Iraq Replaces Its 1987 Rules on Foreign Workers

9 November 2026 · Iraq Legal Update · Compliance, Employment & Immigration · United Legal Partners

The Ministry of Labour and Social Affairs has issued Instructions No. (1) of 2026 on the recruitment, employment and work permits of foreign workers in Iraq. Issued under Article 33 of the Labour Law No. (37) of 2015 and published in the Official Gazette at the end of March 2026, the Instructions repeal the Instructions on Foreigners Practising Work in Iraq No. (18) of 1987 and apply in federal Iraq from the date of publication.

Applications are filed with the Department of Labour and Vocational Training by companies contracting with the State or the public sector, by licensed private employment offices, by employers, or by the worker through the recruiting employer. The employer must show that the worker entered and resides in Iraq lawfully, that no unresolved violation is recorded with the Workers' Retirement and Social Security Department or the Residence Directorate, that the worker is medically fit and, for skilled positions, holds a certified experience or graduation document, and that the employer has the financial capacity to pay the wages. The employer also undertakes not to change the worker's profession or employer without approval.

Two quantitative limits apply. Foreign labour may not exceed 50% of the workers in a project, and a household may not employ more than two foreign domestic workers without the Department's approval. A work permit is issued only where no suitable Iraqi candidate is found in the Department's job-seekers database, or where the employment sections confirm non-availability within 15 days of the employer's request. Where three or more foreign workers are requested, a committee visits the project to confirm that it exists, checks the 50% ratio, assesses the actual need, and verifies housing, food and working conditions.

No foreign worker may start work before the permit is issued. The permit is valid for one year and is renewable annually on a request filed in the last month before expiry. For a worker recruited from abroad, the employer obtains the entry approvals and completes the permit within 30 days of the worker's arrival. Employment contracts must be drawn up in Arabic and English or in the worker's mother tongue, absconding workers must be reported to the Department and the nearest police station, and in technical and specialised projects the foreign worker must undertake to train one or more Iraqi workers during the permit period.

The permit is cancelled where the application data proves incorrect, on expiry of the contract or closure of the project, on absence without lawful cause for 10 consecutive or 30 non-consecutive days in a work year, on a security report that the worker's presence harms the public interest, or where the worker practises a profession other than the permitted one.

Our observation. Employers in Iraq should review their workforce ratios, contract language and renewal calendars against the new text. The Kurdistan Region continues to operate its own permit regime.

General information on Iraqi law as at 9 November 2026; not legal advice. · معلومات عامة عن القانون العراقي بتاريخه وليست مشورة قانونية.