Iran Approves Landmark Direct-Hiring Plan for Public Sector Contract Workers
In a significant move to reform public sector employment, the Iranian government, in coordination with the Islamic Consultative Assembly, has finalized a major restructuring plan. The approved policy aims to directly hire hundreds of thousands of contract workers, eliminating intermediary contracting companies to ensure job security and equitable pay.
A New Era for Contract Workers
For years, the status of contract workers has been a central issue within Iran’s public administrative bodies. These employees, who shoulder a large portion of governmental duties, have historically faced challenges due to non-transparent contracts and the involvement of third-party contractors. Issues such as delayed salary payments, lack of job security, and discrimination in benefits have been persistent concerns.
After weeks of review, the government and parliament agreed on the first of two proposed scenarios: the removal of intermediary companies and the establishment of direct employment contracts. The second scenario, which did not consider educational credentials, was set aside.
Implementation Timeline and Scale
According to officials from the Administrative and Recruitment Organization and the Parliament’s Social Commission, implementing this restructuring plan is a top priority for the government. Joint meetings with the Expediency Discernment Council and the Presidential Legal Deputy have been held, with a firm emphasis on initiating direct, fixed-term employment contracts.
Ahmad Fatemi, a member of the Parliament’s Social Commission, stated that the decision must be operational by the end of the current Iranian year (March 2025) so workers can quickly experience job security. He emphasized the government’s intention to advance this process rapidly without further delay.
Per data from the Administrative and Recruitment Organization, approximately 700,000 individuals are currently registered as contract workers in the “Sayer” system. This figure is projected to reach nearly 900,000 upon the completion of data entry. This vast workforce carries the main burden of public and administrative services, and organizing their status is poised to create a serious transformation in the country’s administrative system.
The “Sayer” System: Ensuring Accuracy and Transparency
To ensure the precise execution of the plan, the Administrative and Recruitment Organization has launched the “Sayer” system. This platform registers all the nation’s contract workers and records their occupational and educational information. This initiative provides the government with accurate statistics on the existing workforce and helps prevent fraudulent overtime claims or the registration of ghost employees.
Officials report that over four meetings of the tripartite committee for organizing contract workers have been held, with the “Sayer” system serving as the official reference for identifying personnel.
Impact on Job Security and Productivity
A primary achievement of this decision is the establishment of job security for contract workers. For years, these employees worried about their professional future due to temporary contracts and reliance on contractors. Now, with direct contracts and government oversight, these concerns will be largely alleviated.
Experts believe this move will not only improve the mental and psychological well-being of employees but also increase the productivity of executive bodies. A worker with job security will have greater motivation to work and serve.
Eliminating Intermediaries and Enhancing Transparency
A central pillar of the restructuring is the elimination of manpower supply contractors. Previously, the salaries of contract workers were paid through these intermediaries, leading to prolonged delays, reduced amounts, and the infringement of workers’ rights.
Under the new decision, executive bodies will pay wages and benefits directly. This measure, besides reducing overhead costs, brings greater financial transparency and helps prevent corruption in the payment process. Furthermore, illegal deductions and multi-month delays in salary deposits will become a thing of the past.
The Framework for Direct Contracts
According to the government’s decision, contract workers with university degrees will be hired under fixed-term employment contracts. This type of contract offers more security than previous arrangements and could pave the way for conversion to formal or pact-based employment in the future.
For workers without university degrees (diploma and below), Article 124 of the Law on Managing Country Services will be the benchmark. These personnel will also be covered under labor contracts, and their salaries will be paid directly from the treasury.
Expert Endorsement and Economic Benefits
Experts in labor and employment believe that enacting direct contracts can resolve many long-standing problems. Previously, intermediary companies consumed a significant portion of the budget for their managerial and overhead costs. By removing these intermediaries, the same resources will now go directly into the pockets of employees.
Additionally, the chronic issue of delayed salary payments will be resolved, as funds will be transferred directly from the treasury to workers’ accounts with no middlemen.
The economic benefits also include significant savings in the public budget. Estimates indicate that billions of tomans were previously paid annually to contractors in fees and additional costs. These sums will now go directly to the workers.
Moreover, transparency in payments will increase, and the potential for financial misconduct will decrease. This transparency can lead to greater public trust and increased employee satisfaction.
The Road Ahead
With the final decision from the government and parliament, the contract worker restructuring plan is expected to be implemented by the end of the current year. This initiative could mark a historic transformation in the country’s employment system.
Contract workers have waited years for such a decision and now hope to finally taste the sweet fruit of job security with the signing of fixed-term contracts. With the execution of this plan, executive bodies will also benefit from a more motivated and reliable workforce.
The government’s decision to eliminate intermediary companies and establish direct employment contracts is a pivotal milestone in organizing the country’s employment landscape. It not only resolves chronic issues for contract workers but also promotes public budget savings and enhances the productivity of government agencies. The eyes of all contract workers are now on the swift implementation of this decision—a move that could end years of uncertainty and usher in a new era of fairness and transparency in Iran’s employment system.