Learn about the legal processes for employee termination and severance in Iran
In Iran, the Labour Law of the Islamic Republic of Iran stipulates specific notice period requirements for employees during voluntary resignation, while employers have more flexibility depending on the situation.
According to the Labour Law, employees are required to provide a written notice to their employer if they intend to resign. The mandatory notice period for resigning employees is one month. During this period, the employee must continue working after submitting the written resignation notice.
It's important to note that there's no legal requirement for employers to provide a notice period in cases of employee termination. However, the Labour Law does outline situations where specific payments may be applicable.
There might be exceptions to the one-month notice period for employee resignation stipulated in individual employment contracts. However, these contractual terms cannot reduce the employee's notice period below the legal minimum.
Adhering to the legal notice period requirements ensures a smooth handover of duties and minimizes disruption for both the employer and the employee. It also allows for proper fulfillment of contractual obligations.
Iranian labor law provides severance pay to employees under certain circumstances upon termination of employment. The Labour Law of the Islamic Republic of Iran is the primary legal source governing this.
Employees in Iran are entitled to severance pay under the following conditions:
The amount of severance pay an employee receives is determined by their length of service and their last salary.
Individual employment contracts may specify different severance pay terms, provided they are more favorable to the employee than the minimums mandated by law.
Terminating an employee in Iran involves following specific procedures outlined by the Labour Law of the Islamic Republic of Iran. This law emphasizes employee protection and requires approval from a designated authority for termination in many cases.
Justification for Termination (if applicable): If the employer initiates the termination, a valid reason must be documented according to the Labour Law. Common justifications include redundancy, employee misconduct, or completion of a fixed-term contract.
Approval from Islamic Labor Council or Labor Discretionary Board: In most cases of employer-initiated termination, approval from the Islamic Labor Council or the Labor Discretionary Board is mandatory. These government bodies assess the legitimacy of the termination reasons.
Dispute Resolution: If the employee disputes the termination, they can file a complaint with the Labor Court.
Final Settlement: Once the termination process is complete, all outstanding wages and benefits must be settled with the employee.
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