Working hours under Iraqi Labour Law are among the most frequently litigated employment issues in Iraq. Employees on construction sites, in oil fields, in security services, in retail and in hospitality often work long shifts, rotational schedules and weekends. The Labour Law sets limits on daily and weekly hours, requires rest periods and weekly rest, and requires premium pay for overtime. Employers who design schedules without reference to these rules, or who pay all-inclusive salaries without recording hours, may face claims for years of unpaid overtime.
Understanding the rules, designing compliant schedules and keeping reliable records protects employers from these claims.
The Labour Law No. 37 of 2015 governs working hours in Federal Iraq. It generally limits working time to eight hours per day and forty-eight hours per week, with exceptions for certain roles such as management, security and confidential positions, and allows longer weekly hours for continuous shift work within limits. It requires daily breaks, weekly rest, compensatory rest when employees work on rest days, and premium pay for overtime, with higher premiums for night or arduous work, subject to caps on total overtime. Kurdistan Region applies its own labour framework.
Daily and weekly limits under working hours under Iraqi Labour Law
The general rule is eight hours of work per day and forty-eight hours per week. Hours may be reduced for arduous or harmful work. Certain categories, such as management positions and security and confidential roles, may be exempt from the general limits, and continuous shift work may be organised with higher weekly hours within the limits set by law. Employers should identify which employees fall into exempt categories, recognising that exemptions are interpreted by reference to the actual role, not the job title.
Breaks and rest
Employees are entitled to breaks during the working day and to weekly rest. Where employees work on their weekly rest day, they are entitled to compensatory rest and premium pay. Public holidays are also paid days off, with premium pay if work is required.
Overtime
Overtime is work beyond normal daily hours, and work on rest days and public holidays. The Labour Law requires premium pay for overtime, at not less than one and a half times the hourly wage for day work and not less than twice the hourly wage for night work or arduous or harmful work. Overtime is subject to caps over defined periods. Employers should obtain approval for overtime, record it and pay it in the following payroll.
Rotational and remote site schedules
In oil fields and remote projects, rotational schedules, such as four weeks on and four weeks off, are common. These schedules must be analysed against the Labour Law: daily and weekly limits, rest and overtime still apply, although averaging or continuous work provisions may be relevant. Employers should obtain advice on how to structure rotations lawfully and how to calculate overtime.
All-inclusive salaries
Contracts stating that salary covers all hours worked do not override statutory overtime rights. Employers may structure pay to include a defined amount of overtime, but should still record hours and ensure that actual overtime pay meets statutory minimums.
Record-keeping
Reliable records of hours worked are essential. Employers should use attendance systems, timesheets or other methods that capture start and end times, breaks, overtime and rest days. Records should be retained for the period during which claims may be brought. Employment law advice in Iraq can help design compliant timekeeping systems.
Interaction with payroll tax and social security
Overtime pay is part of remuneration for payroll tax and may be included in the social security contribution base. Payroll systems should include overtime in calculations. Tax advisory services in Iraq can confirm treatment.
Common mistakes
- Applying exemptions based on job titles rather than actual roles.
- Paying all-inclusive salaries without recording hours.
- Ignoring compensatory rest for work on rest days.
- Overtime paid at flat rates below statutory premiums.
- Rotational schedules designed without legal review.
- No reliable attendance records.
Practical checklist
- Classify employees by role for working time purposes.
- Design schedules within daily and weekly limits.
- Provide breaks, weekly rest and compensatory rest.
- Approve, record and pay overtime at statutory premiums.
- Monitor overtime against caps.
- Review rotational schedules with advisers.
- Keep reliable attendance records.
Working hours for managers and specialists
Senior managers and some specialist roles may have working patterns that do not fit standard hours. Employers sometimes assume that managers are not entitled to overtime. Whether any exemption applies depends on the Labour Law and implementing rules, and employers should not rely on job titles alone. Contracts for managers should describe working time arrangements clearly, and employers should keep records that show compliance with rest requirements even if overtime is not paid.
Ramadan and public holidays
Working hours are often reduced during Ramadan in practice, and public holidays are announced by the government, sometimes at short notice. Employers should have a policy explaining how reduced hours and holidays apply, how work on public holidays is compensated and how announcements will be communicated to staff. Rotational and site staff who work during holidays should be compensated in accordance with the law and their contracts.
Health and safety and fatigue
Long working hours, particularly in heat or on hazardous sites, create safety risks. Employers should consider fatigue management as part of health and safety planning, including limits on consecutive shifts and adequate rest between them. Injuries linked to excessive hours can increase liability and attract inspection.
Kurdistan Region
Kurdistan Region applies its own labour framework, and working hours rules should be checked for staff based there.
Illustrative example. A security company employs guards on twelve-hour shifts, six days a week, with a fixed monthly salary. A group of guards claims overtime for three years. The company argues that guards are exempt as security personnel. The court considers the actual duties and the applicable provisions, and awards overtime for hours beyond permitted limits where the exemption did not apply. The company redesigns its shifts and introduces timekeeping and overtime payments.
Key takeaways
- Working hours under Iraqi Labour Law are generally limited to eight per day and forty-eight per week, with exceptions.
- Overtime requires premium pay, with higher premiums for night and arduous work, subject to caps.
- Rest days, breaks and compensatory rest are mandatory.
- Reliable timekeeping is the employer’s best defence against overtime claims.
How Etihad Law Firm Can Help?
Compliance with working hours under Iraqi Labour Law requires careful schedule design, correct overtime pay and reliable records.
Etihad Law Firm advises employers on working time, shift design, overtime and related disputes in Iraq.