If you’re considering expanding your business into Jordan or hiring local talent, understanding the country’s labor laws and employment practices is essential. With its strategic location at the intersection of Asia, Africa, and Europe, Jordan offers a growing market for businesses looking to tap into a dynamic, upper-middle-income economy. This guide provides an overview of key labor laws, employment practices, and critical details that employers should consider when hiring in Jordan.
Why Jordan?
Jordan, officially known as the Hashemite Kingdom of Jordan, is a vital economic hub in Western Asia, with a population of approximately 10 million people. As a constitutional monarchy, the country offers stability and growth, positioning itself as an attractive location for businesses looking to expand their footprint in the region. Amman, the capital, serves as the cultural, political, and economic center of the country.
With its relatively young and educated workforce, Jordan presents a valuable opportunity for companies aiming to establish a competitive edge.
Here are some key reasons why Jordan is an ideal destination for your business:
Currency: Jordanian Dinar (JOD)
Capital: Amman
Time Zone: GMT+3
Strategic Location: Positioned at the crossroads of three continents—Asia, Africa, and Europe.
Understanding Jordanian Employment Laws
When hiring employees in Jordan, compliance with the country’s labor laws is essential to ensure smooth operations and protect both employers and workers. The primary legal framework governing employment in Jordan is the Labor Law of 1996, which covers all aspects of employment relationships, including contracts, working hours, termination, and leave entitlements.
Employment Contracts
In Jordan, all employment contracts must be in writing and provided in both Arabic and English. Contracts should outline the terms of employment, including salary, job duties, and duration. Employers must specify whether the contract is for a definite or indefinite term. If a fixed-term contract expires without being renewed, it automatically converts to an indefinite-term contract.
Key details that must be included in employment contracts:
Job responsibilities and duties
Salary and benefits
Duration of the contract (definite or indefinite)
Working hours and location
Probation period (if applicable)
Important: Employers must provide a minimum of two copies of the employment contract, one for each party. Failure to provide a written contract allows employees to present any legal evidence to assert their rights.
Probation Periods
The maximum probation period allowed in Jordan is three months. During this time, either party can terminate the employment contract without prior notice or compensation. If the employee remains in the role after the probation period, the contract is considered indefinite, and the probation period is counted as part of the employee’s total service duration.
Working Hours and Overtime
Jordanian labor law sets the standard workweek at 48 hours, typically spread over six days. Friday is considered the standard weekly day off for private businesses, while banks and government offices observe both Friday and Saturday as holidays. Overtime is required for any work performed beyond the regular 48-hour workweek, with compensation based on the employer’s policies and agreements.
Termination and Severance
Employers in Jordan must provide a minimum of 30 days' written notice when terminating an employment contract. During this period, the employee is entitled to their full salary. Additionally, in cases of redundancy or dismissal, employees are entitled to severance pay equivalent to 50% of their last salary for each year of service, with a minimum of two months' salary.
Employees who are terminated unjustly may file a complaint with the labor court, where they could seek reinstatement or compensation.
Key Protection: Employees are protected from dismissal during authorized leave (e.g., maternity leave, sick leave) or military service.
Leave Entitlements in Jordan
Jordanian labor law provides employees with several types of leave, ensuring a balance between work and personal life. These include:
Annual Leave: Employees are entitled to 14 days of paid leave annually, increasing to 21 days after five years of continuous service. Unused leave may be carried over, though it cannot exceed two years' worth of accumulation.
Sick Leave: Employees are entitled to 14 days of sick leave with full pay, with the possibility of extending this period for an additional 14 days at half pay, if hospitalization is required.
Maternity Leave: Female employees are entitled to 10 weeks of paid maternity leave, with at least six weeks taken after childbirth. In addition, working mothers are granted a paid breastfeeding break for up to one year after childbirth.
Paternity Leave: Male employees are entitled to three days of paid paternity leave after the birth of their child.
Other Special Leaves: Employees can also take leave for pilgrimage, study, or spouse relocation, with the employer’s approval.
Social Security Contributions and Taxation
Employers and employees are both required to contribute to Jordan’s social security system, which covers pensions, maternity benefits, and work injury insurance. Contributions are calculated based on the employee’s monthly salary:
Employer Contribution: 14.25%
Employee Contribution: 7.5%
Income tax in Jordan follows a progressive structure, with rates ranging from 5% to 30%, depending on the individual’s income level. Employers are responsible for withholding income tax and social security contributions from employees’ wages.
Hiring Foreign Workers in Jordan
Foreign workers in Jordan require a work permit, which employers must obtain from the Ministry of Labor. Employers must demonstrate that no qualified local workers are available for the position. Work permits are valid for one year and can be renewed. Employers should be aware that certain occupations, including medical and engineering roles, are reserved for Jordanian nationals.
Why Choose Us for Your Hiring Needs in Jordan?
Navigating the complexities of labor laws, recruitment, and HR compliance can be challenging when expanding into new markets. That’s where we come in. Our expertise in Jordanian labor law and extensive local knowledge make us the ideal partner to help you establish and grow your workforce in Jordan. From drafting compliant contracts to handling social security contributions, we offer a seamless solution for businesses looking to expand their operations in this vibrant market.
Our Services Include:
Employer of Record (EOR) solutions
Job Post Administration (All invoices will be provided for proof of "at cost" service).
Retained Search Consultancy
If your vacancy is for your EOR staff, we offer exclusive rates.
Our rates vary if you are hiring for a role, not in Jordan OR part of your EOR service.
Compliance management and HR support
Visa and work permit assistance for foreign employees
With our support, you can focus on growing your business while we handle the administrative and legal complexities of hiring in Jordan. We ensure full compliance with local laws and best practices, safeguarding your business operations.
Hire a Spartan with EOR Services by Spartan Services & Consulting! Let us assist you in building a workforce that drives your business forward in Jordan.
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