The foundation for ensuring contractual rights lies in agreements, which are translated into legal contracts. Contracts encompass all relationships between individuals, whether within a single state or across borders. Because the law often supports the weaker party in contracts, labor laws were enacted to protect workers, safeguard their rights, and define the obligations of employers towards employees. Labor rights have become sacred in courts of varying jurisdictions. But what happens if an employment contract is breached? And is it permissible under force majeure circumstances?
1. Nature of Employment Contracts in Palestinian Law:
According to Palestinian Labor Law No. 7 of 2000 applicable in the West Bank and Gaza Strip, an employment contract is defined as an agreement between the worker and the employer covering all necessary aspects to complete specific work. This agreement can be written or oral, implicit or explicit, but it must clarify the nature of the required work and ensure that the work benefits the employer, in return for a wage paid by the employer.
2. Duration of Employment Contracts:
An employment contract can be:
- Indefinite: Where the worker continues to perform agreed work under specified conditions, ending if specific termination reasons listed in Article 35 of Palestinian Labor Law No. 7 of 2000 arise, or if other termination reasons in Chapter Three of the same law are met.
- Fixed-term: Defined for the completion of work within a specified period, not exceeding two consecutive years with the same employer, inclusive of annual leave and weekly working hours, and all worker rights. If terminated within the specified period, obligations exist on the terminating party.
It should be noted that a fixed-term contract can automatically convert to an indefinite contract if executed for more than two consecutive years, but an indefinite contract cannot convert to a fixed-term contract.
3. Employment Contracts for Specific Work:
These contracts involve the execution of specific tasks by the worker for the employer's benefit, governed by labor law and all its clauses, distinct from contracts for services.
4. State of War in Palestine:
Determining the fate of employment contracts during wartime requires an assessment of whether it qualifies as force majeure or a state of emergency:
- Force Majeure: Unexpected events during contract execution that render fulfilling the agreed commitment impossible, difficult, or nearly impossible.
- State of Emergency: Defined under the Palestinian Basic Law as a threat to national security due to war, allowing the President of the Palestinian National Authority to declare a state of emergency for up to 30 days, extendable once for an additional 30 days.
In the current Palestinian context, President Mahmoud Abbas declared that the ongoing conflict falls under force majeure, as stipulated in previous laws. Directives were issued concerning legal situations, including suspending legal deadlines.
Emergency measures are part of force majeure, making the current conflict a compelling force overall. Thus, instructions and decisions under force majeure apply to employment contracts concluded before the war, while preserving the rights and duties of both parties.
Employers retain the right to reduce workforce numbers or working hours under technical reasons as per Article 41 of Palestinian Labor Law, while fully respecting the worker's rights upon contract termination.