Judicial principles and studies
Defense Law and Its Effects on Fixed‑Term Employment Contracts and Their Renewal
This study summarizes how the defense law and its related orders issued during the COVID period affected fixed‑term employment contracts, focusing on automatic renewal rules, their conditions, and consequences of employer non‑compliance.
Updated: 10 September 2026
Prepared and reviewed by: Ashraf Al-Khawaja
Subject
- The defense law, its orders and related bulletins were applied due to exceptional circumstances caused by the COVID pandemic, resulting in restrictions and temporary suspension of certain labor law provisions. - Bulletin No. (8) related to Defense Orders No. (6) of (2020) provided for automatic renewal of a Jordanian worker’s fixed‑term contract until the end of the operation of the defense law or for a period equivalent to the last contractual term, subject to conditions including that the contract ended on or after 1/7/2020 and that it had been renewed three times or more. - The text also addresses contracts already at the legal maximum term (five years): if the contractual duration is the longer term, it continues until its contractual end, and upon that end it does not renew by operation of the bulletin tied to the defense law’s duration.
Summary
- Employers are bound by the automatic‑renewal rule set out in the bulletin and may not terminate a fixed‑term contract before its expiry except for the lawful termination cases defined in Defense Order No. (6) and the related bulletins. - Failure to comply by not renewing the contract is treated as unjustified termination, entitling the worker to compensation under Article (26) of the Labor Law; employers may also face penalties provided for in clause (11) of Defense Order No. (6) of 2020 if they breach the bulletin. - Jurisprudence has settled that end‑of‑service gratuity is a labor entitlement arising from the individual employment contract and is exempt from fees (as reflected in the decisions noted in the official points).
Practical significance
- Employers must apply the binding renewal provisions and respect the bulletin’s eligibility conditions for automatic renewal. - Workers have remedies for unlawful termination, including compensation and claims for end‑of‑service gratuity, which the courts have treated as fee‑exempt labor claims. - Once the operation of the defense law ends, renewal effects depend on the bulletin’s rules and the contractual duration; any subsequent renewal follows the parties’ will. This content is an educational summary only; it is not a judicial text nor legal advice.
Sources and references
Verify the official text and latest amendments before relying on this material professionally.