The below information is intended to provide a general overview of the legislative developments, in light of the coronavirus (COVID-19) outbreak, in the Hashemite Kingdom of Jordan (Jordan). 

The information included in this report represents the current situation as of the date hereof. Governmental decisions and announcements are continuously being published, legislation updated and the situation evolving as the world manoeuvres through these unprecedented times.

This report shall not constitute legal advice. Should you require assistance in relation to specific enquiries, please do not hesitate to contact us.

1. General overview

1.1. The Jordan National Defence Law No. 13 of 1992 has come into force as of 17 March 2020 following a royal decree issued upon the recommendation of the Council of Ministers. The law grants the Prime Minister wide powers to undertake all necessary measures to combat the COVID-19 outbreak in the Kingdom, including the temporary suspension of ordinary legislation.

1.2. The Council of Ministers, in its session held on 17 March 2020, decided to implement a set of precautionary measures to hinder the spread of COVID-19. This included: the suspension of the works and closure of all ministries and official/public authorities; the suspension of the private sector (excluding the health sector and other vital sectors as determined and recommended by the Minister of Industry, Trade and Supply); and the adoption of the decisions of the Ministry of Labour regarding employee matters (Lockdown Decision).

1.3. This lockdown was initially set for a period of two weeks, but has been extended until 30 April 2020. To date, Jordan is still under lockdown and the government is yet to issue any announcements lifting such order.

1.4. To maintain necessary work chains and service the country's needs, the Minister of Industry, Trade and Supply circulated a decision outlining the sectors that are excluded from the aforementioned Lockdown Decision, namely:

1. the health sector;
2. the industrial and commercial sector encompassing food supply chains such as mills, bakeries, poultry, butchers, fruit and vegetables, and water; companies undertaking distribution of food items; production of tissue and toilet paper; production of detergents and disinfectants; packaging, wrapping, plastic and aluminium sectors necessary for food items, agricultural products, medical items and detergents;
3. water;
4. energy;
5. electricity and gas;
6. agriculture;
7. logistic services;
8. information and communications technology; and
9. media.

1.5. Pursuant to the National Defence Law, a number of Defence Orders have been announced, as explained below.

2. Defence Order No. (1)

2.1. Defence Order No. (1) was issued on 19 March 2020, relating to a number of temporary amendments to the Social Security Law.

2.2. The obligatory social security insurance contribution ratio payable to the Social Security Corporation has been amended, for the three months of March, April and May 2020, as follows:

1. Disability and death (excluding old age) insurance shall become 1% of the employee's wage, which is subject to deduction, payable by the employer.
2. Work injury insurance shall become 2% of the employee's wage, which is subject to deduction, payable by the employer.
3. Maternity insurance shall become 0.75% of the employee's wage, which is subject to deduction, payable by the employer.
4. Unemployment insurance shall become 1.5% of the employee's wage, which is subject to deduction, payable as follows: 
   • 0.5% payable by the employer; and
   • 1% deducted from the employee.

As such, the total monthly contribution is 5.25% of the employee's wage, which is subject to deduction, with 4.25% payable by the employer and 1% deducted from the employee (as opposed to the original contribution equivalent to 21.75% of the employee's salary subject to deduction, with 14.25% payable by the employer and 7.5% deducted from the employee).

2.3. Further items to note under the Defence Order No. (1) in relation to social security are as follows:

1. The employer may continue payment of the old age insurance in full, pursuant to the ordinary percentage as determined under the Social Security Law, prior to the issuance of the National Defence Law, and may pay such insurance via instalments to the Social Security Corporation without any penalties being imposed thereon, provided the insurance is paid in full by the maximum date of 31 December 2023.
2. All employees are entitled to continue payment of the old age insurance provided the employee pays an amount equivalent to 16.5% of his/her salary, subject to deduction.
3. Penalties on late payment, and on contributions which have been amended, shall be suspended for the months of March, April and May 2020.

3. Defence Order No. (2)

Defence Order No. (2) was issued on 20 March 2020, imposing a curfew and lockdown on citizens, with some exceptions therefrom to certain persons/sectors.

4. Defence Order No. (3)

Defence Order No. (3) was issued on 25 March 2020, providing for a number of penalties for those individuals who violate the provisions of Defence Order No. (2) in relation to lockdown.

First: Any individual who violates the provisions of Defence Order No. (2) which prohibits the movement of people in all regions of the Kingdom, shall be subject to the following:

1. a fine ranging between JOD100 and JOD500 for first-time violations;
2. imprisonment for a period not exceeding one year or a fine ranging between JOD100 and JOD500, or both penalties, for any repeated violation;
3. seizure of any vehicle used during the 30-day curfew period.

Second: Any person authorised to open his/her business, but who opens his/her business outside the permitted hours, shall be subject to a fine of not less than JOD1,000, and ordered to close his/her business for a period of 14 days.

Third: Any person not authorised to open his/her business, but who opens his/her business regardless, shall be subject to imprisonment for a period not greater than three months or a fine equivalent to JOD3,000, or both.

5. Defence Order No. (4) 

5.1. Defence Order No. (4) was issued on 31 March 2020, relating to the creation of the national support fund collecting aid to combat the spread of the virus.

5.2. A fund under the name of "Himmat Watan" (meaning "a nation's effort") was established, into which local and foreign donations may be deposited, in support of the Kingdom’s efforts to combat COVID-19.

6. Defence Order No. (5) 

6.1. Defence Order No. (5) was issued on 31 March 2020, suspending the legal periods, submission dates and deadlines before courts and other governmental entities (some exceptions to apply). Also suspended are the legal provisions under the Companies Law relating to holding meetings of general assemblies, boards of directors and management committees.

6.2. On 9 April 2020, the Minister of Industry, Trade and Supply, pursuant to the applicable provisions of Defence Order No. (5), issued the Procedures Organizing the Meetings of the General Assembly, Boards of Directors and Management Committees for Public Shareholding Companies, Private Shareholding Companies and Limited Liability Companies during the lockdown period.

7. Defence Order No. (6)

7.1. Defence Order No. (6) was issued on 8 April 2020, outlining certain measures relating to employment conditions, payment of wages, temporary closure of entities/institutions unable to cope under the current circumstances, and making reference to the government Economic Protection Programmes. Below is a summary/overview of the contents thereof.

7.2. Defence Order No. (6) stipulated that all employees in the private sector, or any other establishment subject to the provisions of the Labour Law No. 8 of 1996 (the Labour Law), shall receive their full wages for the period between 18 March 2020 until 31 March 2020. This applies to all establishments whether subject to the Lockdown Decision or otherwise.

7.3. Employees excluded from the Lockdown Decision shall not be entitled to overtime work during the period between 18 March 2020 until 31 March 2020, unless they were asked to perform overtime work, pursuant to Article 59 of the Labour Law. The Defence Order No. (6) explains the payment for overtime work as follows: the employee is entitled to 125% of his/her hourly wage for every hour of overtime work performed during ordinary business days, and 150% of the employee's daily rate for every day worked during religious holidays and weekends, with the exception of public holidays (such as this lockdown period). 

7.4. Defence Order No. (6) differentiated between two categories of institutions:

7.4.1 Institutions excluded from the Lockdown Decision, and which must continue to operate  throughout such period: 

1. these are the sectors outlined in the decision issued by the Minister of Industry, Trade and Supply (item 1.4 above); 
2. furthermore, Defence Order No. (6) authorised the Minster of Labour, the Minister of Industry, Trade and Supply, the Minister of Health, and any respective competent minister, to jointly lay the foundations and conditions required for any establishment in the private sector or any other entity subject to the provisions of the Labour Law, to be excluded from the Lockdown Decision, and be permitted to resume work. The mechanism of submission for such request shall be laid out in instructions issued by the aforementioned ministers. To date, such instructions have not been issued.

In the event that any institution, which is encompassed under the Lockdown Decision, resumes operation without obtaining the necessary approval according to the above principles, it is liable to the penalty of closure for a period of 60 days; 

3. Defence Order No. (6) has suspended the enforcement of certain provisions under the Remote Working Regulation No. 22 of 2017 (the Remote Working Regulation). It determined that institutions which are able to carry on work remotely, whether wholly or partially, shall be considered excluded from the Lockdown Decision, and employers are able to obligate their employees to work remotely if this serves the interest of the establishment. The Defence Order No. (6) also authorised the Minister of Labour to undertake the necessary measures to regulate remote working pursuant to instructions to be issued in this regard. These instructions have been issued on 13 April 2020 under No. 3 of 2020 (Instructions regarding Remote Working); 

7.4.2 Institutions subject to the Lockdown Decision: 

Employees therein shall be regarded as under official holiday with full pay. 

7.5. Reduction in wages

7.5.1 Defence Order No. (6) also touched upon amending wages throughout the lockdown period as of 1 April 2020 for establishments in the private sector or any other entities subject to the provisions of the Labour Law. 

7.5.2 Employees required at the workplace: Defence Order No. (6) stipulated that, where an establishment necessitates for the continuation of work that its employees be present at the workplace, such employees are entitled to their full wages. However, it is permissible to reduce the salary of employees therein, provided such reduction does not exceed 30% of the ordinary wage, and provided the following conditions are met:

1. employee's free consent to the proposed reduction; 
2. such reduction to also apply to the salaries of the higher management employees in the institutions (such as the general manager, the finance manager etc.);
3. the reduction to apply to all employees equally;
4. salary after reduction to not fall below the minimum statutory wage; and
5. in any case, if the employee is requested to work overtime, the employee is entitled to 125% of his/her hourly wage for every hour of overtime work performed during ordinary business days, and 150% of the employee's daily rate for every day worked during religious holidays and weekends, with the exception of public/official holidays. 

7.5.3 For remote workers:

1. Full-time employees: If such employees are working full time (eight hours daily), then they are entitled to full pay.
   The salaries of full-time remote workers are also subject to the 30% reduction in salary explained in item 7.5.2 above. The Instructions regarding Remote Working stipulate that if the employer imposes such reduction in salary, and the employee does not object thereto before the Ministry of Labour within a period of seven days from the effective date of reduction, then this shall be considered as free consent on behalf of the employee.
2. Part-time employees: Such employees are entitled to their wages for actual hours worked, provided the pay does not fall below the minimum rate per hour, or does not fall below 50% of his/her usual wage, whichever is higher. 
3. In any case, if the employee has been asked to work overtime, the employee is entitled to 125% of his/her hourly wage for every hour of overtime work performed during ordinary business days, and 150% of the employee's daily rate for every day worked during religious holidays and weekends, with the exception of public holidays. 

7.5.4 Employees not required to work: The Defence Order No. (6) has granted establishments subject to the Lockdown Decision, or those establishments which are only partially authorised to work, the right to submit a request to the Minister of Labour, seeking to reduce the salaries of employees, who are not required to work, by 50%, provided the salaries thereof do not fall below the statutory minimum wage. If such request is rejected, the establishment is obliged to continue payment of such wages in full. The mechanism thereof shall be further explained by instructions to be issued by the Minister of Labour. To date, these instructions have not been issued. 

7.6 Establishments unable to continue payment of employee salaries

7.7 The Defence Order No. (6) has granted establishments in the private sector or those entities subject to the provisions of the Labour Law (whether subject to the Lockdown Decision or otherwise) which are unable to continue payment of employee salaries, even after the aforementioned reduction in salaries, the right to submit a request to a committee (comprised of the Minister of Labour and the Minister of Industry, Trade and Supply) to cease the entire operations of the establishment, and to suspend the employment contracts of all employees therein. Such request shall be submitted through the website: www.hemayeh.jo.  

7.8 An employer must not undertake any related action until the request is approved by the committee. If such request is accepted, those employment contracts will be suspended, noting the following:

1. the establishment must enclose with the request, a list of the names of the employees, their respective nature of work, type of employment contract, term, working hours, and salaries, pursuant to what is registered with the Social Security Corporation; 
2. the establishment must not carry out work throughout the requested suspension period; 
3. the suspension of the employment contracts does not cancel or terminate the employment relationship. However, during the suspension period, the employer shall not pay wages to its employees; 
4. the suspension period shall not count towards the term of employment; 
5. the establishment continues to be liable towards employees in regards to all contractual and financial obligations, excluding the payment of wages; 
6. a disposal ban shall be placed on all movable and immovable property owned by the establishment throughout the suspension period; 
7. Economic Protection Programmes 
   • Any private sector establishment or entity, subject to the provisions of the Labour Law, permitted to work during the lockdown period and which submits a request for the entire suspension of work, shall not be eligible to apply to any economic protection programmes from the effective date of suspension.
   • However, an entity, which is subject to the Lockdown Decision and seeks to suspend its operations, may apply for any economic protection programmes during the suspension period.

7.9. Government Incentive

Defence Order No. (6) has stipulated that the government will grant incentives to establishments committed to payment of employee salaries in full throughout the enforcement of the National Defence Law, and establishments subject to the Lockdown Decision and prohibited from work during the lockdown period may also benefit from economic protection programmes. The Defence Order No. (6) has noted that instructions will be issued outlining such programmes and the requirements thereof. To date, no instructions have been announced.

7.10. Termination of employment contracts

7.10.1 Defence Order No. (6) has permitted the termination of an employment contract, during the lockdown period, in the following instances only:

1. death of the employee or the employee's inability to perform work, provided the same is supported by a medical report; 
2. the employee fulfils the requirements of retirement under the Social Security Law; 
3. the employee impersonates another individual or presents false certificates or documentation with the purpose of procuring a benefit himself/herself, or brings detriment to another; 
4. the employee is convicted, by a judicial ruling of final degree, of a felony or misdemeanour, violating public honour and morals; 
5. the employee is found in a state of intoxication or other psychotropic substance, or commits an act violating public morals in the workplace; 
6. the employee assaults his/her employer, responsible manager, any of his/her superiors, another employee or any other person during work or, as a result thereof, by battery or insult.

7.10.2 As for the employees who are absent from work for a period of 20 intermittent days or 10 consecutive days in one year, and the employer wishes to terminate such employment, then this matter is subject to the discretion of the Minister of Labour who has been authorised to undertake the necessary measures and procedures to deal with such instance. 

7.10.3 Defence Order No. (6) obliged each establishment which has forced an employee to resign, or terminated the employment of an employee outside the instances outlined in item 7.9.1 above, during the period between 18 March 2020 and 8 April 2020, to reinstate the employee to his/her position, within one week from 9 April 2020. Pursuant to guideline explanations from the Ministry of Labour, employees who are under limited term employment contracts and the terms of which have expired, as well as employees under probation, are excluded from this item 7.9.3.

7.10.4 Defence Order No. (6) has also decided to nullify any commitment, agreement or document in which an employee waives any of his/her rights as of 18 March 2020, and has obligated the establishment to take the necessary measures to cancel the same within one week from 9 April 2020.

7.11. Penalties

Defence Order No. (6) has imposed a penalty of imprisonment for a period up to three years and a fine of JOD3,000 for any person who violates its provision and any other relevant announcement. The imposition of these penalties does not affect employees claiming their rights in accordance with the provisions of the Labour Law. 

8. Defence Order No. (7)

8.1. Defence Order No. (7) was issued on 15 April 2020, and relates to the regulation of distance learning in schools and universities, remote vocational training and student evaluation mechanisms. 

9. Defence Order No. (8)

9.1. Defence Order No. (8) was issued on 15 April 2020, and relates to protecting public health and limiting the spread of the coronavirus. It outlines a number of actions to be carried out by all Jordanians and foreign residents alike, currently present in the Kingdom, including:

1. all individuals must immediately notify the competent authorities if they are infected by the coronavirus. They must also inform the authorities if they have come into close contact with an individual who has contracted the virus, and disclose any infection they are aware of;
2. all individuals must adhere to the decisions, measures and procedures laid out by the competent authorities and the Epidemic Investigation Committee, including medical quarantine and home lockdown;
3. all individuals must respect the privacy of patients infected by the virus or those being suspected of having the virus, and refrain from sharing any private information relating to any COVID-19 patients, or take part in disseminating such information through social media or otherwise;

9.2. Defence Order No. (8) imposes an obligation on all hospitals, medical centres and medical laboratories to disclose to the competent authorities the presence of any confirmed COVID-19 cases therein.

9.3. Failure to adhere to the provisions of Defence Order No. (8) may subject the person to imprisonment for a period up to three years, or a fine of JOD3,000 or both penalties.

10. Defence Order No. (9)

10.1. Defence Order No. (9) was issued on 17 April 2020, wherein the government introduces a number of measures to safeguard the economy and workers alike through symbiotic programs.