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Jordan

Termination and Severance Policies

Learn about the legal processes for employee termination and severance in Jordan

Notice period

In Jersey, the Employment (Jersey) Law 2003 outlines the legal requirements for notice periods during employment termination.

Minimum Notice Periods

The law mandates a minimum notice period an employer must provide an employee upon termination, based on the employee's length of service.

  • Less than 2 years of service: Minimum notice of one week.
  • Two (2) years or more but less than 3 years: Minimum notice of two weeks.
  • For each additional year of service (up to a maximum of 12 years): An additional week's notice must be added.

It's important to note that these are minimum legal requirements. An employment contract can supersede these minimums by specifying a longer notice period.

Minimum Notice Periods for Employees

Employees are also required to provide a minimum notice period when they resign, though the timeframe is generally shorter than for employers.

  • Less than 26 weeks of service: Minimum notice of one week.
  • 26 weeks or more but less than five years: Minimum notice of two weeks.
  • Five years or more of service: Minimum notice of four weeks.

Notice Requirements

The Employment (Jersey) Law 2003 requires the notice to be provided in writing unless delivered in the presence of a credible witness. The notice should specify the effective date of termination, which must fall within 14 to 60 days of the notice date.

Exceptions to Notice Periods

There's no legal mention in the Jersey Employment Law regarding exceptions to the employer's notice period requirement based on employee misconduct. However, dismissal without notice may be possible in exceptional circumstances involving serious employee misconduct, but the employer would still need to demonstrate a strong legal justification to avoid a potential wrongful termination claim.

Severance pay

In Jordan, severance pay is known as "end-of-service compensation" and is governed by the Jordanian Labour Law (Law No. 8 of 1996).

Eligibility

Employees who are not covered by the Social Security system are entitled to severance pay. However, those who are covered by the Social Security system are generally not entitled to severance pay as their retirement needs are covered by the system.

Calculation

Severance pay is calculated as one month's salary for every year of service. The final salary, which is used as the basis for the severance calculation, includes the base salary and any regular allowances.

Circumstances Where Severance May Apply

Severance may apply in the following situations:

  • Termination by the employer, except in cases of gross misconduct, where the employer is obligated to pay severance.
  • Resignation under specific circumstances, such as substantial changes in the employment contract terms by the employer, or the employee's health deteriorating as a direct result of the work.
  • Completion of a fixed-term contract, unless there is an agreement to renew.

Exceptions to Severance

Severance might not be applicable in the following situations:

  • Employee termination due to gross misconduct.
  • Employee resignation without a valid reason.
  • Workers employed for a specific piece of work or for a specific duration.

The regulations regarding severance pay are detailed in Articles 23, 28, 29 and 31 of the Jordanian Labour Law (Law No. 8 of 1996). The International Labour Organization (ILO) National Labour Law Profile for Jordan also provides information on this topic.

Termination process

The Jordanian Labour Law (Law No. 8 of 1996) governs the termination of employment contracts. There are two primary types of termination: Ordinary Termination (With Notice) and Extraordinary Termination (Without Notice).

Ordinary Termination (With Notice)

In an ordinary termination, both the employer and the employee must provide at least one month's written notice before the desired termination date. The employer can either allow the employee to work during the notice period or release them while still paying their full salary for the period. However, during the final seven days of the notice period, the employee must be allowed to work.

Extraordinary Termination (Without Notice)

The Jordanian Labor Law allows for termination without notice under specific circumstances. Serious misconduct by the employee, such as those outlined in the Law, may result in immediate dismissal without notice. Employees may terminate the contract without notice under specific situations, such as significant changes to the employment agreement by the employer or work-related health conditions. However, they may still be liable to compensate the employer if the termination is not within the reasons outlined by the law.

Additional Important Notes

Fixed-Term Contracts expire automatically at the end of the term. If renewed, they become indefinite contracts. Employers may terminate an employee during the Probationary Periods without notice or compensation. Employers and employees can always mutually agree to terminate the contract at any time.

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