Labour rules for oil, construction and logistics companies in Basrah
The Law Office of Ali Barakat, from Baghdad, al-Yarmouk, sets out the labour rules that apply to oil, construction and logistics companies operating in Basrah, under Labour Law No. 37 of 2015 and the Workers' Retirement and Social Security Law No. 18 of 2023. This is informational coverage about that governorate, and it does not mean that the office has a branch in Basrah.
Basrah is a governorate not organised in a region, so an employment relationship there is administered under the federal texts and before the departments of the Ministry of Labour and Social Affairs and the Court of Labor in the governorate. The angle of this page is the employment duties of those sectors. The jurisdiction of the Court of Labor in Basrah, and disputes over termination and the end-of-service gratuity, belong on the page Labour law in Basrah.
Application of the Labour Law to these companies
The provisions of the Labour Law apply, under article 3, to all workers in the Republic of Iraq, or those treated as such, unless they are excluded by a text. The exclusion in the second clause covers public officials appointed under the Civil Service Law or a special text, and members of the armed forces and of the police and internal security. Employing workers on an oil project, a construction contract, or a transport, storage or distribution service in Basrah, once the employment relationship defined in article 1 is present, falls within that application. The fact that the project is foreign, or that it is contracted with a public body, does not of itself take the worker outside the Labour Law, so long as the worker does not fall within one of the textual exclusions.
An employment contract is concluded orally or in writing, and if it is written it is drawn up in three copies and the third is lodged with the Department of Employment and Loans, under article 37. Working hours, wages, leave, safety and termination are read from the chapters of the same Law, as set out on the page The employer's legal duties to the worker.
If a principal employer entrusts to another employer the performance of some of its work, or part of it, as a subcontract, and that is done under the same working conditions, the person entrusted with the work must treat that person's workers and the principal employer's workers equally in all rights, and each is jointly liable with the other for that, under article 12. That rule often arises in construction contracts and in support services for fields and ports. It identifies the joint liability of the two parties for the rights, not an exemption of either of them from the duty.
Social security, employment of non-Iraqis, and safety
Enrolment of workers in social security is a path before the Department of Pension and Social Security for Workers under Law No. 18 of 2023. The Department may open sections in the centres of the governorates not organised in a region, under article 4 of that Law. The duties to enrol workers and to pay contributions are read from the Social Security Law, and the detail is on the page Workers' social security. The way contributions are allocated may differ according to the type of activity, in the manner that Law draws. The type of activity is reviewed from the file and from the text.
If the company employs workers who are not Iraqi in Basrah, employment in any capacity is forbidden until a work permit has been issued by the Ministry of Labour and Social Affairs, under article 30, and the application is presented to the Department of Labour and Vocational Training under Instructions No. 1 of 2026. The permit path is on the page Work permits, and the framework for employment is on the page Rules on employing non-Iraqis. Residence is a separate duty before the General Directorate of Residence under Foreigners' Residence Law No. 76 of 2017.
Occupational safety and health is a standing chapter of the Law. The employer must provide healthy conditions and the necessary precautions, and must explain the risks of the work before the contract is made, under article 41. In dangerous, exhausting or harmful work, daily hours are reduced under instructions issued by the Minister on a proposal of the National Centre for Occupational Safety and Health, under article 67, Third. The detail of the duties is on the page Occupational safety duties. What concerns foreign oil companies more specifically is also read on the page Labour rules and foreign oil companies.
Labour inspection and bringing a dispute in Basrah
Labour inspection has powers to enter workplaces and to examine records, including the wage and overtime register that article 61 requires to be kept. The violation report and the employer's position before inspection are separate pages in this practice area. Reports are presented to the Ministry of Labour and Social Affairs, and a violation may be referred to the Court of Labor.
If a dispute arises over existing rights, it may be referred to the Department of Employment and Loans for a decision within fourteen days, under article 157, and then to the Court of Labor in Basrah. The formation of that court and its jurisdiction in the governorate are set out on the page on labour law in Basrah. The office follows this reading from Baghdad, al-Yarmouk, with no branch in Basrah.
Legal basis and sources
- Labour Law No. 37 of 2015 (Iraqi Official Gazette, issue 4386 of 9/11/2015)
- Workers' Retirement and Social Security Law No. 18 of 2023 (Iraqi Official Gazette, issue 4734 of 28/8/2023)
Frequently asked questions
Do oil and construction companies in Basrah have a special labour regime that takes them outside Labour Law No. 37 of 2015?
A private-sector employment relationship is read first from the Labour Law, unless the party falls within a textual exclusion in article 3. The fact that the activity is oil, construction or logistics does not take the place of that exclusion.
If the work is performed under a subcontract, who bears the workers' rights?
If work, or part of it, is entrusted under the same working conditions, the person entrusted with it must treat that person's workers and the principal employer's workers equally, and the two are jointly liable for that, under article 12.
How are social-security contribution rates for the oil sector determined?
Enrolment is a duty under Law No. 18 of 2023, and the rates are read from that Law and from the type of activity in the file. The detail is on the social-security page.
Does an explanation of the rules in Basrah mean that the office has a branch there?
No. The coverage is informational, from the Baghdad office in al-Yarmouk, with no branch in Basrah or in another governorate.
Related topics and articles
- 01The Court of Labor in Basrah, termination of the contract, and the end-of-service gratuityThe Court of Labor in Basrah and disputes over termination and the end-of-service gratuity under Law 37/2015, from Baghdad, with no branch.
- 02An employer’s duties to staff in Iraq, arranged by when they fall dueA timeline of the private-sector employer’s legal duties in Iraq: before hiring, on every payday, every working day, every year, and when the job ends, with the articles behind each.
- 03A foreign oil company hiring in Iraq: six labour questions before day oneA labour checklist for foreign oil companies in Iraq: who the Labour Law covers, permits for foreign staff, layers of subcontractors, site safety, and social security.
- 04End-of-service entitlements under Labour Law No. 37 of 2015The end-of-service gratuity under Labour Law 37/2015: the two-week formula, the statutory exceptions, and how it differs from benefits under Law 18/2023.
- 05Which labour and social-security rules apply in the governorates and in the Kurdistan Region?The reach of Labour Law 37/2015 and Law 18/2023 in the governorates not organised in a region, and how work is organised in the Kurdistan Region.