Iraq: New Labour Code now in force

A fresh Labour code has come into force in Iraq to replace the former code that dated back to 1987. The new code introduces the right for employers to ask employees to undertake three months’ probation and gives employees a right to 21 days holiday per year (30 where they do dangerous or arduous jobs) and special paid leave for marriage, bereavement and public service. It also puts a new one-year limit on fixed-term contracts (renewable for only one further year) and includes the right to union membership and trade union recognition and a raft of equal opportunity and anti-discrimination provisions principally aimed at women. Most significant of all for employers is the requirement to pay almost all departing employees a lump sump equal to two weeks salary per year of service. It would appear, however, that this will only apply to service after February 7th 2016.

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