Iranian Labor Law - History

History

The first constitution of Iran, passed in 1906, granted basic rights to the people of Persia through articles eight to twenty five, establishing equality before the law for everyone, and the right to form and join societies (anjumans) and associations (ijtimá'át). The Parliament (Majlis) and the Senate waited 16 years to pass the Civic Servants Employment Act of 1922. It gave protection to laborers and Civic servants. In 1923, the governor of Sistan and Baluchestan ordered a decree in nine articles to protect carpet makers’ rights, including working hours, leaves, and minimum age. It was the first national document of labor rights. In 1928, Parliament passed the Civil Law (Ghanon-e Madanei) which addressed employment contracts. This law divides the employer and employee relations into two categories by benchmarking the French Law. Independent contractors (e.g. carpenters, doctors, lawyers, and plumbers) who control their own work are accountable for their profit and lost. Next, servants who are being paid by an employer to perform specific tasks, but do not have full control of their work and act upon the employer’s instructions and orders.

In 1936, the cabinet issued regulations on minimum hygiene conditions in factories, which was the first attempt to regulate employer-employee relationships. On May 18, 1946, the Council of Ministers passed the labor bill. The first labor minister was appointed that same year which improved the systematization of labor relations and personnel management. Yet, the working conditions, despite the legislation, were entirely at the whim of enterprise owners because the laws were not enforced and the Labor Ministry was weak. Employers could do virtually as they wished with no consequences and they barred formation of labor unions.

In 1951, a committee was appointed by the ministry of labor to translate various countries labor laws and the international ILO Conventions to Persian in order to do a comparative study and draft a labor law. This effort did not lead to proposal of labor law. Then, from 1952 to 1957, various committees established by the ministry of labor and foreign consultants including a Belgian consultant and general secretary of the Middle East labor institute were invited to finalize the draft of labor law, which finally in 1959 voted and passed by the Parliament "Majils". This law was practiced until 1990.

The next phase of labor legislation began with the Shah’s "White Revolution" "Enghlab Sefied" in 1962. It provided generous welfare and social improvements, such as profit sharing, employee stock ownership plans, company housing, minimum wage, and an improved Social Security Act. All were paid for with revenue from high oil prices. Nevertheless, many private sector owners opposed the new initiatives that infringed on their power. New personnel practices were introduced, including payroll administration with time management, job descriptions, job classifications and evaluations, and organizational hierarchies, mainly in large companies and government-run industries. In the 1960s, progressive private sector entrepreneurs, such as the Ladjevardi family in the Behshar Industrial group, introduced job classifications; personnel policies and procedures, and automated payroll systems following the recommendations of the Iranian National Oil Company’s foreign advisors.