Lifting Defence Law prompts uncertainty for job stability, say experts

AMMAN — Ending the enforcement of Defence Law No. 13 for the year 1992 might result in companies restructuring, which may lead to layoffs and a consequent unemployment rate spike, according to experts.

On Sunday, a Royal decree was issued approving the Cabinet’s decision to end the enforcement of Defence Law No. 13 for the year 1992. The Defence law was first proclaimed on March 17, 2020, to “protect the health and wellbeing of Jordanians and ensure their safety”.

“Several defence orders provided some sort of protection to private sector employees as well as debt defaulters for a period of three years,” economist Hosam Ayesh told The Jordan Times. 

However, the Jordanian Civil Law is now the determinant in all legal and labour-related cases, Ayesh said. 

Defence Order No.6 of the Defence Law prohibited the termination of workers’ contracts except in certain cases, in which any employer who terminated the services of a worker for unspecified reasons would face fines or imprisonment.

“Private sector companies are expected to restructure; employment contracts might be terminated as a result,” Ayesh said. 

Labour rights activist Ahmad Awad told The Jordan Times that the suspension of the Defence Law implies a reinstatement of the Kingdom’s original laws, including the Labour Law and Jordanian Civil Law. 

The labour scene will experience a “new normal”, Awad said, adding that after a specified period, employment contracts can now be terminated upon certain conditions.

Economist Wajdi Makhamreh said that there will be a “profound and positive impact” on the economy with the suspension of the Defence Law. 

Private sector entities now have the ability to terminate employment contracts, which might result in an increase in unemployment rates in the Kingdom, he said. However, Makhamreh also pointed to significant growth in many sectors, specifically, the services sector, which requires recruiting a larger workforce.