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Written Agreements

Iraq's Labor Law does not mandate the conclusion of employment contracts in writing. The contract is to be made by the mutual agreement between the employer and the employee. If the contract is made in writing, 3 copies are to be produced and signed: 1 for the employer, 1 for the employee, and the third copy is to be deposited with the Department of Employment and Loans. The written contract must include the following information:

• Name and address of the employer
• Name, birth date, profession, qualifications, residence, and nationality of the employer
• Nature, duration, type, and start date of the work
• Salary and the method, date, and place of payment
• Working hours and their division method
• Probationary period, if any.

Oral Agreements

Iraq's Labor Law recognizes and accepts employment contracts that are made orally. In such cases, the responsibility of proving the existence of the contract lies both with the employer and the employee.

Implied Agreements

Iraq's Labor Law does not recognize implied employment contracts. An employment contract must be made orally or in writing, by virtue of the mutual agreement of its two parties, i.e. the employer and the worker. In the absence of a written employment contract, they bear the burden of proving the existence of the contract and must submit the information regarding any right and claim by virtue of the contract.

Iraq's Labor Law defines working hours as the time during which the employee is at the disposal of the employer engaging them, excluding meal periods. The law stipulates that normal working hours cannot exceed 8 daily or 48 weekly, subject to some exceptions. For work performed over 2 shifts and intermittent work, the employee must not be present at the workplace for more than 10 hours, provided the number of actual working hours does not exceed eight per day. Working hours may not exceed 7 hours per shift for night work or 7.5 hours for mixed-schedule work. Working hours for employees under 16 cannot exceed 7 hours per day.

In exceptional cases, employees and employer associations may agree to increase the daily working hours for a specified period, provided the average number of weekly working hours does not exceed 48 hours.

The number of working hours per day shall be reduced for work that is arduous or harmful to health. Whether work is of such a nature and the maximum number of working hours shall be determined by the Minister's instructions upon the National Center for Occupational Health and Safety's proposals.

New Year’s Day (January 1), Army Day (January 6), Spring Eid (March 21), International Labor Day (May 1), Eid Al Fitr (date may vary), Revolution of 1958 (July 14), Eid-al Adha (date may vary), Islamic New Year (date may vary), Ashura (date may vary), Prophet’s Birthday (date may vary)

Per Iraq's Labor Law, an employment contract must include a probationary period if the employee does not have a professional certificate that proves their skill in the assigned work. The probationary period's duration is to be decided by mutual agreement between the parties, but it may not exceed a maximum duration of 3 months. An employee cannot be subjected to more than 1 probationary period with the same employer.

If it appears to the employer that the employee is not capable of performing the assigned work, the employer may terminate the contract within the probationary period, provided that the employee is given notice at least 7 days before the termination date.

Notice Period

According to Iraq's Labor Law, the employer must generally give notice before terminating an employee's employment contract. The duration of the notice period is 30 days. If the employer does not provide notice, they will be liable to pay 30 days' compensation to the employee.

If it appears to the employer that the employee is not capable of performing the assigned work during a probationary period, the employer may terminate the contract within the probation period, provided the employer provides the employee with notice sent at least 7 days before the date of termination.

Severance Benefits

Iraq's Labor Law generally mandates the provision of severance benefits to employees whose contract has been terminated. The amount of severance pay owed equals 2 weeks' wages for every year of the employee's service. The severance package is not paid if the contract is terminated for the following reasons:

• If the employee is imprisoned for more than a year by a court judgment
• If the employee commits a serious violation of the essential obligations under the contract
• If it is proved during probation that the employee is not sufficiently qualified for the job.

Minimum Wage

Iraq's minimum wage, which was most recently raised in November 2022, is set at IQD 450,000 (Iraqi dinar) per month. The minimum wage is set separately in the autonomous Iraqi Kurdistan region. The minimum wage in Iraqi Kurdistan is IQD 280,000.

Salary must be paid weekly for employees hired by the day or week, and monthly for other employees. The maximum delay allowed in the payment of wages is 5 days.

Overtime, Holiday & Vacation Pay

Iraq's Labor Law defines working hours as the time during which the employee is at the disposal of the employer engaging them, excluding meal periods. The law stipulates that normal working hours cannot exceed 8 daily or 48 weekly, subject to some exceptions.

The pay for overtime hours is at least 150% of the employee's normal wage in case of day work. For night work, the overtime pay is at least 200% of the employee's normal wage. Work completed on a day of rest or public holiday must be compensated at 200% of the normal wage, and the employee must also receive one compensatory rest day.

Employees are entitled to receive a wage for the entire period of leave corresponding to not less than the wages they received during the last 6 months of service. However, transportation, food, and risk allowances are excluded from this amount. The employee's wages for the leave period must be paid to them before they take the leave.

Visas

The following categories of visas are applicable in Iraq:

• Ordinary visas entitle the bearer to enter Iraq only once within 3 months from the date of issuance and to reside for a period not exceeding 3 months.
• Transit visas entitle the bearer to enter Iraq only once within 3 months from the date of issuance and to reside for a period not exceeding 7 days.
• A transit visa without stop entitles the bearer to pass through Iraq under the supervision of the competent authorities only once, without stopping, and within 3 months from the date of its granting.
• Diplomatic visas are issued to diplomats of other countries working in Iraq.
• Service visas, which are granted to persons who bear service passports.
• Tourist visas entitle the bearer to enter Iraq within 3 months from the date of issuance and to reside for 1 month.
• Emergency visas are granted by a Residence Officer to foreign nationals who reach Iraq without obtaining an entry visa for justifiable reasons.

Work Permits

Iraq's Labor Law makes it mandatory for foreign nationals working in Iraq to obtain a work permit issued by the Ministry of Labor and Social Affairs. The following documents are required to obtain the permit:

• Application signed by the employer, addressed to the Department of Employment and Loans and Department of Foreigners
• Copy of the employee's passport
• List of Iraqi workers employed by the company
• Foreign guarantor of the employee in their home country.