Chapter 3 – Individual Work Contract (Article 27 to Article 54)
Section One – Work Contract Structure
Anyone who has completed 15 years of age shall be eligible to conclude a work contract if the period of the contract is not specified. In the event where the period is specified, it should not exceed one year, until he will reaches 18 years of age.
The work contract shall be made in writing and contain, in particular, the signing and effective dates of the contract, the amount of remuneration, the term of the contract if it is for a specific period and the nature of work. The contract shall be made in three copies, one for each party and the third shall be lodged with the competent authority at the Ministry. In the event where the work contract is not established by means of a written document, it shall still be deemed to exist and the worker may, in such event, establish his rights by all means of evidence.
Regardless of whether the work contract is for a specific of indefinite term, the remuneration of the worker may not be reduced during the contract validity period. Any agreement to the contrary, whether made before or after the effective date of the contract, shall be deemed null and void because this matter is related to the general order.
The employer may not assign to the worker any task that is not consistent with nature of the work stated in the contract or that is unsuitable to the worker’s qualifications and experience on the basis of which the contract was signed with him.
All contracts shall be written in Arabic and translations to any other language maybe added thereto, provided that the Arabic version shall prevail in the event of any dispute. The provision of this article shall apply to all correspondences, publications, by laws and circulars issued by the employer to his workers.
In the event where the term of the contract is specified, such term shall not exceed five years nor shall it be less than a year. The contract may be renewed after the expiry of the specified period with the consent of both parties.
If the period of the work contract is specified and both parties continue to implement it after the expiry of the period thereof without formal renewal, the contract shall be deemed renewed for a similar period with the same condition, unless both parties agree to renew it under other conditions. In all events, renewal may not adversely affect the worker’s entitlements acquired under the previous contract.
Section Two – Obligation of Workers and Employers and Disciplinary Penalties
The probation period of the worker shall be specified in the work contract, provided that it shall not exceed 100 working days. Either party may terminate the contract during the probation period without notice. In the event where the termination is made by the employer, he shall pay the worker’s end of service benefit for the period of work in the accordance of the provisions of this Law.
The worker shall not be on probation more than once for the same employer. The Minister shall issue a resolution to organize the conditions and regulations of work during the probation period.
In the event where the employer entrust another employer with the performance of a task or part thereof under the same conditions, the employer entrusted with the work shall treat his own workers and those of the original employer equally concerning all rights and both employers shall be jointly liable in this regard.
The employer, who contracts for the execution of a government project or who employs his workers in remote areas, shall be obliged to provide them with a suitable accommodations and means of transportation to such remote areas free of charge. In the event where no accommodation provided, the employer shall pay them an appropriate accommodation allowance. The Minister shall, by means of resolution, determine the areas that are distant from urban development, the conditions of suitable accommodation and accommodation allowance. In all other events where he is required to provide accommodation for his workers, the employer shall be subject to the provisions of the resolution referred to in the preceding paragraph concerning the conditions of suitable accommodation and determining the accommodation allowance.
The employer shall affix at a conspicuous location at the work place, the table of penalties that may be imposed on violating workers. In preparing the tables of penalties, the employer shall take into consideration the following:
a- The violations committed by workers and the penalty corresponding to each violation shall be specified.
b- Penalties shall be progressively list for the violations. c- Only one penalty may be imposed for each violation. d- The worker may not be punished for any act he committed if such act is proved 15 days after the date of committing such act. e- The worker may not be punished for an act he committed outside the work site, unless such act is related to the work.
The employer shall obtain the Ministry of Social Affairs and Labor’s approval of the tables of penalties before the implementation thereof. The ministry may modify these tables depending on the nature of the establishment or of the work and in line with the provisions of this Law.
The Ministry shall present these tables to the competent organization, if any. Where no such competent organization exists, the general union shall be referred to and requested to provide its remarks and suggestions with regard to these tables.
No penalty may be imposed on the worker unless he has been informed in writing of the act attributed
to him, his statements have been heard, his defense investigated and the minutes of the investigation
kept in his personnel file. The worker shall be notified in writing of the penalties imposed upon him,
their type and amount and the causes of the imposition thereof as well as the punishment that he will
be exposed to in the event of repetition of the violation.
Deduction from the worker’s remuneration shall not exceed 5 days in any one month. In the event
where the punishment exceeds such deduction, the exceeding amount shall be deducted from
remuneration of the following month or the following months.
The worker may be suspended from work during the period of investigation conducted by the employer
or his representative provided that it does not exceed than 10 days. In the event where the investigation is completed and the employee is not held liable for any violation, he shall be paid his remuneration for
the period of suspension.
The employer shall keep the proceeds of all deductions from remunerations of workers in a fund
allocated for use in the social, economic and cultural matters that benefit the workers. Deductions
imposed on workers as penalty shall be recorded in a special register, stating the name of the worker,
the amount of deduction and the reason of such deduction. In the event where the establishment is
liquidated, the total amount of the deductions existing in the fund shall be distributed among the
workers employed by the employer at the time of the liquidation, in proportion to their respective
periods of service.
The Minister shall issue a resolution setting forth the regulations that regulate the said fund and the
method of distribution.
Section Three – Termination of Work Contract and End of Service Benefit
Subject to the provisions of Article (37) of this Law:
a- The employer may terminate the services of a worker without notice, compensation or benefit
in the event where the worker has committed any of the following acts:
1- If the Worker has committed a mistake that resulted in a large loss for the employer.
2- If it was found that the worker obtained employment through cheating or fraud.
3- If the worker divulged secrets related to the establishment which caused or would have
caused real losses.
b- The employer may dismiss the worker in any of the following events:
1- If he been found guilty of a crime that relates to honor, trust or morals.
2- If he committed an act against public morals at the work site.
3- If he assaulted one of his colleagues, his employer or deputy during work or for a reason
4- If he breached or failed to abide by any of the obligations imposed on him by the contract
and the provisions of this Law.
5- If he is found to have repeatedly violated the instructions of the employer.
In such events, the decision of dismissal shall not result in the deprivation of the worker of his
end of service benefit
c- The employee who is dismissed for any of the reasons stated in this article shall have the right to
object to such decision before the competent labor department in accordance with the procedure set forth in this Law. If it is established, by virtue of the final verdict, that the
employer arbitrarily dismissed his worker, the latter shall be entitled to an end of service benefit
and a compensation for material and moral damages.
In all cases, the employer shall inform the Ministry about his decision to dismiss and the reasons for
such decision and the Ministry shall inform the Manpower Restructuring Team.
In the event where the employee is absent from work for 7 consecutive days or 20 separate days within
a year without a valid excuse, the employer shall have the right to consider him as having resigned. In
such event, provisions of Article 53 of this Law shall apply with regard to the worker’s end of service
In the event where the worker is imprisoned due to an accusation by the employer and placed in
preventive detention or is detained in execution of a non-final court verdict, he shall be deemed
suspended from work. However, the employer shall have no right to terminate his contract, unless he
has been convicted with a final judgment.
In the event where the verdict acquitted him from the accusation of the employer, this latter shall pay
the remuneration of the worker for the period of suspension and pay him a fair compensation that shall
be assessed by the court.
In the event where the term of the work contract is not specified, both parties shall have the right to
terminate the same by means of a notice to the other party as follows:
a- Three months prior to the termination of the contract for the workers earning a monthly
b- One month prior to the termination of the contract for other workers.
In the event where the party wishing to terminate the contract does not abide by the period of
notice, he shall be obliged to pay the other party a compensation for the notification period
equal to the remuneration of the worker for the same period.
c- In the event where the notification of termination is issued by the employer, the worker shall
have the right to be absent one day or 8 hours per week in order to search for other work. He
shall also be entitled to his remuneration for the day or hours of absence.
The worker shall decide on the day or hours of absence and shall notify the employer at least
one day prior to such absence.
d- The employer may exempt the employee from work during the period of notification while but
shall count such period within the worker’s period of service. The employer shall pay the worker
all his entitlements and remuneration for the period of notification.
The employer shall not use the right of termination granted to him by virtue of the previous article when
the worker is enjoying one of the leaves stipulated in this Law.
The service of the worker shall not be terminated without any justification or as a result of his activity in
the syndicate or a claim or his legal rights in accordance with the provisions of the law. The service of
the worker may not be terminated for reason of gender, race or religion.
In the event where the term of the work contract is specified and the contract was unrightfully
terminated by either party, the terminating party shall compensate the other party for damage provided
that the amount of the compensation shall not exceed the remuneration of the worker for the
remaining period of the contract The damage suffered by the parties shall be determined according to
trade custom, the nature of the work, the duration of the contract and in general all considerations that
may have an effect on the damage with regard to its existence and extent. All debts due to the other
party shall be deducted from the value of the compensation.
The worker shall have the right to terminate his work contract without notification and shall be entitled
to his end of service benefit in any of the following cases:
a- If the employer does not abide by the terms of the contract or the provisions of the law;
b- If the worker was assaulted by or by provocation from either the employer or his deputy;
c- If continuing work will endanger his safety and health pursuant to the decision of the medical
arbitration committee at the Ministry of Health.
d- If the employer or his deputy committed an act of cheating or fraud with regard to work
conditions upon signing the contract.
e- If the employer has accused the worker of committing a punishable act and the final verdict
f- If the employer or his deputy commits an act that violates public morals against the worker.
The work contract shall be terminated by the death of the worker or in the event where the worker is
proven incapable of performing his work, or due to a sickness that uses up all the worker’s sick leave
entitlements as evidenced by a medical report approved by competent official medical bodies.
The employment contract shall be deemed terminated in the following events:
a- If a final verdict was issued declaring bankruptcy of the employer;
b- If the establishment was permanently closed;
In the event where the establishment is sold, merged with another establishment or transferred by
inheritance, donation or other legal action, the work contract shall remain valid under the same
conditions and the obligations and rights of the original employer towards the workers shall be
transferred to the employer who has taken his place.
The worker shall be entitled to an end of service benefit as follows:
a- The worker shall be entitled to a 10 days remuneration for each of the first five years of service
and a 15 days remuneration for each year thereafter. The total of the end of service benefit shall
not exceed one-year remuneration for employees who are paid on daily, weekly, hourly or
b- The worker shall be entitled to a 15 days remuneration for each of the first five years of service
and one month remuneration for every year thereafter. The total of the end of service benefit
should not exceed one and a half year remuneration for employees who are paid on a monthly
The worker shall be entitled to a benefit for the fraction of the year in proportion to the period of
service. Loans and credits owed by the worker shall be deducted from the end of services benefit.
The provisions of the Social Security Law shall be taken into consideration in this regard, and the
employer shall pay the net difference between the amounts accrued due to the subscription of the
worker in the social security and to the end of service benefit.
Subject to the provisions of Article 45 of this Law, the worker shall be entitled to the entire end of
service benefits stated in the preceding Article as follows:
a- If the employer terminates the contract;
b- If the duration of the contract expired without being renewed.
c- If the contract was terminated in accordance with Articles 48, 49 and 50 of this Law.
d- If the female worker terminates the contract as a result of her marriage within a year after the
date of marriage.
The worker shall be entitled to half of the end of service benefits stipulated in Article 51 in the event
where he terminates the work contract which has an indefinite term and the period of service reaches
not less than three years and not more than five years. In the event where the period of service reaches
five years and less than 10 years, the worker shall be entitled to two thirds of the benefit and if the
period of service exceeds 10 years, the worker shall be entitled to his entire benefit.
The worker who terminates his work contract shall be entitled to an end of service certificate from the
employer stating the duration of his services, his position and the last remuneration he received. The
employer shall not have the right to include, explicitly or implicitly, any expressions that may harm the
employee or limit his employment prospects. The employer shall return to the worker all the
documents, certificates or tools delivered to him by the employee.
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