Employment Rights of Workers in Iraq: The Essentials

The framework

Employment in Iraq is governed by the Labour Law No. 37 of 2015, which replaced the earlier 1987 law and modernised the framework. The Labour Law applies throughout Iraq, including the Kurdistan Region, although the KRG's Ministry of Labour and Social Affairs administers many of its provisions in the KRI. Public-sector employment is governed by separate civil-service rules and is outside this article's scope.

The employment contract

Every employer with more than a handful of employees must have a written contract in Arabic (or Kurdish in the KRI), covering:

• Duration (definite or indefinite).
• Job description.
• Wage, allowances, and payment schedule.
• Working hours and rest days.
• Probationary period, if any.
• Termination provisions.

A verbal contract is not void, the employee still has the protection of the Labour Law, but a written contract is strongly preferable for both sides. Ambiguities favour the employee under general labour-law principles.

Working hours and overtime

• The standard working week is 48 hours across six days, or 40 hours across five days depending on the sector.
• The daily maximum is 8 hours, with defined rest breaks.
• Overtime must be paid at a premium, typically 50% above the standard rate, and 100% on rest days and public holidays.

Exempt categories (senior managers, some professionals) may fall outside the hour caps, but the exemption is narrower than employers sometimes assume.

Leave entitlements

Statutory leave includes:

• Annual leave: at least 20 days per year for most workers, rising with length of service.
• Public holidays: recognised on the official calendar.
• Sick leave: up to defined periods per year, at full or partial pay depending on duration.
• Maternity leave: a mandatory period of paid leave for female employees around childbirth.
• Paternity and bereavement leave: shorter statutory allowances.

Unused annual leave typically carries over within defined limits and is paid out on termination.

Wages: deductions and end-of-service

Wages must be paid regularly (usually monthly) in a currency stated in the contract. Deductions for anything other than statutory contributions or explicit written consents are unlawful.

At the end of employment, whether by resignation or termination, employees are entitled to:

• Payment of outstanding wages and accrued leave.
• End-of-service gratuity where applicable, calculated on final salary and years of service.
• Return of any personal documents held by the employer.

Termination

The Labour Law distinguishes between termination for cause and termination without cause. Key points:

• Notice periods are required unless the termination is for gross misconduct.
• Justified cause includes serious breaches of duty, prolonged unauthorised absence, and repeated warnings for defined offences.
• Unjustified termination entitles the employee to compensation on top of end-of-service dues.
• Redundancy: termination for economic reasons, is permitted but carries its own procedural requirements.

Employees who believe they have been wrongfully terminated have a limited window to challenge the termination through the labour directorate or the courts.

Social security

Employers must register their employees with the social security fund and make contributions monthly. Failure to register or contribute is a serious violation and exposes the employer to back-contributions and penalties. Employees benefit at retirement, on disability, or through certain family entitlements.

Foreign workers

Foreign workers enjoy substantially the same rights under the Labour Law as Iraqi workers, though certain benefits (social security, end-of-service in specific forms) may be structured differently. Their employment is contingent on a valid work permit, see our separate article on that topic.

What to do if your rights are being violated

1. Document. Save contracts, wage slips, WhatsApp messages, emails.
2. Raise it internally. A written grievance is a step the law expects you to take before escalation.
3. Complain to the labour directorate. In the KRI, the KRG Ministry of Labour receives complaints and can mediate.
4. Go to court. Employment claims are heard by the labour or civil courts depending on the type of dispute.

Employers who receive a labour claim should not ignore it. Non-response usually results in adverse orders and enforcement against the company's assets.

We act for both employees and employers. If you are facing an employment dispute, as either party, please contact us with the documents and a short description of the situation.