Table of Contents

Jordan

Table of Contents

Currency

Jordanian Dinar (JOD)

Payroll Frequency

Monthly

Employer Taxes

14.25%

About Jordan

Jordan is an Arab country, on the East Bank of the Jordan River, bordered by Israel and Palestine to its west and Iraq to its east. After the breakup of the Ottoman Empire around WWI, Jordan was established as a monarchy ruled by the Hashemites. Although viewed as a relatively stable country in a region that is beset by continual political and religious strife, Jordan still has its share of troubles, namely in the form of an influx of refugees from neighboring lands such as Palestine and Syria, fleeing persecution and scarce resources. Jordan has a relatively small economy and is heavily dependent on imported energy particularly natural gas, which makes about 25 to 30 % of the nation’s imports. Trade and finance account for nearly one-third of its economy. Tourism is also considered to be a major source of revenue and employment for the country. With a population of 10.2 million, Jordan’s major ethnic groups include Jordanian, Syrian, Palestinian, Egyptian, and Iraqi. Although Arabic is the official language, English is widely used amongst the middle and upper class. Jordanians are primarily Muslim.

Employment Relationship

• Permanent Employment

In Jordan, employment contracts that are not made for a specific period are considered to be made for an indefinite duration. Additionally, a worker who is regularly employed for piece-work in the workplace or who carries out a series of tasks through piece-work will be considered employed for an indefinite duration. An employment contract remains in force notwithstanding a change of employer. This is the case regardless of whether such a change is due to the undertaking's sale, its transfer by inheritance, a merger, or another reason. For a period of six months, the original employer and the new employer shall be jointly liable in the discharge of any obligations arising out of the employment contract and maturing before the date of the change. After the period's expiry, the new employer has sole liability.

• Fixed-Term or Specific-Purpose Contracts

If a worker in Jordan is employed for a specified period, they are considered to be in service to the employer throughout that period, and the contract is considered automatically terminated at the period's end. If both parties continue implementing the agreement after that period's expiry, the contract shall be considered to have been renewed as an indefinite term contract and shall be deemed as such from its commencement.  

• Temporary Employment Contratcs

Jordan's labor law defines temporary work as "work that requires, in view of its nature, a limited period of time to be completed." However, Jordan's law offers no further guidance on temporary employment contracts.

Probationary Period

In Jordan, an employer may employ any worker on a probationary basis to verify their competence and capacities for the assigned work. The probationary period cannot exceed three months. Both parties must agree to it in writing. Both parties also have the right to terminate the employment contract within the probationary period without notice or any liability towards the other party.  If a worker continues work after the end of the probationary period, their employment contract shall be considered of indefinite duration, and the probationary period shall be considered as part of the service period of the worker's engagement with the employer. The employer cannot extend the probationary period or terminate the contract during this period to re-employ the employee for another probationary period.

Working Hours

Jordan's labor law stipulates that normal working hours must not exceed eight hours a day and shall not exceed in any week 48 hours over a maximum of six days, excluding meal breaks and rest periods. The rules regarding working hours do not apply to persons occupying supervisory or managerial positions in any establishment. Also, hotel, restaurant, and cinema workers are limited to 54 hours per week. Weekly rest days shall be fully paid unless a worker is employed on a daily or weekly basis. In these cases, they shall be entitled to receive full remuneration for the weekly rest day if they worked for six consecutive days before the specified rest day, and partial remuneration proportionate to the number of days worked if they worked for three or more days. Most private businesses observe Friday as the weekend holiday, while banks and government offices close on Fridays and Saturdays.

Holidays / PTO

• Statutory Holidays

New Year’s Day, March equinox, Good Friday, Easter Day, Orthodox Easter Day, Easter Monday, Al Isra’ wal Miraj, Labor Day, Independence Day, Ramadan beginning, June Solstice, Eid-al-Fitr, Eid-al-Adha, September equinox, Muharram/New Year, Prophet’s Birthday, December Solstice, Christmas Day.

• Paid Annual Leave

Jordan's labor law stipulates that, for every year of employment, workers shall be entitled to annual leave with full pay for a period of at least 14 days. Annual leave must be extended to 21 days where the worker has been with the same employer for five consecutive years. Official and religious holidays, as well as weekly rest days, are not counted as part of a worker's annual leave unless they occur during the leave. If the worker's length of service is less than one year, they are entitled to paid leave, calculated proportionately to their employment duration in that year. Upon agreement between a worker and employer, a worker's leave for any year may be carried over to the following year. After considering work requirements and workers' interests, an employer may, during the first month of the year, set workers' annual leave dates and the manner in which leave shall be taken.

• Sick Leave

In Jordan, every employee is entitled to 14 days' annual sick leave with full pay, provided they present a report from an approved medical practitioner. This leave may be renewed for a further 14 days with full pay if the employee is hospitalized. Also, the sick leave may be renewed for another 14 days after the initial 14 day period even if the employee is not hospitalized, as long as an approved medical committee provides a report. In this case, however, the employee is only entitled to 50% of their normal pay. The employer is liable to pay the employee while the latter is out on sick leave.

• Maternity Leave

Jordan's labor law grants women 10 weeks of paid maternity leave, including rest before and after delivery. Leave after delivery must be no less than 6 weeks long, and employment before the expiry of such a period shall be prohibited. Jordan's social insurance fund provides cash maternity benefits to private-sector employees funded by employer contributions of 0.75% of gross monthly payroll. Women must have at least 6 months of insurance coverage during the 12 months before childbirth to qualify for maternity benefits from the social insurance fund. The maternity benefits pay 100% of the insured's last monthly covered earnings for up to 10 weeks. After the maternity leave period's expiry and within 1 year of delivery, every mother has the right to take time off with pay to nurse her newborn baby, provided that total time off does not exceed 1 hour a day.

• Paternity Leave

In 2019, Jordan's labor law was amended and paternity leave was introduced for fathers. Fathers are entitled to three days of paid leave after the birth of a child.

Termination of Employment

• Notice Period

A notice period of 1 month or compensation in lieu of is required to terminate an indefinite-term employment contract. An employer has the right to terminate the employment of an employee on probation without notice or compensation during  probationary period. No notice is needed to terminate a contract for gross misconduct or violation of contract. 

• Severance Benefits

Employees working under contracts of indefinite duration and not subject to the Social Security Law provisions are entitled to a severance payment if their employment is terminated for any reason. The severance payment is equal to a month's wage for each year of actual service. For part years of service, employees are entitled to proportional remuneration. Employees dismissed during probation are not entitled to severance payment.