Employment Contracts in Jordan

A Comprehensive Guide to Employment Contracts in Jordan
Employment contracts in Jordan must adhere to the country’s labor laws. Whether hiring directly or using an Employer of Record in Jordan, it’s crucial to ensure that contracts are legally compliant. Here’s a straightforward guide to help you understand employment contracts in Jordan.

1. When Does the Employment Contract Start?
The employment contract in Jordan begins as soon as both the employer and employee sign it. The contract should clearly specify the start date and the terms of employment.
💡 Pro Tip: Ensure the contract is signed prior to the employee's start date to avoid any legal complications.

2. Key Components of a Jordan Employment Contract
An employment contract in Jordan should include the following key elements:
Job Title and Responsibilities: Clearly define the role, duties, and responsibilities of the employee to avoid any misunderstandings.
Contract Type: In Jordan, contracts can be fixed-term or indefinite-term. Specify the type of contract and its duration.
Compensation and Benefits:
Salary: The salary should be stated in Jordanian Dinars (JOD).
Allowances: Employers may provide additional allowances, such as housing, transportation, or meals.
Health Insurance: Employers are typically required to provide health insurance to employees, particularly in the case of expatriates.
Working Hours: The maximum standard working hours in Jordan are 48 hours per week, usually 8 hours per day, 6 days a week.
Leave Policies:
Annual Leave: Employees are entitled to at least 14 days of paid annual leave after one year of service.
Sick Leave: Sick leave is generally provided, with employees receiving full pay for up to 14 days.
Maternity Leave: Female employees are entitled to 10 weeks of maternity leave, with the first 4 weeks being paid at full salary.
Termination Terms: The notice period for terminating an employment contract is typically 1-3 months, depending on the contract length and employee seniority.
💡 Why This Matters: A well-drafted contract ensures clarity and reduces the risk of disputes in the future.

3. Salary Structure in Jordan
The salary structure in Jordan typically includes:
Base Salary: The main income paid to the employee, typically on a monthly basis.
Allowances: Additional allowances such as housing, transportation, or meal stipends may be offered.
Bonuses: Bonuses based on performance or company results are often included.
💡 Key Takeaway: A structured salary package helps ensure transparency and compliance, while also supporting employee retention.

4. Legal Considerations: Protecting Your Business
a. Non-Compete and Confidentiality Clauses
Non-compete clauses are enforceable in Jordan, but they must be reasonable in terms of scope and duration. Confidentiality clauses are commonly included to protect sensitive business information.
b. Statutory Contributions
Employers in Jordan must make mandatory contributions to the following:
Social Security: Both the employer and employee contribute to the national social security system, which includes pension, healthcare, and unemployment insurance.
End of Service Benefits: Jordanian labor law mandates that employees receive an end-of-service benefit upon termination, calculated based on the length of service.
💡 Tip: Ensure you meet all statutory obligations to avoid penalties or legal issues.

5. Background Checks and Employee Protections
Employers in Jordan may conduct background checks on prospective employees, but they must comply with privacy laws. Written consent is required before conducting checks, including criminal background checks and verification of employment history.

6. The Importance of Written Contracts
In Jordan, written contracts are crucial for legal protection. They ensure both parties understand their rights and obligations, protecting against potential disputes and misunderstandings.

7. Why Partner with GlobainePEO?
Partnering with GlobainePEO simplifies the process of hiring and managing employees in Jordan:
We ensure that employment contracts comply with local labor laws.
We handle statutory contributions and benefits management.
You can focus on growing your business while we manage the legal and administrative aspects.

💡 GlobainePEO Advantage: As your trusted Employer of Record in Jordan, we take care of everything from drafting compliant contracts to overseeing payroll and benefits management.

Drafting compliant employment contracts is the foundation of successful business expansion into Jordan. Partnering with a Jordan EOR, like GlobainePEO, allows you to focus on your core operations while ensuring legal and administrative requirements are met efficiently.