New legislation overhauling Tunisia's employment framework

At a glance

• A new law, published in the Official Gazette on 23 May 2025, introduces sweeping reforms to Tunisia’s labour code
• Open-ended contracts (CDIs) are now the standard; fixed-term contracts (CDDs) are strictly limited and otherwise automatically converted to CDIs with full seniority rights.
• Probation periods are capped at six months (renewable once).
• Sub-contracting has been criminalised.
• Employers have three months to regularise contracts, integrate subcontracted workers, and reinstate eligible employees, marking a major shift in Tunisia’s employment framework.

Law No. 2025-9  of 21 May 2025 concerning the regulation of employment contracts and the prohibition of labor subcontracting was adopted. The new law, published in the Official Gazette on 23 May 2025, introduces sweeping reforms to Tunisia’s labour code by introducing reforms that significantly affect both individual and collective labour relations. Its dual objective is clear: to secure career paths by strengthening employee protection, and to strictly regulate employers’ contractual practices, particularly with respect to sub-contracting.

• CDIs will now be the default employment model. CDDs are limited to three specific cases. Any CDD concluded outside of these exceptions is deemed null and automatically reclassified as a CDI, with full reinstatement of accrued seniority.
• Probation periods will be capped at six months, renewable once. Termination during this period requires a 15-day notice. Once this period is exhausted, any subsequent contract must be a CDI, and no further probationary period may be imposed.
• Sub-contracting is criminalised, with fines TND10,000 (doubled for legal entities). Only narrowly defined service contracts are permitted.
• Legal service contracts must meet three criteria: technical expertise, non-core business activity, and employer authority over workers.

Service providers have three months to comply and must regularise their own situation within this timeframe. Workers who are made available by sub-contracting companies will be considered permanent employees of the beneficiary company as of 23 May 2025.