End of Service and Dismissal in Hashemite Kingdom of Jordan

What is the difference between arbitrary dismissal and dismissal for cause in Jordan?

The difference is that dismissal for cause (Article 28) allows the employer to terminate you immediately without notice and without arbitrary dismissal compensation, while arbitrary dismissal is termination without a valid legal reason, which can entitle you to financial compensation. Whether your case fits Article 28 or counts as arbitrary will largely determine how much money you can claim.

Under the Jordanian Labor Law (Law No. 8 of 1996 and its amendments), there are three main categories of ending employment:

• Lawful dismissal for cause (Article 28) - Immediate termination without notice, but only for specific serious reasons defined in the law.
• Ordinary termination (with notice) of an unlimited-term contract - Either party can end the relationship with at least one month written notice and without giving a reason, as long as they are not abusing the right.
• Arbitrary or unlawful dismissal - Termination that misuses the right to end the contract or violates the law (for example, not following procedure or targeting the worker for discriminatory or retaliatory reasons).

In practice:

• If the employer relies on Article 28 but cannot prove the alleged misconduct, the dismissal is usually treated as arbitrary.
• For unlimited-term contracts, arbitrary dismissal can lead to:
  • Compensation calculated at about half a month's wage per year of service, based on the last wage, often with a minimum of 2 months' wage.
  • Payment in lieu of notice (usually 1 month salary) if the employer ended the contract suddenly.
• For limited-term contracts, early termination without a legal ground usually entitles the worker to the wages for the contract's remaining period.

The label that your employer uses ("for cause," "Article 28," "restructuring," "resignation") is not final; the Labor Court will look at the facts and documents. If the termination does not meet Article 28 conditions, it is usually treated as arbitrary even if the employer claims otherwise.

How is compensation for arbitrary dismissal calculated in Jordan?

For an unlimited-term contract, courts in Jordan typically calculate arbitrary dismissal compensation at around half a month's wage for each year of service, based on your last basic wage, with a minimum often set at 2 months' wage. For a limited-term contract, if the employer ends the contract early without a legal reason, the usual rule is that you are entitled to salaries for the remaining period of the contract.

1. Arbitrary dismissal from an unlimited-term contract

If the Labor Court decides your dismissal was arbitrary, you can usually claim:

• Arbitrary dismissal compensation:
  • Approx. 0.5 month of your last wage for each completed year of service.
  • Often subject to a minimum of 2 months' wages, even if your service was short.
• Notice pay (if the employer did not give one month written notice).
• Unpaid wages up to your last working day.
• Cash in lieu of unused annual leave.
• Any agreed bonuses or benefits that you earned but did not receive.

Example 1 - 6 years of service, JOD 800 monthly wage

• Last basic wage: JOD 800
• Years of service: 6 full years
• Arbitrary dismissal compensation: 0.5 x 6 years x 800 = JOD 2,400
• No notice given, so notice pay: 1 x 800 = JOD 800
• Total basic compensation (before other entitlements): JOD 3,200

2. Arbitrary early termination of a limited-term (fixed) contract

If you have a fixed term contract (for example, one year, two years) and the employer ends it early without a valid legal reason (such as Article 28 misconduct), the rule is different:

• You can usually claim all salaries for the remaining period of the contract.
• This is instead of the half-month-per-year formula that applies mainly to unlimited-term contracts.

Example 2 - 2 year contract, terminated after 1 year, JOD 700 monthly wage

• Contract duration: 24 months
• Worked: 12 months
• Remaining period: 12 months
• Compensation for early termination: 12 x 700 = JOD 8,400

3. Typical payouts compared

Courts look at your actual last wage (including regular allowances if they count as wage) when calculating these amounts. Always collect salary slips and your contract to support your calculations.

When can an employer fire you without notice under Article 28 of the Jordanian Labor Law?

An employer can fire you without notice in Jordan only in specific cases listed in Article 28 of the Labor Law, such as fraud in obtaining the job, serious misconduct causing major loss, long unauthorised absence, or assault on the employer or colleagues. If your situation does not clearly match one of these cases, the dismissal is likely unlawful and may count as arbitrary.

Article 28 is interpreted strictly by the Labor Courts. Typical grounds include:

• Fraud or false identity:
  • You obtained the job by presenting a false identity or forged documents.
• Failure during probation:
  • Termination during the probation period (up to 3 months) if the employer believes you are not suitable.
  • In this case, the employer can terminate without notice and without arbitrary dismissal compensation.
• Serious error causing heavy loss:
  • You committed a serious mistake that caused a substantial material loss to the employer, and
  • The employer reports the incident to the Ministry of Labor within 5 days of discovering it.
• Repeated violation of internal regulations:
  • You did not comply with written safety instructions or internal regulations, after being warned at least once in writing.
• Long unauthorised absence:
  • Absent for more than 10 consecutive days without a valid reason, or
  • Absent for more than 20 non-consecutive days in the same year without a valid reason, after being warned.
• Disclosure of trade secrets:
  • You revealed industrial or commercial secrets that harmed the employer.
• Criminal conviction:
  • You are convicted of a felony or a misdemeanor involving honor, morals, or public ethics.
• Intoxication or immoral conduct at work:
  • You come to work drunk or under the influence of drugs, or
  • You commit an act against public morals at the workplace.
• Assault:
  • You assault the employer, manager, your superior, or any co-worker at work or because of work.

If the employer invokes Article 28, they carry the burden to prove the alleged misconduct with documents, witnesses, or official reports. If they fail to prove it, courts usually treat the termination as arbitrary, which triggers the compensation formulas described earlier.

What are your rights if you are dismissed for cause under Article 28?

If you are lawfully dismissed under Article 28, you generally lose the right to notice pay and to arbitrary dismissal compensation, but you still keep basic rights such as wages up to your last day of work and payment for unused annual leave. However, if the employer misuses Article 28 or cannot prove the alleged reason, you can challenge the dismissal and seek arbitrary dismissal compensation.

1. What you usually do NOT get after a valid Article 28 dismissal

• No notice period or notice pay:
  • The employer can terminate you immediately without the normal one month notice.
• No arbitrary dismissal compensation:
  • The half-month-per-year compensation does not apply if the dismissal fits Article 28 conditions.
• No compensation for remaining term on a limited-term contract:
  • If termination for cause is proven, you usually cannot claim wages for the remaining period.

2. What you still keep even with Article 28 dismissal

• Wages earned up to the last working day.
• Payment for unused annual leave days.
• End-of-service indemnity if you are not covered by Social Security (typically one month's wage per year of service).
• Certificate of service confirming your period of employment and type of work (without negative comments).
• Social Security contributions credited for the months actually worked.

3. Challenging an Article 28 dismissal

Even if the employer writes "Article 28" in the letter, you can still contest it. The court will test whether the facts and evidence actually match Article 28.

• If the employer cannot prove the alleged misconduct, the court often:
  • Reclassifies the dismissal as arbitrary, and
  • Awards compensation accordingly (half-month per year, with minimum months, plus notice pay).
• If some misconduct happened but it is not serious enough for Article 28, the court can still treat the dismissal as arbitrary or as ordinary termination without proper notice.

Keep copies of all warnings, emails, WhatsApp messages, and internal memos. These documents often decide whether Article 28 was used correctly or as a tactic to avoid paying compensation.

What is the difference between limited-term and unlimited-term employment contracts in Jordan?

A limited-term contract in Jordan has a fixed end date and, if ended early without a legal reason, generally entitles the worker to salaries for the remaining period, while an unlimited-term contract continues until one side ends it with notice and, if the termination is arbitrary, entitles the worker to compensation based on years of service. Your contract type strongly affects your payout on termination.

1. Limited-term (fixed) contracts

• Duration: Has a clear start and end date (for example, 1 January 2024 to 31 December 2024).
• Termination by employer without cause:
  • If the employer ends it before the end date without a legal ground (such as Article 28), you can claim all wages for the remaining period.
• Termination by employee:
  • If you leave early without a legal justification, the employer can claim compensation for the damage, sometimes equal to wages for part of the remaining period.
• Renewal:
  • If renewed repeatedly for several years, courts may treat it like an unlimited-term contract.

2. Unlimited-term (open-ended) contracts

• No fixed end date:
  • The contract continues until the employer or employee ends it.
• Ordinary termination:
  • Either party can end the contract with at least one month written notice.
• Arbitrary termination:
  • If the employer uses this right in an abusive or discriminatory way, you can claim arbitrary dismissal compensation (half-month wage per year of service, etc.).
• Termination during probation:
  • Even in unlimited-term contracts, the employer can terminate during the probation period without notice.

3. Quick comparison

Always check how your contract is drafted. Some employers label a contract "limited-term" but renew it automatically for years; in disputes, courts look at the reality of the relationship, not only the title on the document.

What payouts and end-of-service rights can you claim when your employment ends in Jordan?

When your employment ends in Jordan, you may be entitled to several separate payments: unpaid salary, notice pay, arbitrary dismissal compensation or remaining-term salaries, cash for unused leave, and sometimes end-of-service indemnity if you are not under Social Security. The exact combination depends on your contract type, years of service, and whether the dismissal was lawful or arbitrary.

1. Common components of payout

• Unpaid wages:
  • Salary for all days worked but not yet paid.
• Notice pay:
  • One month wage if the employer ended an unlimited-term contract without giving proper written notice.
• Arbitrary dismissal compensation:
  • For unlimited-term contracts, about half a month's wage per year of service if the court finds the dismissal arbitrary.
• Salaries for remaining contract period:
  • For limited-term contracts terminated early without legal cause.
• Payment for unused annual leave:
  • All accumulated vacation days that you did not use.
• End-of-service indemnity:
  • Usually one month's wage per year of service if you are not covered by the Social Security Corporation.
• Other contractual benefits:
  • Unpaid bonuses, sales commissions, or allowances, if they are part of your wage package.

2. Typical scenarios

• Lawful ordinary termination with notice (unlimited-term):
  • Unpaid wages + notice month + unused leave + end-of-service (if not under Social Security).
• Arbitrary termination (unlimited-term):
  • Unpaid wages + notice pay + arbitrary dismissal compensation + unused leave + possible end-of-service.
• Early termination of limited-term without cause:
  • Unpaid wages + salaries for remaining period + unused leave + possible end-of-service.
• Article 28 dismissal (proven):
  • Unpaid wages + unused leave + possible end-of-service if not insured; usually no notice pay and no arbitrary compensation.

Because several components overlap, you should list each one separately and calculate them clearly. This makes negotiation with the employer, the Ministry of Labor, or the court much easier.

How can you challenge an unfair dismissal in Jordan and what are the timelines?

You can challenge an unfair dismissal in Jordan by first trying to negotiate or complain to the Ministry of Labor, and then filing a lawsuit before the Labor Court if needed. You usually have up to 2 years from the date your employment ended to file a labor case, but you should act much sooner to preserve evidence and increase your chances of a settlement.

1. Immediate steps after dismissal

1. Request a written termination letter:
   • Ask for a letter stating the date and reason for termination (for example, Article 28, restructuring).
2. Collect documents:
   • Employment contract, salary slips, bank transfer records, warning letters, emails, and any internal policies.
3. Do not rush to sign "resignation" papers:
   • Signing a resignation can significantly reduce your rights; consult a lawyer first.

2. Complaint to the Ministry of Labor

1. File a complaint:
   • Go to the local Labor Directorate of the Ministry of Labor or use their online platform if available.
   • Submit copies of your contract and termination letter and explain why you believe the dismissal is arbitrary.
2. Mediation:
   • The Ministry usually calls both parties for a meeting to seek a settlement.
3. Referral to court:
   • If no settlement is reached, the Ministry can refer the dispute to the Labor Court or give you a report that you can use to file a claim.

3. Labor Court case

• Jurisdiction:
  • Labor disputes are handled by specialized Labor Courts (often a chamber within the Court of First Instance).
• Limitation period:
  • Under the Jordanian Labor Law, most labor claims must be filed within 2 years from the date the employment ended or the right arose.
  • File as early as possible; late filing harms credibility and evidence availability.
• Evidence:
  • You provide your documents and witness statements; the employer must prove any Article 28 allegations.

4. Costs and timeframes

Because labor disputes can take time, many employers are open to settlement once they see you have legal support and a clear calculation of your claims.

When should you hire a lawyer or labor expert in Jordan?

You should hire a labor lawyer or expert in Jordan if you are dismissed under Article 28, if your employer is offering you a settlement or asking you to resign, or if the amount at stake is significant compared to your salary. A lawyer can test whether your dismissal is truly for cause or arbitrary and can negotiate or litigate for the full compensation you are entitled to.

Situations where a lawyer is strongly recommended

• Article 28 dismissal:
  • Because you lose notice pay and arbitrary compensation if Article 28 is applied correctly, the financial impact is large.
• Limited-term contract ended early:
  • Where many months of salary are left and the employer is refusing to pay.
• Long service:
  • If you have 5+ years of service, the half-month-per-year formula can result in a substantial amount.
• Written warnings and allegations:
  • If you received multiple warnings, accusations of misconduct, or internal investigation reports.
• Documents in Arabic you do not fully understand:
  • Contracts, settlement agreements, or resignation letters prepared by the employer.

A good lawyer will:

• Review your contract and salary history.
• Evaluate whether Article 28 applies or whether the dismissal is arbitrary.
• Calculate your claims precisely in JOD.
• Represent you before the Ministry of Labor and the Labor Court.
• Negotiate a settlement that reflects your real entitlements.

What are the next steps if you think your dismissal in Jordan was unfair?

If you believe your dismissal in Jordan was unfair, you should quickly collect your documents, calculate your potential claims, and seek legal advice before signing anything from your employer. Acting within weeks instead of months will give you a stronger position at the Ministry of Labor and in any court case.

Practical action plan

1. Identify your contract type and reason for dismissal:
   • Check whether your contract is limited-term or unlimited-term and what reason the employer gave (Article 28, restructuring, poor performance).
2. Gather proof:
   • Contract, pay slips, bank transfers, internal emails, WhatsApp messages, warning letters, and your termination letter.
3. Estimate your claim:
   • For unlimited-term: calculate notice pay + 0.5 month wage x years of service + unpaid wages + unused leave.
   • For limited-term: calculate unpaid wages + salaries for remaining contract period + unused leave.
4. Consult a labor lawyer or expert:
   • Take your calculations and documents for a quick assessment.
5. File a complaint with the Ministry of Labor if negotiation fails:
   • Use the Ministry's complaint mechanisms to put pressure on the employer and document the dispute officially.
6. Be ready to file a court case within the limitation period:
   • Coordinate with your lawyer so that your case is filed well within the 2 year period and with complete evidence.

The distinction between "for cause" termination under Article 28 and arbitrary dismissal affects almost every Jordanian employee's financial security when leaving a job. Understanding your contract type, your real rights, and the compensation formulas can help you negotiate confidently and, if needed, succeed in court.