The first constitution of Iran, passed in 1906, granted basic rights to the people of
Persia through articles eight to twenty five, establishing equality before the law for everyone, and the right to form and join societies (anjumans) and associations (ijtimá'át). The Parliament (Majlis) and the Senate waited 16 years to pass the Civic Servants Employment Act of 1922. It gave protection to labourers and Civic servants. In 1923, the governor of
Sistan and Baluchestan ordered a decree in nine articles to protect carpet makers’ rights, including working hours, leaves, and minimum age. It was the first national document of
labour rights. In 1928, Parliament passed the
Civil Law (Ghanon-e Madanei) which addressed employment contracts. This law divides the employer and employee relations into two categories by benchmarking the French Law. Independent contractors (e.g. carpenters, doctors, lawyers, and plumbers) who control their own work are accountable for their profits and losses. Next, servants who are being paid by an employer to perform specific tasks, but do not have full control of their work, and act upon the employer's instructions and orders. In 1936, the cabinet issued regulations on minimum hygiene conditions in factories, which was the first attempt to regulate employer-employee relationships. On 18 May 1946, the Council of Ministers , which improved the systematization of labour relations and personnel management. Yet, the working conditions, despite the legislation, were entirely at the whim of enterprise owners because the laws were not enforced, and the Labor Ministry was weak. Employers could do virtually as they wished with no consequences, and they barred the formation of labour unions. In 1951, a committee was appointed by the Ministry of Labour to translate various countries' labour laws and the international
ILO Conventions into
Persian in order to do a comparative study and draft a labour law. This effort did not lead to the proposal of a labour law. Then, from 1952 to 1957, various committees established by the ministry of labour and foreign consultants including a Belgian consultant and general secretary of the Middle East labour institute were invited to finalize the draft of labour law, which finally in 1959 voted and passed by the
Parliament "Majils". This law was practised until 1990. The next phase of labour legislation began with the Shah's "
White Revolution" "Enghlab Sefied" in 1962. It provided generous welfare and social improvements, such as profit sharing, employee stock ownership plans, company housing,
minimum wage, and an improved
Social Security Act. All were paid for with revenue from high oil prices. Nevertheless, many private sector owners opposed the new initiatives that infringed on their power. New personnel practices were introduced, including payroll administration with time management, job descriptions, job classifications, evaluations, and organizational hierarchies, mainly in large companies and government-run industries. In the 1960s, progressive private sector entrepreneurs, such as the Ladjevardi family in the Behshar Industrial group, introduced job classifications, personnel policies and procedures, and automated payroll systems following the recommendations of the
Iranian National Oil Company’s foreign advisors.
After the revolution for all employees is compulsory in
Iran. Following the
Islamic revolution and the
new constitution, this enchanted many with idealistic promises. The new constitution addressed work and labour topics in eleven areas through various articles summarized as the following: • Awards freedom of career and occupation • Commands for establishment of working hours • Elimination of compulsory work • Prohibits abuse and exploitation • Acknowledges ownership and right to earned wages for worker • Prohibits disturbance of business by others • Pledges equal opportunity for everyone by providing necessity and amenities • Pledges to make available equipment and tools to those able to work if they lack the capability to acquire required equipments and tools • Pledges to grant interest free loans for establishment of cooperative institutes and companies • Pledges to provide health and hygiene services for diverse age groups • Pledges to aid the underprivileged and victims of accident A new era of labour legislation, shaped after the new Islamic constitution, recognized that progress had occurred following the establishment of the first Islamic Workers Council or (Shora-e Islami Karagaran). This provided workers' rights similar to those of European workers, but under the umbrella of
Islam. During the first two decades of the revolution, the Workers Council influenced many of the personnel management tasks, including recruitment, selection, promotion, job evaluation, salary structure, productivity bonus, health and safety, and many more tasks (even providing employees with a daily milk and food ration). Added to these were establishing and operating factory grocery stores and housing cooperatives. Ironically, many of these tasks became official ink of the 1990 Islamic Republic of Iran Labor law. The end of the Iran-Iraq war marked the start of economic liberation, as well as a gain for the reformists in
Parliament. In this period, a new private sector emerged, challenging the utopian labour laws and regulations. With this, the 1990 labour law was pro-labour and expensive to administer. Management had to seat labour representatives on the company's board of directors, which was unprecedented in the traditional management style of the Iranian private sector, in addition to enforcing many welfare and mandatory benefits. The first dent in the labour law came about with the introduction of temporary employment contracts that allowed employers to hire employees under a one-year contract with the ability to be reissued year after year after a settlement of the annual "end of services" benefit. The Ministry of Labor issued a communiqué in March 1994 stating that employment under the "fixed terms" contracts was legal. The government created an ambitious development plan aimed at liberalizing and boosting the economy overnight. The plan contributed in creating a passive labour law. Then, in 2004, the reformists in the Sixth Parliament and the conservatives in the
Guardian Council succeeded in reaching an agreement to amend the Labor Law to exempt firms with five or fewer workers from some of its provisions. This provided small entrepreneurs with more freedom in their employment practices. Finally, in 2006, in response to growing pressures from the private sector for labour law reform, the
Ministry of Labor drafted an amendment to deconstruct the "free market". A new law is under consideration based on these amendments. ==Labour law==