - tracts); • the completion of the work or provision of the service, if the contract is concluded for a specific work or service; • employee’s resignation with 30 days’ prior notice (if resignation was without notice or with a notice of less than 30 days, the employee shall pay the employer compensa - tion equivalent to the wage of notice term or the remaining part thereof); and
• in case of force majeure. Termination by Employer
The Labour Law stipulates cases where the employer may unilaterally terminate the employ - ment, upon giving 30 days’ prior written notice to the employee. If the employer fails to notify the employee in advance, the employee shall be
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