Annual Employment Contracts and the Proper Application of Law

The employment relationship is one of the most prevalent and sensitive legal relationships, as it is built not only on mutual obligations between the employer and the employee, but also because it is directly linked to the principle of social and economic justice and the protection of the weaker party in the contractual relationship, which is often the worker.

The Palestinian labor law was enacted to establish a framework and regulations that maintain balance between the employer's rights and the employee's right to stability and job security. I emphasize here that this job security should not turn employment into a temporary relationship that can be terminated arbitrarily under any name or for any temporary cessation of the employment relationship.

Unfortunately, there has been a troubling phenomenon of using so-called annual contracts as a means or tool in some cases to strip the employee of their legal protections. This occurs through signing a contract for one year, then terminating the employment relationship shortly before the year ends and re-contracting the employee with the intention of avoiding legal obligations that arise from the actual continuity of the employment relationship, under the false belief of the employer that this way they will not bear the burdens or costs associated with end-of-service gratuities or retirement.

However, the essence of contracts is not merely in the words contained within them, but in the reality and nature of the relationship. A contract that is called a fixed-term contract should not be a means to circumvent the rights of the employee or evade the obligations imposed by law. When it is proven that the work is inherently continuous and that the employer's need for the employee is permanent and not temporary, and that the period during which the employee is forced to cease work for a month or less is under the pretext of interruption, this is considered circumvention of labor law and does not exempt the employer from their legal obligations toward the employee in any case. The repeated renewal of contracts in a stereotypical manner may form an indication of the existence of a stable employment relationship and not a genuine temporary relationship.

Protecting the employee is not a privilege granted to them, but an application of the principle of the rule of law. The goal of legal rules is to establish the foundations of justice and protect communities and build a sound economic system and defend nations and people, coming to prevent the imbalance of power between a party that possesses economic and administrative capability, and a party that relies on their wage as their primary source of livelihood.

Here, the role of the Ministry of Labor emerges as the responsible entity for monitoring the application of labor law provisions, and the Ministry must provide tangible and material outcomes regarding its real role in exercising oversight and protecting the worker from any oppression or diminishment of their rights, in addition to raising awareness of workers' rights and intervening when practices aim to diminish the legal protections established for them. Law does not suffice with text; it requires institutions to guarantee its respect and application. It should also be noted that the Palestinian labor law granted the Ministry of Labor the power to impose penalties, fines, and violations in the event of proven infringements.

Moreover, the labor judiciary, which is lacking in our country, must be established. Everyone should work towards establishing a specialized labor judicial system as it is the basic guarantee for restoring matters to their rightful course by examining the reality of the relationship and not just its form, scrutinizing the conditions of contracting, and clarifying whether the fixed-term contract is a genuine contract or just a tool used to circumvent the rights of the employee.

As for labor unions, their role is not limited to defending economic demands, but extends to being a legal and human right entity that protects workers from any practices that diminish their guarantees, while also contributing to instilling a culture of respect for labor law.

Respecting contracts does not mean merely respecting the form, but respecting the purpose for which the law exists. The law does not protect fraud, nor does it allow contracts to become a tool for undermining the rights that the legislator sought to protect.

Building a fair labor market can only be achieved when workers feel that the law stands by their side and that job stability is not a favor from anyone, but a right governed by the principles of justice and fairness.

Finally, despite the harsh economic conditions faced by all segments of Palestinian society, I say that protecting workers' rights is a fundamental duty and a genuine role, not just slogans. This also applies to many employees in the private sectors.

Moreover, many are receiving wages below the previously established minimum wage by the Cabinet, and with the disparity between the dollar and the dinar, the majority of employees and workers are earning below the minimum wage. Therefore, it is essential to enact a series of regulations and directives and for the competent authorities to carry out their oversight and responsible roles.