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May 12, 2025

Jordan Labour Law for Corporate Employers: Contracts, Terminations, Restructuring and Social Security

Executive Summary / Key Takeaway

To avoid wrongful termination liabilities under Jordanian Labour Law, employers must follow rigorous statutory procedures: indefinite-term contracts require written notice for valid statutory cause, summary dismissal requires Article 28 compliance, and corporate restructuring requires prior Ministry of Labour approval.

1. Employment Contracts: Fixed vs Indefinite Terms

Under Jordanian Labour Law No. 8 of 1996 (as amended), employment contracts may be executed for a fixed duration or an indefinite term. Fixed-term contracts automatically terminate upon the expiration of their term, while early termination without statutory cause renders the terminating party liable for the remainder of wages due through the term.

2. Collective Redundancies & Economic Restructuring (Article 31)

Employers facing economic, operational, or technical hardship cannot unilaterally terminate employees en masse. Instead, they must submit a formal petition to the Ministry of Labour under Article 31, supported by audited financial statements and organizational restructuring plans.

Legal Notice & Informational Disclaimer

This content is provided for general informational purposes only and does not constitute formal legal advice. For specific mandates, consult our attorneys directly.

LM

Layla Mansour

Partner | Head of Technology, IP & Employment

Layla is a partner specializing in technology transactions, data privacy under Jordan's PDPL, intellectual property strategy, and corporate employment structuring, counseling leading tech hubs and multinational brands.

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