Iran
Whether you want to hire one person or a whole team, Remote's guide to hiring employees and contractors in Iran can help you get started. Note that Remote's employer of record services are not yet live in Iran.
- Capital City
Tehran
- Currency
Iranian rial (﷼, IRR)
- Languages
Persian
- Population size
83,183,741
Employment termination
Termination process
Iranian law stipulates that employment contracts terminate automatically under the following situations:
Death of an employee
Retirement of an employee
Total disability of an employee
Expiration of the employment contract or the conclusion of the tasks stated in the contract
Resignation of the employee
An employer is required to pay any benefits accruing to the employee in any of the cases specified above.
Apart from these reasons stated, contracts can also be ended because of neglect of duties or misconduct, and any decision to dismiss an employee must be approved by the Islamic Labour Council or the Labour Discretionary Board.
Notice period
The Iranian Labour Code doesn’t specify notice periods for terminating employees & decisions to dismiss a worker must be approved by the authorities.
Severance pay
Iranian law provides for severance and termination benefits if an employee is suspended unfairly, made redundant (or retired), or disabled and incapable of carrying out their normal line or work.
Suspension — If a labour disputes board finds that an employee was suspended without cause, the employer is required to reinstate the worker in question and pay for all damages (i.e. lost wages and benefits) resulting from the wrongful suspension.
Redundancy & retirement — Employers are required to give redundant and retired employees a severance package equal to a month’s (i.e. 30 days’) wages for every year they’ve been working in the service of the employer.
Disability — Disabled employees are entitled to 30 days’ wages for every year they’ve been working in the service of an employer. This severance entitlement increases to 60 days’ wages if the employee is disabled or incapacited because of the nature of their job, working conditions, etc.
Probation periods
Limited to one month for unskilled and semiskilled workers and three months for skilled and specialised workers. Employers can dismiss workers on probation without any prior notice but are required to pay them the wages they’d have earned for the entire probation period.
Workers who quit during probation are only entitled to the wages they've earned for the period of time they’ve been employed.