Ending an Employment Contract under Jordanian Law: Notice, Unfair Dismissal and Employee Entitlements

Ending an employment relationship is one of the most common sources of dispute between employees and employers. Knowing the basic rules before acting, or as soon as you receive a decision, protects both sides. This guide summarises the key provisions of the Labour Law.

When does the contract end?

By agreement; at the end of its term or of the work itself; on the employee's death or incapacity certified by the medical authority; or when the employee meets the conditions for old-age retirement under the Social Security Law, unless otherwise agreed (Article 21).

Notice in open-ended contracts

Either party wishing to end an open-ended contract must give written notice at least one month in advance; notice may only be withdrawn by mutual consent, and the contract continues during the notice period, which counts as service (Article 23). An employer giving notice may release the employee or require work except in the last seven days, and the employee is paid for the notice period in all cases. An employee who resigns and leaves before notice expires is not paid for the remainder and must compensate the employer for it.

Fixed-term contracts

If the employer ends a fixed-term contract early, the employee is entitled to all contractual rights and wages until the end of the term, unless the termination is a lawful dismissal under Article 28. If the employee ends it without a legal reason, the employer may claim damages capped at half a month's wage for each remaining month (Article 26).

Dismissal without notice

The law lists the cases where dismissal without notice is allowed (Article 28), including impersonation or forged documents; failure to meet contractual obligations; a fault causing serious material loss (reported to the authorities within five days); breach of internal rules after two written warnings; unjustified absence of more than twenty non-consecutive days a year or ten consecutive days after a registered written warning published in a daily newspaper; disclosure of work secrets; final conviction for a felony or dishonourable misdemeanour; and assault. Many of these require specific steps, and skipping them may render the dismissal unfair.

Leaving without notice and keeping your rights

An employee may leave without notice and keep end-of-service rights and compensation, provided the Ministry of Labour is notified within two weeks, in cases such as a materially different job, demotion, a pay cut, a medically certified health risk, assault or harassment, or the employer's failure to comply with the law after a Ministry notice (Article 29).

Unfair dismissal

If the employee sues within sixty days of dismissal and the court finds the dismissal unfair, it may order reinstatement or compensation of half a month's wage per year of service, with a minimum of two months' wages, plus notice pay and other entitlements, calculated on the last wage (Article 25). Dismissal in retaliation for complaints about the application of the law is prohibited (Article 24), and redundancies for economic or technical reasons must first be notified in writing to the Minister of Labour (Article 31).

End-of-service gratuity

An employee not covered by Social Security is entitled on leaving, for any reason, to one month's wage per year of actual service, pro rata for part years, based on the last wage (Article 32).

Do not delay your claim

Claims for rights under the Labour Law, including overtime, are time-barred two years after they arise (Article 138(b)); unfair-dismissal claims must be filed within sixty days.

What to prepare

• The employment contract and any amendments.
• The termination letter, notices or warnings and the dates received.
• Payslips or proof of last wage, and the Social Security statement.
• Correspondence and any complaint filed with the Ministry of Labour.

This is general information; the outcome of each case depends on the contract, the facts and the documents.

This content is general information and does not replace advice on your circumstances.

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