A labour contract establishes working relations between the worker and the employer, It is subject to ordinary law and can be made in a form that is agreed upon by the contracting parties.

It can be written or verbal. It can be drawn up and signed according to local custom. If it needs registering, this shall be done at no cost.

The verbal contract is considered to be a tacit agreement between the employer and the worker under the conditions laid down by the labour regulations, even if it is not expressly defined.

1. A labour contract signed with one consent for a specific duration must contain a precise finishing date.

2. The labour contract signed with one consent for a specific, duration
Cannot be for a period longer than two years. It can be renewed one or
more times, as long as the renewal does not surpass the maximum
duration of two years.

Any violation of this rule leads the contracts to become a labour contract of undetermined duration.

3. Sometimes, this contract may have an unspecified date when it is
Drawn up for:

- replacing a worker who is temporarily absent;

- work carried out during a season, and

- occasional periods of extra work or a non-customary activity of
the enterprise.

The durations is then finished by:

- the return to work of the worker who was temporarily absent or
the termination of his labour contract:

- the end of the season, and
- the end of the occasional period of extra work or of the non-customary activity of the enterprise.

4. At the signing of the contract, the employer must inform and clarify the worker of the eventually sensitive issue and the approximate duration of the contract.

5. contract without a precise date can be renewed at will as many times as possible without losing their validity.

6. Contracts of daily or hourly workers who are hired for a short-term job and who are paid at the end of the day, the week or fortnight period, are considered to be contracts of fixed duration with an unspecified date.
7. A contract of a fixed. duration must be in writing. If not, it becomes a Labour contract of undetermined duration.

8. When a contract is signed for a fixed period of or less than two years, but the work tacitly and quietly continues after the end of the fixed period, the contract becomes a labour contract of undetermined duration.

A contract for a probationary period cannot be for longer than the amount of time needed for the employer to judge the professional worth of the worker and for the worker to know concretely the working conditions provided. However, the probationary period cannot last longer than three months for regular employees, two months for specialized workers and one month for non-specialised workers.

The round trip travel costs incurred by a worker during the probationary period when working far from his habitual residence are to be covered by the employer.

Within the framework of his contract, the worker shall perform all of his professional activities for the enterprise. Primarily, he must do the work for which he is hired, and performed it by himself with due care and attention.

However, outside working hours, the worker can engage in any professional activities that are not in competition with the enterprise for which he works or that are not harmful to the agreed process of performance, unless there is an agreements to the country.

Any clause of a contract that prohibits the worker from engaging in any activity after the expiration of the contract is null and void.

The labour contract shall be suspended under the following reasons:

1. The closing of the establishment following the departure of the Employer to serve in the military or for mandatory period of military Training.

2. The absence of work during obligatory periods of military service and military training.

3. The absence of the worker for illness certified by a qualified doctor. This absence is limited to six months, but can, however, be extended until there is a replacement.

4. The period of disability resulting a work-related accident or Occupational illness.

5. The leave granted to a female worker during pregnancy and delivery, As well as for any post-natal illness.

6. Absence of the worker authorized by the employer, based on laws, Collective agreements, or individual agreements.

7. Temporary layoff of a worker for valid reasons in accordance with Internal regulations.

8. The absence of a worker during paid vacations, including an incidental Travel period as well.

9. The incarceration of a worker, without a later conviction.

10. An act of God that prevents one of the parties from fulfilling this obligations, up to a maximum of three months.

11. When the enterprise faces a serious economic or material difficulty or any particularly unusual difficulty, which leads to a suspension of the enterprise operation. This suspension shall not exceed two months and be under the control of the Labour Inspector.

An employer can reinsurance a suspended contract provided that the reasons for the suspension have been remedied and he has given prior notice in accordance with the law.

1. The suspension of a labour contract affects only the main obligations of the contract, that are those under which the worker has to work for the employer, and the employer has to pay the worker, unless there are provisions to the contrary that require the employer to pay the worker. Other obligations such as furnishing of accommodation by the employer, as well as the worker’s loyalty and confidentiality towards the enterprise, continue to be in effect during the period of suspension.

2. The suspension of a labor contract does not leads to a suspension of the Union’s mandate or that of worker’s representative.

3. Unless otherwise specified, periods of suspension are taken into Account when calculating the employment seniority.

A labour contract of specific duration normally terminated at the specified ending date. It can, however, be terminated before the ending date if both parties are in agreement on the condition that this agreement is made in form of writing in the presence of a Labour Inspector and signed by the two parties to the contract.

If both parties do not agree, a contract of specified duration can be cancelled before its termination date only in the event of serious misconduct s or acts of God.

The premature termination of the contract by the will of the employer alone for reasons other than those mentioned in paragraphs 1 and 2 of this article entitles the worker to damages in an amount at least equal to the remuneration he would have received until the termination of the contract.

The premature termination of the contract by the will of the worker alone for reasons other than those mentioned in paragraphs 1 and 2 of his article entitles the employer to damages in an amount that corresponds to the damage sustained.

If the contract has a duration of more than six months, he worker must be informed of the expiration of the contract or of its non-renewal ten days in advance. This notice period is extended to fifteen days for contracts that have a duration of more than one year. If there is no prior notice, the contract shall be extended for a length of time equal to its initial duration or deemed as a contract of unspecified duration if its total length exceeds the time limit specified in Article 67.

At the expiration of the contract, the employer shall provide the worker with the severance pay proportional to both the wages and the length of the contract. The exact amount of the severance pay is set by a collective agreement. If nothing is set in such agreement, the severance pay is at least equal to five percent of the wages paid during the length of the contract.

If a contract of unspecified duration replaces a contract of specified duration upon the latter’s expiration, the employment seniority of the worker is calculated by including periods of both contracts.

In every case of contract termination, the worker can required the employer to provide him with an employment certificate.

The labour contract of unspecified duration can be terminated at will by one of the contracting parties. This termination shall be subject to the prior notice made in writing by the party who intends to terminate the contract to the other party.

However, no layoff can be taken without a valid reason relating to the worker’s aptitude or behavior, based on the requirements of the operation of the enterprise, establishment or group.

The minimum period of a prior notice is set as follows:

? Seven days, if the worker’s length of continuous service is less than six months,

? Fifteen days, I the worker’s length of continuous service is from six Months to two years,

? One month, if the worker’s length of continuous service is longer then two years and up to five years.

? Two months, if the worker’s length of continuous service is longer than five years and up to ten years.

? Three months, if the worker’s length for continuous service is longer than ten years.

Method for calculating the length of service of workers, who are not employed on a monthly basis, shall be determined by a Prakas of the Ministry in charge of Labour.

Any article of a labour contract, of an internal regulation, or any other individual agreement that sets the prior notice period to be less than the minimum set forth in this provision shall be null and void.

The termination of a labour contract at will on the part of the employer alone, without prior notice or without compliance with the prior notice periods, entails the obligation of the employer to compensate the worker the amount equal to the wage and all kinds of benefits that the worker would have received during the official notice period.

The prior notice is the obligation to be observed in enterprises or establishment set forth in Article 1 of this law, both by the worker and by the employer when one of them decide unilaterally to terminated the labour contract. However, the worker laid off for reason other than serious misconduct can leave the enterprise before the end of the notice period if the finds a new job in the meantime. In such case, the worker will not be required to compensated the employer.

During the notice period, the worker of the enterprise is entitled to two days leave per week with full payment to look for a new job.

For task-work or piecework, the worker usually cannot abandon the task that he has been assigned before it has been finished.

However, for a long-term employment that cannot be completed in less than one month, one of the contracting parties who wishes to release himself from the obligations of the contract for serious reasons, he can do so as long he notifies the other party eight days in advance.

Throughout the notice period, the employer and the worker shall be bound to carry out the obligations incumbent on them.

The contracting parties are released from the obligation of giving prior notice under the following cases.

1. For a probation or an internship specified in the contract.

2. For a serious offense on the part of one of the parties.

3. For acts of God that one of the parties is unable to meet his obligations.

The following are considered to be serious offenses:

A. ON THE PART OF THE EMPLOYER

1. The use of fraudulent measures to entice a worker into signing a contract under conditions to which he would not otherwise have agreed, if he had realized it.

2. Refusal to pay all or part of the wages.

3. Repeated late payment of wages.

4. Abusive language, threat, violence or assault.

5. Failure to provide sufficient work to a piece-worker.

6. Failure to implement labour health and safety measures in the workplace as required by existing laws.

B. ON THE PART OF THE EMPLOYER

1. Stealing, misappropriation, embezzlement.

2. Fraudulent acts committees at the time of signing (presentation of false Documentation) or during employment (sabotage, refusal to comply With the terms of the employment contract, divulging professional Confidentiality)

3. Serious infractions of disciplinary, safety and health regulations.

4. Threat, abusive language or assault against the employer or other
Workers.

5. Inciting other workers to commit serious offenses.

6. Political propaganda, activities or demonstrations in the establishment.

Pending the creation of the Labour Court, the ordinary court has the Jurisdiction to determine the magnitude of offenses other than those included in the preceding article.

The employer may find himself unable to meet his obligations in the context of Article 82-paragraph 3, particularly in the following cases:

1. The closing of the establishment by public authorities and

2. Catastrophe (flooding, earthquake, war) that cause material destruction
And make it impossible to resume work for along time. For death of
the employer that cause the closure of the establishment, the workers
are entitled to an indemnity equal to that of the notice period.

The may find himself unable to meet his obligations in the context of Article 82 – paragraph 3, particularly in the following cases.

1. Chronic illness, insanity, permanent disability and

2. Imprisonment.

In cases citied in the first paragraph above, the employer cannot be released from his obligation to give the prior notice.

If a change occurs in the legal status of the employer, particularly by succession or inheritance, sale merger or transfer of fund to from a company, all labour contracts in effect on the day of the change remain binding between the new employer and the worker of the former enterprise.

The contract cannot be terminated except under the conditions laid down in the present Section.

The closing of an enterprise, except for acts of God, doest release the employer from his obligations as stated in this section III. Bankruptcy and judicial liquidation are not considered as acts of God.

In businesses of a seasonal nature, as per list determined by a Prakas of the Minister in charge of Labour, the layoff of workers at the end of a work period cannot be considered as dismissal and doest not result in any compensation. However, the lay-off should be announced at least eights days in advance by a written notice conspicuously posted at the main entry of each work site, and if applicable, on each boat on which there is a work site.

If the labour contract is terminated by the employer alone, except in the case of a serious offense by the worker, the employer is required to give the dismissed worker, in addition to the prior notice stipulated in the present Section, the indemnity for dismissal as explained below:

1. Seven days of wage and fringe benefits if the worker’s length of Continuous service at the enterprise is between six and twelve months.

2. If the worker have more than twelve months of service, an indemnity for dismissal will be equal to fifteen days of wage and fringe benefits for each year of service. The maximum of indemnity cannot exceed six months of wage and fringe benefits. If the worker’s length of service is longer than one year, time fractions of service of six months or more shall be counted as an entire year. The worker is also entitles to his indemnity if he is laid off for reasons of health.

Indemnity for dismissal must be granted to the worker and, if applicable, he can also claim damages even through the contract was not terminated by the employer, but the latter, through his incitements, pushed the worker in to ending the contract him self, If the employer treats the worker unfairly or repeatedly violated the terms of the contract himself. If the employer treats the worker unfairly or repeatedly violates the terms of the contract, he also has to pay indemnities and damages to the worker.

The termination of a Labour contract without valid reasons, by either party to the contract, entitles the other party to damages.

These damages are not the same as the compensation in lieu of prior notice or the dismissal indemnity.

The worker, however, can request to be giving a lump sum equal to the dismissal indemnity. In case, he is relieved of the obligation to provide proof of damage incurred.

When a worker has unjustly breached a labour contract and takes a new job, the new employer is jointly liable for damages caused to the former employer if it is proven that he has encouraged the worker to leave the former job.

Any worker who was engaged to furnish his services may, upon expiration of the contract, demand from his employer a certificate of employment containing primarily the starting date of employment, the dated of departure, and the kind of job held, or, if applicable, the jobs held successively as well as the periods during which the job were held.

The refusal to supply this certificate will subject the employer to pay damages to the worker.

The certificates supplied to workers are exempt from all stamp and registration tax, even if the contain items other than those mentioned in the preceding paragraph, as long as these items do not include any bond, receipt or any agreement liable to ad valorem duties.

The phrase “free from all engagement” and all other terms indicating the normal expiration of a labour contract, the professional qualifications and the service rendered are included in this exemption.

Any harmful statement that could prejudice the employment of a worker arw formally prohibited.

Without prejudice to the provisions of Article 91, the damages owed in the case of a breach of the labour contract without valid reasons, as well as those owed by the employer as per provision of Article 89 above, are determined by the competent court and based on local custom, the type and importance of the service rendered, the worker’s seniority and age, the pay deductions or payments for a retirement pension, and, in general, on all circumstances that can justify the existence and the extent of the harm incurred.

Any layoff resulting from a reduction in an establishment’s activity or an internal re-organization that is foreseen by the employer is subject to the following procedures:

- The employers establishes the order of the layoffs in light of professionals, qualifications, seniority within the establishment, and family burdens of the workers.

- The employer must inform the worker’s representatives in writing in order to solicit their suggestions, primarily, on the measures for a prior announcement of the reduction in staff and the measure taken to minimize the effects of the reduction on the affected workers.

- The First workers to be laid off will be those with the least professional ability, then the workers with the least seniority. These seniority has to be increased by one year for a married worker and by an additional year for each dependent child.

The dismissed workers have, for two years, priority to be re-hired for the same position in the enterprise.

Workers who have priority for re-hire are required to inform their employer of any changes in address occurring after the layoff.

If there is a vacancy, the employer must inform the concerned worker by sending a recorded delivery or registered letter to his last address. The worker must appear at the establishment within one week after receiving the letter.
The Labour Inspector is kept informed of the procedure covered in this article. At the request of the worker’s representatives, the Labour Inspector can call the concerned parties together one or more times to examine the impact of the proposed layoffs and measures to be taken to minimize their effects.

In exceptional cases, the Minister in charge of Labour can issue a Prakas to suspend the layoff for a period not exceeding thirty days in order to help the concerned parties find a solution. This suspension may be repeated only one time by a Prakas of the Ministry.