This article considers how US employers should coordinate global internal investigations with Iraqi employment procedure. A headquarters may investigate alleged misconduct at its Iraqi operation and expect local management to implement the resulting dismissal. Iraqi labour law requires more than a headquarters conclusion: the employer must apply the correct legal framework, prove the violation and follow the required disciplinary procedure.
In Federal Iraq, the Labour Law No. 37 of 2015 sets out disciplinary sanctions, the worker’s right to be heard, time limits and the grounds for dismissal, and labour courts hear employment disputes. The Retirement and Social Security for Workers Law No. 18 of 2023 governs related contributions, and the Penal Code No. 111 of 1969 is relevant where conduct may be criminal. The Kurdistan Region applies its own labour framework, which should not be assumed identical.
Identifying the employer and the framework
The employing entity, workplace and governing employment terms should be confirmed first. Where the federal Labour Law applies, its disciplinary rules, permitted sanctions and procedural safeguards must be considered directly, as global policies cannot override them.
A review of employment and labour law in Iraq should also cover internal work regulations and any collective arrangements. Global codes of conduct should be adopted locally in a way that makes them enforceable, often through Arabic internal regulations communicated to employees. A signed policy acknowledgement shows receipt, but does not validate a term that conflicts with mandatory rights.
Preserving evidence through a lawful investigation
The allegation, scope and investigators should be defined. Company ownership of a device does not justify unlimited access to personal communications without considering privacy protections under the Constitution and applicable law. Targeted collection should be used, with original records retained and their source documented.
The investigation should distinguish:
- First-hand evidence from rumours or unverified complaints.
- The alleged breach from unrelated performance concerns.
- Witness recollection from the investigator’s interpretation.
- Existing records from documents created during the investigation.
- Interim protective measures from disciplinary sanctions.
The Labour Law sets time limits for taking disciplinary action after the employer learns of a violation, and a lengthy global review does not pause them. Any temporary removal from duties should be checked for its legal basis, pay treatment and duration.
Giving the worker a meaningful opportunity to respond
The Labour Law requires that the worker be informed of the allegation and given an opportunity to defend themselves before a sanction is imposed, with representation where the law provides for it. An English-language interview by foreign investigators will rarely be enough on its own.
The allegation should be explained clearly in Arabic or another language the worker understands, the response recorded and the worker allowed to review the record. Disagreement with an allegation should not be recorded as an admission, and evidence of notice, hearing and participation should be kept. Promises of confidentiality should not be made if lawful disclosure may later be required.
Matching the decision to a lawful ground and sanction
The Labour Law limits the sanctions available and the circumstances justifying dismissal without notice. The decision should identify the proven conduct and its legal consequence, consider proportionality and avoid multiple penalties for the same violation. A breach of group values is not a substitute for a statutory or contractual ground.
Questions of corporate signing authority in Iraq should be confirmed so that the decision is made and communicated by an appropriate employer representative. Written notification, final entitlements and the worker’s right to challenge the decision must be addressed. A criminal allegation should be handled separately, since an internal finding is not a conviction and does not remove procedural rights.
US obligations and cross-border coordination
US companies may have their own reasons to investigate, such as FCPA or securities law obligations, and may need to share findings with US regulators or auditors. Transferring Iraqi employee data and interview records abroad should be assessed against Iraqi privacy and confidentiality obligations. Investigation plans should identify early which materials may need to leave Iraq and on what basis.
Keeping the investigation file ready for scrutiny
The employer may need to prove the violation before a labour court, which will examine both the substance and the procedure. Supporting and contradictory evidence should be preserved, together with the reasoning behind the decision, in a form that can be presented in Arabic.
Employers should also review whether local managers have been trained in the disciplinary procedure. Many disputes arise not from the investigation itself but from mistakes in implementation, such as dismissal letters that cite the wrong ground or omit the worker’s entitlements. Standard Arabic templates prepared with legal input reduce these risks and help local teams act consistently with headquarters decisions.
Conclusion & how Etihad Law Firm can help
Global investigations and Iraqi disciplinary procedure can work together, but only if fact-finding, the worker’s right to respond and the final decision follow the Labour Law’s requirements.
As Iraq employment law advisors for US-based companies, Etihad Law Firm aligns investigation protocols with Iraqi labour procedure, prepares local work regulations, advises on disciplinary decisions and represents employers before labour courts, so that investigations lead to defensible outcomes.