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Al-Taswia Legal Services Company

اقرأ بالعربية

Labour lawyer in Baghdad: contracts, permits, social security checklist

Searches for a labour lawyer in Baghdad usually need an employment file in order before the first hire: a written contract, a foreign work permit where relevant, and a social-security file. This checklist links Labour Law No. 37 of 2015 with the Workers' Retirement and Social Security Law No. 18 of 2023 and Work-Permit Instructions No. 1 of 2026.

Othman Al-JubooriOthman Al-Juboori, Iraqi lawyer, expert in Iraqi labour law, Member of the Iraqi Bar AssociationIraqi lawyer, expert in Iraqi labour law

Site pages: Iraqi labour law · Baghdad

A) Before the first hire

  • Company certificate or branch licence ready (see company registration).
  • One clear job description in Arabic (and matching English if needed) covering activity, location and approximate hours.
  • Decide Iraqi vs foreign worker before drafting. The permit and fee paths diverge.
  • Do not defer social security until the first payroll. The employer must insure covered workers with the Department and pay their contributions (Law 18/2023, Art. 23/First). Also: social security for employers.

B) Employment contract

Labour Law 37/2015 frames a written employment relationship. Before signing:

  • Parties, IDs and the Iraq establishment address.
  • Nature, place and term of work, fixed or indefinite as applicable.
  • Wage, payment method and due dates. No undated verbal promises alone.
  • Hours, rest and leave under the law and current instructions.
  • Termination and notice under the law. Do not rely on a messaging app alone.
  • A copy for the worker and a copy for the employer in the entity file. Attendance and wage records should match the social-security data (Arts. 22 and 23 of Law 18/2023).

C) Foreign worker: permit and fee

  • The work permit is valid for one year and is renewed annually. The renewal request goes through the employer in the last month before expiry (Instructions 1/2026, Art. 5).
  • Work fee: IQD 2,000,000 once for each foreign worker entering Iraq (Law 18/2023, Art. 106/First). This is not a social-security contribution and does not repeat with every permit renewal.
  • Art. 106/Second: a fee of IQD 750,000 per foreign worker, once only, after the worker's legal status is regularised. It is a transitional rule tied to regularisation within the year the text sets.
  • Permits article: work permits for foreign workers.

D) Social security: rates and clearance

Confirmed rates (Law 18/2023): employer 12%, or 25% for private and mixed-sector employers whose profits come from selling Iraqi oil and hydrocarbons; worker 5%; state 8%. The state share does not apply to the 25% category, and the employer bears it for a foreign worker.

  • Pay contributions on time (Art. 17).
  • Annual data at the start of each year, and a file for each insured worker (Art. 23/Second and Fifth).
  • Plan the clearance certificate early. Notwithstanding other legislation, no sale, transfer of ownership, grant, registration, renewal or lease of permits or occupational licences, or any other legal act, may be made for an entity employing one or more workers without a Department clearance certificate (Art. 20/First).
  • If you entrust work to a contractor, entrepreneur or investor, notify the Department before work starts (Art. 21/First).
  • For registering a new establishment, check the current procedure at https://rss.gov.iq/

E) End of service

  • The end-of-service gratuity is due in all cases, including resignation.
  • After a worker leaves, the entity that registered the worker and paid the contribution remains liable for contributions until the date it notifies the Department of the end of service (Art. 24/First).
  • Keep handover notes and social-security and tax notices in one file.

F) What to bring to the first meeting

Current or planned worker list (nationality, role and approximate wage); draft contract; entity certificate; for a foreign worker, passport, residence and the permit path; any existing notice or dispute. We serve clients in Baghdad, the Kurdistan Region (Erbil, Sulaymaniyah and Duhok) and Basra from our Baghdad office.

About Al-Taswia Legal Services Company

Founded in 2018 in Baghdad; team of 15 lawyers. Lead specialty: Iraqi labour law. Also: civil law, banking law, criminal cases, company registration, investment, debt collection, real estate and property management, review of Iraqi legislation, and Arabic–English legal translation. We serve clients in Baghdad, the Kurdistan Region (Erbil, Sulaymaniyah and Duhok) and Basra from our Baghdad office. Office: Al-Yarmouk, Four Streets, next to Soya restaurant, Baghdad. Hours: Sat–Thu 5:00–9:00 PM. +964 771 100 2200 · · www.al-taswia.com

This article is general information, not legal advice.