# Iraqi Labour Law Lawyer in Baghdad | Labour Law No. 37 of 2015

Last reviewed: October 2026
Author: Othman Al-Juboori

Iraqi labour law is a specialist area of expertise for Al-Taswia Legal Services Company, alongside the other areas of Iraqi law. Labour Law No. 37 of 2015 governs the relationship between workers and employers in Iraq, including the employment of foreign nationals working, or seeking to work, in Iraq (Article 2). It does not apply to public servants appointed under the Civil Service Law or a special legal provision, or to members of the armed forces, the police and internal security forces (Article 3). The rights it sets out are the minimum rights of workers: any more favourable provision for the worker in another law, a contract or an agreement applies, and any clause under which a worker waives a right granted by this Law is void (Article 14). The firm advises workers and employers, drafts employment contracts and internal work regulations, and represents clients before termination-of-service committees and the labour courts.

Kurdistan Region Labour Law No. 71 of 1987 applies in the Kurdistan Region; federal Law No. 37 of 2015 has not been adopted there. (Details on the Kurdistan Region page)
What We Offer in This Area
Drafting and reviewing employment contracts, including fixed-term and part-time contracts and contracts for foreign workers.
Drafting internal work regulations, pay policies and working-hours rules for employers.
Advice on termination of service and on calculating end-of-service gratuity, compensation and entitlements.
Representation before termination-of-service committees and the labour courts, and appeals against their decisions.
Compliance with employer obligations: workers' social security, work permits for foreign nationals, working hours and overtime, and payroll records.
1. The Employment Contract
Form An employment contract may be oral or written. A written contract is drawn up by the employer in three copies signed by both parties; each party keeps one copy and the third is deposited with the competent department. At a minimum it states: the employer's name, the type of business and its address; the worker's details (including nationality); the nature of the work, its duration and start date; the wage and benefits, and how and when they are paid; and the working hours (Article 37/First).
Probation period no more than 3 months, and only once with the same employer (Article 37/Second and Third).
Fixed-term contract concluded for a specific task or service, for no more than one year. A term may not be set for work of a continuing nature except to meet a temporary need for additional workers. A worker on a fixed-term contract has the same rights as a permanent worker, and the contract becomes indefinite if it is renewed more than once (Article 38).
Part-time work between 12 and 24 hours per week, with the same rights; financial entitlements and leave are calculated in proportion to the hours worked (Article 39).
Subcontracting where an employer assigns part of its work to another employer under the same working conditions, the workers of both must be treated equally in all rights, and both employers are jointly liable for this (Article 12).
Transfer of the business where the business is merged, sold or transferred, the new employer is bound by the obligations arising from the employment contracts, and the previous employer remains jointly liable with it (Article 50).
2. Wages
Wages are paid in Iraqi currency unless the contract provides otherwise, and may be paid by cheque or bank transfer under a collective agreement or with the worker's written consent. They are paid at the end of the week or month, any delay may not exceed 5 days, and women and men receive equal pay for work of equal value (Article 53).
Wages may not be lower than the minimum wage set under Article 63, nor lower than the wage set in a collective agreement (Article 62). The worker may claim the difference, and the burden of proof lies with the employer (Article 65).
Any waiver by a worker of their wage is void, and wages may not be attached except under a final court judgment (Article 56).
Deductions from wages are permitted only in cases established by law, including court-ordered maintenance (nafaqa), social security contributions and trade union dues. Total deductions may not exceed 20% of the wage where the wage is less than three times the minimum wage, or 30% where it is higher; these limits do not apply to maintenance (Article 57).
The employer must inform the worker of the components of their wage before contracting and give a written wage statement with each payment (Article 59), and must keep a register of wages and overtime (Article 61).
3. Working Hours, Overtime and Rest
Working hours may not exceed 8 hours a day or 48 hours a week, with specific exceptions including supervisory and management positions and security guards (Article 67).
Day work is between 6 am and 9 pm, and night work between 9 pm and 6 am. Night work may not exceed 7 hours, and mixed day-and-night work 7.5 hours (Article 69).
The worker is entitled to a paid weekly rest of at least 24 consecutive hours, normally on Friday, though the day may be changed. By agreement, the worker may be employed on the rest day or an official holiday at the overtime rate, with a rest day in the following week (Article 70).
Overtime is work performed during daily or weekly rest periods, hours beyond the daily working time, or on public holidays and official days off (Article 71/Sixth). It is paid at the normal wage plus 50% for day work, and at no less than double the wage for night, hazardous, arduous or harmful work (Article 71/Fourth).
Overtime limits: one hour a day in industrial work carried out in shifts and 4 hours a day in non-industrial work, and no more than 40 hours in any 90 days and 120 hours a year (Article 71/Fifth).
An employer who breaches the provisions on working hours and leave is liable to a fine per worker (Articles 73 and 83).
4. Leave
Annual leave at least 21 days on full pay after one year of service, and 30 days for hazardous, arduous or harmful work (Article 75). Any waiver of the minimum annual leave is void (Article 79).
Sick leave 30 days on full pay for each year of work, which may accumulate up to 180 days, after which the provisions of the Workers' Retirement and Social Security Law apply (Article 80). It is granted on the report of a medical body approved by the employer or an official medical body (Article 81).
Special leave on full pay 5 days for the worker's marriage; one day for the marriage of the worker's son or daughter; 5 days on the death of a spouse, parent, child, sibling or parent-in-law; 130 days for an insured female worker whose husband has died; and unpaid Hajj leave once (Article 82).
Maternity leave at least 14 weeks on full pay (Article 87). A pregnant or breastfeeding worker may not be required to work overtime or to do work harmful to her health or the child's health (Article 85), and a breastfeeding worker is entitled to two nursing breaks totalling no more than one hour, counted as working time (Article 91).
5. Termination of the Employment Contract
Grounds on which the contract ends (Article 43/First) include: the worker's death; a final sentence of imprisonment of more than one year; liquidation of the business; written agreement; expiry of a fixed-term contract; completion of the agreed work; resignation by the worker with 30 days' notice; and force majeure.
Grounds on which the employer may terminate the contract (Article 43/Second): a disabling illness from which the worker has not recovered within 6 months, or disability of 75% or more, both certified by an official medical certificate; reaching retirement age; downsizing of the business with the Minister's approval; conduct in breach of contractual duties; impersonation or submission of forged documents; failure to show acceptable competence during probation; and gross misconduct causing serious loss, established by a final court decision. In these cases at least 30 days' written notice, or pay in lieu, is required (Article 44).
An employer may not close, suspend or liquidate its business without the Minister's approval (Article 43/Third).
Grounds that may not justify termination trade union membership, acting as a workers' representative, filing a complaint or lawsuit against the employer, taking statutory leave, discrimination, and temporary absence due to a documented illness or accident. Termination on any of these grounds is void (Article 48).
Termination by the worker without notice where the employer breaches its obligations, commits a felony or misdemeanour against the worker or a member of the worker's family, or there is a serious danger known to the employer that it has not removed; the worker may also claim compensation (Article 49).
Dismissal as a disciplinary penalty may be imposed only in the cases set out in Article 141, including a serious violation causing serious harm, assault on the employer, superiors or colleagues, and absence without legitimate excuse for 10 consecutive days or 30 non-consecutive days in a working year.
6. Compensation and Entitlements on Termination
End-of-service gratuity two weeks' wages for each year of service, payable in all cases in which service ends, including resignation (Article 45).
Termination without legal grounds reinstatement of the worker with full wages for the period of termination or, if reinstatement is not possible, compensation equal to twice the end-of-service gratuity (Article 47). Where termination is void on one of the grounds in Article 48, fair compensation may not be less than twice that amount (Article 48/Second).
Pay in lieu of notice where the employer has not given 30 days' notice in cases requiring notice (Article 44).
Unused leave paid out in cash when the contract ends (Article 76/Fourth).
Death of the worker the employer pays the worker's family two months' full wages if the worker had at least one year of service (Article 43/First/(a)).
Final settlement of wages from the day after the contract ends, or, where the worker terminates, within 7 days of leaving work (Article 60).
Bankruptcy or liquidation of the business by final court decision workers rank as preferred creditors for the last three months' wages, wages for official holidays, leave entitlements and end-of-service gratuity, and this priority ranks ahead of debts owed to the State (Article 58).
Limitation period claims for rights arising from employment relationships will not be heard after 3 years from the date they fall due (Article 51).
7. Termination-of-Service Committee and Labour Court
A worker may challenge a termination decision before the termination-of-service committee or the labour court within 30 days of being notified; choosing one forfeits the right to the other, and the burden of proof lies with the employer (Article 46).
One or more labour courts are established in each governorate (Article 165), with jurisdiction over civil and criminal cases under the Labour Law and the Workers' Retirement and Social Security Law. A worker bringing a claim is exempt from court costs, and labour cases are treated as urgent (Article 166).
Labour court judgments may be appealed in cassation within 30 days from the day after notification (Article 168).
8. Foreign Workers
A foreign worker may not be employed without a work permit issued by the Ministry of Labour (Article 30), and a foreign worker may not take up any work before obtaining one (Article 31).
An employer that brought a foreign worker to Iraq at its own expense must pay for the worker's return ticket to the country from which they were recruited, unless the worker left the job before the contract ended for an unlawful reason, and must bear the cost of repatriating the worker's body in the event of death if the family so requests (Article 32).
A foreign worker lawfully resident for work is not considered to be in an irregular situation merely because they have lost their job (Article 34).
For a foreign worker, the employer pays, in addition to its own share, the portion of the social security contribution that the State pays for an Iraqi worker (Workers' Retirement and Social Security Law, Article 14), and the employer is charged a levy of IQD 2,000,000 for each foreign worker entering Iraq (Article 106 of the same Law).
Foreign companies setting up a branch or company in Iraq before hiring workers: see the Company Registration page.
9. Workers' Social Security (Law No. 18 of 2023)
The Workers' Retirement and Social Security Law No. 18 of 2023 applies to workers in the private, mixed and cooperative sectors who are covered by the Labour Law, and to the self-employed (Article 3). It is administered by the Workers' Retirement and Social Security Department of the Ministry of Labour and Social Affairs (Article 4).
5% of the worker's total wages and allowances is deducted, and the employer pays 12%, allocated to the retirement, work-injury, unemployment benefit, and health insurance and maternity branches. The employer's share rises to 25% for companies that earn their profits from selling oil and hydrocarbons (Article 14).
The employer must submit the details and wages of insured workers to the Department (Article 22).
10. Protection against Discrimination, Harassment and Forced Labour
Persons under 15 may not be employed (Article 7). Discrimination in employment and occupation is prohibited (Article 8), as is sexual harassment in employment and occupation (Article 10).
A worker may file a complaint with the labour court concerning forced labour, discrimination or harassment; the penalty is imprisonment of up to 6 months and/or a fine of up to one million dinars (Article 11).
Juveniles may not be employed in hazardous work or in night or mixed work (Article 95).
Frequently Asked Questions
Q1: How much is the end-of-service gratuity in the Iraqi private sector?

A worker whose service is terminated is entitled to an end-of-service gratuity of two weeks' wages for each year of service with the employer, in all cases in which service ends, including resignation (Article 45).Q2: What can I do if I am dismissed unfairly?

The worker may challenge the termination decision before the termination-of-service committee or the labour courts within 30 days of being notified of the termination. Choosing one route forfeits the right to the other, and the burden of proof lies with the employer (Article 46). If the termination is found not to rest on any legal ground, the committee or court orders the worker's reinstatement with full wages for the period of termination or, if reinstatement is not possible, compensation equal to twice the end-of-service gratuity (Article 47).Q3: Must the employer give notice before terminating the contract?

Yes. In the cases where the law allows the employer to terminate the contract (Article 43/Second), the employer must give the worker written notice of at least 30 days; otherwise the worker is compensated with pay in lieu of notice (Article 44).Q4: How long is annual leave under Iraqi labour law?

After one year of service, the worker is entitled to paid leave of at least 21 days for each year, or 30 days for hazardous, arduous or harmful work, and leave increases with length of service with the same employer (Article 75). The worker is entitled to a cash payment for unused leave days when the contract ends (Article 76/Fourth).Q5: What are the working hours under Iraqi labour law?

Working hours may not exceed 8 hours a day or 48 hours a week, with specific exceptions (Article 67). Working hours must include a rest break of at least half an hour and no more than one hour, and continuous working time may not exceed 5 hours (Article 68). The worker is entitled to a paid weekly rest of at least 24 consecutive hours (Article 70).Q6: How is overtime pay calculated?

Overtime is work performed during daily or weekly rest periods, hours beyond the daily working time, or on public holidays and official days off (Article 71/Sixth). It is paid at the normal wage plus 50% for day work, and at no less than double the wage for night, hazardous, arduous or harmful work, with a substitute rest day for anyone who worked on their weekly rest day (Article 71/Fourth, and Article 70/Third). A worker may not be required to work more than 40 hours of overtime in any 90 days, or 120 hours a year (Article 71/Fifth).Q7: Can the employment contract be terminated during probation?

A contract may begin with a probation period of no more than 3 months if the worker does not hold a vocational certificate proving their skill, and a worker may not be placed on probation more than once with the same employer (Article 37/Second). During probation the employer may terminate the contract if the worker proves unsuitable, provided it gives at least 7 days' notice (Article 37/Third).Q8: Does an employment contract have to be in writing?

No. An employment contract may be oral or written. If written, it is drawn up in three copies and contains, at a minimum, the parties' details, the type and duration of the work, the wage and the working hours (Article 37/First). A fixed-term contract is concluded for a specific task for no more than one year, and becomes indefinite if renewed more than once (Article 38).Q9: How can I prove an employment relationship without a written contract?

Where there is no written contract, both parties bear the burden of proving the contract exists and of providing evidence of the rights and claims arising from it (Article 37/Fourth). The court determines whether an employment relationship exists by reference to the facts relating to the performance of work and the wages paid, regardless of how the parties described the relationship (Article 13). In practice, useful evidence includes salary transfer statements, payment receipts, attendance records, correspondence, testimony from colleagues, and social security records if the worker is registered. The law also requires the employer to keep a register of wages and overtime (Article 61) and to give the worker a written wage statement with each payment (Article 59).Q10: What is the difference between the termination-of-service committee and the labour court?

Both are routes for challenging a termination decision within 30 days of notification. The worker chooses one, and that choice forfeits the right to the other (Article 46/First). The termination-of-service committee is formed under instructions issued by the Minister of Labour, and its decision may be challenged before the labour court within 30 days of notification (Article 46/Second). The labour court is a court established in each governorate (Article 165) with jurisdiction over cases under the Labour Law and the workers' social security law; a worker bringing a claim is exempt from court costs (Article 166), and its judgments may be appealed in cassation within 30 days (Article 168). On both routes, the burden of proving that the termination was lawful lies with the employer (Article 46/Third).Q11: What must a foreign worker's contract contain?

In federal Iraq, a foreign worker is subject to Labour Law No. 37 of 2015, which covers the employment of foreign nationals (Article 2). The contract contains the minimum particulars of any employment contract, including the worker's nationality, the type and duration of the work, the wage and method of payment, and the working hours (Article 37/First). Work may not begin before the work permit is issued by the Ministry of Labour (Articles 30 and 31). If the employer brought the worker to Iraq at its own expense, it must pay for the return ticket to the country from which the worker was recruited (Article 32). The contract may not provide less than the rights set out in the Law, and any clause under which the worker waives them is void (Article 14).Q12: Can a foreign worker be employed without a work permit?

No. Employers are prohibited from employing any foreign worker who has not obtained a work permit from the Ministry of Labour (Article 30), and a foreign worker is prohibited from taking up any work before obtaining one (Article 31). The employer is charged a levy for each foreign worker entering Iraq (Workers' Retirement and Social Security Law, Article 106).Q13: Must workers be registered for social security?

Workers' social security is governed by the Workers' Retirement and Social Security Law No. 18 of 2023, which applies to workers in the private, mixed and cooperative sectors (Article 3). Covered employers must submit the details and wages of insured workers to the Workers' Retirement and Social Security Department (Article 22). 5% is deducted from the worker's wage, and the employer pays 12% as the general rule (Article 14).Q14: How much notice must I give if I want to resign?

The worker must give the employer at least 30 days' notice. If the worker leaves without notice or before the notice period ends, they must pay the employer compensation equal to the wage for the notice period or the remainder of it (Article 43/First/(h)). The worker's outstanding wages must be paid within 7 days of leaving work (Article 60).Q15: When may a worker leave without notice?

Where the employer breaches one of its obligations under the law, the internal regulations or the contract; commits a felony or misdemeanour against the worker or a member of the worker's family; or where there is a serious danger to the worker's safety that the employer knows of and has not removed. The worker may claim compensation from the termination-of-service committee or the court (Article 49).Q16: Can a worker be dismissed for absence?

Dismissal may be imposed if the worker is absent without legitimate excuse for 10 consecutive days or 30 non-consecutive days in a working year (Article 141/Seventh). If the employer has warned the worker in writing after 5 consecutive days or 20 non-consecutive days of absence, it may dismiss the worker after a further 5 consecutive days or 10 non-consecutive days of absence (Article 142).Q17: Can a worker be dismissed for filing a complaint or for being on sick leave?

No. The contract does not end because the worker filed a complaint or lawsuit against the employer, took statutory leave, was temporarily absent due to a documented illness or accident, is a trade union member, or on discriminatory grounds. Termination on any of these grounds is void, and the committee or court orders the worker's reinstatement with wages, or fair compensation if reinstatement is not possible (Article 48).Q18: May the employer delay wages or make deductions?

Wages are paid at the end of the week or month, and any delay may not exceed 5 days (Article 53/Third). Deductions are permitted only in cases established by law, and may not exceed 20% or 30% of the wage depending on its amount, except for court-ordered maintenance (Article 57).Q19: How long is sick leave?

30 days on full pay for each year of work, which may accumulate up to 180 days (Article 80), on a medical report from a body approved by the employer or an official medical body; sick leave counts as actual service (Article 81).Q20: How long is maternity leave under Iraqi labour law?

A female worker is entitled to pregnancy and maternity leave on full pay of at least 14 weeks. It may start up to 8 weeks before the expected date of birth on a medical certificate, and the period after birth may not be less than 6 weeks (Article 87).Q21: How long do I have to claim my employment rights?

Claims for rights arising from employment relationships will not be heard after 3 years from the date they fall due, and claims for compensation for harm resulting from a criminal act will not be heard after 5 years from the date the harm arose (Article 51).Q22: Does a worker have to pay court costs to file a labour claim?

No. A worker bringing a claim, or the worker's trade union, is exempt from court costs at all stages of litigation, and labour cases are treated as urgent (Article 166).
Related Articles
End-of-Service Entitlements in Iraq: A Practical Guide to Labour Law No. 37 of 2015
Terminating Employment Contracts in Iraq: Grounds, Notice, Compensation and Labour Courts
Hiring Foreign Workers in Iraq: Work Permits under Instructions No. 1 of 2026
Social Security Obligations for Employers in Iraq under Law No. 18 of 2023
Federal Iraq or Kurdistan Region? Which Labour and Social Security Rules Apply
This page is general legal information, not legal advice on any particular matter. The authoritative source is the official text published in the Official Gazette (Al-Waqa'i' Al-Iraqiya).
Related Pages Kurdistan Region · Company Registration · Baghdad · Outside Baghdad

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Al-Taswia Legal Services Company

Address: Al-Arba'a Shawari' (Four Streets), Al-Yarmouk, Baghdad, Iraq, next to Soya Restaurant

Phone: +964 771 100 2200

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Al-Taswia Legal Services CompanyAl-Arba'a Shawari' (Four Streets), Al-Yarmouk, Baghdad, Iraq, next to Soya RestaurantOpen in Google Maps

## Article numbers

- Article 2
- Article 3
- Article 14
- Article 37/First
- Article 37/Second and Third
- Article 38
- Article 39
- Article 12
- Article 50
- Article 53
- Article 63
- Article 62
- Article 65
- Article 56
- Article 57
- Article 59
- Article 61
- Article 67
- Article 69
- Article 70
- Article 71/Sixth
- Article 71/Fourth
- Article 71/Fifth
- Articles 73 and 83
- Article 75
- Article 79
- Article 80
- Article 81
- Article 82
- Article 87
- Article 85
- Article 91
- Article 43/First
- Article 43/Second
- Article 44
- Article 43/Third
- Article 48
- Article 49
- Article 141
- Article 45
- Article 47
- Article 48/Second
- Article 76/Fourth
- Article 43/First/(a)
- Article 60
- Article 58
- Article 51
- Article 46
- Article 165
- Article 166
- Article 168
- Article 30
- Article 31
- Article 32
- Article 34
- Article 106
- Article 4
- Article 22
- Article 7
- Article 8
- Article 10
- Article 11
- Article 95
- Article 68
- Article 70/Third
- Article 37/Second
- Article 37/Third
- Article 37/Fourth
- Article 13
- Article 46/First
- Article 46/Second
- Article 46/Third
- Articles 30 and 31
- Article 43/First/(h)
- Article 141/Seventh
- Article 142
- Article 53/Third

## 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