Iranian Labor Law - Labor Law

Labor Law

See also: Ministry of Labour and Social Affairs

There is a minimum national wage applicable to each sector of activity fixed by the Supreme Labor Council which is revised annually. In 2010 the minimum wage, determined by the Supreme Labor Council, was about US$303 per month (US$3,636 per year). Membership in the social security system for all employees is compulsory. The national poverty line for Tehran in the year ending March 20, 2008 was $9,612 per year and the national average was $4,932.

Although Iranian workers have, in theory, a right to form labor unions, there is, in actuality, no union system in the country. Workers are represented ostensibly by the Workers' House, a state-sponsored institution that nevertheless attempts to challenge some state policies. Guild unions operate locally in most areas but are limited largely to issuing credentials and licenses. The right of workers to strike is generally not respected by the state, and since 1979 strikes have often been met by police action.

The comprehensive Labor Law covers all labor relations in Iran, including hiring of local and foreign staff. The Labor Law provides a very broad and inclusive definition of the individuals it covers, and written, oral, temporary and indefinite employment contracts are all recognized.

The Iranian Labor Law is very employee-friendly and makes it extremely difficult to layoff staff. Employing personnel on consecutive six-month contracts is illegal, as is dismissing staff without proof of a serious offense. Labor disputes are settled by a special labor council, which usually rules in favor of the employee.

The Labor Law provides the minimum standards an employer must adhere to when forming an employment relationship. The minimum age for workers in Iran is 15 years, but large sectors of the economy (including small businesses, agricultural concerns, and family-owned enterprises) are exempted.