# Labour Law in Basrah, Iraq: Labour Court, Termination and End-of-Service Gratuity

Author: Othman Al-Juboori

*Short answer:* Labour law in Basrah, Iraq is Federal Labour Law No. 37 of 2015, because Basrah is in federal Iraq, and the Law applies to all workers in the Republic of Iraq except specified categories (Art. 3). One or more labour courts are formed in each governorate, including Basrah Governorate (Art. 165).
*Official source:* Labour Law No. 37 of 2015 (Arts. 2, 3, 37, 43, 46, 51, 67, 165 and 166); Instructions No. 1 of 2026 (Recruitment, Employment and Licensing of Foreign Workers in Iraq), Al-Waqai Al-Iraqiya No. 4863 (Art. 5).
This page sets out the labour-law provisions that employers and workers in Basrah consult, as stated in the text of the Law. Basrah is a federal governorate, so the text of the Law is the same there as in Baghdad. This page complements the Basrah page and does not repeat it.
Which labour law applies in Basrah
Labour Law No. 37 of 2015 regulates labour relations between workers and employers, including the employment of foreigners working in Iraq (Art. 2), and applies to all workers in the Republic of Iraq or those treated as such (Art. 3(First)).
The Law does not apply to public employees appointed under the Civil Service Law or a special legal provision, or to members of the armed forces, the police and the internal security forces (Art. 3(Second)).
The employment contract
An employment contract may be oral or written. A written contract is drawn up by the employer in three copies signed by both parties, and the third is deposited with the competent department (Art. 37(First)).
A contract of employment may begin with a probation period where the worker has no professional certificate proving his skill in the work assigned to him; the period may not exceed 3 months from the date he starts work, and the worker may not be placed on probation more than once with the same employer (Art. 37(Second)).
A fixed-term contract is made for a specific job and may not exceed one year; it becomes open-ended if renewed more than once (Art. 38).
Working hours and leave
Working hours may not exceed 8 hours a day or 48 hours a week, with specified exceptions including supervisory and managerial posts and guards (Art. 67).
Annual leave is not less than 21 days on full pay after one year of service, and 30 days in hazardous, arduous or harmful work (Art. 75).
Sick leave is 30 days on full pay for each year of work, accumulating up to 180 days (Art. 80).
Termination of the employment contract
Grounds on which a contract ends include the worker's resignation on 30 days' notice, expiry of a fixed-term contract, and written agreement (Art. 43(First)).
Where the Law allows the employer to terminate, the employer must give the worker written notice of not less than 30 days, failing which the worker is compensated with pay in lieu of notice (Arts. 43(Second) and 44).
A contract may not be terminated because of trade-union membership, filing a complaint or claim against the employer, or taking statutory leave; termination on one of these grounds is void (Art. 48).
The court and the time limits
A worker may challenge a termination decision before the termination committee or the labour court within 30 days of notification; choosing one forfeits the right to the other (Art. 46).
One or more labour courts are formed in each governorate; the worker-claimant is exempt from court fees, and labour cases are urgent cases (Arts. 165 and 166).
A claim for rights arising from employment relationships is not heard after 3 years from the date the right fell due (Art. 51).
Foreign workers
A foreign worker needs a work permit, and the employer may not employ the worker before it is issued (Arts. 30 and 31).
The work permit is granted for one year, renewable; the renewal request goes through the employer in the last month before expiry (Instructions No. 1 of 2026, Art. 5).
Related services
Al-Taswia Legal Services Company has a presence in Basrah, and its headquarters are in Baghdad, and the company has a team of 15 lawyers. The work of the company's lawyers includes drafting and reviewing employment contracts. The company's services also include contract drafting and commercial agencies. See also Iraqi labour law and company registration in Basrah.
FAQ
What is Iraqi Labour Law No. 37 of 2015 and what is its scope in Basrah?
Federal Labour Law No. 37 of 2015, which applies to all workers in the Republic of Iraq except specified categories (Art. 3).
Which is the labour court in Basrah and where is a labour case heard?
One or more labour courts are formed in each governorate (Art. 165) and hear the civil and penal actions and cases provided for in the Labour Law and the Workers' Retirement and Social Security Law (Art. 166(First)(a)).
How long is the time limit to challenge a termination decision, and is an end-of-service gratuity due?
30 days from the worker's notification, before the termination committee or the labour court; choosing one forfeits the right to the other (Art. 46). An end-of-service gratuity is due for each year of service in the cases to which Art. 45 applies, and that Article itself excludes specified cases.
How many working hours does the Labour Law allow?
Not more than 8 hours a day or 48 hours a week, with specified exceptions (Art. 67).
Does a foreign worker in Basrah need a work permit?
Yes, and the worker may not be employed before it is issued (Arts. 30 and 31 of the Labour Law). The permit is granted for one year, renewable (Instructions 1 of 2026, Art. 5).
Until when can labour rights be claimed?
A claim is not heard after 3 years from the date the right fell due (Art. 51).
Does Al-Taswia have a presence in Basrah?
Yes, it has a presence in Basrah, and its headquarters are in Baghdad.
Source: Labour Law No. 37 of 2015; Instructions No. 1 of 2026. This page provides general legal information and is not legal advice.

## Disclaimer

The information on this website is general legal information provided for awareness purposes. It is not legal advice on any particular matter and does not create a lawyer–client relationship. Iraqi laws and regulations change, so please check the text in force or consult a qualified lawyer before taking any action. Legal Notice and Disclaimer