Labor Market Regulation

Doing Business measures the regulation of employment as it relates to the hiring and redundancy of workers and the scheduling of working hours. This year the scope of data collection has been expanded to better capture the different dimensions of job quality. Overall, 16 new questions were added, most of which focus on job quality, including equal treatment of men and women, availability of on-the-job training, social protection and dispute resolution mechanisms. The most recent round of data collection was completed in June 2015. Read the methodology.

Labor Market Regulation Data

Data points and details, 2016 (Excel, 170KB)

Multi City = Multi-city data for same economy is available.

About Doing Business

The data and analysis 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 189 economies.

Data on hiring cover 5 questions:
  • Whether fixed-term contracts are prohibited for permanent tasks
  • The maximum cumulative duration of fixed-term contracts
  • The minimum wage for a cashier, age 19, with 1 year of work experience (US/month)
  • The ratio of the minimum wage to the average value added per worker
  • The availability of incentives for employers to hire employees under the age of 25
Data on working hours cover 9 questions:
  • The maximum number of working days allowedper week
  • The premium for night work (as a percentage of hourly pay)
  • The premium for work on a weekly rest day (as a percentage of hourly pay)
  • The premium for overtime work (as a percentage of hourly pay)
  • Whether there are restrictions on night work
  • Whether nonpregnant and nonnursing women can work the same night hours as men
  • Whether there are restrictions on weekly holiday work
  • Whether there are restrictions on overtime work
  • The average paid annual leave for a worker with 1 , 5 or 10 years of tenure
Data on redundancy cover 9 questions:
  • What the length is in months of the maximum probationary period
  •  Whether redundancy is  disallowed as a basis for terminating workers
  • Whether the employer needs to notify a third party (such as a government agency) to terminate 1 redundant worker
  • Whether the employer needs approval from a third party to terminate 1 redundant worker
  • Whether the employer needs to notify a third party to terminate a group of 9 redundant workers
  • Whether the employer needs approval from a third party to terminate a group of 9 redundant workers
  • Whether the law requires the employer to reassign or retrain a worker before making the worker redundant
  • Whether priority rules apply for redundancies
  • Whether priority rules apply for reemployment
The redundancy cost indicator measures the cost of advance notice requirements and severance payments due when terminating a redundant worker, expressed in weeks of salary.
Data on job quality cover 12 questions:
  • Whether the law mandates equal remuneration for work of equal value
  • Whether the law mandates nondiscrimination based on gender in hiring
  • Whether the law mandates paid or unpaid maternity leave
  • The minimum length of paid maternity leave (in calendar days)
  • Whether employees on maternity leave receive 100% of wages
  • The availability of five fully paid days of sick leave per year
  • The availability of on-the-job training at no cost to employee
  • Whether a worker is eligible for unemployment protection schemes after one year of service
  • The minimum duration of the contribution period (in months) required for unemployment protection
  • Whether an employee can create or join a union
  • The availability of administrative or judicial relief in case of infringement of employees’ rights
  • The availability of labor inspection system
Afghanistan NoNo limit - Art. 14 (2) specifies that labor contracts for a definite period are allowed for periods not less than 1 year. However, no maximum length is specified.No limit0.00.0No
Albania YesNo limitNo limit204.80.4Yes
Algeria YesNo limitNo limit227.20.3No
Angola Yes6-36 months depending on workers' and or firms' situation. For instance, 36 months is applied to long-term unemployed and in some conditions can be enlarged further - Article 16, Paragraph 1 of the GLL.12.0226.10.3No
Antigua and Barbuda NoNo limitNo limit624.00.4No
Argentina Yes60 months (Art. 93 - Ley 20.744)60.01,184.20.6No
Armenia YesNo LimitNo limit119.30.3No
Australia NoNo limit (Part 3 of the General Retail Industry Award 2010 in this year's example)No limit2,396.70.3Yes
Austria NoNo limitNo limit1,764.60.3No
Azerbaijan No60 uniterrupted months is the maximum before turning into an indefite-term contract (Article 45.5)60.0133.50.2No
Bahamas, The NoThe law is silent - no limitNo limit690.20.3No
Bahrain No5 years60.00.00.0No
Bangladesh - Dhaka NoNo limitNo limit0.00.0No
Bangladesh - Chittagong NoNo limitNo limit0.00.0No
Barbados NoNo limit provied by law - common practice is 6 to 12 monthsNo limit505.30.3No
Belarus No60 monthsNo limit193.70.2No
Belgium NoNo limitNo limit2,331.90.4Yes
Belize No2 years, since the worker works in the same city where he lives; hence, he is accompanied by his family (Art. 55(1))No limit386.10.6No
Benin No24 months - Art. 1348.080.00.6No
Bhutan NoNo limitNo limit61.40.2No
Bolivia Yes12 months (Ministerial Resolution No. 283/62 - June 13, 1962)24.0197.00.5No
Bosnia and Herzegovina No24 months (Art. 19, Labor Law of FBiH)24.0376.70.7Yes
Botswana NoNo limitNo limit93.60.1No
Brazil - São Paulo Yes24 months24.0435.60.3Yes
Brazil - Rio de Janeiro Yes24 months24.0451.40.3Yes
Brunei Darussalam NoNo limitNo limit0.00.0No
Bulgaria No36 - Art. 68 of the Labour Code36.0241.90.3Yes
Burkina Faso No24 months for the national workers - Art. 54, Labor Code, 2008No limit107.91.0No
Burundi NoNo limitNo limit2.40.1No
Cabo Verde Yes60 months (Art. 360)60.0131.80.3No
Cambodia No24 months24.00.00.0No
Cameroon No24 months - Art 25(1)(a) du Code de travail48.070.30.3No
Canada NoNo limitNo limit1,800.40.3Yes
Central African Republic Yes2 years - Art.105 , Code du travail24.033.60.7No
Chad No24 months according to Art 58 et 59, Code du Travail, 199648.0121.90.7Yes
Chile No12 months12.0419.00.2Yes
China - Shanghai NoNo limit - after 10 years of work or 2 renewals of fixed-term contracts, provisions of article 14 of the PRC Labor Contract Law applyNo limit321.60.4Yes
China - Beijing NoNo limit - after 10 years of work or 2 renewals of fixed-term contracts, provisions of article 14 of the PRC Labor Contract Law applyNo limit273.80.3Yes
Colombia No36 months - Art. 46, CSTNo limit335.90.3Yes
Comoros No24 months - Art. 34, Code du travail, 201236.00.00.0No
Congo, Dem. Rep. Yes24 months48.065.00.7No
Congo, Rep. Yes24 months24.0209.20.5No
Costa Rica Yes12 months in general; 60 months if the work requires special technical preparation12.0569.90.5No
Côte d'Ivoire No24 months - Art. 14.4, Code du travail24.0119.00.5No
Croatia YesPursuant to Article 12 (3) of Labour Act, there is no maximum duration of the first fixed-term contract that a worker concludes with an employer.No limit525.10.3Yes
Cyprus NoThere are no specific requirements for renewing a fixed-term contract but if a contract for a permanent task is for a period of more than 30 months, it may be considered as an indefinite - term contract. - Art.7 of Employees of Fixed Term (Prohibition of Unfair Treatment) Law 98(I)/2003.30.01,231.50.4Yes
Czech Republic No36 months - Sec. 39 of Act No. 262/2006 Coll., Labor Code, as amended.108.0550.80.3No
Denmark NoNo limitNo limit0.00.0No
Djibouti Yes12 months - Art. 11, Code du travail, 200624.00.00.0No
Dominica NoNo limitNo limit348.80.4Yes
Dominican Republic YesNo limitNo limit330.40.4No
Ecuador YesNo limitNo limit403.20.5No
Egypt, Arab Rep. NoNo limit, but employee may terminate after 5 years (Art. 104 Labor Law)No limit0.00.0No
El Salvador YesNo limitNo limit215.80.4No
Equatorial Guinea Yes24 months, according to Art. 7(2) Ordonnance Générale du Travail24.0790.40.4..
Eritrea YesThere is not any minimum or maximum duration for fixed-term contract Proclamation 118/2001 Article 11. Duration of Contract of Employment (1) The duration of a contract of employment may be: a. for an indefinite period; or b. for a definite period; or c. for a period required to carry out a definite piece of work; or d. for intermittent periodical work. (2) If the work is of a continuous nature, a contract of employment made for a definite period shall be deemed to be a contract made for an indefinite period.No limit0.00.0No
Estonia Yes60 months - Art. 9 (1) New ECA120.0498.70.2No
Ethiopia YesNo limit, with two exceptions: (i) in the case of temporary placement of a worker who has suddenly and permanently vacated from a post and (ii) in the case of temporary placement of a worker to fill a vacant position in the period between the study of the organizational structure and its implementation, duration shall not exceed 45 consecutive days.No limit0.00.0No
Fiji NoN/A - No limitNo Limit330.20.6Yes
Finland YesThere is no specific maximum duration for fixed-term employment contracts. (Chap. 1 Sect. 3 - ECA) However, after 60 months a fixed-term contract is subject to the same requirements for termination as an indefinite term contract. (Chap. 6 Sect. 1 - ECA).60.02,276.80.4No
France Yes18 months; can be extended to 24 months for work abroad or in certain other specific circumstances listed at article L.1242-8 of the Labor Code18.01,964.30.3Yes
Gabon No24 months48.0319.60.2No
Gambia, The NoNo limitNo limit0.00.0No
Georgia No30 months - but if the next fixed term labour agreement is concluded after 60 days after the initial agreement expires it should be considered as fixed term agreement. At the same time, this regulation does not apply to company during 48 month of its registration (it is considered as a newly established company) (Labour Code of Georgia Art. 6, Par1 prim 3 and prim 4)
Germany NoNo maximum duration for fixed-term contract with objective cause; 24 months for fixed-term contract without objective cause (Sect. 14 para. 2 TzBfG)24.01,904.00.3No
Ghana NoNo limitNo limit60.10.3No
Greece Yes36 monthsNo limit804.70.3Yes
Grenada YesNo limitNo limit251.60.3No
Guatemala YesNo limit; time limit depends only on the duration of the temporary task, on the expiration date or on the occurrence of any event or circumstance (Art.25)No limit384.20.7No
Guinea NoThe maximum duration is 24 months (art. 122.3 du Code du Travail)
Guinea-Bissau Yes12 months (Art. 10(3))
Guyana NoNo limitNo limit165.80.3No
Haiti NoNo limitNo Limit150.21.3No
Honduras Yes12 months in general; 60 months for work requiring special technical preparation; however, a longer term can only be found to be in violation of the law on the express request of the worker (Art. 47 and 48)24.0457.01.5Yes
Hong Kong SAR, China NoNo limitNo limit852.10.2Yes
Hungary No60 months with a derogation if the contract is subject to official approval, in which case the term is that which was officially approved, which may exceed 5 years, § 192 of the Act I of 2012 on the Labour Code60.0449.80.3Yes
Iceland No24 months (AFTE)24.01,743.50.3Yes
India - Mumbai NoNo limitNo limit135.40.7No
India - Delhi NoNo limitNo limit179.10.9No
Indonesia - Jakarta Yes24 Months extendable for another 12 months (Art. 59 (4))36.0266.90.6No
Indonesia - Surabaya Yes24 Months extendable for another 12 months (Art. 59 (4))36.0245.10.5No
Iran, Islamic Rep. NoNo LimitNo limit320.40.4No
Iraq YesNo limit. Law does not specify a maximum.No limit102.80.1No
Ireland NoNo limit (PEFTWA 2003)No limit1,757.40.3Yes
Israel NoNo limitNo limit1,247.80.3Yes
Italy No36 months- After this period a fixed term worker acquires the right to a permanent position in the same firm (Art.1 of the Law No. 368/2001)36.01,998.30.5Yes
Jamaica NoNo limitNo limit218.70.3No
Japan - Tokyo No36.0No limit1,619.20.3No
Japan - Osaka No36.0No limit1,528.00.3No
Jordan No60 (Art. 806 - CC)No limit257.50.4No
Kazakhstan NoNo limit - Art. 29, Labor Code, 2007No limit127.10.1No
Kenya NoNo limit for term contracts (excluding casual employees)No limit269.41.4No
Kiribati NoNo limit, s 6(2) refer only to workers being recruited from one island to another islandNo limit0.00.0No
Korea, Rep. No24 months24.0882.70.3Yes
Kosovo NoNo limitNo limit169.60.1No
Kuwait No60 months (Art. 13)No limit210.90.0No
Kyrgyz Republic Yes60 months - art. 5560.018.40.1No
Lao PDR No3 years36.0110.00.5No
Latvia Yes60 months (Labor Law Article 45.)60.0470.00.2No
Lebanon NoNo limit but after 24 months worker is treated as indefinite term for purposes of severance pay (Art. 58).24.0443.20.4No
Lesotho NoNo limit - Section 66 (3) establishes no limitation (in practice, 10 months for permanent tasks and 6 months for temporary tasks are the maximum lengths commonly used)No limit177.10.9No
Liberia NoLess than 6 months for an oral contract (Sect. 1501 - LPL) 2 years for a written contract (Sect. 1505(1) - LPL [would be 3 years if work were outside Liberia])No Limit0.60.0No
Libya No2 years (Article 70 of Law No. 12 for 2010)48.0410.50.4No
Lithuania No60 months (5 years x 12 months) (Art. 109(1))60.0390.50.2Yes
Luxembourg Yes24 months - Art. L. 122-4 (1)24.03,061.50.3Yes
Macedonia, FYR No60 months (Art. 46(1))60.0298.20.5Yes
Madagascar Yes24 months, Art. 8, Code du Travail, 2004.
Malawi YesNo limitNo Limit34.50.9No
Malaysia NoNo limitNo limit280.40.2No
Maldives No24 months (Article 13.g of the new Employment Act 2008)
Mali Yes24 months72.062.00.5No
Malta NoNo limit. However, the law states that a temporary worker shall be considered permanent if (i) the employee has been continuously employed under one or several fixed-term contracts for more than 4 years, and (ii) if the employer cannot provide objective reasons to justify the renewal of such a contract for a fixed term.48.0962.60.4No
Marshall Islands NoNo limitNo limit416.00.8No
Mauritania No24 months - Art. 17 code du travail, 200424.0103.80.6Yes
Mauritius No24 months24.0283.40.3Yes
Mexico - Mexico City YesNo limitNo limit175.50.1No
Mexico - Monterrey YesNo limitNo limit175.50.1No
Micronesia, Fed. Sts. NoNo LimitNo limit364.00.8No
Moldova Yes60 monthsNo limit121.80.4No
Mongolia NoNo limitNo limit117.60.2No
Montenegro NoArticle 25 of the Labor Code states that an employer cannot conclude one or more fixed term contracts with the same employee if their duration, continuously or intermittently, is more than 24 months.24.0248.40.3No
Morocco YesArticle 17 of the Labour Code provides for a maximum period of 12 months12.0287.80.8Yes
Mozambique Yes24 months72.0152.61.5No
Myanmar NoThere is no limit under the lawNo limit0.00.0No
Namibia NoNo limitNo limit0.00.0No
Nepal YesNo limitNo limit83.90.8No
Netherlands No36 months36.01,026.80.2Yes
New Zealand NoNo limitNo limit2,120.90.4Yes
Nicaragua NoNo limitNo limit209.20.9No
Niger Yes24 months - Art. 6048.056.60.7No
Nigeria - Lagos NoNo limitNo limit108.80.2Yes
Nigeria - Kano NoNo limitNo limit108.80.2Yes
Norway YesNo limit, but after 4 years the employee is regarded as a permanent employee, and thus enjoy the same job protection (with respect to termination provisions etc) as an indefinite term employee (Sect 14-9 para 5 WEA).48.03,721.60.3No
Oman NoNo limitNo Limit845.30.4No
Pakistan - Karachi Yes9 months9.0116.70.6No
Pakistan - Lahore Yes9 months9.0116.70.6No
Palau No24 monthsNo Limit602.90.4No
Panama Yes12 months in general; 36 months for work requiring special technical preparation (Art. 74)12.0477.60.3No
Papua New Guinea NoFor attested (written contracts) 24 months if the employee is unaccompanied by dependants; 36 months if the employee is accompanied. Sect. 22(2) and (4), Employment Act, 1978No Limit247.90.9No
Paraguay Yes12 months for laborers; 60 months for employees (Art. 49)No Limit398.70.7Yes
Peru Yes60 months, as provided for by Article 53° and following, and article 74° of Labor Productivity and Competitiviness Law, T.U.O. of Legislative Decree N° 728 approved by Supreme Decree N° 003-97-TR.60.0269.10.3No
Philippines NoNo limitNo limit297.80.6No
Poland NoNo limit. However, if a fixed-term contract is signed for extensive period not justified by objective reason, it may be considered as a breach of the so-called rules of social cohabitation. In consequence, the court may consider the contract as a contract for indefinite period. Art. 25(1) of the Polish Labour Code.No limit545.70.3Yes
Portugal YesNot including any renewals, a single fixed-term contract has a maximum duration of 36 months. (Article 148 of the Labor Code)66.0763.30.3Yes
Puerto Rico (U.S.) NoNo limitNo Limit1,233.40.5Yes
Qatar No60 months (5 years) - art. 40 Labor LawNo limit0.00.0No
Romania Yes36 months60.0278.30.2Yes
Russian Federation - Moscow Yes60 months60.0420.70.3No
Russian Federation - Saint Petersburg Yes60 months60.0264.90.2No
Rwanda NoNo limitNo limit0.00.0No
Samoa NoNo limitNo Limit179.10.3No
San Marino Yes12 months (Contratto Collettivo Chapter 4 Art.20)18.02,835.10.4Yes
São Tomé and Príncipe Yes36 months - Art. 4(3) of Law No. 6/
Saudi Arabia NoNo explicit limit for a single termNo limit0.00.0No
Senegal Yes24 months24.0185.61.1Yes
Serbia Yes24 months - Art. 37, Labor Law, 2005 (61/2005, 54/2009, 32/2013 and 75/2014)24.0234.00.3No
Seychelles YesNo limit when it is linked to the completion of a task, not expressed in units of time where the limit is 6 months. Sect. 19 (2)No limit422.80.3No
Sierra Leone Yes12 months - Secs. 8 and 26 of the Employers and Employed ActNo limit113.41.1No
Singapore NoNo limitNo limit0.00.0No
Slovak Republic No24 months (Art. 48(2))24.0500.00.2No
Slovenia Yes24 months (Art. 55(2))24.01,033.20.4Yes
Solomon Islands NoNo limitNo limit120.90.4No
South Africa YesThere is no prescribed maximum duration.No limit308.40.4No
South Sudan No24 months - Art. 29(2), Labor Act of 199748.00.00.0No
Spain YesIt depends on the type of fixed-term contract: (i) for a particular task or service, the contract terminates when the service or task is completed with a maximum duration of 36 months (that can be extended up to 12 months if provided in the relevant collective bargaining agreement); (ii) due to productivity needs, the maximum duration is 12 months - Art. 15(1) (a) and (b), Workers' Statute12.01,126.90.3Yes
Sri Lanka NoNo limitNo limit79.30.2No
St. Kitts and Nevis NoNo limit - There is no legislation on fixed-term contracts.No limit570.90.3No
St. Lucia No24 months24 months0.00.0No
St. Vincent and the Grenadines NoNo limitNo Limit237.10.3No
Sudan No24 months - Art. 29(2), Labor Act of 199748.070.00.3No
Suriname NoNo limitNo limit0.00.0No
Swaziland NoNo limitNo limit166.10.4No
Sweden NoFixed term contracts are allowed for permanent and temporary tasks up to 2 years (24 months)
Switzerland No120 months There is no maximum duration. However, a fixed-term contract entered into for more than 10 years can be terminated by each party after 10 years with a notice period of 6 months for the end of a month. In this case, if terminated as soon as it can be terminated, the agreement will have lasted 126 months. Article 334(3) CO120.00.00.0No
Syrian Arab Republic No5 years. (Art. 54, Labor Law of 2010)
Taiwan, China YesGenerally 6 to 12 months, but no limit for a "specified work" contract if the prior approval of the competent authority has been obtained - Art. 6, Enforcement Rules of the Labor Standards Act.12.0635.30.2No
Tajikistan YesNo maximum duration, but must be for more than one year. If in the employment contract (contract) the term of its duration isn't stipulated, the contract is considered renewed for an indefinite term and can't be renewed for a certain term without consent of the worker Art. 31No limit49.60.3No
Tanzania Yes0 - Not allowed at all for "our worker" (however, no limit for professionals and managerials cadres.) - Sec. 14(1), Employment and Labour Relations Act, 2004. Fixed employment could also be for "a specific task"No Limit68.20.5No
Thailand YesNo limitNo limit245.40.4No
Timor-Leste Yes36 months, Sec.11.4 Labour Law 4/201236.0112.40.2Yes
Togo Yes48 months selon Art. 43 al. 2 et art. 48, Code du Travail, 2006.48.0108.71.2No
Tonga NoNo limitNo limit0.00.0No
Trinidad and Tobago NoNo limit by law. Generally fixed term contract can be from one month (even less) to as much as five years.No limit405.80.2No
Tunisia No48 months including renewals -Art 6-4(2) labor code48.0280.60.5Yes
Turkey YesNo limit - Art. 11, Labor Law No. 4857, 2003No limit571.40.4Yes
Uganda NoNo limitNo limit2.30.0No
Ukraine YesNo limit. (Except for seasonal works where the duration or a single fixed-term contract may not exceed the duration of a season--6 months at the most.)No limit119.60.3Yes
United Arab Emirates No48 months - Article 38 of the Labor LawNo limit0.00.0No
United Kingdom NoNo limit, but employees who have worked successive fixed term contracts for a period of four years or more will become permament employees unless the employer can objectively justify the continued use of a fixed term arrangements.No limit1,397.20.3Yes
United States - New York City NoNo limitNo limit1,498.70.2Yes
United States - Los Angeles NoNo limitNo limit1,541.50.2Yes
Uruguay YesThere is no legal regulation. However, legal scholars and judges would probably agree that a contract longer than 12 months will not be acceptable, unless there is strong objective need of such term for the employeer and the term is not intended to merely avoid severance payment.No limit619.70.3Yes
Uzbekistan Yes60 months60.0124.30.5No
Vanuatu No36 - Art. 15No limit309.10.7No
Venezuela, RB Yes12 months, according to article 62.4 of the Organic Labor Law24.0707.40.4Yes
Vietnam No36 - Art. 22.1 of the Labor Code 201272.0142.50.6No
West Bank and Gaza No24 months - (Art. 25)24.0377.01.5No
Yemen, Rep. NoNo limit - Art. 29No limit93.10.5No
Zambia NoNo limitNo limit266.50.9No
Zimbabwe NoNo limitNo limit261.92.1No

Explore Economy Data

- OR -