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  • Question

    The 2015 Iraq Labour Law clearly states overtime work that is "arduous or harmful" should be paid at a rate twofold of the regular wage. This raises multiple questions for hiring and properly paying personnel hired under an FMS contract in Iraq : 1. Does this mean that all employees we hire to work on the military installation should be receiving overtime pay at a rate twofold their regular wage considering all work conducted on the base is potentially "arduous or harmful". 2. If the installation is approved per the DSSR for receiving 35% danger pay, could that pay be used to offset the twofold overtime payment or would this incentive pay be separate from the "arduous or harmful" overtime pay. 3. Is there governing body that would define "arduous or harmful work" to ensure compliance with Iraqi Labour Laws? 4. Should the US Government, the Iraqi Government, or both make the final decision.


    Answer

    Based upon the assumptions in the questions, the following is the response:
     
    1.  The 2015 Iraq Labour Law would likely be limited to apply to the local nationals subject to the law.  Under a DoD contract, the total local national employee compensation package would likely need to comply with this law.  It is possible to use similar guidelines for other country nationals, i.e.  non-American foreign employees other than Iraqi employees, who are registered, live, and work in Iraq on a DoD contract. 
    2.  As a matter of policy, contracting regulation and practice, contractor companies under DoD contracts are required to follow local laws (in general - labor, safety, environment, etc. ) in the country where they are operating, unless specifically directed in FAR or DFARS.  Example:  Combatting Human Trafficking. 
    3.  Contractor pay is the responsibility of the contractor entity i.e. the company.  DoD normally does not get involved with contractor employee pay and compensation.
    4.  Payment of local labor wages compliant with 2015 law would likely be deemed allowable, allocable, and reasonable.
    5.  The definition of what is "arduous or harmful" should be the responsibility of the Iraqi Government, since this is their law.  The U.S. Embassy Office of Defense Cooperation (ODC) should be able to assist in providing this information.
    6.  The DoD contracting officer would be in the best position to answer very specific detailed questions regarding individual contracts and applicability of local law.


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