page_title: Iranian labour law
section_title: After the revolution
hierarchical_section_title: Iranian labour law / History / After the revolution
caption_attribution_description: Indoor fruit market in old Bazar of Tajrish in northern Tehran, taken by Mani Parsa in 2004.
context_page_description: Iranian labour law describes the rules of employment in Iran. As a still developing country, Iran is considerably behind by international standards. 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 labour. Countries such as the US and India have also failed to ratify many of these Conventions and a mere 14 other Conventions, only 2 since the Islamic Revolution.
  The basic sources of Iranian labor law are,
  The Constitutions and its amendments
  Civil laws "Ghanon Madani"
  Council of Ministers and Ministry of Labor decrees and procedures
  Judiciary verdicts and cases
  Collective bargaining contracts and agreement
  Common practices and occupational norms
  International Labour Organization
  ILO Conventions
  ILO Recommendations
  Other international declarations and agreement
context_section_description: Following the Islamic revolution and the new constitution, this enchanted many with idealistic promises. The new constitution addressed work and labour topics in eleven areas through various articles summarised as the following:
  Awards freedom of career and occupation
  Commands for establishment of working hours
  Elimination of compulsory work
  Prohibits abuse and exploitation
  Acknowledges ownership and right to earned wages for worker
  Prohibits disturbance of business by others
  Pledges equal opportunity for everyone by providing necessity and amenities
  Pledges to make available equipment and tools to those able to work if they lack the capability to acquire required equipment and tools
  Pledges to grant interest free loans for establishment of cooperative institutes and companies
  Pledges to provide health and hygiene services for diverse age groups
  Pledges to aid the underprivileged and victims of accident
  A new era of labour legislation, shaped after the new Islamic constitution, recognised progress had occurred following the establishment of the first Islamic Workers Council or (Shora-e Islami Karagaran). This provided workers rights similar to those of European workers, but under the umbrella of Islam.
  During the first two decades of the revolution, the Workers Council influenced many of the personnel management tasks including recruitment, 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). Added to these were establishing and operating factory grocery stores and housing cooperatives. Ironically, many of these tasks became official ink of the 1990 Islamic Republic of Iran Labour law.
  The end of the Iran-Iraq war marked the start of economic liberation, as well as, a gain of the reformists in Parliament. In this period, a new private sector emerged, challenging the utopian labour laws and regulations.  With this, the 1990 labour law was pro-labour and expensive to administer. Management had to seat labour representatives on the company’s board of directors, which was unprecedented in the traditional management style of Iranian private sector, in addition to enforcement many welfare and mandatory benefit.
  The first dent in the labour law came about with the introduction of temporary employment contracts that allowed employers to hire employees under a one-year contract with the ability to be reissued year after year after a settlement of the annual "end of services" benefit. The Ministry of Labour issued a communiqué in March 1994 stating that employment under the "fixed terms" contracts was legal.
  The government created an ambitious development plan aimed at liberalising and boosting the economy over-night. The plan contributed in creating a passive labour law. Then, in 2004, the reformists in the Sixth Parliament and the conservatives in the Guardian Council succeeded in reaching an agreement to amend the Labour Law to exempt firms with five or fewer workers from some of its provisions.  This provided small entrepreneurs with more freedom in their employment practices.
  Finally, in 2006, in response to growing pressures from the private sector for labour law reform, the Ministry of Labour drafted an amendment to deconstruct the "free market". A new law is under consideration based on these amendments.
caption: Social security for all employees is compulsory in Iran.
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