It has failed to ratify the two basic Conventions of the International Labour Organization on freedom of association and collective bargaining, and one on abolition of child labor.
[2] The basic sources of Iranian labor law are,[3] The first constitution of Iran, passed in 1906, granted basic rights to the people of Persia through articles eight to twenty five, establishing equality before the law for everyone, and the right to form and join societies (anjumans) and associations (ijtimá'át).
[4] The Parliament (Majlis) and the Senate waited 16 years to pass the Civic Servants Employment Act of 1922.
In 1923, the governor of Sistan and Baluchestan ordered a decree in nine articles to protect carpet makers’ rights, including working hours, leaves, and minimum age.
Independent contractors (e.g. carpenters, doctors, lawyers, and plumbers) who control their own work are accountable for their profit and lost.
Yet, the working conditions, despite the legislation, were entirely at the whim of enterprise owners because the laws were not enforced and the Labor Ministry was weak.
In the 1960s, progressive private sector entrepreneurs, such as the Ladjevardi family in the Behshar Industrial group, introduced job classifications; personnel policies and procedures, and automated payroll systems following the recommendations of the Iranian National Oil Company’s foreign advisors.
The new constitution addressed work and labor topics in eleven areas through various articles summarized as the following:[12] A new era of labor legislation, shaped after the new Islamic constitution, recognized progress had occurred following the establishment of the first Islamic Workers Council or (Shora-e Islami Karagaran).
During the first two decades of the revolution, the Workers Council influenced many of the personnel management tasks including recruitments, selection, promotion, job evaluation, salary structure, productivity bonus, health and safety and many more tasks (even providing employees with a daily milk and food ration).
The Ministry of Labor issued a communiqué in March 1994 stating that employment under the "fixed terms" contracts was legal.
Then, in 2004, the reformists in the Sixth Parliament and the conservatives in the Guardian Council succeeded in reaching an agreement to amend the Labor Law to exempt firms with five or fewer workers from some of its provisions.
[15] There is a minimum national wage applicable to each sector of activity fixed by the Supreme Labor Council which is revised annually.
The Labor Law provides a very broad and inclusive definition of the individuals it covers, and written, oral, temporary and indefinite employment contracts are all recognized.
Employing personnel on consecutive six-month contracts is illegal, as is dismissing staff without proof of a serious offense.
The minimum age for workers in Iran is 15 years, but large sectors of the economy (including small businesses, agricultural concerns, and family-owned enterprises) are exempted.
To have a valid contract concluded under the Law, the following provisions must be included:[19] The employer may require the employee to be subject to a probationary period.
Grounds for dismissal include an employee's neglect in carrying out his/her duties or violation of disciplinary by-laws of the employer.
[19] The Law mandates the following compensation for terminated, disabled and suspended employee:[19] The workweek in Iran is based on a 44-hour week.
Finally, employees are entitled to 3 days of paid vacation for marriage or death of a spouse, father, mother or child.
The employee's salary during maternity leave will be paid according to the provisions of the Social Security Act Archived 2011-09-03 at the Wayback Machine.
These programs include training and job-search assistance, health and unemployment insurance, disability, old-age and survivorship pensions, and in kind- or in-kind transfers including subsidies (e.g., housing, food, energy), rehabilitation and other social services (e.g. long-term care services for the elderly), and even marriage and burial assistance.
While labor-market pressures continue to increase because of demographic dynamics and increased participation of women in the labor force, Iran’s economy is still unable to generate enough needed jobs to absorb the new flows into the labor market and at the same time reduce unemployment extensively.
The social security makes it possible to ensure the employees against unemployment, the disease, old age (retirement pension), the occupational accidents.