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Jordan

January 15, 2021

By Gordon Barr

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KEY DEVELOPMENTS FOR 2021


 

Increase of minimum wage

The tripartite committee established under the Ministry of Labour increased the minimum wage in Jordan to JOD 260 per month for Jordanian employees, and JOD 230 per month for non‑Jordanian employees as of 1 January 2021. An extension was granted to businesses falling within the most damaged sectors and sectors suspended from operation, as defined and specified from time to time in defence orders issued pursuant to the Defence Law No. (13) of 1992 (the "Defence Law") in consideration of the COVID‑19 pandemic, for the increase in minimum wage to be implemented by 1 June 2021.


 

Registration with the Social Securities Corporation

Any institution employing one employee or more shall be required to register their employees with the Social Securities Corporation. In addition, the Social Securities Corporation has started a new programme called "Istidama" for businesses and sectors most affected by the COVID‑19 pandemic and restricted from operating. The Istidama programme offers financial aid to businesses by paying their employee's salaries. A percentage of the employee's salary will be covered by the Social Security Corporation.


 

Defence Order No. (6) permits more flexible working arrangements

The Defence Order has been in place since 2010, however, with the current COVID‑19 situation the Defence Order No. (6) is a vital update that each client and potential client should keep in mind.

Defence Order No. (6), issued pursuant to the Defence Law, allows employers to convert existing contracts to flexible work contracts in order to facilitate more flexible working arrangements by accommodating for work‑from‑home mechanisms. In addition, Defence Order No. (6) has placed vast restrictions on the termination of employment contracts by the employer in an attempt to avoid a large increase in unemployment rates. To add to that, Defence Order No. (6) has allowed businesses and sectors that have been restricted from operating to decrease their employees' salaries as regulated and sanctioned from time to time through the issuance of further defence orders and declarations.

With thanks to Gordon Barr of Al Tamimi & Company for his invaluable collaboration on this update.

Contributors

Image: Suzanne Horne
Suzanne Horne
Partner, Employment Law Department

Image: Kirsty Devine
Kirsty Devine
Associate, Employment Law Department

Image: Aashna Parekh
Aashna Parekh
Associate, Employment Law Department

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