Payroll and Benefits Guide Jordan

Termination Process

The termination process varies according to the employment agreement or collective bargaining agreement and is based on the type of contract and reason for termination. The regular termination process is as follows:  At least one month before the intended ending day, the employer or employee must provide a written notice of termination.

The employee will be entitled to all benefits and entitlements as specified by the contract if the employment is for a set period of time and can be terminated before its expiration date by the employer or the employee for any of the reasons listed in section 29 of this Code (the work is different from that agreed upon; circumstances requiring a change of residence; medical reasons).

Either the employee or employer can terminate the employment contract at any time. Notice in writing is required. According to Section 21 of the labor code, a contract of employment shall be considered terminated if both parties agree to terminate it, the duration of the contract has expired or the work itself has been completed, or the employee dies or is no longer capable of working due to a disease or disability certified by the medical authority.

It is recommended to be careful when terminating the employment contracts that the employee will not file a case at MOL for Unjustified dismissal. In this case the employee will be entitled to Half month pay for each working year (not less than 2 months’ pay) + Leave balance encashment + overtime(If any) + One month’s notice + additional payments like expenses.

Notice Period

One month’s written notice is required, applied to both employer and worker. No notice is required during the probation period. Limited-term contracts cannot be terminated.

Severance

Severance must be given to workers if they are not subject to the Social Security law paid as an “end of service compensation” at a rate of one month’s pay for each year of service.