The relationship between workers and employers forms the fabric of the economy and society. However, this relationship is always prone to tension and disagreement. These disagreements can cover a wide range of issues, including wages and salaries, benefits, working conditions, overtime, holidays, insurance issues, bonuses, and termination of employment.
A clear understanding of legal rights and dispute resolution paths is crucial for any worker or employer facing a challenge in their employment relationship. This guide examines the step-by-step process of legal worker dismissal and its requirements in the three types of common employment contracts in Iran.
Types of Employment Contracts
Permanent Employment Contract
- In this type of contract, the worker is employed by the employer for an unlimited period.
- There is no end date specified.
- It provides high job security for the worker.
Temporary Employment Contract
- This contract has a specific end date.
- It is automatically terminated after the expiration date.
- It provides lower job security for the worker.
- Employers may choose not to dismiss workers and instead wait for the contract to expire and then refrain from renewing it.
Specific Employment Contract
- In this type of contract, the focus is on completing a specific and defined task.
- The time frame for completing the task is not a significant factor.
- The employment relationship automatically terminates upon completion of the work and the specific task of the contract.
Legal Steps for Worker Dismissal
In Permanent Employment Contracts
- Employers have no choice but to dismiss workers before their retirement if they want to terminate the contract.
- Dismissal in this type of contract is also subject to specific conditions outlined in Article 27 of the Labor Law.
- These conditions include:
- Committing immoral behavior
- Unexcused absence
- Work-related injury resulting in disability
- Inability to perform the job
- Necessity to dissolve the production unit
In Temporary Employment Contracts
- There is no need for legal formalities for dismissal.
- Employers can terminate the employment by ending the contract.
In Specific Employment Contracts
The employment relationship automatically terminates upon completion of the work and the specific task of the contract.
Worker's Rights and Benefits at the Termination of Employment
1. Severance Pay
- The amount and calculation method are determined based on Articles 24, 31, or 32 of the Labor Law.
- The worker is entitled to one month’s salary for each year of service.
1. Bonus and Reward for Years of Activity
- The worker can claim the bonus and reward for their years of activity.
- The amount is determined based on the agreement between the parties or the custom and practice of the workplace.
3. Differences in Worker's Rights and Benefits in Different Types of Contracts
- The rights and obligations of workers and employers vary depending on the type of contract.
- A thorough examination by legal experts is necessary.
Common Disputes Between Workers and Employers
- Disputes between workers and employers are not limited to dismissal.
- They also include issues such as insurance premiums, disability, and many others.
Dispute Resolution Mechanisms
- Islamic Labor Council: The first body to address disputes.
- Ministry of Labor’s Dispute Resolution Boards: The main body responsible for reviewing complaints.
- Ministry of Labor’s Dispute Resolution Boards: The appeal body.
- Administrative Court of Justice: The body responsible for reviewing objections to the decisions of the Dispute Resolution Boards.
Gersha Legal Group
- With the help of experienced and skilled lawyers and experts in labor law, the group provides its clients with the following services:
- Legal Consultation: Providing guidance and analysis of the case and presenting the best legal strategy based on the type of contract and existing conditions.
