The payment of the difference in years is not included in contracts of one year or less
The Court of Administrative Justice has declared that the payment of the difference in years of service is not applicable to the employees working with contracts of one year or less.
Abolfath Sanei, the chairman of the board of directors of the Medical Equipment Merchants Union, stated this in a letter to the member companies of this union.
In this letter, it is stated: “Looking for ambiguity in settling the years of people working in contracts of one year or less than one year based on the fact that this settlement is based on the calculation, fortunately with the follow-up of the Judicial and Intellectual Property Commission of the Chamber of Commerce and the judicial and regulatory support of the Administrative Court of Justice regarding the description The decision of the general board, the level of clarification of this document was announced through an official letter in response to the letter of the honorable chairman of the Iranian Chamber of Commerce. In this letter, the court emphasized that the issued decision does not include temporary contracts of one year or less than one year, and the settlement of these contracts is considered final.
He added in this letter: “After receiving the above letter and opinion, the Iran Chamber has informed the honorable minister of cooperation, labor and social welfare in an official letter and has requested that the resolution of the ambiguity of the court’s decision be communicated to the labor law dispute resolution authorities.” to be considerate in their votes. According to the received information, this has been achieved, and the notification of the Deputy Minister of Labor Relations of the aforementioned Ministry will be received and published soon.
The letter of the Court of Administrative Justice to the head of the Iranian Chamber of Commerce and the letter of the head of the Iranian Chamber of Commerce to the Minister of Cooperation, Labor and Social Welfare have also been sent to the member companies of the union.
The letter of the Court of Administrative Justice states: “According to Article 26 of the Labor Law and Note 2 of Article 41 of the Law on Removing Obstacles to Production, the criterion for payment of termination bonus is the termination of the employment contract. Therefore, whenever the employment contract is terminated, the annual salary must be paid in full, and if the severance bonus was paid separately at the end of employment contracts with a duration of more than one year, this payment is considered outstanding and the difference is paid in the termination. The mentioned contracts must be calculated and paid. However, in contracts with a duration of one year or less, with the termination of the contract, the annual fee must be calculated and paid definitively. However, contracts of one year or less are not covered by Decree No. 2727 dated 9/19/2018 of the General Board of the Court of Administrative Justice, and the payment of the difference in these types of contracts is excluded.”