Employment and Labor Law 
Employment relationship in the private sector of Iran is governed by the Labor Code of Iran. 
All the companies considered as private held entities are subject to the regulations and requirements of this law. The Labor law of Iran sets the minimum standards and requirements that needs to be followed by the Employer and Employee however any further arrangements has been left to to the mutual agreement of the parties. 
Although Employment law generally, governs the employer-employee relationship, but it also includes many other relevant subjects. 
The Labor Law of Iran has an“Employee- Protective” approach in general with the purpose to provide minimum job security and healthy working conditions such as: 
  • Minimum wage and minimum obligatory wage increase 
  • Maximum working hours
  • Over-time terms and compensations
  • Mission compensation 
  • Prevent discrimination
  • Promote health and safety working environment 
  • Restrictions on Dismissal grounds and conditions 
  • Leave days 
Any other term and condition that is subject to the Employer policies and procedures must be mentioned in a well-drafted Employment contract and will be valid to both parties as long as it is not in clear contrast with the governing laws. 
The most important items that needs to be specified and referred to by the Employment contract are: 
  • Confidentiality clause 
  • Non- compete clause
  • Intellectual Property rights including trade secrets 
  • Internal regulations such as code of ethics, Personal Data Proaction, etc. 
For further equations and informations on the Employment law and Contract, contact our experts. 

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