This report is designed to furnish those clients already active or intending to initiate an activity in Iran with the basic but useful knowledge of the diverse issues concerning labor and employment in Iran. The material presented in the report should be understood as an introduction to key issues and challenges and not as an in-depth examination of the governing laws and regulations concerning tax, social security, employment contracts, etc. In the following sections, the readers will be provided with the information essential to avoid hassles, implications, or penalties that may emerge in the absence of the insight and familiarity to deal with various legal authorities as well as the employees.
The current processes through which Iran is moving from a state-dominated economy to a more liberalized economic structure lead to legal and administrative ambiguities which sometimes undermine the interests of businesses. In such an environment, it is crucial to be fully familiar with the actual interpretation of laws and regulations as well as the practical aspects for your business. This report is designed to provide an initial manual for dealing with labor and employment issues; however, it is imperative that the report be updated in the future to cover the evolving practices and interpretations. Atieh Roshan Consulting (ARC) will provide such updates on a regular basis.
The report discusses the following issues in detail:
• Iran’s demographic profile and the socio-economic characteristics of the labor market; • Analysis of the Employment Act including employment contract, remuneration, relevant social security provisions, and other noteworthy issues; • Relevant tax issues; • Salary and remuneration constituents