Labor Law
Termination of Employment for an Employee's Failure to Fulfill Contractual Obligations
A concise overview of Jordanian Law (Labor Law No. 8/1996) on terminating employment when an employee fails to meet contractual duties, covering the employer’s powers, judicial review and relevant case-law trends. The note focuses on practical and procedural consequences where a breach is alleged and how courts treat such dismissals.
Updated: 26 March 2026
Prepared and reviewed by: Ashraf Al-Khawaja
Concept of Employment Contracts
Jordanian labor law defines an employment contract as an oral or written agreement whereby a worker undertakes to work for an employer for remuneration; the contract may be fixed-term, open-ended, for specific work or otherwise. In practice, while oral contracts are legally valid, proving their precise terms and performance standards can be problematic in disputes or litigation.
Employee Obligations under Law No. 8/1996
The law sets out practical duties for the employee: personal performance, exercising the care expected of an ordinary person, following lawful employer orders, safeguarding employer secrets and entrusted property, undergoing required medical checks, and non-competition where lawfully agreed. Practically, some of these duties alone may not justify immediate dismissal unless accompanied by serious consequences or documented disciplinary grounds.
Employer’s Power to Terminate Unilaterally
Article 28(b) of the Labor Law permits dismissal without notice where an employee fails to fulfill contractual obligations, a formulation that grants employers broad scope to terminate immediately. In practice, while employers may act promptly, such dismissals are vulnerable to judicial challenge if deemed arbitrary or unsupported by evidence. The provision must also be read with notice-related rules applicable to indefinite contracts.
Judicial Review and Practical Case Law
Courts scrutinize dismissal decisions to ensure absence of arbitrariness and to assess the evidence and administrative procedures (warnings, internal regulations). Jordanian rulings have upheld dismissals where repeated negligence or material losses were proven, and have overturned dismissals where breaches were not established. The law also allows an employee to sue (within the statutory period) seeking reinstatement or compensation for unfair dismissal, with statutory minima and maxima for awards. In practice, documented breaches and prior disciplinary steps strengthen an employer’s case in court.
Conclusion and Practical Recommendations
Employers should document employee breaches (warnings, performance records, evidence of losses) and follow internal disciplinary procedures before resorting to immediate dismissal to reduce the risk of successful challenges. Employees should retain work records, respond to warnings, and pursue remedies within statutory timeframes if they suspect wrongful dismissal. The author of the source recommends amending Article 28(b) to narrow its scope to specific serious breaches. In all cases, consult the operative legal texts and a licensed attorney before taking action or filing claims.
Legal notice
Notice: This content is general educational material based on the linked published source. It does not substitute for the operative statutory texts or specialised legal advice. Verify current laws, amendments, deadlines and procedures with official sources and consult a licensed Jordanian lawyer before relying on or acting upon this information.
Sources and references
Verify the official text and latest amendments before relying on this material professionally.