Employer Of Record In Jordan
Skuad’s Employer of Record Jordan makes it easy for you to expand your business in Jordan without any entity setup. As an automated, united, and efficient global HR platform, Skuad’s EOR solution helps you manage your remote teams along with their payrolls, benefits, onboarding, etc., in the most efficient manner. With an international network in over 150 countries, Skuad can assist you in accomplishing your dreams of global expansion with ease.
Jordan At A Glance
Population: 10.22 million
Currency: Jordanian Dinar
Capital city: Amman
Languages Spoken: Arabic, English
GDP: 39.00 USD Billion (2020)
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Employment In Jordan
The employment and Jordan labor laws are applicable to citizens of the country and foreign nationals. Here are the essential aspects to comprehend employment in Jordan that must be kept in mind while planning to expand your business in Jordan.
For setting up any business entity in Jordan, it is necessary to comply with Jordan’s employment laws. These regulations are standard and in line with the regulations of other countries, even though they appear to be a little complex. The best way to manage the challenges concerning employment in Jordan is to collaborate or partner with a local payroll provider who possesses thorough knowledge about Jordan's laws for foreign workers and local workers.
Here are some of the benefits and entitlements for employees in Jordan:
The Jordanian labor laws have many more sections that lay down rules about employer and employee relationships. To ensure that your hiring process is compliant with the obligatory laws, speak to Skuad’s experts today to learn more about employment in Jordan.
Contractors Vs. Full-Time Employees
Under the employment contract law in Jordan, there are 2 types of contracts:
A fixed-term contract has a maximum period of five years, while the indefinite is self-explanatory.
Hiring a contractor in Jordan means that you are hiring a worker who operates independently, manages their entity, serves based on either a contract or a project, and could even work for multiple clients or companies. It means they could self-pay their taxes and are not a part of the employer’s payroll.
However, hiring a full-time employee means you hire a worker through an employment agreement in Jordan and the individual works full-time for one company and receives mandatory employment benefits. It means they are a part of the employer’s payroll. Full-time employees are hired when they are expected to meet long-term goals, need to be closely supervised, when the business needs timely reporting. Such employees enjoy the benefits like commitment to the company’s vision, loyalty, and contribution to the company’s growth.
The employment contracts in Jordan usually come into play when the cost is low, such as payment of taxes, administration, benefits, and when employers desire advantages like flexibility, specialized skills, and less propensity for lawsuits.
Learn more about hiring contractual workers and full-time employees in Jordan. To get started on your Jordanian expansion journey, you can book a demo with us here.
Hiring In Jordan
The 2 categories of employees that you can hire are:
- Expats (foreign individuals holding expertise).
Foreign nationals must pay more attention to check their visas, work permits, and other requirements before taking up employment in Jordan.
If you wish to hire employees in Jordan, you can either post on your website or on portals of hiring companies in Jordan with specific emphasis on your industry-related websites. Additionally, you can post on job portals like Bayt, Naukri, and Monster Gulf for hiring workers in Jordan.
As a business looking to expand into the Jordanian market, not being well-versed with the employment laws and compliances of the country could pose several challenges and can cost you crucial time during the process.
Hiring contractors or fixed-term employees is dependent on the organization’s priorities and business strategy. With an efficient team of professionals under one roof and acting as your Employment of Record, Skuad eases your process of hiring employees in Jordan. From assisting in getting your work started in Jordan to hiring, recruiting ideal talent, and onboarding, Skuad is your go-to industry partner. Experts at Skuad will take care of your requirements with due diligence, be it hiring full-time or contractual employees.
Learn more here.
Probation & Termination
Probation and termination are two crucial factors governed by the Labor Laws of Jordan. The probationary period in Jordan is in place to grant aid to employees and avoid exploitation.
The labor laws give the right to both parties to mutually agree on a probation period. Both the parties have to agree on the probation period in writing; this period is crucial to test the competencies and skills of a worker and for a worker to decide whether he accepts the work expected by him. However, the standard probation period in Jordan should not exceed three months or ninety days under any circumstances.
Termination of service
Termination of Employment contract
Section 21 of the Jordan Labor code deals with termination of employment. According to this section, a contract is considered terminated if:
- Both parties are in agreement to terminate it.
- The contract has expired, or the work is completed.
- Death, or if the worker is incapable of performing the work due to disability or disease, provided this is certified by a medical authority.
In case of an indefinite employment contract, one-month advance notice must be served to the employee to terminate the contract. However, there is no need for prior notice for the termination of a contract in some cases. Those circumstances are as follows:
- Assumption of fake identity and submission of fake certificates.
- Failure to fulfill contractual obligations.
- Material damage to the employer.
- Failure to adhere to internal regulations despite two warnings.
- Absence from work for more than twenty days without any cause or prior notice.
- Disclosure of work secrets.
- Being guilty of criminal offenses or immoral conduct.
- Being intoxicated or under the influence of drugs at work.
- Insulting or striking at fellow employees and authority.
EOR Solution In Jordan
Employer of Record (EOR) Jordan solutions has made the expansion of many businesses to Jordan a reality. By undertaking an employer of record service, you can ensure smooth rolling and processing of your payroll, compliance with other employment responsibilities, all without any entity setup.
With expertise in handling and management of these complex employment processes, Skuad as an Employer of Record partner in Jordan can help growing businesses expand into the country. Our unified employment platform ensures seamless management of monthly payroll, work permits, contracts, and taxation in Jordan for employees.
Have some questions? Talk to Skuad’s experts here.
General Employer Of Record Service Terms
Outsourcing Employment Through An Employer of Record
If you wish to expand your business into Jordan, you need to first decide whether you wish to build an in-house team or choose an EOR to manage payroll and employee services; this would result in efficient processing of your operations.
Leading EORs like Skuad can take care of your company’s operations, leaving you free to focus on your core business functions. Contact us here to learn more.
Types Of Visas In Jordan
If you wish to work in Jordan, you must obtain the necessary permits and Jordan work visas before deciding to expand the business into the country.
The core purpose of these work permits is to enable an individual to enter foreign land for work. As a global platform, Skuad is the most trusted partner to get easy access to global talent by bridging the talent gap in over 150 countries.
We also sponsor work permits in Jordan for foreign workers and take care of the entire work visa process on your behalf.
Partnering with an EOR like Skuad is advantageous as the EOR can handle the responsibility of obtaining work permits on your behalf while you focus on the expansion of your business globally. Talk to our experts today to learn more.
Payroll & Taxes In Jordan
The basic knowledge you must possess while setting up payroll and taxes in Jordan is the country's rules and regulations. While setting up your payroll, you must first decide whether you wish to hire local employees or foreign nationals (expats).
Since setting up a foreign company in another country is not an easy task, it is important to strictly adhere to the local tax laws, such as payment of income tax, Jordan payroll taxes, security costs, business tax, Jordan employer payroll taxes, etc.
The two ways in which you can manage this is:
- By building an in-house team to handle all such issues.
- By outsourcing the payroll in Jordan.
Skuad EOR solution helps manage payroll transactions with expertise. With its unified employment platform, Skuad can help in payroll management for any business that is planning to expand into Jordan.
Taxes In Jordan
Have queries about the taxation policies of Jordan? Click here to talk to our experts.
Incorporation: How To Set Up A Subsidiary In Jordan
For incorporating a holding company in Jordan or a subsidiary in Jordan, the requirements are:
- A copy of the parent company’s Articles & Memorandum of Association.
- List of director members, management board, and shareholders.
- Officially approved documents for business from local authorities.
- A copy of the Power of Attorney authorizing an individual residing in the country to undertake activities.
- The financial statement of the last fiscal year, audited by an auditor.
- Duly filled application form.
- All the documents authorized and legalized by the Embassy.
If you want to establish a Jordanian subsidiary on your own, you'll need a thorough grasp of the country's legislation pertaining to the incorporation of subsidiaries. In addition, you'll need to budget for some of the procedures and be prepared to bear these expenses.
Before you think of starting a subsidiary on your own, consider partnering with an EOR to mitigate such challenges. Working with Skuad’s Jordan EOR will help you avoid these costs and make the process more straightforward. To discover more about forming a Jordanian subsidiary by partnering with us, contact Skuad now.
PEO vs. EOR
A Professional Employer Organisation (PEO) is a company that associates with both small and medium-scale companies to offer HR services. When a company works with a PEO, the HR department is outsourced to provide expert services at affordable charges.
If a company doesn't prefer to outsource the HR function, EOR services are another option to consider. In global EOR services, the EOR is the legal employer of the workers, whereas, with a PEO, the company is in a co-employment relationship with the PEO.
For working with a PEO as a company, you will need to first establish your legal presence wherever you have your employees. But if you are established beyond boundaries, you can hire employees legally through EOR services. There are no fixed criteria to decide; the choice depends on your business requirements.
Skuad offers both types of services. Talk to us and tell us your requirements and let us help you choose between our EOR solution and PEO services.
Book a demo here.
Talent has no boundaries, and neither should a business. Therefore, the Employer of Record (EOR) services is what you need to go from local to global. Talk to Skuad’s experts and start hiring from anywhere.