Iran, Islamic Rep.

Employing Workers in

Iran, Islamic Rep.

Listed below is a summary of the regulation of employment in this economy, specifically as it affects the hiring and redundancy of workers and the rigidity of working hours.

The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.

Employing Workers Data

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Methodology

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Topic Answer
Difficulty of hiring
Fixed-term contracts prohibited for permanent tasks? No
Maximum length of a single fixed-term contract (months) No limit
Maximum length of fixed-term contracts, including renewals (months) No limit
Minimum wage for a 19-year old worker or an apprentice (US$/month) 318.3
Ratio of minimum wage to value added per worker 0.57
Rigidity of hours
Standard workday in manufacturing (hours) 8 hours
Minimum daily rest required by law (hours) N/A
Maximum overtime limit in normal circumstances (hours) 4 hrs/day (Sect. 59). The worker cannot be required to work overtime - (Sect. 59a)
Maximum overtime limit in exceptional circumstances (hours) N/A - for exceptional circumstances with worker consent, even the 8 hrs/day limit does not apply (Sect. 60) The limit can be disregarded, provided that the case and justifying circumstances are reported to the relevant labor office within 48 hours and app
Premium for overtime work (% of hourly pay) 40% (Sect. 59)
50-hour workweek allowed for 2 months a year in case of a seasonal increase in production? Yes
Maximum working days per week 6.0
Premium for night work (% of hourly pay) in case of continuous operations 23%
Premium for work on weekly rest day (% of hourly pay) in case of continuous operations 40%
Major restrictions on night work in case of continuous operations? No
Major restrictions on weekly holiday in case of continuous operations? No
Paid annual leave for a worker with 9 months of tenure (in working days) 24.0
Paid annual leave for a worker with 1 year of tenure (in working days) 24.0
Paid annual leave for a worker with 5 years of tenure (in working days) 24.0
Paid annual leave for a worker with 10 years of tenure (in working days) 24.0
Paid annual leave for a worker with 20 years of tenure (in working days) 24.0
Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 24.0
Difficulty of redundancy
Dismissal due to redundancy allowed by law? Yes
Third-party notification if 1 worker is dismissed? Yes
Third-party approval if 1 worker is dismissed? Yes
Third-party notification if 9 workers are dismissed? Yes
Third-party approval if 9 workers are dismissed? Yes
Retraining or reassignment obligation before redundancy? No
Priority rules for redundancies? No
Priority rules for reemployment? No
Redundancy costs (weeks of salary)
Notice period for redundancy dismissal (for a worker with 9 months of tenure, in salary weeks) 0.0
Notice period for redundancy dismissal (for a worker with 1 year of tenure, in salary weeks) 0.0
Notice period for redundancy dismissal (for a worker with 5 years of tenure, in salary weeks) 0.0
Notice period for redundancy dismissal (for a worker with 10 years of tenure, in salary weeks) 0.0
Notice period for redundancy dismissal (for a worker with 20 years of tenure, in salary weeks) 0.0
Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in salary weeks) 0.0
Severance pay for redundancy dismissal (for a worker with 9 months of tenure, in salary weeks) 0.0
Severance pay for redundancy dismissal (for a worker with 1 year of tenure, in salary weeks) 4.3
Severance pay for redundancy dismissal (for a worker with 5 years of tenure, in salary weeks) 21.7
Severance pay for redundancy dismissal (for a worker with 10 years of tenure, in salary weeks) 43.3
Severance pay for redundancy dismissal (for a worker with 20 years of tenure, in salary weeks) 86.7
Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in salary weeks) 23.1
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