Jordan Labor Law No. 8 of 1996 (Articles 23, 25 & 26)

Jordan Arbitrary Dismissal & Notice Pay Calculator

Quantify statutory damages and mandatory severance for unlawful termination under Jordanian employment jurisprudence. Models Article 25 indefinite dismissal damages (half a month's wage per year, minimum 2 months), Article 26 fixed-term remainder compensation, Article 23 notice pay in lieu (1 month), and Article 64 leave encashment.

Dismissal & Contract Parameters

Microsecond Engine
Preload Scenarios:
JOD
Court of Cassation basis: Last comprehensive remuneration.
0.5 month wage per year
Prorated fraction

Statutory Judicial Compensation Statement

Total Lawful Settlement Award (إجمالي التعويض المستحق)
JOD 0.00
Equivalent to 0.0 Months Total Wages
Arbitrary Dismissal Damages JOD 0.00 Article 25 Judicial Floor
Notice Pay in Lieu JOD 0.00 1 Full Month Wage
Unused Leave Encashment JOD 0.00 Wage ÷ 30 Days
Tenure / Remaining Base 4.00 Years 0.5 Mo / Yr (Min 2 Mo)
Legal Claim Component Statutory Rule / Judicial Precedent Total Payable
Arbitrary Dismissal Award Article 25: Max(4.00 yrs × 0.5 × Wage, 2 × Wage) JOD 0.00
Notice Period Compensation Article 23: 1 Month Comprehensive Wage + JOD 0.00
Accrued Leave Encashment Article 64: 14 Days × (Wage ÷ 30) + JOD 0.00
Total Lawful Judicial Award Total Combined Terminal Settlement JOD 0.00

Statutory Framework: Termination & Dismissal Rules in Jordan

Legal Aspect Indefinite Contract (المادة 25) Fixed-Term Contract (المادة 26) Summary Dismissal (المادة 28)
Primary Remedy Reinstatement or Financial Compensation Contractual Completion Damages Zero Compensation / No Notice
Compensation Quantum 0.5 Month Wage / Year (Minimum 2 Months) Full wages for remaining contract duration None (Employee receives earned wages only)
Notice Pay Required Yes (1 Month Comprehensive Wage) Generally not applicable (term expiry) No notice required
Legal Recourse Period 60 Days to file claim before Labor Court 60 Days to file claim before Labor Court Employer must notify within 5 days of incident

Frequently Asked Questions: Jordan Arbitrary Dismissal Law

What is the formula for arbitrary dismissal damages under Article 25? +

Article 25 of Jordanian Labor Law No. 8 of 1996 mandates that if the court finds that dismissal was arbitrary and cannot order reinstatement, it must award compensation equivalent to half a month's comprehensive wage for each year of service, with an absolute statutory minimum of two full months' wages:

Damages = Max(Years of Service × 0.5 × Comprehensive Monthly Wage, 2 × Monthly Wage)

For example, an employee with 1 year of tenure is entitled to the 2-month statutory floor. An employee with 8 years of service receives 4 full months of comprehensive wage (8 × 0.5).

What rights does an employee have under fixed-term contracts (Article 26)? +

Under Article 26, if an employer terminates a fixed-term employment contract before its scheduled expiration without an established lawful reason, the employer is legally liable for all wages, bonuses, and contractual allowances for the entire remaining unexpired duration of the contract term.

What are the statutory requirements for notice under Article 23? +

Under Article 23, both employer and employee must give at least one month's written advance notice. During this notice period, the employment contract remains in full effect, and the employee is entitled to full remuneration. If the employer terminates the worker with immediate effect, they must pay one full month of comprehensive wage in lieu of notice.

Under what circumstances can an employer dismiss a worker without any compensation (Article 28)? +

Article 28 establishes an exhaustive list of nine lawful grounds for immediate summary dismissal without notice or severance, including:

  • Assuming a false identity or submitting fraudulent credentials.
  • Failing to fulfill contractual obligations despite two formal written warnings.
  • Causing substantial financial loss to the employer (provided the employer notified labor authorities within 5 days).
  • Violating documented workplace safety rules after formal written warning.
  • Absence without acceptable excuse exceeding 20 intermittent days or 10 consecutive days in a single year.
  • Divulging confidential industrial or commercial enterprise secrets.
  • Physical or verbal assault upon the employer, supervisor, or colleagues.
What is the statutory deadline to file an arbitrary dismissal claim in Jordan? +

Under Article 25, an employee who claims arbitrary dismissal must initiate legal action before the competent Labor Court or Reconciliation Court within 60 days from the official date of dismissal. Claims filed after the expiration of this 60-day period may be dismissed by the court for lapse of statutory prescription.

MS
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Engr. Muhammad Shahzad

Verified System Auditor

Principal Hardware & Web Systems Engineer • Regulatory Compliance & Quantitative Systems

Specializing in Middle Eastern employment dispute settlement systems, statutory severance matrices, and labor litigation quantification. Computational algorithms strictly reflect Articles 23, 25, 26, and 28 of Jordanian Labor Law No. 8 of 1996 and Court of Cassation precedent.

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