Employment Laws in Jordan

Contractual Agreement in Jordan

An employment contract is a legally binding document highlighting all the essential terms and conditions of the working relationship between an employee and an employer. 

According to Chapter IV of the Labor Code in Jordan, all employers must draft an employment contract in Arabic and at least two copies. The duration of the employment contract is set by mutual agreement between the parties.

Types of employment contracts in Jordan

According to Jordan labor law, there are two main types of employment contracts: fixed-term contracts and indefinite-term contracts. 

Fixed-term contracts refer to employment agreements with a specific start and end date. In Jordan, a fixed-term employment agreement is automatically terminated after the end of the contract period. However, if both the employer and employee continue implementing it after the expiration period, that agreement will be considered to have been renewed as an indefinite-term contract.

Additionally, workers hired for piecework or perform a series of tasks by piecework are considered individuals employed for an indefinite period.

Obligations and rights for both parties in Jordan

The Jordan employment law also lays down rights and obligations for employers and employees. 

For example, employers cannot ask their employees to perform work marked differently from the type of work highlighted in the employment contract unless it is extremely necessary (e.g., to prevent an accident, handle an emergency, etc.).

Employers are also not legally allowed to ask their employees to work in a different place if it requires them to move to a new home. However, this only applies when relocation has not been explicitly mentioned in the labor contract. 

Similar to this, employees, too, have certain rights and obligations. They include,

• Perform their work themselves, exercising reasonable diligence.
• Safeguard business secrets and do not disclose them to any third party even after the expiry of the labor contract.
• Take care of all work tools the employer provides to perform their work.
• Undergo medical screening as required by their type of work.

Ensure you understand all these different rights and obligations, especially when hiring globally, to avoid non-compliance penalties.

Working Hours and Overtime in Jordan

Moving on, let’s examine the standard working hours in Jordan and the rules related to overtime. 

Regular working hours

• The standard Jordan working hours are 48, six days per week, excluding meal breaks and rest periods. 
• However, employees in certain sectors, such as cinema, restaurant, and hotel workers, must work 54 hours per week. 
• It is common for private companies to consider Friday a weekend holiday. Banks and government offices remain closed on Fridays and Saturdays.

Overtime regulations and compensation

• Employees can also choose to work overtime. In such scenarios, they must be compensated with a minimum of 125% of their regular remuneration. 
• If an employee is made to work on a public holiday or weekly rest day, they must be compensated with 150% of their regular remuneration.

Minimum Wage and Compensation

Minimum wage refers to the lowest remuneration that an employer is legally required to provide their employees. Each country has its own rules and regulations related to minimum wage. 

Jordan’s minimum wage rate in 2025

• As of 2025, the minimum wage in Jordan is 290 JOD per month. (So, Jordan minimum wage in USD would be around 409 American dollars)
• It was increased from 260 JOD in 2024.

Factors affecting wage determination in Jordan

The minimum wage in Jordan is determined and regulated by the Tripartite Commission for Labor Affairs, which consists of the Ministry of Labor, employer associations, and worker groups. The amount is determined by considering the living cost indicators issued by the competent official authorities.

Employee Benefits and Social Security in Jordan

In addition to these working conditions, employees also enjoy certain benefits in exceptional circumstances. The Social Security Corporation manages these employee benefits, an institution legally responsible for collecting contributions from employees and employers. 

Statutory benefits in Jordan

Employees contribute 7.5% of their salary to SSC monthly. Employers, on the other hand, are required to contribute 14.25% on behalf of each employee. 

If the individual is employed in a dangerous profession, the employer’s contributions increase by 1%.

Maternity benefits

• Female employees receive fully paid maternity leave of ten weeks, divided into four weeks before birth and six weeks after delivery. 
• During this period, employees receive a maternity allowance equivalent to their last wage at the beginning of the maternity leave.
• To be eligible for this benefit, the worker must have made at least six months of monthly contributions to the SSC before her maternity leave.
• Additionally, employees are entitled to one hour of paid time off from work daily to nurse their newborn child. This is limited to one year after delivery.

The government plans to increase maternity leave for public sector employees by up to 90 days in a proposed amendment to the Labor Code. 

Unemployment insurance

• This is compensation provided to insured members who have lost their jobs and are without income.
• The unemployment fund is an individual savings account. Depending on their previous contributions, total years of service, and the size of their account, individuals can claim this benefit.
• For example, an individual with at least 36 months of contributions is eligible for unemployment insurance thrice. If the total number of contributions exceeds 180 months, the individual can claim unemployment insurance six times.

Work injury benefit

• Employees who suffer workplace injuries or are victims of commuting accidents are entitled to workplace insurance. Depending on the degree of the injury, it covers all medical expenses.
• If the employee has a temporary disability related to a workplace accident, they are eligible for a daily allowance. The SSC determines the amount in accordance with Social Security law.
• In case of death due to work injury, the employee's beneficiaries receive a pension and 700 JOD to cover the funeral expenses.

In addition, insured employees are entitled to an old-age pension, which is disbursed monthly.

Vacations and Paid Time-Off in Jordan

Moving on, under the Jordan labor laws, employees have various leave entitlements. 

Annual leave entitlement in Jordan

• Annual leave in Jordan comprises 14 fully paid days for every year of service.
• If the employee has worked with the same employer for five consecutive years, their annual leave entitlement is increased to 21 days.
• Official or public holidays in Jordan are usually not considered part of the annual leave.
• Workers terminated before completing their annual leave quota are entitled to full remuneration for all remaining leave days.

Public holidays and special leave in Jordan

Here are the main public holidays in Jordan.

Sick leave

• The employment laws in Jordan mandate 14 days of fully paid sick leave to all employees in a year. To avail this time off, employees must be able to furnish a medical report to verify their illness. 
• If workers get hospitalized due to illness, they are entitled to another 14 days of paid leave.
• If the worker is not hospitalized but can submit a medical report, they can receive 14 extra days of sick leave with half-pay.

Education leave

• Upon nomination from their employer, employees can use 14 days of paid leave to pursue an educational course approved by the Ministry.

Pilgrimage leave

• Employees who have completed five years of service with the same employer can take up to 14 days of paid leave to go on pilgrimage.
• This benefit is provided only once during the worker’s period of service. 

Bereavement leave

• There are currently no statutory guidelines related to bereavement leave in Jordan.
• However, the government of Jordan plans to introduce a three-day paid bereavement leave for employees in the event of the death of a first-degree relative.

Unpaid leave

• Employees wishing to study in an officially recognized university/college/institute can take up to four months of unpaid leave.
• An unpaid special leave of two years may also be granted to an employee to accompany their spouse if the latter has moved abroad or to a province other than where they worked previously for employment purposes. This benefit can be utilized only once.

In addition, employees can take one day of leave to open a trade union office in Jordan.

Termination and Severance in Jordan

Termination of employment in Jordan occurs if,

• It's a mutual decision between the employer and the employee.
• The duration of the employment contract has expired, or the work has been completed.
• The employee dies or is unable to continue work due to a medically-backed disability or disease.

This is what we refer to as ordinary termination of employment in Jordan.

If the employee has been hired for a specific period, both parties can terminate the contract before its expiry date. However, this can only be done on certain grounds, such as medical reasons, the mismatch between the nature of work required to perform and the one specified in the contract, conditions necessitating a change of residence, and so on. In such cases, the worker will receive all entitlements and benefits as agreed in the employment contract. 

But, if an employee terminates a fixed-term contract and the reason for doing so does not meet the above conditions, the employer can claim damages. 

Grounds for termination in Jordan

Extraordinary termination of employment in Jordan is when an employer dismisses an employee on the following grounds,

• The worker assumes a false identity or submits false documents and certificates.
• The worker cannot fulfill their obligations as stipulated in the labor agreement.
• Any fault of the employee that causes material damage to the employer provided the latter had notified the appropriate authorities within five days from the date when they learned of the incident.
• The worker fails to adhere to the internal policies, including safety regulations, even after receiving two written warnings and
• The worker discloses business secrets, among others.

An employee can also terminate the employment contract without giving any notice if,

• The nature of the work they have to perform is different from what was agreed upon in the employment contract.
• The employee is downgraded from the agreed level of employment. 
•  If the employee can furnish a medical certificate that states their work, if continued, can be hazardous to their health.
• The worker is asked to change their place of residence, even though no such clause was present in the employment contract.
• The remuneration amount has been lowered.

Notice period and severance pay in Jordan

The notice period in Jordan for ordinary termination in Jordan lasts one month. This is only for those employees who have been hired for an indefinite period by their employers. 

If the employer provides the written notice, the worker can either continue working or stop immediately, except for the last seven days of the notice period. In any case, the employee is entitled to their remuneration during this duration. 

However, if an employee gives written notice and stops working before the notice period ends, they won’t receive any remuneration for the period of absence. The employer must compensate the employee by paying them the equivalent salary during that period. 

Severance pay in Jordan

In case of unfair dismissal, the employee has the right to challenge the validity of their termination with the competent court. They can file a submission within 60 days of their dismissal. If found guilty, the employer will be required to 

• Reinstate the worker or pay them damages,
• Provide compensation instead of notice and 
• Provide any other due entitlements to the worker.

The total compensation or severance pay in Jordan should not be less than three months of the worker’s remuneration or more than six months’ salary. This is calculated based on the employee's last salary.

Discrimination and Equal Opportunity in Jordan

No regulation explicitly prohibited gender-based discrimination in the workplace previously. However, the Labor Law was amended in June 2023. Article 69 of the amended Labor Law No. 10 for 2023 prohibits gender-based discrimination that infringes on equal opportunities at the workplace.

In addition, the Constitution of Jordan explicitly states that all workers are entitled to remuneration based on the quantity and quality of their work.

Understanding all these different labor regulations can be difficult if you do not have the proper resources. But, with Skuad Shield by your side, you no longer have to worry about non-compliance matters. Our in-house legal experts will ensure you are familiar with all the changes in Jordan's labor regulations.

Health and Safety Regulations in Jordan

Chapter nine of the Labor Code of Jordan is the main regulation that lays down all guidelines and obligations for employers related to occupational health and safety. It states that employers must take all precautionary measures to safeguard their employees against incidents of hazards and diseases at the workplace. 

Employers are legally mandated to provide their employees with the necessary equipment to protect them from workplace hazards and occupational diseases. This equipment includes special clothes, glasses, or shoes. Employers must also provide necessary training courses to their employees to maintain such material.

Stay Compliant in Jordan with Skuad

Employment laws in Jordan can be complicated. There’s no denying that. But it does not necessarily have to be, especially with Skuad by your side. We feature a comprehensive platform that enables you to hire international employees from over 160 countries, including Jordan. 

With our global employment solution, you can instantly onboard all new hires within minutes,  run global payroll securely with a single click, and manage employee benefits, attendance, and work permits from one unified location.

But this is not all. We feature a robust legal professional team enabling you to comply with all local employment laws. These include working hours, annual leave in Jordan, termination procedures, etc. 

So, book a demo with us today and start hiring compliantly only with Skuad!

FAQs

What are the rights of workers in Jordan?

All employees have the right to enjoy 14 days of paid annual leave in Jordan. This can be increased to 21 days if an individual has been employed with the same company for five consecutive years.

What is the labor law for termination in Jordan?

One month of written notice is required to terminate employment in Jordan, whether by employees or the employer. However, please note that this only applies to employment contracts of indefinite duration.

What are the employee benefits in Jordan?

Under the labor laws, employees in Jordan are entitled to various benefits, such as paid annual leave, paid maternity leave (ten weeks), and paid sick leave (14 days).

What are the major employment laws in Jordan?

The Labor Code, Law No. 8 of 1996, is the primary employment regulation that governs labor relations in this country.

What is the average salary of workers in Jordan?

The average monthly wage of employees in Jordan is estimated to be 546.000 JOD. However, this number can differ based on factors such as the employee's experience level, the type of industry, location, or organization.

What are the working hours in Jordan?

The standard Jordan working hours are 48 hours divided over a six-day week.