Employ Candidates Compliantly in Iraq

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  1. Overview: Iraq
  2. Global PEO and payroll
  3. Global HR Compliance
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
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Global HR Compliance in Iraq

If you hire international workforce, or plan to hire, then Hiring and Firing Workforce in Iraq Guide below will help you understand the nuances of labor legislation in the country.

Companies hire international workforce for various reasons but in most cases they are:

  • entering the foreign markets to sell company products. To do so, the company hires sales representatives who would represent their product and sell it to their local client base.
  • hiring a global talent with unique skills that is unavailable in the local market or costs the company less than the talent with similar skills hired in the home country.

Before entering a certain foreign market or engaging a global talent, it is crucial for the company to understand how it can make local hires and reward its workers on a monthly basis. Growing companies often face a challenge of paying benefits and bonuses to the commission-based independent sales representatives they are working with.

If you intend to hire and pay your foreign workforce in full compliance with labor laws and regulations of Iraq, then the Global Employer of Record service from Acumen International may be the best way for you to go. We are an International PEO company and we specialize in global employment, meaning we can employ your employees in Iraq and act as their legal employer on your behalf. We will payroll your foreign workforce monthly and provide benefits to them through our global network so you don’t have to set up your own legal entities there.

We are experts in global workforce employment in , and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.

Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws. With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry.

With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Iraq. See the guide below for a general overview of labor rules and regulations in Iraq or contact us if you need to employ workers in Iraq or would like to get more details.

Hiring and Firing Workforce in Iraq Guide

# Employment Contracts

Contract of employment is required by law to be concluded in writing, in Arabic and to specify the type of contract, description of job and wage for job done. The term of an employment contract may either be fixed or indefinite, depending on the nature of the work. Employers are obligated to notify the Labor Office about the employment of any new employees within the first 10 days of their employment (if they are Iraqis) and within the first 30 days of their employment (if they are foreigners).

# Minimum statutory employment rights

# Hours of work Under normal working conditions, the maximum hours of work for all employees are 8 hours per working day. This does not include night works that require no more than 7 hours per working time. Employment conditions that are hazardous to health require that employees work less than 8 hours per day. Employees are entitled to weekly rest period, which may be taken on Friday or Saturday.

# Probation period Employers have the right to try their employees for up to 3 months period. This period, in which the employee is expected to demonstrate his skills and conduct, should be specified in the employment contract. Employers may terminate their employees contract without a cause during the probation period with no statutory obligation to provide prior notice.

# Annual leave All employees are entitled to 20 days of leave with full pay yearly. Employees who work in health hazard conditions are entitled to extra 10 days (30 days in total) of yearly paid leave. Employees annual leave entitlement must be increased by 2 paid days at five-yearly intervals.

# Parental leave Female employees are entitled to 14 weeks’ paid maternity leave. Employees may also take an additional nine months for difficult childbirth, the birth of more than one child, or in the event of pre or post-natal complications. Working mothers may also choose to take unpaid leave for up to one year after the birth of their child. During this time, the employee’s employment will be considered suspended. Maternity benefit: 100% of the insured’s wage is paid for at least 10 weeks, including at least four weeks before the expected date of childbirth; 75% of wages for a nine-month extension if there are complications resulting from childbirth.

# Sick leave The total number of sick leave payable by employers is 8 days at a time and 30 days per year. Employees must be permitted to be off sick for the length of time that is subject to doctor’s recommendation. In other words, sick employees are required to provide their employers with medical certificate to be eligible for sick benefit. Sickness benefit: 75% of the insured’s average wage during the three months before the incapacity began is paid after an eight-day waiting period) for up to six months (may be extended to two years at 100% of wage for incurable or malignant diseases).

# Overtime Employees are entitled to wage increase by 50% for working overtime during a normal working day. Overtime worked outside the normal working days: weekly rest day, night or holiday must be compensated at double times. In addition to the overtime rate, employees must be given a day off within the workweek in compensation for work done during a rest day.

# State minimum salary Effective Jan 1, 2015, the minimum salary an employee can be paid is 250,000 Iraqi dinars a month. Employers are obligated to remunerate their employees once every month in the local currency in the workplace or any pay-office that is adjacent to the workplace.

# Employment termination Contract of employment may be terminated in writing by mutual consent, individually by either of the parties of employment, because of the expiration of the contract, because an employee is ill for more than 6 months or has an injury that results to him/her being disabled by more than 75%. The maximum length of notice of termination must not be less than 30 days. Generally, employers are required to pay dismissed employees an equivalent of their wage during the notice period if they decide to terminate them without notice.

Acumen International can help you fast-track your possibilities of entering and expanding your business in Iraq by providing you with our Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any need to set up a legal entity first or afterwards.

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