Jordan’s Labour Code gives employers a clear framework for ending employment, but the rules carry real financial exposure if you get them wrong. The biggest complexity is the interaction between the Social Security Corporation (SSC) and end-of-service benefits. Whether your employees are enrolled in the SSC pension scheme changes what you owe them at termination, and in some high-salary cases you may owe both an SSC payout and an additional employer-paid gratuity. This guide walks through every stage of the termination process so your team knows exactly what to do and what to budget.
Probation and early termination
Probation periods in Jordan cannot exceed three months. During that window, either party can end the employment relationship without giving notice and without any obligation to pay compensation. This gives both sides a clean exit if the relationship is not working.
Once the probation period ends, the full protections of the Labour Code apply. Terminating after probation, even if the employee has only been on payroll for three months and one day, triggers the notice and settlement obligations described below.
Notice period requirements
On open-ended contracts, both the employer and the employee are required to give a minimum of 30 days’ written notice before ending the employment relationship. The notice period applies equally regardless of which party initiates the end.
If you need to terminate immediately, you can pay one month’s salary in lieu of notice. This is a clean alternative to working out the notice period and is commonly used when you need an employee to leave quickly or when keeping someone on during notice creates operational or security concerns.
Two situations waive the notice requirement entirely. First, there is no notice required during a valid probation period. Second, where an employee’s conduct falls under the gross misconduct grounds set out in Article 29 of the Labour Code, you can terminate without notice and without severance. Those grounds are detailed in the next section.
Grounds for termination with cause
Article 29 of the Labour Code sets out the circumstances under which an employer can dismiss an employee without notice or end-of-service benefits. These are not broad categories: each ground is specific, and you should document your evidence before relying on any of them.
The Article 29 grounds are:
- Identity fraud at the time of hire
- Inability to perform the role
- Causing material damage to company property
- Repeated or serious violations of workplace policy
- Disclosing business secrets that cause harm to the company
- Excessive absence: 20 or more intermittent days in a year, or 10 or more consecutive days without a valid reason
- Behaviour that violates public morals
- Workplace violence or assault against the employer or a colleague
- Reporting to work under the influence of alcohol or drugs
Where cause is established under Article 29, the employer owes no severance and no notice pay. The employee is, however, still owed any outstanding salary for days worked and any accrued but unused annual leave.
Document everything. Labour courts do review cause dismissals, and a poorly documented case can be reclassified as wrongful termination, exposing you to the full EOSB liability you were trying to avoid.
End-of-service benefits and severance
End-of-service benefits (EOSB) in Jordan depend on one critical variable: whether the employee participates in the SSC pension scheme. The two paths produce different obligations, and high-earning employees can trigger obligations under both.
The basic EOSB rule for non-ssc employees
For employees who are not enrolled in the SSC pension scheme, the rule is straightforward. You owe one month’s salary per year of continuous service. The entitlement begins after the employee has completed at least one full year of continuous employment.
Ssc-enrolled employees
For employees enrolled in the SSC, the SSC payout generally replaces the employer-paid gratuity. The SSC lump sum structure (where the employee has not yet met pension conditions) is calculated on the total contribution base:
| Contribution period | SSC lump sum rate |
|---|---|
| Up to 120 months (10 years) | 10% of total contribution base |
| 120 to 216 months (10 to 18 years) | 12% of total contribution base |
| 216 months or more (18+ years) | 15% of total contribution base |
Where an employee meets the SSC pension conditions, they receive a monthly pension from the SSC rather than a lump sum, and the employer’s direct gratuity obligation does not apply.
The salary ceiling issue
The SSC operates with a contribution ceiling of JOD 3,349 per month (2026 figure). Contributions are only calculated on salary up to that ceiling. For employees earning above JOD 3,349 per month, Jordanian court precedent has established that the employer may still owe a gratuity on the portion of salary above the SSC ceiling. The logic is that the SSC benefit only covers earnings up to the ceiling, so the employer remains liable for the uncovered portion.
If you have employees on salaries above JOD 3,349 per month, take legal advice on your residual EOSB exposure at the point of termination.
Worked examples
Example 1: Non-SSC employee, 5 years of service Monthly salary: JOD 1,800 EOSB owed: JOD 1,800 x 5 = JOD 9,000
Example 2: SSC-enrolled employee, 8 years of service, salary below the ceiling Total contribution base over 96 months: JOD 172,800 (hypothetical) SSC lump sum: 10% of JOD 172,800 = JOD 17,280 Employer-paid gratuity: JOD 0 (SSC covers the obligation)
Example 3: SSC-enrolled employee, salary above the SSC ceiling Monthly salary: JOD 4,500 (JOD 1,151 above the ceiling) The employer may owe a gratuity on the JOD 1,151 excess per year of service. Get legal advice to quantify this before finalising the settlement.
Termination without cause
EOSB applies on termination without cause after one year of continuous service. If you terminate before the one-year mark and there is no cause under Article 29, you owe notice pay (or pay in lieu) but not EOSB. For employees on longer service, budget the full gratuity into the cost of any restructuring or role elimination exercise.
Voluntary resignation
When an employee resigns, they must give 30 days’ notice. The employer does not owe any gratuity on resignation. The SSC lump sum or pension remains accessible to the employee directly through the SSC under its own rules, but that payment comes from the SSC fund, not from you.
One obligation survives resignation: unused annual leave must be paid out in full. This applies regardless of the reason for separation. If an employee has accrued leave and resigns, you must pay it.
Fixed-term contracts
Fixed-term contracts expire automatically at the end date. No notice is required from either side, and no EOSB is owed simply because a fixed term has run its course.
If you terminate a fixed-term contract early without cause, you owe compensation equivalent to the salary for the remaining period of the contract. That can be a significant sum if you are terminating early on a multi-year contract. Weigh that cost before acting.
Watch the rollover rule: if either party continues the employment relationship after the fixed term expires without executing a new contract, the contract converts to an open-ended one. That shifts you into the full open-ended contract regime, including notice obligations and EOSB accrual. Manage contract renewals proactively.
Final settlement obligations
When employment ends for any reason, the final settlement must cover three things:
- Outstanding salary for all days worked up to the termination date
- Payment for all accrued but unused annual leave
- Any EOSB or gratuity owed based on the employee’s service and SSC status
The unused leave payout is non-negotiable. It applies regardless of whether the employee resigned, was dismissed for cause, was dismissed without cause, or the contract simply expired. Do not attempt to offset accrued leave against notice periods without specific legal advice on whether that is permissible under Jordanian law.
Process and pay the final settlement promptly. Delays create dispute risk and potential interest liability.
Prohibited dismissals
Jordan’s Labour Code prohibits termination in three circumstances regardless of the employer’s stated reason.
Female employees cannot be dismissed during pregnancy. A 2025 amendment extended this protection to the entire pregnancy. Previously the protection applied only from the sixth month. Terminating a pregnant employee at any stage now exposes the company to wrongful dismissal liability.
Dismissal during maternity leave is also prohibited. The prohibition runs for the duration of the leave entitlement.
Any dismissal that is retaliatory, meaning triggered by an employee filing a complaint or exercising a legal right, is prohibited. If a dismissal follows closely after a complaint to the Ministry of Labour or within the company, be prepared to demonstrate that the decision was entirely unconnected.
Wrongful dismissal claims carry reinstatement risk as well as financial liability. The prohibited categories are areas where you should consult Jordanian employment counsel before taking any action.
Work permit cancellation for foreign employees
If you are terminating a foreign national, the work permit must be cancelled immediately on termination. There is no grace period. Failure to cancel promptly creates compliance exposure for the company.
The cancellation process involves notifying the Ministry of Labour. Coordinate this step with your HR or legal team on the day of termination. If you are using an Employer of Record (EOR) to employ the worker, the EOR typically handles permit cancellation as part of the offboarding process.
Termination disputes
Where a termination is disputed, the standard process moves through two stages. Ministry of Labour mediation is the first step. A labour inspector facilitates a settlement between the parties. Many disputes resolve at this stage.
If mediation fails, the case proceeds to the labour courts. Labour courts have jurisdiction over all employment disputes and can award reinstatement, compensation, or both. Courts in Jordan do review whether termination was substantiated, and they will examine the employer’s documentation, process, and stated grounds.
Keep a clear paper trail: written notices, performance records, policy violation documentation, and settlement records. That documentation is your defence if a case reaches court.
Terminating employees without a jordan entity
Foreign companies without a legal entity in Jordan often employ Jordanian workers through an Employer of Record. If you are in this position, terminations are more complex than they look from the outside.
The EOR is the legal employer of record in Jordan. Any termination must comply with Jordanian law, and the EOR manages the process: issuing the correct notice, calculating the EOSB and SSC position, processing the final settlement, and cancelling any work permits. Attempting to terminate an EOR-engaged worker outside the EOR’s process creates liability for the local employer of record and undermines the compliance value of using EOR services in the first place.
When you decide to terminate, notify your EOR provider promptly and in writing. The earlier you flag the intention, the more time there is to plan the notice period, calculate the settlement, and manage the offboarding cleanly. Budget the EOSB and any salary-in-lieu costs as part of the total exit cost before you make the decision, not after.
Using EOR services for Jordan means your provider absorbs the entity risk, handles the regulatory process, and ensures the final settlement meets Jordanian requirements. That matters particularly in Jordan given the SSC complexity and the salary ceiling issue for higher earners.
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FAQs
How much notice is required to terminate an employee in Jordan? Thirty days’ written notice is required for open-ended contracts. Alternatively, the employer can pay one month’s salary in lieu of notice and terminate immediately. No notice is required during probation or for terminations under Article 29 (gross misconduct).
What end-of-service benefit does an employer owe in Jordan? For employees not enrolled in the SSC, the employer pays one month’s salary per year of service, after a minimum of one year of continuous employment. For SSC-enrolled employees, the SSC pays a lump sum or pension and the employer’s gratuity obligation is generally replaced by that payment. Employees earning above the SSC ceiling of JOD 3,349 per month may be owed an additional employer-paid gratuity on the excess.
Can an employer terminate without cause in Jordan? Yes. Termination without cause on an open-ended contract requires 30 days’ notice (or pay in lieu) and payment of the full end-of-service benefit where the employee has at least one year of service.
What are the grounds for dismissal without severance in Jordan? Article 29 of the Labour Code sets out the grounds: identity fraud, inability to perform, material damage to company property, serious or repeated policy violations, disclosing business secrets, excessive absence (20+ intermittent days or 10+ consecutive days per year without valid reason), behaviour violating public morals, workplace violence, and reporting to work under the influence of alcohol or drugs.
Can an employer dismiss a pregnant employee in Jordan? No. A 2025 amendment prohibits dismissal throughout the entire pregnancy. The previous rule protected only from the sixth month. Dismissal during maternity leave is also prohibited.
What happens to EOSB when a fixed-term contract expires? No EOSB is owed when a fixed-term contract expires at its natural end date. If the employer terminates early without cause, compensation equivalent to the remaining contract period is owed.
Does an employee who resigns get severance in Jordan? No. Voluntary resignation does not trigger employer-paid gratuity. The employee remains entitled to any SSC lump sum or pension directly from the SSC and must receive payment for all unused annual leave.
What happens if an employee’s work permit is not cancelled after termination? The employer is required to cancel the work permit immediately on termination of a foreign national employee. Failure to cancel creates compliance exposure with the Ministry of Labour.
