FTC regulated: Yes

Valid reasons for FTC use: no limitation

Remarks

There are no statutory limitations with regard to the use and the renewal of fixed term contract.
Art. 29 (1) LC stipulates that the duration of a Yemeni worker's contract shall be considered unlimited unless otherwise specified by agreement between the two parties.

Maximum number of successive FTCs: no limitation

Remarks

There are no statutory limitations with regard to renewal of fixed term contract in the LC.
Art. 29 (2) LC stipulates that a contract of employment shall be considered valid for the same duration as that initially provided for if, upon expiry, the employment relationship between the two parties effectively continues.

Maximum cumulative duration of successive FTCs: no limitation

Remarks

There are no statutory limitations in the LC with regard to the possibility of renewing a fixed term contract.
Art. 29 (2) LC stipulates that if, upon expiry of a fixed term contract, the employment relationship between the two parties effectively continues, the new contract of employment shall be considered valid for the same duration.

Maximum probationary (trial) period (in months): 6 month(s)

Remarks

Art. 28 LC.

Obligation to provide reasons to the employee No

Remarks

No express obligation to inform the employee of the reasons for termination except in the event of disciplinary dismissal (for breach of duties) in which cases the employee is allowed to defend himself/herself against the allegations made in an interview with the employer (art. 96 and 97 LC).

Valid grounds (justified dismissal): economic reasons, worker's conduct, worker's capacity

Remarks

- Art. 36 LC provides a list of situations which allow for termination with notice by either party, as follows:
"(a) if one of the parties fails to observe the terms of the contract or labour legislation [= conduct and capacity related];
(b) if work permanently ceases, either entirely or in part;
(c) if there is reduction in the number of workers for technical or economic reasons [= economic reasons];
(d) if the worker absents himself without a legitimate reason for more than 30 days within the same year or for 15 consecutive days, provided that termination of contract is preceded by a written warning from the employer after 15 days of absence in the former case and seven days in the latter [= conduct related] ;
(e) if the worker reaches statutory retirement age;
(f) if the worker is declared unfit to work by decision of the competent medical committee [= capacity related]".

- In addition, art. 35(1) LC provides for a list of situations giving rise to summary dismissal (=without notice) by the employer. These situations mostly relate to the misconduct of the employee (assuming a fraudulent identity, state of inebriation, assaulting the employer or other employees, causing material loss, carrying a firearm, disclosing secrets). In addition, dismissal without notice is allowed if the worker fails to prove his competence for work during his probationary period and if the worker fails to fulfil basic obligations arising from his contract of employment. No further information given in the LC as to which situations are encompassed within the latter case.
- Art. 93 LC provides for the possibility to impose dismissal as a disciplinary penalty if the worker commits "a breach of his duties as provided for in this Code or in his contract of employment".

Prohibited grounds: maternity leave, filing a complaint against the employer, temporary work injury or illness, race, colour, sex, religion, age, trade union membership and activities, language, participation in a lawful strike, lawfully taking leave

Remarks

1) Specific prohibitions of dismissal:
* Article 37 LC provides a list of situations in which the employer is prohibited from terminating the employment contract, as follows:
- during any of the worker's leave provided for in the LC [This includes maternity leave and sick leave];
- during the investigation of a dispute between the employer and the worker, provided that such investigation shall not exceed four months, unless the worker commits another violation which requires his dismissal;
- during the worker's detention by the competent authorities in connection with his work, pending a final decision in the matter.
* Art. 142 LC prohibits dismissal in the course of settlement of proceedings.
* Art. 148(2) LC prohibits a employer from dismissing a worker as a result of his/he participation in a lawful strike.
* Art. 152 LC prohibits dismissal based on trade union activities. See also art. 10 of the Law No. 35 of 2002 on the organisation of Workers' Trade Unions which prohibits dismissal based on trade union membership and activities.
2) Non-discrimination:
* Art. 5 LC prohibits discrimination on grounds of sex, age, race, colour, beliefs or language.

Workers enjoying special protection: pregnant women and/or women on maternity leave, workers on temporary leave following an occupational disease or a work injury

Remarks

Pursuant to Article 37(1) LC, dismissal of a worker is forbidden during any of the worker's leave provided for in the LC.
* This protection covers maternity leave but not the entire period of pregnancy. The LC originally provided for a 60 day maternity leave (art. 45 LC). According to the latest amendment to the LC dated April 2008 (not available in English), women are now entitled to a 70 day maternity leave.
* The protection against dismissal also covers workers in sick sick leave (for ordinary sickness and occupational disease and work injury regulated art. 80 to 83 LC).

Notification to the worker to be dismissed: no specific form required

Remarks

No specific form of notice required in Art. 38 LC. This provision only stipulates that "a party wishing to terminate the contract shall give the other party prior notice of termination".

Notice period:

Remarks

The length of the notice period to be observed by either party is not set according to the length of service but according to the pay period, as follows:
- 30 days for workers with monthly wages;
- 15 days for workers with half-monthly wages,
- one week for workers working on the basis of production or piece work, or hourly or daily or weekly rates (art. 38(3) LC).

tenure ≥ 6 months:

  • monthly paid workers: 30 day(s).
  • hourly, daily or weekly paid workers: 1 week(s).
  • fortnightly paid workers: 15 day(s).

tenure ≥ 9 months:

  • monthly paid workers: 30 day(s).
  • hourly, daily or weekly paid workers: 1 week(s).
  • fortnightly paid workers: 15 day(s).

tenure ≥ 2 years:

  • monthly paid workers: 30 day(s).
  • hourly, daily or weekly paid workers: 1 week(s).
  • fortnightly paid workers: 15 day(s).

tenure ≥ 4 years:

  • monthly paid workers: 30 day(s).
  • hourly, daily or weekly paid workers: 1 week(s).
  • fortnightly paid workers: 15 day(s).

tenure ≥ 5 years:

  • monthly paid workers: 30 day(s).
  • hourly, daily or weekly paid workers: 1 week(s).
  • fortnightly paid workers: 15 day(s).

tenure ≥ 10 years:

  • monthly paid workers: 30 day(s).
  • hourly, daily or weekly paid workers: 1 week(s).
  • fortnightly paid workers: 15 day(s).

tenure ≥ 20 years:

  • monthly paid workers: 30 day(s).
  • hourly, daily or weekly paid workers: 1 week(s).
  • fortnightly paid workers: 15 day(s).

Pay in lieu of notice: Yes

Remarks

Art. 38(1) LC.

Notification to the public administration: No

Remarks

No mandatory notification. However, art. 38(2) LC stipulates that "if either party refuses to receive notice of termination of the contract, the notice may be deposited with the Ministry or one of its offices".

Notification to workers' representatives: No

Approval by public administration or judicial bodies: No

Approval by workers' representatives: No

Definition of collective dismissal (number of employees concerned): No statutory definition of collective dismissal. The LC allows the employer to "reduce the number of workers or make them redundant as a result of a total or partial stoppage of activity".

Remarks

Art. 101(2) LC.

Prior consultations with trade unions (workers' representatives): No

Notification to the public administration: Yes

Remarks

Art. 101(1) LC: mandatory notification to the Ministry of of Social Security, Social Affairs and Labour or its competent office and any of the other party concerned in the event of total or partial stoppage of activity.

Notification to workers' representatives: No

Approval by public administration or judicial bodies: No

Approval by workers' representatives: No

Priority rules for collective dismissals (social considerations, age, job tenure): No

Employer's obligation to consider alternatives to dismissal (transfers, retraining...): No

Priority rules for re-employment: Yes

Remarks

Art. 103 LC: When resuming activity, priority shall be given by the employer to the workers affected by the earlier redundancies or workforce reduction provided that they apply for a job in his/ber establishment within one month from the date of announcement of business activity resumption.

Severance pay:

Remarks

According to art. 120(2) LC, at end of their service, where employees are not entitled to monthly pension or a lump-sum payment pursuant to the Social Insurance Act or other regulations, they shall be entitled to receive severance pay equivalent to at least one month's wages for each year of service (calculated on the basis of the last wage received by the employee).

tenure ≥ 6 months: 0.5 month(s)

tenure ≥ 9 months: 0.75 month(s)

tenure ≥ 1 year: 1 month(s)

tenure ≥ 4 years: 4 month(s)

tenure ≥ 5 years: 5 month(s)

tenure ≥ 10 years: 10 month(s)

tenure ≥ 20 years: 20 month(s)

Redundancy payment:

Remarks

No specific redundancy payment. However, redundancy cases are covered by the general provision on severance pay (art. 120(2) LC).

tenure ≥ 6 months: 0.5 month(s)

tenure ≥ 9 months: 0.75 month(s)

tenure ≥ 1 year: 1 month(s)

tenure ≥ 2 years: 2 month(s)

tenure ≥ 4 years: 4 month(s)

tenure ≥ 5 years: 5 month(s)

tenure ≥ 10 years: 10 month(s)

tenure ≥ 20 years: 20 month(s)

Compensation for unfair dismissal - free determination by court: No

Compensation for unfair dismissal - Legal limits (ceiling in months or calculation method): Max. 6 months' wages in the event of arbitrary dismissal.

Remarks

Art. 39 LC. The worker is also entitled to such compensation if he or she unilaterally terminates the contract without notice due to the misconduct of the employer (i.e assault, commission of morally offensive acts, employer's negligence in the event of serious threat to the worker's safety...) in accordance with art. 36(2) LC.

Reinstatement available: No

Remarks

No provision on reinstatement in the LC.

Preliminary mandatory conciliation: Yes

Remarks

See art. 129 LC:
1. Both parties to a dispute or their representatives shall meet in order to attempt to settle the dispute amicably through negotiation for a maximum period of one month.
2. If amicable settlement fails, the matter shall then be referred to the Ministry which shall summon the parties with a view to settling the dispute within a period not exceeding two weeks as from the date of referral.

Competent court(s) / tribunal(s): labour court

Remarks

Labour disputes are first settled by the Arbitration Committee. Appeals of the committee's award are heard by the Labour Division of the competent Court of Appeal (see arts. 132, 140 LC)

Existing arbitration: Yes

Remarks

Labour disputes shall be settled in first instance by the Arbitration Committee (art. 132 LC).
See also art. 39 on compensation to be awarded by the Arbitration Committee in the event of arbitrary dismissal.

Length of procedure: 40day(s) (statutory)

Remarks

Art. 137(1) LC: Within ten days of the date of submission of a case, the chairman of the Arbitration Committee shall call a meeting to examine the dispute.
Art. 137(2) LC: The Arbitration Committees shall complete the examination of the cases submitted to them and shall deliver their awards within 30 days of the date of the first hearing.

In addition, the parties can appeal the Committee's award within one month at the most of the date of notification of the award. The date date for the first hearing must be set within 15 days of the date of the petition for appeal and the Labour Division shall issue a final decision within 30 days of the date of its first hearing (art. 139 LC).