Severance and end-of-service in Iraq, done right.
A clear reference for probation, notice periods, severance formula, eligibility and the cost of getting it wrong, backed by Iraqi Labor Law No. 37 of 2015.
End-of-service severance in Iraq is two weeks of salary for each year of continuous service, owed to employees with at least one year of service who are not dismissed for misconduct. Notice periods run 30, 60 or 90 days by tenure, and severance is paid within 7-14 days of termination.
Maximum 3 months, single, not renewable.
One probation period per employer; cannot be repeated for the same role.
Employer must provide at least 7 days notice if terminating during probation.
Notice scales with seniority.
Notice required from employer (varies by length of service).
| Length of service | Notice period |
|---|---|
| Less than 5 years | 30 days |
| 5 to 10 years | 60 days |
| More than 10 years | 90 days |
Two weeks of salary per year of service.
End-of-service gratuity is mandatory under Iraqi Labor Law No. 37 of 2015 in all non-misconduct terminations.
Multiply weekly wage × 2 × completed years of continuous service.
Employees become eligible after one year of continuous service with the same employer.
Settled on the final working day or within 7-14 days of termination.
Who is owed severance, and who isn't.
Settle promptly, usually 7 to 14 days.
Getting it wrong is expensive.
Frequently asked questions
How is severance calculated in Iraq?
End-of-service severance in Iraq is two weeks of salary for each completed year of continuous service. It is the weekly wage multiplied by two, multiplied by the number of completed years with the same employer.
Who is entitled to severance in Iraq?
Severance is owed to employees with at least one year of continuous service who are terminated for non-misconduct reasons, including redundancy, economic or technical reasons, establishment closure, or arbitrary dismissal. Employees dismissed for serious misconduct as defined in Labor Law No. 37 of 2015 are not eligible.
What is the notice period for termination in Iraq?
The notice period scales with length of service: 30 days for less than 5 years of service, 60 days for 5 to 10 years, and 90 days for more than 10 years.
How long is the probation period in Iraq?
Probation in Iraq is capped at a maximum of 3 months. It is a single period per employer and cannot be renewed or repeated for the same role. Terminating an employee during probation requires at least 7 days' notice.
When must severance be paid in Iraq?
Iraqi law expects end-of-service entitlements to be settled promptly upon termination. In practice, payment is made on the final working day or within 7 to 14 days afterwards.
What happens if an employer does not pay severance correctly?
Incorrect severance can trigger payment of full severance plus additional compensation for arbitrary dismissal, administrative fines from labour authorities, legal and enforcement costs, closer inspections and reputational damage.
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Frequently asked questions
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How is severance calculated in Iraq?
End-of-service severance in Iraq is two weeks of salary for each completed year of continuous service. It is the weekly wage multiplied by two, multiplied by the number of completed years with the same employer.
Who is entitled to severance in Iraq?
Severance is owed to employees with at least one year of continuous service who are terminated for non-misconduct reasons, including redundancy, economic or technical reasons, establishment closure, or arbitrary dismissal. Employees dismissed for serious misconduct as defined in Labor Law No. 37 of 2015 are not eligible.
What is the notice period for termination in Iraq?
The notice period scales with length of service: 30 days for less than 5 years of service, 60 days for 5 to 10 years, and 90 days for more than 10 years.
How long is the probation period in Iraq?
Probation in Iraq is capped at a maximum of 3 months. It is a single period per employer and cannot be renewed or repeated for the same role. Terminating an employee during probation requires at least 7 days' notice.
When must severance be paid in Iraq?
Iraqi law expects end-of-service entitlements to be settled promptly upon termination. In practice, payment is made on the final working day or within 7 to 14 days afterwards.
What happens if an employer does not pay severance correctly?
Incorrect severance can trigger payment of full severance plus additional compensation for arbitrary dismissal, administrative fines from labour authorities, legal and enforcement costs, closer inspections and reputational damage.
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