Employer of Record in Jordan

An Employer of Record (EOR) in Jordan is a company that legally hires employees on your behalf. This allows you to build a team in Jordan without the need to set up a local legal entity. The EOR handles all the legal and HR tasks that come with employment. Think of them as your local HR partner, managing everything from contracts and payroll to taxes and benefits. You maintain control over your employee's day to day work, while the EOR ensures everything is compliant with Jordanian law. For companies looking to hire in Jordan, an EOR provider like Rivermate can simplify the process.

How an Employer of Record (EOR) Works in Jordan

Using an EOR to hire in Jordan is a straightforward process. It saves you the time and expense of establishing a local company.

Here is how it typically works:

• You Find the Talent: You identify the candidate you want to hire in Jordan.
• The EOR Hires Them: The EOR legally hires the employee through their own local Jordanian entity.
• Compliant Contracts: The EOR drafts an employment contract that complies with Jordan's Labor Law.
• Onboarding: The EOR manages the onboarding process for your new team member.
• HR and Payroll Management: The EOR handles all payroll, taxes, benefits, and social security contributions.
• You Manage Your Team: Your employee works for your company, and you manage their daily tasks and responsibilities.

Why use an Employer of Record in Jordan

Using an EOR in Jordan simplifies your expansion into a new market. It allows you to focus on your business goals instead of getting caught up in local employment regulations. An EOR gives you a fast and low risk way to hire talent without the major investment of setting up a foreign entity.

Here are some key benefits:

• Speed: You can hire employees and start operating in Jordan much faster than if you were to establish your own legal entity.
• Compliance: An EOR has expert knowledge of Jordanian labor laws, which helps you avoid legal and financial penalties.
• Cost Savings: You avoid the significant costs associated with setting up and maintaining a local company.
• Risk Reduction: The EOR assumes the legal responsibility for employment, reducing your liability.
• Simplified HR: An EOR manages all the administrative HR tasks, including payroll and benefits administration.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Jordan includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Jordan.

Hiring in Jordan offers a unique opportunity to tap into a skilled and well-educated workforce. The country's strategic location in the Middle East makes it an attractive hub for businesses looking to expand in the region. While there are challenges like high unemployment rates, particularly among youth, sectors like technology, healthcare, and renewable energy are growing fast. To hire compliantly, you need to understand the local labor laws.

Employment contracts & must-have clauses

While verbal agreements can be valid, you should always use a written employment contract in Jordan. This protects both you and your employee by creating clarity. Contracts must be in Arabic to be enforceable in court, but you can provide a bilingual version for understanding.

There are two main types of employment contracts:

• Fixed-term: These contracts have a specific start and end date. If an employee continues working after the end date without a formal renewal, the contract may automatically become an indefinite-term contract.
• Indefinite-term: These contracts have no specified end date and continue until one party terminates them according to the law.

Your employment contracts in Jordan should include these key details:

Probation periods

You can include a probation period in your employment contract to assess a new employee's suitability for the role. Here are the key points to remember:

• The maximum length of a probation period is three months.
• The probation period must be agreed upon in writing within the employment contract.
• During this time, either you or the employee can terminate the contract without notice.
• You cannot extend a probation period or re-hire the same employee for another one.
• If the employee continues to work for you after the probation period ends, the time they served during probation counts towards their total service period.

Working hours & overtime

The standard workweek in Jordan is 48 hours, spread over a maximum of six days. This usually means an eight-hour workday.

• Standard Hours: Not to exceed 8 hours per day or 48 hours per week.
• Overtime: Any work done beyond these standard hours is considered overtime.
• Overtime Pay: For extra hours worked on a regular workday, you must pay the employee 125% of their normal wage. For work on their weekly rest day or a public holiday, the rate is 150% of their normal wage.

These regulations on working hours generally do not apply to employees in managerial or supervisory roles.

Public & regional holidays

Your employees in Jordan are entitled to paid leave on public holidays. The main holidays include:

• New Year's Day
• Labour Day
• Independence Day
• Eid al-Fitr
• Eid al-Adha
• Islamic New Year
• The Prophet's Birthday
• Christmas Day

Islamic holidays are determined by the lunar calendar, so their dates on the Gregorian calendar change each year. It's also common for the government to move the observance of a holiday to a different day to create a longer weekend.

Hiring contractors in Jordan

Hiring independent contractors can give you flexibility and access to specialized skills without the long-term commitment of employment. Contractors manage their own taxes and are not entitled to employee benefits like paid leave or social security contributions from you.

However, it's crucial to classify workers correctly. In Jordan, the nature of the working relationship, not just the contract title, determines whether someone is an employee or a contractor. If a worker is misclassified as a contractor when they are legally an employee, you could face fines and penalties.

An Employer of Record (EOR) can help you mitigate this risk. An EOR can legally hire employees on your behalf, ensuring compliance with all local labor laws, including proper classification. This allows you to work with talent in Jordan without needing to set up a local entity and navigate complex employment regulations yourself.

Paying your team in Jordan involves understanding the local regulations. You need to get the details right to stay compliant. This means knowing the rules for payroll, taxes, and contributions. It’s all about paying your people correctly and on time, every time.

Payroll cycles & wage structure

In Jordan, you typically pay employees on a monthly basis. It's standard practice to transfer salaries directly to your employees' bank accounts.

When you hire, you should provide a written employment contract in Arabic. This contract needs to clearly state the employee's compensation in Jordanian Dinar.

Overtime & minimums

The standard work week in Jordan is 48 hours over six days. If your employees work beyond these hours, you must pay them overtime.

• Regular overtime: 125% of their normal wage.
• Weekly day off or public holidays: 150% of their regular pay.

As of January 1, 2021, the minimum wage in Jordan is 260 Jordanian Dinars (JOD) per month.

Employer taxes and contributions

As an employer in Jordan, you have several financial responsibilities for each employee. You are required to contribute to social security. These contributions cover things like unemployment, disability, and retirement benefits.

Employee taxes and deductions

Employees in Jordan also contribute to social security from their salaries. You, as the employer, must withhold these amounts from their paychecks. Personal income tax is also deducted based on a progressive system.

In Jordan, your employee benefits package is a mix of required leave and social security, plus other perks you can offer to stand out. The country's labor laws set the minimums for time off and other entitlements. Many companies choose to offer more than the basics to attract and keep the best people.

Statutory leave

Jordan's labor law outlines several types of required paid leave.

• Annual leave You get 14 days of paid annual leave. This increases to 21 days after you have been with the same employer for five straight years. If you have been with a company for less than a year, your leave is calculated based on the time you have worked.
• Sick leave You are entitled to 14 days of paid sick leave per year at full pay, as long as you have a doctor's note. This can be extended for another 14 days at half pay.
• Maternity leave Female employees get 10 weeks of fully paid maternity leave. At least six of these weeks must be taken after the baby is born.
• Paternity leave New fathers receive three days of paid leave that must be taken right after the child's birth.
• Bereavement Leave In the event of the death of a close relative, you are typically entitled to three days of paid leave.

Public holidays & regional holidays

Jordan observes a number of public holidays each year. These are paid days off.

Note: Islamic holiday dates are based on the lunar calendar and may vary.

Typical supplemental benefits

Many employers in Jordan offer benefits beyond what the law requires.

How an EOR can help with setting up benefits

Setting up employee benefits in a new country can be tricky. An Employer of Record (EOR) makes it simple.

An EOR helps you:

• Stay compliant We make sure your benefits package follows all of Jordan's labor laws.
• Save time We handle the details of benefits administration so you can focus on your business.
• Attract top talent We can help you create a competitive benefits package that attracts the best candidates in the Jordanian market.
• Simplify everything An EOR puts your payroll, benefits, and HR in one place, making it easy to manage your team.

Ending employment in Jordan requires careful attention to legal procedures. The process involves specific rules for both employers and employees to follow. This ensures fairness and transparency for everyone involved. Clear communication and proper documentation are essential to avoid future disputes.

Notice periods

In Jordan, both employers and employees must give at least one month of written notice to end an open-ended employment contract. This applies to both dismissals and resignations. During a probationary period, which can be up to three months, either party can end the contract without notice.

Fixed-term contracts have different rules. These contracts typically end on the agreed-upon date. If you terminate a fixed-term contract early without a valid reason, you may have to pay compensation.

Severance pay

Severance pay is required for employees who are not part of the national Social Security system. For employees with indefinite contracts, severance is often calculated as one month's salary for each year of service, with a proportional amount for any fraction of a year. No severance is due if an employee is terminated during their probationary period.

An employer can terminate a contract without notice or severance pay in cases of serious misconduct. These reasons include:

• Assuming a false identity or providing fake documents.
• Failing to meet the obligations of the employment contract.
• Violating the company's internal rules after receiving two written warnings.
• Being absent without a valid reason for more than ten consecutive days or twenty intermittent days in a year, after a written warning has been sent.
• Disclosing confidential company information.
• Being convicted of a crime or misdemeanor related to honor or morality.

How Rivermate handles compliant exits

When you partner with an Employer of Record like Rivermate, we manage the entire offboarding process for you. We make sure that every termination complies with Jordanian labor law. Our team handles the necessary paperwork, calculates final pay, and ensures you meet all legal requirements. This reduces your risk and helps you manage employee exits smoothly and professionally. We focus on clear communication to ensure a respectful process for your departing team members.

Getting the right visas and work permits in Jordan is straightforward when you know the process. You need a local employer to sponsor you. This means you must have a job offer before you can apply for any work-related permits. The work visa lets you enter the country, and the work permit allows you to legally work once you are there.

Employment visas & sponsorship realities

An Employer of Record (EOR) can sponsor work permits for many professional roles. However, Jordan restricts foreign workers from certain jobs to protect the local workforce. An EOR cannot sponsor candidates for these positions.

Restricted Professions

Jordan's Ministry of Labour reserves several job categories for Jordanian nationals. This list can change, so it is always best to check the latest regulations. Some of the restricted areas include:

• Administrative and Clerical Jobs: Roles like typists, secretaries, and data entry clerks are generally for locals.
• Retail and Sales: Most sales positions, both wholesale and retail, are reserved for Jordanians.
• Trades and Crafts: This includes professions like carpentry, metalworking, and furniture repair.
• Food Production: Small-scale food businesses that sell directly to the public, like bakeries and ice cream shops, have restrictions.
• Service Industries: Jobs in laundry services, dry cleaning, and water bottling for direct sale are typically for locals.

For roles that are open to foreign nationals, your employer must prove that they could not find a qualified Jordanian candidate for the position.

Business travel compliance

For short-term business trips, you will likely need a business visa. This visa allows you to attend meetings, conferences, and negotiate contracts. You cannot perform paid work on a business visa.

Business Visa Requirements

When you apply for a business visa, you typically need to provide several documents to the Jordanian embassy or consulate in your country. These often include:

• A valid passport with at least six months of validity.
• A completed visa application form.
• A letter of invitation from the company you are visiting in Jordan.
• A cover letter from your own company explaining the purpose of your trip.
• Proof of accommodation, like a hotel reservation.
• A round-trip flight ticket.

Citizens of some countries, including the United States, can get a visa on arrival at Queen Alia International Airport. However, it is always a good idea to check the most current rules before you travel. If you plan to stay for more than a month, you must register with the local police.