3. Employment Contracts, Records and Wages


Article 35

Subject to the provisions of Article 2, the employment contract shall be made in duplicate, on copy to be given to the employee and the other to the employer. In absence of a written contract all of its conditions may be proved by all legal means of evidence.


Article 36

The employment contract shall in particular specify the date of its conclusion, the date on which work begins, nature and place of work, duration of the contract in the case of contract with limited period and the amount of the remuneration.


Article 37

The employee may be appointed for a probationary period not to exceed six months, and the employer may terminate the services of the employee during this period without giving a notice or end of service remuneration. Appointment of the employee on probation basis in the service of one particular employer may not be made more than once. However if the employee passed the probationary period satisfactorily, and remained in service, such period of service shall be computed in the period of his service.


Article 38

An employment contract may either be for a limited or an unlimited period. If it is for a limited period, such period shall not exceed four years and the contract may with mutual agreement be renewed one or more times for similar or shorter period/periods. In the event of renewal of the contract the new period/periods are deemed to be an extension of the original period and shall be added thereto in calculation of the employee’s total period of service.


Article 39

An employment contract is considered a contract for an unlimited period effective from the day of its commencement in any of the following cases:

  1. If it is not concluded in writing.
  2. If it is made for an unlimited period.
  3. If it is made in writing for a limited period and continues to be applied by both parties after lapse of its period without a written agreement between them.
  4. If it is concluded for the performance of a specific job for which no period is fixed, or if the job by its nature calls for renewal, and has remained in force despite the completion of work agreed to.

Article 40

If both parties have continued to apply the contract after the lapse of its original term or completion of work agreed to, without an express agreement, it should be understood that the original contract has been extended under the same conditions except for condition regrading its duration.


Article 41

If an employer entrusts another party with the performance of any of his basic works or any part thereof, this latter becomes solely responsible for any entitlement due to the workers executing the subsidiary work under the provisions of this Law.



Article 42

A vocational training contract is a contract under which the proprietor of an establishment undertakes to equip an individual who attained at least twelve years of age with full vocational training in compliance with the vocation principles. The apprentice shall undertake to serve the employer during the training period under such terms and for such period as may be agreed. The training contract shall be made in writing, otherwise it shall be null and void. Also the employer or any person giving the training must be adequately qualified and experienced in the vocation or trade in which the employee is to be trained. Furthermore, technical facilities and conditions required for teaching the vocation or trade must be made available at the establishment itself.



Article 43

A trainee who attains legal age shall sign the contract himself. It is not permissible for any one who did not attain 18 years of age to enter into training contract directly by himself, but shall be represented by his natural or legal guardian or trustee.

Article 44

  1. A training contract shall be made in at least three copies, one of which shall be deposited with the competent labour department for registration and authentication purposes. Each of the two parties shall retain one authenticated company.
  2. If the training contract which must be registered contains any provisions contrary to the Law or the regulation and orders issued in implementation thereof, the competent labour department may require the parties thereof to remedy thereto.
  3. If the competent labour department does not make any comment or objection within a period of one month from the date on which the training contract is deposited therewith, the contract shall be deemed de facto endorsed from date of its deposit.



Article 45

The training contract shall contain details on the identity of parties thereto and/or their representatives as the case may be together with the procedures, period, phases and the vocation subject of the training.



Article 46

The employer shall give the trainee sufficient time for theoretical education and shall throughout the period fixed in the contract train him on the proper methods and skills of the vocation for which he is employed; the employer shall also grant the trainee a certificate on completion of each phase of training in accordance with the provisions contained in this Section and a final certificate on completion of the training period. The final certificate shall be endorsable by the competent Labour Department in accordance with such rules and procedures as may be determined by the Minister of Labour and Social Affairs.


Article 47

The training contract may contain an undertaking by the employer to the effect that on completion of his training he shall work for the employer or at the establishment where he has been trained for a period not exceeding twice the training period. The employer may undertake in the training contract to employ the employee on completion of the latter’s period of training.

Article 48

The Contract shall determine remuneration to be paid for each phase of training, and the remuneration for the final phase shall not be less than the minimum salary prescribed for a similar work and shall not in any case whatsoever be fixed on piecemeal basis or on production basis.


Article 49

A trainee who is under 18 years of age shall before commencement of training undergo medical examination to ascertain his health condition and ability to carry out the duties of the vocation for which he wishes to be trained, should particular physical and health conditions be required. The medical report should certify that the trainee candidate satisfies the physical and health conditions required.


Article 50

The Minister of Labour & Social Affairs can decide to regulate training for vocations and trades which require apprenticeship and fix the period of training of such vocations and trades, theoretical and practical training programs, the conditions of examination and the certificate given on completion of the training period. The Minister shall give his decision in this respect after taking the opinion of the public establishments concerned. In all cases the Minister may consult one or more experts in the profession or vacation where apprenticeship is required to be regulated.


Article 51

The Minister of Labour and Social Affairs may decide to establish vocational training centers independently or in co-operation with national, foreign or international vocational or charitable bodies. The decision to establish a center shall determine the vocation for which training is to be provided, condition for admission to the center, the theoretical and practical curricula, the rules of vocational examinations and certificates and any other matters necessary for better performance of the center.


Article 52

The Minister of Labour and Social Affairs may impose upon such establishments, companies and proprietors of industries, vocations and trades as may be determined by him to accept a certain number or a certain percentage of national trainees for work under such terms and conditions and for such periods as may be decided by the Minister of Labour. Moreover, the Minister of Labour may require said establishments, companies, and proprietors of industries, vocations and trades as may be determined by him to accept for training purposes and additional practical experience a certain number of a certain percentage of students of industrial and vocational institutes and centers students under such terms and conditions and for such periods as may be agreed with the management of the establishment concerned.



Article 53*

Each employer employing five or more employees shall abide by the following :

  1. He shall keep a special file for each employee, showing his name, profession, age, nationality, place of residence, marital status, effective date of service, pay and whatever changes effected on the pay, penalties invoked against him, injuries and vocational diseases sustained by him, date of service termination and causes of that.
  2. He shall prepare a card for each employee and keep it in his personal file. The card is to be divided into three parts, one for annual leaves, the second for sick leaves and the third for other leaves. The employer or whoever acts for him shall record in this card any leaves obtained by the employee, and it shall be referred to this card whenever the employee applies for leave.

* Amended by Federal Law No. 12 of 1986.

Article 54*

Each employer employing fifteen or more employees shall keep in each place of business or branch where he practices business, the following records and documents:

  1. Register of Wages: In this register names of employees are to be listed showing the dates for joining of service, and fixing the amount of daily, weekly or monthly pay, along with its benefits, or piece-meal pay, or the commission to each one of them, his working days, and the date for his final departure from work.
  2. Register of Work Injuries: All work injuries accidents and vocational diseases sustained by the employees shall be recorded in this register as soon as they are brought to the knowledge of employer.
  3. The Regulations of the Work: These regulations shall particularly define the daily working hours, weekly holiday, other holidays, necessary measures and precautions to be taken for avoiding work injuries, and fire hazards. They shall be displayed at visible place in the premises of business. Such regulations and any amendments thereof, will not take effect, unless they have been approved by the Labour Department within thirty days from the date they are submitted thereto.
  4. Penalties Sheet: It has to be displayed at a visible place in the premises of business, listing the penalties that may be invoked on the defaulting employees, and citing the conditions and cases for putting them into operation. Enforcement of penalties and any amendments thereof, should be subject to approval by the Ministry of Labour within thirty day from the date of submitting the same thereto.

* Amended by Federal Law No. 12 of 1986.



Article 55

Remuneration shall be paid on a working day and at the place of work in the lawfully circulating national currency.


Article 56

Employees engaged on yearly or monthly remuneration shall be paid at least once a month. All other employees shall receive their remuneration at least once every two weeks.


Article 57

The daily remuneration of an employee on piece pay shall be computed on the basis of the average pay received for actual days of work during the period of six months prior to the termination of service.


Article 58

Settlement of the remuneration payable to employees irrespective of its amount or nature shall be evidenced only in writing, by declaration or oath. Any agreement to the contrary shall be null and void even if made before the effective date of this Law.


Article 59

No worker shall be obliged to buy food or other commodities from specific shops or products manufactured by the employer.


Article 60

Any amounts of money may not be deducted from the employee’s remuneration to recover particular rights, except in the following cases:

  1. Repayment of advances or amounts of money paid to the employee in excess of his entitlement, provided that deduction in this case may not exceed 10% of the employee’s periodic pay.
  2. Installments which are payable by law by the employees from their remuneration, such as social security and insurance schemes.
  3. Subscriptions of the employees in the saving fund or advances due for payment to the fund.
  4. Installments in respect of any social scheme or other privileges or services provided by the employer and approved by the Labour Department.
  5. Fines imposed upon the employee due to offenses committed by him.
  6. Any debts payable in execution of court judgment provided that not more than a quarter of the employee’s pay shall be deducted. In the event of numerous debts or creditors, half of the remuneration at the most may be deducted and the sums of money attached shall be divided pro rata among beneficiaries after payment of any legal alimony amounting to one quarter of the remuneration.


Article 61*

If the employee has caused the loss, damage or destruction to any tools, machines, equipment or products owned by or kept in custody of the employer, to the extent that involvement of the employee was due to his fault or violation of the employer’s instructions, then the employer has the option to cut from the employee’s pay the amount required for rectifying error or restoring the item to its original condition, provided that the amount to be deducted shall not exceed five day pay each month.

The employer can apply to the competent court through the concerned Labour Department for authorizing him to deduct more than this amount if the employee is financially sound or has another source of money.

* Amended by Federal Law No. 12 of 1986.


Article 62

The employer may not transfer an employee from the monthly pay to the daily, weekly, hourly or piece work pay except with the latter’s written consent.


Article 63

The minimum salary and the cost of living allowances payable generally or with respect to a certain area or a particular profession, shall be fixed by a Federal Decree issued pursuant to proposal made by the Minister of Labour and Social Affairs and approved by the Council of Ministers. The Minister’s proposal shall be made either for description or reconsideration of the minimum pay after consulting with the competent authorities and trade agencies if any for both employers and employees based on studies and schedules of the cost of living price fluctuations prepared by concerned authorities in the State. Such minimum pay shall in all cases be enough for the employee’s basic needs and to secure means of living.


Article 64

Minimum salary and its amendments shall come into operation from date of publication of the specific decree in the Official Gazette.