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The expiry of the labour contract

Title XII
The expiry of the labour contract
Article 96

a) The labour contract for a definite period shall expire by the expiry of its term.

b) If the labour contract for a definite period expires by the expiry of its term, it may be renewed for another term or other terms by virtue of the express agreement between its parties.


Article 97

a) If the labour contract is concluded for the completion of a specific work, it shall expire upon the completion of the work.

b) If the labour contract concluded for the completion of specific work expires, it may be renewed by virtue of the express agreement between its parties for the completion of any other work(s).


Article 98

The contract shall be deemed for an indefinite period in the following cases:

  1. If the contract is concluded without the determination of its term;
  2. If the contract is concluded for a period of more than five years;
  3. If the initial and renewed term of the contract are more than five years;
  4. If the parties of the contract for a definite period keep executing it after the expiry of its term without an express agreement on its renewal;
  5. If the labour contract is concluded for the completion of a specific work and this requires a period of more than five years;
  6. If the labour contract concluded for the completion of a specific work is renewed and the period required for the completion of the initial work and the works for which the contract is renewed exceeds five years;
  7. If the labour contract concluded for the completion of a specific work expired and its parties keep executing it after the completion of said work without an express agreement on its renewal.

Article 99

a- Either party to the contract may terminate this contract following the notification of the other party at least thirty days before the date of the termination. The labour contract remains in force during the notice period and its parties shall execute all of the obligations arising from it.
If the labour contract is terminated by the employer, an agreement may be made for increasing the notice period to more than thirty days.

b- If the labour contract is terminated without abiding by the notice period, the party terminating the contract shall give the other party compensation for this period equivalent to the worker’s wage corresponding to all or part of said period as the case may be.

If the labour contract is terminated by the employer, the notice period or the remaining part thereof shall be calculated as part of the worker’s service period. If the labour contract is terminated by the worker the contract shall be deemed terminated as of the date of abandonment of the work by the worker.

c- If the employer sends the notice of termination of the contract, the worker may be absent from work for a whole working day or for eight working hours per week to search for another job, provided the absence is suitablewith the work circumstances. The worker shall receive his wage for the working days or hours of absence.

d- The provisions of this article shall not prejudice the right of any of the contracting parties to claim compensation for the termination of the contract if said compensation is due.


Article 100

The notice specified in Article 99 of this Law shall be sent in writing and the party wishing to terminate the labour contract shall send the notice to the other party or his representative and obtain his signature as an acknowledgment of receipt or send this notice by virtue of registered letter with acknowledgment of receipt to the last address provided by the other party.

In cased the party to whom the notice is sent refuses to receive said notice, the other party may prove this through all means of proof.

The notice period starts as of the date of receipt or refusal of receipt of the notice as the case of may be.

The notice of termination of the contract may not be subject to a suspensive or dissolving condition.


Article 101

The worker shall be entitled to compensation for termination by the employer unless the termination of the contract is for a legitimate reason.

The burden of proof of the legitimacy of termination of the contract shall be borne by the employer.


Article 102

a- If the employer sends to the worker a notice of termination of the labour contract during any of the latter’s leaves, the notice period shall be only calculated as of the day following the end of the leave.

b- The employer may not terminate the labour contract during any of the worker’s leaves.


Article 103

Any agreement exempting the employer, contrary to the provisions of this Law, from the notice condition or reducing the period of said notice shall be deemed null and void.

If the worker terminates the contract the employer may exempt him from all or part of the notice period obligation.


Article 104

a- The termination by the employer of the labour contract shall be deemed and arbitrary dismissal if the termination is due to any of the following causes:

  1. The worker’s sex, color, religion, ideology, marital status, family responsibilities,or the female worker’s pregnancy, delivery of a child, or breastfeeding;
  2. If the worker is affiliated to any workers trade union or participates legitimately in any of its activities in accordance with the laws and by-laws;
  3. If the worker represents workers in a trade union association, has already enjoyed said capacity or seeks to do so;
  4. If the worker submits a complaint or formal notice or instigates an action against the employer, unless the complaint,formal notice or action are ofa vexatious nature;
  5. If the worker exercises his right to take a leave in accordance with the provisions of this Law;
  6. The garnishment of the worker’s entitlements with the employer.

b- The Court, based on the dismissed worker’s request, shall order that the latter be brought back to work when it is evidenced to it that his dismissal was due to one of the causes specified in item 2 and 3 of the previous paragraph.


Article 105

The worker may terminate the labour contract without any notification in any of the two following events:

  1. If the employer or any of person acting on his behalf assaults the worker, during or as a result of the work, whether verbally or through an act sanctioned by virtue of the law.
  2. If the employer or any of his representatives commits an act prejudicing ethics against the worker or any of his family members.

The termination of the labour contract in these two cases shall be deemed an arbitrary dismissal by the employer.


Article 106

The worker may terminate the labour contract following the employer’s notification in any of the two following events:

  1. The violation by the employer of an essential obligation specified by virtue of the law, the labour contract or the work regulations at the establishment;
  2. If the employer or his representative deceives the worker as to the working conditions or circumstances, when said deception is so serious to the extent that otherwise the labour contract would not have been concluded.

The worker, before sending the notice of termination of the labour contract, must request the employer in writing to remedy the violation or deception within a time-limit not exceeding thirty days as of the date of submittal of the request. If said time-limit elapses without any response by the employer to said request, the worker shall have after sending the abovementioned notice, the right to terminate the labour contract. Such termination of the labour contract shall be deemed lacking a legitimate reason by the employer if the worker’s allegations are evidenced.


Article 107

The employer may terminate the labour contract without notice or compensation in any of the following events:

  1. If the worker has assumed a false identity or submitted false certificates or recommendations;
  2. If the worker has committed any fault which caused serious material loss to the employer, provided that such employer shall report the matter to the competent authorities within two working days as of the date on which the occurrence of this serious material loss was brought to his knowledge;
  3. If the worker, despite a written warning, fails to comply with written instructions which are required to the observed for the safety of workers and the establishment, provided that such instructions are written and posted up in an apparent location at the workplace;
  4. If the worker is absent without reasonable cause for more than twenty non-consecutive days or for more than ten consecutive days in one year, provided that such termination shall be preceded by a written warning by the employer to the worker after an absence of ten days in the former instance and an absence of five days in the latter instance;
  5. If the worker fails to perform his essential obligations by virtue of the labour contract;
  6. If the worker discloses the secrets related to the work without a written authorization by the employer;
  7. If a final judgment was rendered against the workerfor an offense or a misdemeanor prejudicing honor, trust or public ethics;
  8. If the worker is found during the working hours to be under the apparent influence of alcohol or drugs; or if he has committed an immoral act at the workplace;
  9. If the worker assaults his employer or his responsible official or commits a serious assault upon any of the workers or clients at the establishment during or as a result of the work;
  10. If the worker fails to abide by the controls set by virtue of the law on the exercise of the right to strike;
  11. If the worker is incapable of performing the work subject of the labour contract for reasons related to him such as the cancelation of his work permit or the loss of his qualifications authorizing him to exercise the work agreed upon;

Article 108

The employer may not terminate the labour contract for disciplinary reasons without abiding by the provisions of this Law, the decisions issued in implementation thereof, the work regulation and the regulation on sanctions at the establishment.


Article 109

The employer may not terminate the labour contract as a result of the worker’s limited or lacking competence unless following his notification of the aspects of said lack or limitation and after giving him an appropriate chance and time-limit of not less than sixty days for reaching the required level. In case of failure by the worker, the employer may terminate the labour contract following a notice sent to the worker in accordance with the provision of paragraph (a) of Article 99 of this Law and in accordance with the retained by-laws.


Article 110

The employer may terminate the labour contract as a result of the total or partial closure of the establishment, the downsizing of its activities, the replacement of the production system by another in a way that affects the number of the workforce, provided the contract is only terminated following the notification of the Ministry of the reason of termination thirty days before the date of notification of the worker of the termination.

The worker shall be entitled in case of termination of the labour contract for any of the reasons specified in the previous paragraph to a reward equivalent to half the compensation specified in Article 111 of this Law.


Article 111

a- If the employer terminates the indefinite labour contract within the first three month as of the start of work, the worker shall not be entitled to any compensation, unless the termination is an arbitrary dismissal in accordance with any of the provisions of Articles 104 and 105 of this Law and in this case the worker shall be entitled to a compensation equivalent to a one month wage.

b- If the employer terminates the indefinite labour contract for no reason or for an illegitimate reason following the expiry of three month as of the date of start of work, he shall undertake to compensate the worker with a compensation equivalent to the wage of two working days per each month of service, with a minimum of one month wage and a maximum of twelve months wage.

c- If the employer terminates the definite labour contract for no reason or for an illegitimate reason, he shall undertake to compensate the worker with a compensation equivalent to the wage of the remaining period of the labour contract, unless the parties agree on a lesser compensation provided the compensation agreed upon does not fall below the wage of three months or the wage for the remaining period whichever is lesser.

d- If the employer terminates the labour contract concluded for the performance of a specific work for no reason or for an illegitimate reason, he shall undertake to compensate the worker with a compensation equivalent to the wage of the remaining period of the labour contract necessary for the completion of the work agreed upon according to the nature of the work, unless the parties agree on a lesser compensation provided the compensation agreed upon does not fall below the wage of three months or the wage for the remaining period necessary for the completion of the work agreed upon whichever is lesser.

e- In the cases specified in paragraph (a) and (b) of this Article, if the termination is deemed an arbitrary dismissal in accordance with the provisions of Articles 104 and 105 of this Law, the worker shall be entitled to an additional compensation equivalent to half the compensation due in accordance with the provisions of this Article, unless the contract provides for a higher compensation.

f- For the purpose of this Article, a fraction of a month shall be deemed a whole month.


Article 112

Without prejudice to any obligations specified by any other law, if the worker terminates the labour contract, he shall only be bound to compensate the employer in the following cases:

  1. If termination occurs in a time not suitable to the work circumstances in such a way as the employer would be incapable to find a qualified replacement worker;
  2. If termination was intended to cause the employer damages;
  3. If termination caused the employer a serious damage.

In all cases, in order for the employer to be entitled to compensation the termination by the worker of the labour contract must have been made without abiding by the notice period obligation.

The competent Court shall estimate the compensation due to the employer in accordance with the provisions of this Article upon the latter’s request.


Article 113

a) The labour contract shall be deemed terminated upon the death of the worker; In the event of the death of a worker during the period of validity of the labour contract, the employer concerned shall pay to the family of the deceased worker full wages for two months provided that such deceased worker has been employed with said employer for a period of at least one year.

The labour contract shall not be deemed terminated upon the death of the employer unless said contract is concluded for considerations related to the employer’s person or his occupational activity which stops by his death.


Article 114

a- The labour contract shall be terminated due to the worker’s total disability to execute the duties of his work, whatever the cause of said disability;

The labour contract shall not be terminated due to the worker’s partial disability to execute the duties of his work, unless it is evidenced that the employer has no other suitable employment that the worker may execute in a satisfactory manner. In case of existence of such employment, the employer shall notify the worker thereof or transfer him upon his request to said employment without prejudice to the provisions of the Social Insurance Law.

The disability shall be proved and its percentage shall be determined by virtue of a medical certificate issued by the Medical Committee specified in Article 89 of this Law.

 

Article 115

The employer may terminate the labour contract without compensation when the worker reaches sixty years of age, unless otherwise agreed upon between the parties.


Article 116

The worker not subject to the provisions of the Social Insurance Law shall be entitled upon the termination of his contract to a reward equivalent to the wage of half a month for each year of service for the first three years and the wage of one month for each subsequent year. The worker shall be entitled to a reward for the fraction of a year pro rata the period of service he spent with the employer.

Article 117

The employer may not terminate the labour contract due to the worker’s sickness unless the worker exhausts all of the balance of his sick or annual leaves.

The employer must inform him in writing of his wish to terminate the contract fifteen days before the date on which the worker would have exhausted all of his leaves. If the worker is cured before the expiry of this time-limit, the employer shall refrain from terminating the contract due to the worker’s sickness.


Article 118

Shall be deemed one integral contract any contract concluded by the employer with the same worker if there is no time difference between the end of the old contract and the beginning of the new contract, or if this difference is less than 30 days.If the new contract includes better benefits or conditions,they shall be deemed an amendment to the previous labour contract.

Last Update: Thursday 13 August 2015