In Iraq, the Labor Law of 2015 mandates notice periods for both employers and employees during termination of employment contracts.

Employee Notice Period

Employees intending to resign must provide a written notice to their employer. The mandatory notice period for resigning employees is thirty (30) days, also referred to as one month's notice.

Employer Notice Period

Similarly, employers are obligated to provide a written notice to the employee before termination. In most cases, employers must give a written notification of termination to the employee at least thirty (30) days prior to the effective date of termination, adhering to the same one-month notice period required of employees.

However, there are exceptions to the 30-day notice period for employers:

• During the probationary period, a shorter notice period of seven (7) days may be sufficient for termination by either party.
• If the termination is due to serious employee misconduct, a shorter notice period or termination without notice may be justified under the Labor Law, following specific procedures.

Consequences for Not Adhering to Notice Periods

If the required notice period is not provided by either party, the other party is entitled to compensation. This compensation is typically equivalent to the wages that would have been due during the unserved notice period.

Employment contracts may stipulate different notice periods, as long as they are no less favorable to the employee than the minimums outlined in the Labor Law.

In Iraq, the Labor Law of 2015 provides the guidelines for severance pay, also known as end-of-service gratuity, which is a mandatory payment for most employees in certain termination scenarios.

Eligibility for Severance Pay

Generally, employees in Iraq are entitled to severance pay under the following conditions:

• Employer-Initiated Termination: If the employer terminates the employment without a valid reason under the Labor Law, the employee is entitled to severance pay.
• Retirement: An employee who reaches retirement age is entitled to severance pay.
• Death of Employee: If an employee dies and has completed a minimum of one year of service, severance pay is payable to the employee's heirs.

Circumstances Where Severance Pay Is Not Due

The Labor Law also outlines situations where employees are not entitled to severance pay:

• Resignation: Generally, employees who resign voluntarily do not receive severance pay.
• Serious Misconduct: If an employee is terminated due to serious misconduct, they may lose their rights to severance pay.
• Sentence to Imprisonment: Employees sentenced to imprisonment for more than one year may lose their severance entitlements.

Calculation of Severance Pay

The Labor Law stipulates that severance pay is calculated as follows:

• Standard Severance: Employees are entitled to two weeks' wages for each year of service.
• Exemption: Employees in management roles may be exempted from severance pay entitlements.

Important Considerations

• Individual employment contracts can offer more favorable severance pay terms but cannot provide less than the legal minimum.
• Consulting with a qualified Iraqi labor lawyer is always advisable for specific scenarios and to ensure proper calculation and entitlement.

The termination of employee contracts in Iraq is governed by the Labor Law of 2015. The general procedure includes several steps.

General Termination Process

1. Written Notice: Both employers and employees must provide written notice of termination. Exceptions exist for probationary periods and cases of serious misconduct, which may have shorter notice periods.

2. Valid Reasons for Termination (Employer-Initiated): If the employer initiates the termination, the Labor Law lists acceptable reasons, such as company liquidation, downsizing, or prolonged employee illness.

3. Approval from Administrative Authority (Optional): In some employer-initiated termination cases, approval from the General Directorate of Labor may be required. However, this requirement is often applied inconsistently.

4. Dispute Resolution: The terminated employee can challenge the termination by filing a complaint with the Labour Court for reinstatement or compensation.

Additional Points

• Employment Contracts: Contracts can stipulate additional terms governing termination, as long as these terms don't violate the Labor Law's minimum protections for employees.
• Documentation: Maintaining thorough documentation of all termination-related actions, including notices and reasonings, is crucial for both employers and employees.

Importance of Legal Compliance

Navigating the termination process in Iraq requires knowledge of the Labor Law and potential variances caused by individual company practices. Consulting an Iraqi labor lawyer is highly recommended, especially for employers, to ensure compliance and minimize the risk of labor disputes.