Employment of Foreign Workers in Iraq: Legal Framework and Compliance
Work Permit Requirements
Iraq’s Labor Law No. 37 of 2015 establishes a clear legal framework for foreign workers and professionals in the private sector. Articles 30 and 31 of the law require that all foreign workers obtain a valid work permit before commencing employment.
Article 30 states that employers are prohibited from hiring foreign workers without a permit issued by the Ministry of Labor and Social Affairs, subject to a fee determined by ministerial instructions. Similarly, Article 31 prohibits foreign workers from engaging in any work without securing a permit in advance.
Regulations accompanying the law outline the process for obtaining work permits:
- Application Submission – The employer or an official representative in Iraq must submit a formal request to the Ministry of Labor and Social Affairs on behalf of the foreign worker.
- Supporting Documentation – The request must include the foreign worker’s qualifications, personal details, job description, contract duration, and employer information.
- Approval and Verification – The Department of Labor and Social Security in Baghdad reviews the application, secures necessary approvals, and coordinates with relevant authorities. Upon arrival in Iraq, the foreign worker must report to the department within seven days to complete verification and finalize the work permit.
Permit Duration and Renewal
Work permits are initially valid for one year and may be renewed based on operational requirements. Employers must submit renewal requests at least one month before the permit expires to ensure continuity of employment.
Penalties for Non-Compliance
Failure to adhere to Iraq’s work permit regulations can result in serious legal consequences.
- Employer Penalties – Under Article 36 of the Labor Law, employers who fail to comply may face fines ranging from three times the minimum daily wage to three times the minimum monthly wage of the worker.
- Legal Action Against Violators – Article 10 of the Regulations on Foreign Employment allows authorities to summon companies and their foreign employees to labour court for non-compliance. Penalties include imprisonment of one to six months and fines ranging from 100 to 300 Iraqi Dinars.
Exemptions to Work Permit Regulations
Certain categories of foreign workers are exempt from Iraq’s standard work permit requirements:
- Employees of international organizations, diplomatic missions, and recognized foreign consulates.
- Foreign nationals conducting business under international treaties or agreements to which Iraq is a signatory.
- Foreign workers directly employed by the Iraqi government.
- Short-term specialists brought into Iraq for 30 days or less to provide technical expertise, maintenance, or operational support.
Documentation for Work Permit Applications
Companies employing foreign workers, particularly those with government contracts or investment permits, must submit the following documentation:
- Completed application forms with company details.
- Worker information list including passport details, nationality, and job role.
- Residency and visa copies for security verification.
- Government contract or investment permit as proof of authorized employment.
- Fee payment of 1,000,000 Iraqi Dinars for the application and 250,000 Iraqi Dinars per work permit.
- Proof of social security coverage to confirm compliance with labour regulations.
- Health screening report including a mandatory blood test upon entry to Iraq.
Additionally, companies must ensure that for every foreign worker employed, at least one to two Iraqi workers are registered with social security, reinforcing the government’s policy of balancing foreign employment with local workforce development.
Summary
Iraq’s labour laws are designed to regulate foreign employment while safeguarding opportunities for Iraqi workers. Compliance with work permit regulations is essential for companies hiring foreign professionals, ensuring a smooth and legally compliant employment process. Employers should remain vigilant in meeting documentation and reporting requirements to avoid penalties and maintain good standing with Iraqi labour authorities.
Speak to Our Employment and Social Security Team
For guidance on employment law and social security matters in Iraq, please contact Al Mustansir Billah Al Bakri, Head of Tax and Social Security at Salt & Associates. With over eight years of experience in corporate and tax law, he has built a reputation as a trusted advisor, guiding clients through complex labour regulations and compliance requirements. His expertise spans employment contracts, legal compliance, and dispute resolution, having worked with Iraq’s leading law firms. Known for his strategic approach and deep understanding of Iraq’s labour framework, he has successfully assisted both local and international companies in navigating employment law challenges.
