Hiring in Iran offers access to great talent, but the legal framework is rigid. Unlike the “at-will” employment common in the US, Iranian Labor Law heavily favors the employee.

Before you send an offer letter, you must understand that “Internship” is not a legal loophole to avoid paying a salary or social security.

Here is how to navigate the contract landscape.

The Definition Trap: Is it an “Internship” or “Employment”?

In Iran, you cannot simply label someone an “Intern” to avoid labor laws. You must categorize them correctly based on the Iranian Labor Law (ILL).

Scenario A: The “Standard” Intern (Most Common)

• Who: University graduates or adults (18+) doing productive work.

• Legal Status: Employee.

• The Reality: If they are working for you and receiving compensation, they fall under the standard Labor Law definition of an employee.

• Implication: You must pay at least the minimum wage, provide Social Security (SSO) coverage, and sign a standard employment contract (often fixed-term). You cannot have an “unpaid internship” for productive work.

Scenario B: The “Apprentice” (Kar-amouz)

• Who: Typically teenagers (ages 15–18) or vocational trainees.

• Legal Status: Apprenticeship Agreement.

• The Rules:

  • Max working hours: 6 hours/day (strictly less than the standard 8).

  • Duration: Max 3 years.

  • Purpose: Must be for specific skills training/vocational education.

• Verdict: Unless you are running a vocational school or hiring high schoolers for training, do not use this model. Stick to Scenario A.

The Employment Contract: The Mandatory & The Strategic

According to the Labor Law, a contract can be oral or written (always use written). It must include specific statutory details, but you should also add “Safety Clauses” for your protection.

Part A: The Statutory Minimum (Must Include)

The law explicitly requires these items:

1. Type of Work: Exact job title and duties.

2. Compensation: Base salary (must meet minimum wage) + fixed allowances (housing/family).

3. Hours & Leave: Work hours, holidays, and leave entitlement (26 days/year + Fridays).

4. Place of Work: Remote or Office address.

5. Date & Duration: Contract start date and end date (for fixed-term).

Part B: The “Strategic 8” (Must Add for Remote/Tech)

To protect your business, especially if managing remotely, add these specific clauses:

Clause	Why it matters in Iran
1. Deliverables	Define “Output.” Since you can’t micromanage locally, state clearly: “Weekly code commit” or “Monthly design assets.”
2. Reporting Rhythm	Define “Ghosting.” Clause: “Employee must update the task board by 10 AM Tehran time. Absence of >2 days without notice is a breach.”
3. Probation Period	Crucial. Unskilled: Max 1 month. Skilled/Professional: Max 3 months. See Section 3 below.
4. Overtime (OT)	Standard week is 44 hours. Anything over is OT (+40% pay). Explicitly state if the role requires OT and how it is approved.
5. Confidentiality	Essential. Define specific data (Client Lists, Source Code, Login Credentials) that cannot be shared.
6. IP Ownership	Iran is not party to all international copyright treaties. Explicitly state that “All work produced during paid hours belongs to the Employer.”
7. Termination	Fixed-term contracts cannot be terminated arbitrarily before the end date unless specific conditions (breach of duties) are met and proven.
8. Dispute Resolution	State that disputes will first go to the “Islamic Labor Council” or the “Board of Adjustment” (standard procedure).

The Probation Period (Azmayeshi)

This is your safety net, but it comes with a strict “Pay-to-Fire” rule.

• Duration: You can agree on a probation period, but it cannot exceed 1 Month for general workers or 3 Months for skilled professionals.

• The “Pay-to-Fire” Rule:

  • If the employee quits during probation: They get paid only for days worked.

  • If the employer fires during probation: You must pay them for the ENTIRE duration of the probation period.

  • Example: If you sign a 3-month probation and fire them on Day 5, you legally owe them 3 months of salary.

Social Security (SSO) & Registration

This is where “Remote” hiring gets complicated.

1. The Obligation

Every employee covered by the Labor Law must be insured by the Social Security Organization (SSO).

• Total Cost: Approx. 30% of salary.

• Split: 23% Employer pays, 7% Employee pays (deducted from salary).

2. The “Four Copies” Rule

Legally, a written employment contract must be created in four copies:

1. One for the Employee.

2. One for the Employer.

3. One for the Ministry of Labor (local department).

4. One for the Islamic Labor Council (or workers’ representative).

3. The Workflow:

• Sign Contract $\rightarrow$ Register Employee on SSO Portal (List of Premium) $\rightarrow$ Pay Monthly Premium.

• Note: Failure to insure results in heavy fines (often 3x the premium).

FAQ: Real-World Scenarios

Q1: I don’t have a registered entity in Iran. Can I sign a “Labor Contract”?

No. You cannot be a legal “Employer” under Iranian Labor Law without a local Tax ID and SSO Workshop Code.

• Solution: You have two options:

  1. Contractor Agreement: Sign a B2B “Service Agreement” (Freelance contract) with the individual. This bypasses Labor Law/SSO but offers less control/loyalty.

  2. EOR / Agency: Use a local Iranian HR agency to hire them. The agency signs the Labor Contract and handles SSO; you pay the agency.

Q2: Should the contract be in English or Farsi?

Bilingual is Best.

• Legally, the Farsi version prevails in Iranian courts.

• Practically, sign a bilingual (two-column) contract so both your HQ and the local employee understand the terms.

Q3: What is the most common cause of disputes?

Fixed-Term Contract Termination.

• Many employers think they can fire an employee “at will” with 2 weeks’ notice.

• Reality: If you sign a 1-year contract, you generally have to pay them for the full year unless they committed a “gross violation” proven to the Labor Board.

• Advice: Start with short fixed-term contracts (e.g., 3 months), then renew. Do not sign a 1-year contract immediately with an unproven hire.

Summary Checklist for Contracts

• Duration: Is it a Fixed-Term contract (recommended)?

• Probation: Is it explicitly stated (max 3 months)?

• Hours: Does it respect the 44-hour/week limit?

• IP Clause: Is the “Work for Hire” ownership clear?

• Language: Is there a Farsi translation for legal validity?

• SSO: Do you have a mechanism (Entity or Agency) to pay the 23% insurance premium?