However, according to section 191 of LC: "Small­ scale enterprises with fewer than ten workers may, as circumstances require, be temporarily excluded from some of the provisions of this Code. Determination as to such exceptional cases shall be in conformity with regulations to be proposed by the Supreme Labour Council and approved by the Council of Ministers."

Sections 1 and 2 of the Iranian Labour Code (LC) apply to all employers, workers, and workplaces across various sectors, defining "worker" broadly to include anyone working for remuneration. However, Section 188 exempts individuals under the Civil Service Act, other special laws, and family workplaces where only the employer and their immediate family work.

Section 1 of LC. All employers and workers, as well as workplaces and production, industrial, services and agricultural establishments, are required to comply with the provisions of this Code.
Section 2 LC. For the purposes of this Code, the term “worker” means any person who works in any capacity at the request of an employer in return for remuneration. The term “remuneration” includes wages, salaries, dividends and other allowances.

Section. 188 LC. Any person subject to the Civil Service Act or other special laws and regulations and any worker in family workplaces where work is performed exclusively by the employer, his wife and his blood relatives in the first degree are not subject to the provisions of this Code.
Section 189 LC: "In the agricultural sector, activities related to growing and management of fruit trees, various plants, forests, pastures, parks, animal husbandry, raising and breeding of poultry and birds, the silkworm industry, breeding of marine animals, beekeeping, cultivation, growing and harvesting and other agricultural activities are exempted from parts of this Code, at the proposal of the Supreme Labour Council, and subject to the approval of the Council of Ministers".

See Note 2 under section 7 of LC: "The maximum duration of a definite period in respect of types of work which are not permanent by nature shall be determined by the Ministry of Labour and Social Affairs and approved by the Council of Ministers."

See Note 2 under section 7 of LC: "The maximum duration of a definite period in respect of types of work which are not permanent by nature shall be determined by the Ministry of Labour and Social Affairs and approved by the Council of Ministers."

The Council of Ministers approved a new regulation on 18/02/2020 (Determination of Non-Continuous Jobs-Article (7) of the LC) to "partially" address the challenges associated with temporary contracts. These regulations define types of activities which are not permanent by nature and limit their maximum duration to four years.

The Council of Ministers regulation on Determination of Non-Continuous Jobs-Article (7) of the LC (2020):
"Tasks Not Permanent by Nature;
A. All tasks in workshops established for a specific mission that ends on a certain date, such as dam construction, road construction, and factory building.
B. All tasks in workshops that do not have a specific time limit and continue over time but are not part of the main activities and duties of the workshop, such as building a warehouse, constructing a building, or setting up a new production line.

Additional Provisions:
The maximum duration for tasks that are not permanent by nature is four years.

Note 1: The maximum temporary duration includes the total time of temporary contracts that can be concluded with one or several workers for tasks mentioned in Clause 1 of this regulation.
Note 2: The temporary stoppage of the workshop is exempt from the time limit specified in this article.
For tasks that existed before the notification of this regulation, the maximum temporary duration will be calculated from the date of notification.
Employers are allowed to settle accounts with workers of the completed project or activity mentioned in Clauses A and B of Clause 1 of this regulation, even after the four-year period mentioned in Clauses 2 and 3.
Workers/individuals engaged, under temporary contracts, in work/tasks/activities that are permanent by nature are not subject to the provisions of this regulation."

The LC is silent as to the possibility of renewing FTC and the rules regarding the maximum number of renewals.
It only refers to the "maximum duration of a definite period in respect of types of work which are not permanent by nature" which "shall be determined by the Ministry of Labour and Social Affairs and approved by the Council of Ministers."(sec. 7, note 2, LC).

Under the Council of Ministers' new regulations of 18/02/2020, for activities that are NOT permanent by nature, the maximum length of FTC renewal is four years.

The LC does not specify the maximum duration of (successive) FTCs with respect to types of work which are "permanent by nature". According to Note 2 under section 7 of the Labour Code: "The maximum duration of a definite period in respect of types of work which are not permanent by nature shall be determined by the Ministry of Labour and Social Affairs and approved by the Council of Ministers."

The Council of Ministers regulation of 18/02/2020 defines types of work which are "NOT permanent" by nature and limits their maximum duration to four years (paragraph 2): [...].
2. The maximum period for activities that are not permanent by nature is four years.
Note 1: The maximum temporary period includes the time limit of the total temporary term contracts that can be concluded with one worker or a number of workers for the performance of the tasks mentioned in paragraph (1) of this Decree.
Note 2: The period of temporary suspension of the workshop is exempt from the time limit mentioned in this article.

Where an employment contract is concluded for a fixed term or for piece­work, neither party may unilaterally terminate the contract (sec. 25 LC)

See section 11 of LC, Note 1: "The probationary period shall be specified in the employment contract. The maximum duration of probation shall be one month for unskilled and semi-­skilled workers and three months for skilled and specialised workers".

Section 11 of LC: [...]. "During [the probationary] period, either party shall be entitled to terminate the employment relationship without prior notice and without being obliged to pay compensation. Should the employment relationship be terminated by the employer, the latter shall be required to pay remuneration for the whole probationary period; if the employment relationship is terminated by the worker, the latter shall be entitled only to remuneration for the period during which work was performed."

See section 6 of LC on the general prohibition of discrimination: "Iranians, whatever their tribe or ethnic group, enjoy the same rights; skin colour, race, language and the like do not constitute any privilege or distinction; all individuals, whether men or women are entitled to the same protection of the law".

• Section 20 of LC provides for cases of dismissal after suspension of the employment contract on valid and invalid grounds.
"Where, in the cases provided for in sections 15, 16, 17 and 19, the employer refuses to reinstate the worker after the period of suspension, such refusal shall constitute unlawful dismissal (in the absence of a valid reason), and the worker shall be entitled to apply to the Board of Inquiry within 30 days. Where the employer is unable to prove that his refusal to reinstate the worker is based on just grounds, he shall, at the discretion of the said Board, be obliged to reinstate the worker in his job and to pay him his wages from the date on which he reported to the workplace. Where the employer can establish just grounds, he shall be required to pay the worker an amount equal to 45 days’ wages, at his most recent rate of pay, for each year of service completed by the worker.
"Where, within 30 days at the most of the termination of suspension, a worker fails, without a valid reason, to report to his employer for work, or after having referred to his employer and been denied reinstatement, he fails to apply to the Board of Inquiry, he shall be deemed to have resigned from his position, in which case the said worker shall be entitled to a length ­of­ service allowance equivalent to his last monthly wage for each year of service completed."

• Section 25 of LC prohibits unilateral termination of any employment contract.
"Where an employment contract is concluded for a fixed term or for piece work, neither party may unilaterally terminate the contract."

Not specified in the LC.

Remarks: However, the protection of pregnant women is implied in section 76 (note. 1) of LC.
§ 76 (Note 1): "On termination of maternity leave, a woman worker shall return to her former work, the duration of such leave being considered part of her effective service, subject to confirmation by the Social Security Organisation."

No specific form is prescribed in the LC.
Note, however, that termination of employment for continued violations of disciplinary rules requires previous written warnings (§ 27 LC).

Section 27 of LC "Where a worker is negligent in discharging his duties or if, after written warnings, he continues to violate the disciplinary rules of the workplace, the employer shall [...] terminate his employment contract."

No statutory notice period to be observed.

Section 21 (h) of LC allows termination of employment in the event of "reduced production and structural changes imposed by economic, social and cultural developments calling for vast technological changes" without specifying the number of employees affected.

*Remarks: As of March 2025, the amendment to section 21(h) of LC is not yet reflected in the electronic version of the text of the LC provided under "references". Information is found in secondary sources in the original language (Persian). The following is a translation of the text of the amendment to section 21 of the Labour Law:
Section 21- The employment agreement may be terminated in any of the following cases [...]
h) Reduced production and structural changes imposed by economic, social and cultural developments call for vast technological changes as provided in Article 9 of the Law Facilitating the Renovation of Industries. "Source of information: "Hemmati M. Termination of Employment Contract in Iran Labor Law with Emphasis on Judicial Practices. Legal Views 2023; 27 (100): 33-62 (URL: http://jlviews2.ujsas.ac.ir/article-1-2015-fa.html) (see p 47).

Article 9 of the Law on Facilitating the Modernization of the Country's Industries and Amending Article (113) of the Law of the Third Economic, Social and Cultural Development Plan (2003) (URL: https://rc.majlis.ir/fa/law/show/93957):

Art. 9: "In order to improve the quality and productivity, the human resources of industrial companies shall be determined with the participation of the workers' organization and the management of each company. In case of agreement between the parties in the field of required and surplus manpower, the surplus workforce shall be covered by unemployment insurance by receiving at least two months of the last wage and benefits for each year of work experience in the unit or in any other way that is agreed upon, in accordance with the provisions of paragraph (a) of Article (7) of the Unemployment Insurance Law approved on June 16, 1990. In the event of failure to reach an agreement between the single labour organization and the employer, the matter will be referred to a working group consisting of government representatives (the Ministries of Industries and Mines, Labour and Social Affairs, and the Management and Planning Organization of the country) and the Social Security Organization and the Supreme Employer and Labour Organizations, and according to the opinion of the said committee, the surplus workers will be paid the annual rights stipulated in the Labour Law in accordance with the provisions of paragraph (a) of Article (7) of the Law Unemployment insurance approved in 1990.09.16 are covered by unemployment insurance."

Only if the parties do not reach an agreement.

See article 9 of the Law on Facilitating the Modernization of the Country's Industries and Amending Article (113) of the Law of the Third Economic, Social and Cultural Development Plan (2003). (URL: https://rc.majlis.ir/fa/law/show/93957):

Art. 9: "In order to improve the quality and productivity, the human resources of industrial companies shall be determined with the participation of the workers' organization and the management of each company. In case of agreement between the parties in the field of required and surplus manpower, the surplus workforce shall be covered by unemployment insurance by receiving at least two months of the last wage and benefits for each year of work experience in the unit or in any other way that is agreed upon, in accordance with the provisions of paragraph (a) of Article (7) of the Unemployment Insurance Law approved on June 16, 1990. In the event of failure to reach an agreement between the single labour organization and the employer, the matter will be referred to a working group consisting of government representatives (the Ministries of Industries and Mines, Labour and Social Affairs, and the Management and Planning Organization of the country) and the Social Security Organization and the Supreme Employer and Labour Organizations, and according to the opinion of the said committee, the surplus workers will be paid the annual rights stipulated in the Labour Law in accordance with the provisions of paragraph (a) of Article (7) of the Law Unemployment insurance approved in 1990.09.16 are covered by unemployment insurance. […]."

Article 9 of the Law on Facilitating the Modernization of the Country's Industries and Amending Article (113) of the Law of the Third Economic, Social and Cultural Development Plan (2003). (URL: https://rc.majlis.ir/fa/law/show/93957):

Art. 9: "In order to improve the quality and productivity, the human resources of industrial companies shall be determined with the participation of the workers' organization and the management of each company. In case of agreement between the parties in the field of required and surplus manpower, the surplus workforce shall be covered by unemployment insurance by receiving at least two months of the last wage and benefits for each year of work experience in the unit or in any other way that is agreed upon, in accordance with the provisions of paragraph (a) of Article (7) of the Unemployment Insurance Law approved on June 16, 1990. In the event of failure to reach an agreement between the single labour organization and the employer, the matter will be referred to a working group consisting of government representatives (the Ministries of Industries and Mines, Labour and Social Affairs, and the Management and Planning Organization of the country) and the Social Security Organization and the Supreme Employer and Labour Organizations, and according to the opinion of the said committee, the surplus workers will be paid the annual rights stipulated in the Labour Law in accordance with the provisions of paragraph (a) of Article (7) of the Law Unemployment insurance approved in 1990.09.16 are covered by unemployment insurance. […]."

The administration will act only in the absence of agreement between the employer and the workers' representatives.
See article9 of the Law on Facilitating the Modernization of the Country's Industries and Amending Article (113) of the Law of the Third Economic, Social and Cultural Development Plan (2003). (URL: https://rc.majlis.ir/fa/law/show/93957):
(...)
Art. 9: "[…]. In the event of failure to reach an agreement between the single labour organization and the employer, the matter will be referred to a working group consisting of government representatives (the Ministries of Industries and Mines, Labor and Social Affairs, and the Management and Planning Organization of the country) and the Social Security Organization and the Supreme Employer and Labor Organizations, and according to the opinion of the said committee, the surplus workers will be paid the annual rights stipulated in the Labor Law in accordance with the provisions of paragraph (a) of Article (7) of the Law Unemployment insurance approved in 1990.09.16 are covered by unemployment insurance. […]."

Article 9 of the Law on Facilitating the Modernization of the Country's Industries and Amending Article (113) of the Law of the Third Economic, Social and Cultural Development Plan (2003). (URL: https://rc.majlis.ir/fa/law/show/93957):

Art. 9: "In order to improve the quality and productivity, the human resources of industrial companies shall be determined with the participation of the workers' organization and the management of each company. In case of agreement between the parties in the field of required and surplus manpower, the surplus workforce shall be covered by unemployment insurance by receiving at least two months of the last wage and benefits for each year of work experience in the unit or in any other way that is agreed upon, in accordance with the provisions of paragraph (a) of Article (7) of the Unemployment Insurance Law approved on June 16, 1990. […]."

No information in the current legislation.

Remark: there is no provision for priority rules for collective dismissal in the private sector. However, regarding the collective dismissal of civil servants, the regulation on Assignment of those employees of ministries, institutions and organisations responsible for the National Employment Law and other non-covered government institutions that the relevant ministry has recognized as redundant (1979) (URL: https://rc.majlis.ir/fa/law/show/104561), requires ministries and institutions to reassign redundant official and non-official employees to other government agencies through the Ministry of Labour and Social Affairs. These employees would continue to receive their salaries and benefits for up to six months from their original institutions. If they were not reassigned within this period, they would either retire, be placed on standby, or be dealt with according to other regulations.

There is no information in the current legislation.

There is no information in the current legislation.

- Permanent workers:
See section 27 of LC: Where a worker is negligent in discharging his or her duties or if, after written warnings, he or she continues to violate the disciplinary rules of the workplace, the employer shall have the right to terminate the employment agreement, upon approval of the Islamic Labour Council, and shall pay to the worker a sum equal to his or her last monthly wage for each year of service as a length ­of­ service allowance, in addition to any deferred entitlements.
(No information found in the LC as to the entitlement to severance pay of a permanent worker with less than 1 year of service)

See also:
-Workers under a fixed-term contract:
Section 24 of LC: In the event of the termination of an employment contract concluded for piece­work or for a fixed term, the employer shall pay to each worker employed under such a contract for one year or more, whether continuously or not, an amount equal to his last monthly wage for each year of service as a length­ of­ service allowance.

See Article 9 of the Law on Facilitating the Modernization of the Country's Industries and Amending Article (113) of the Law of the Third Economic, Social and Cultural Development Plan (2003)(https://rc.majlis.ir/fa/law/show/93957):

Art. 9: - [...] In case of agreement by and between both parties in the field of required and surplus manpower, the surplus workforce shall be covered by unemployment insurance by receiving at least two months of the last wage and benefits for each year of work experience in the unit or in any other way that is agreed upon, in accordance with the provisions of paragraph (a) of Article (7) of the Unemployment Insurance Law approved on June 16, 1990.

- In the event of failure to reach an agreement between the single labour organization and the employer, the matter will be referred to a working group consisting of government representatives (the Ministries of Industries and Mines, Labour and Social Affairs, and the Management and Planning Organization of the country) and the Social Security Organization and the Supreme Employer and Labour Organizations, and according to the opinion of the said committee the laid-off workers will be paid the annual rights stipulated in the Labour Law in accordance with the provisions of paragraph (a) of Article (7) of the Law Unemployment insurance approved in 1990.09.16 are covered by unemployment insurance.

Section 20 of LC: "Where, in the cases provided for in sections 15, 16, 17 and 19, the employer refuses to reinstate the worker after the period of suspension, such refusal shall constitute unlawful dismissal (in the absence of a valid reason), and the worker shall be entitled to apply to the Board of Inquiry within 30 days. Where the employer is unable to prove that his refusal to reinstate the worker is based on just grounds, he shall, at the discretion of the said Board, be obliged to reinstate the worker in his job and to pay him his wages from the date on which he reported to the workplace." [...].

Section 165 of LC: "Where a Disputes Board finds that the dismissal of the worker is without just grounds, it shall issue an order for his reinstatement and for the payment of his remuneration as of the date of his dismissal. Alternatively, where dismissal is found to be justified, the worker shall be entitled to his length­ of ­service allowance in the amount prescribed in section 27 of this Code."

Section 20 of LC: "Where, in the cases provided for in sections 15, 16, 17 and 19, the employer refuses to reinstate the worker after the period of suspension, such refusal shall constitute unlawful dismissal (in the absence of a valid reason), and the worker shall be entitled to apply to the Board of Inquiry within 30 days. Where the employer is unable to prove that his refusal to reinstate the worker is based on just grounds, he shall, at the discretion of the said Board, be obliged to reinstate the worker in his job and to pay him his wages from the date on which he reported to the workplace." [...].

Section 165 of LC: "Where a Disputes Board finds that the dismissal of the worker is without just grounds, it shall issue an order for his reinstatement and for the payment of his remuneration as of the date of his dismissal. Alternatively, where dismissal is found to be justified, the worker shall be entitled to his length­ of ­service allowance in the amount prescribed in section 27 of this Code."

Section 20 of LC: "Where, in the cases provided for in sections 15, 16, 17 and 19, the employer refuses to reinstate the worker after the period of suspension, such refusal shall constitute unlawful dismissal (in the absence of a valid reason), and the worker shall be entitled to apply to the Board of Inquiry within 30 days. Where the employer is unable to prove that his refusal to reinstate the worker is based on just grounds, he shall, at the discretion of the said Board, be obliged to reinstate the worker in his job and to pay him his wages from the date on which he reported to the workplace." [...].

Section 165 of LC: "Where a Disputes Board finds that the dismissal of the worker is without just grounds, it shall issue an order for his reinstatement and for the payment of his remuneration as of the date of his dismissal. Alternatively, where dismissal is found to be justified, the worker shall be entitled to his length­ of ­service allowance in the amount prescribed in section 27 of this Code."

Section 20 of LC: "Where, in the cases provided for in sections 15, 16, 17 and 19, the employer refuses to reinstate the worker after the period of suspension, such refusal shall constitute unlawful dismissal (in the absence of a valid reason), and the worker shall be entitled to apply to the Board of Inquiry within 30 days. Where the employer is unable to prove that his refusal to reinstate the worker is based on just grounds, he shall, at the discretion of the said Board, be obliged to reinstate the worker in his job and to pay him his wages from the date on which he reported to the workplace." [...].

Section 165 of LC: "Where a Disputes Board finds that the dismissal of the worker is without just grounds, it shall issue an order for his reinstatement and for the payment of his remuneration as of the date of his dismissal. Alternatively, where dismissal is found to be justified, the worker shall be entitled to his length­ of ­service allowance in the amount prescribed in section 27 of this Code."

Section 20 of LC: "Where, in the cases provided for in sections 15, 16, 17 and 19, the employer refuses to reinstate the worker after the period of suspension, such refusal shall constitute unlawful dismissal (in the absence of a valid reason), and the worker shall be entitled to apply to the Board of Inquiry within 30 days. Where the employer is unable to prove that his refusal to reinstate the worker is based on just grounds, he shall, at the discretion of the said Board, be obliged to reinstate the worker in his job and to pay him his wages from the date on which he reported to the workplace." [...].

Section 165 of LC: "Where a Disputes Board finds that the dismissal of the worker is without just grounds, it shall issue an order for his reinstatement and for the payment of his remuneration as of the date of his dismissal. Alternatively, where dismissal is found to be justified, the worker shall be entitled to his length­ of ­service allowance in the amount prescribed in section 27 of this Code."

In the event of a dispute between an employer and a worker, a settlement shall, in the first instance, be sought by direct compromise between the parties (sec. 157 LC).

Section 157 of LC. "In the event of a dispute between an employer and a worker or a trainee concerning the application of this Code or other labour regulations, or in relation to a training contract, a workplace agreement or a collective agreement, a settlement shall, in the first instance, be sought by direct compromise between the employer and worker or trainee or his representative on the Islamic Labour Council; if such a council does not exist in the workplace, a compromise shall be sought by the employer and the workers’ guild society or the legal representatives of workers and the employer. Where no compromise can be reached, the dispute shall be examined and settled by the Board of Inquiry or the Disputes Board in the manner described hereunder."

Where no compromise can be reached, the dispute may be referred to, examined and settled by the Board of Inquiry (sec. 157, LC).
→Note that a worker who is to be dismissed in accordance with the decision of a Board of Inquiry shall be entitled to appeal the decision to the Disputes Board (sec. 158, LC).

Section 157 of LC: "In the event of a dispute between an employer and a worker or a trainee concerning the application of this Code or other labour regulations, or in relation to a training contract, a workplace agreement or a collective agreement, a settlement shall, in the first instance, be sought by direct compromise between the employer and worker or trainee or his representative on the Islamic Labour Council; if such a council does not exist in the workplace, a compromise shall be sought by the employer and the workers’ guild society or the legal representatives of workers and the employer. Where no compromise can be reached, the dispute shall be examined and settled by the Board of Inquiry or the Disputes Board in the manner described hereunder."

Remarks: No specific length of time is mandated by law for resolving dismissal cases, and the process can be influenced by various factors, including the nature of the dispute and the efficiency of the dispute resolution mechanisms.

Section 20 of LC: "Where, in the cases provided for in sections 15, 16, 17 and 19, the employer refuses to reinstate the worker after the period of suspension, such refusal shall constitute unlawful dismissal (in the absence of a valid reason), and the worker shall be entitled to apply to the Board of Inquiry within 30 days. Where the employer is unable to prove that his refusal to reinstate the worker is based on just grounds, he shall, at the discretion of the said Board, be obliged to reinstate the worker in his job and to pay him his wages from the date on which he reported to the workplace. Where the employer can establish just grounds, he shall be required to pay the worker an amount equal to 45 days’ wages, at his most recent rate of pay, for each year of service completed by the worker."

There is no recent information available.