What are the laws of employment in Iraq?

Anyone hiring workers in Iraq, whether foreign or domestic, should consult local counsel for a full understanding of the relevant employment laws. All workers should be properly documented. In addition, the scope of the entity and any potential work should be considered before hiring, due to the difficult nature of terminating employment contracts.

Is the definition of a worker the same in Iraq?

The legal definition of a ‘worker’ encompasses both local and foreign workers and the law requires employers to treat workers equally. To this extent, most rules concerning employment relationships – including with regard to sick and annual leave, working hours and termination – are the same for both foreign and Iraqi workers.

How long does it take to hire an expatriate in Iraq?

This Law distinguishes between the Iraqi workers, expatriate workers with Arabic nationalities and the non-Arab expatriate workers. According to the Law, an employer is obliged to inform the labour office of the employment of Iraqi workers within a period not exceeding 10 days from the date of employment.

How are employment contracts in Iraq and Kurdistan?

In both Iraq and Kurdistan any changes to an existing employment contract must generally be made via a mutual agreement between workers and employers. Employers cannot unilaterally amend employment contracts. Is a distinction drawn between local and foreign workers?

What is the law on employment in Iraq?

Public sector employees are regulated by the Law on Civil Servants (24/1960) and the Law on the Disciplining of State and Public-Sector Employees (12/1991). This Q&A discusses the Labour Law as applicable in Federal Iraq, with the exclusion of the Kurdistan Region of Iraq at the time of writing (September 2019).

What happens if an employer dies in Iraq?

The death of the employer if his personality was taken into account in the employment contract, and the same cannot be completed with the employer’s heirs. If the project been liquidated pursuant to a final judicial ruling or voluntary liquidation subject to the approval of the Minister of Labour.

When did the new labour law come into force in Iraq?

The Iraqi Parliament has issued the new Iraqi Labour Law No, 37 of 2015 (“New Labour Law”), which entered into force on 7 February 2016. This law shall replace the old labour law No. 71 of 1987.

What are the tax rates for income in Iraq?

The following tax rates (after granting the resident the legal allowances) are applicable to individual’s income in Iraq: 1 3% up to ID 250,000 2 5% on amounts over ID 250,000 and up to ID 500,000 3 10% on amounts over ID 500,000 and up to ID 1,000,000 4 15% on amounts over ID 1,000,000