The Tunisian Labour Code, which has undergone over 100 amendments since its enactment in 1966, has been criticized by the Arab Institute of Business Leaders (IACE) for containing outdated regulations. Specifically, articles 130 and 144 require companies to maintain paper records of employee leave and wages, respectively. This has led to a paradox where companies that have digitalized their leave and payroll management systems are considered to be in violation of the law, while those that still maintain paper records are deemed compliant.
The IACE has identified nine dysfunctions in the Labour Code, with the issue of digital records being one of the most significant. According to the Institute, the current regulations are inapplicable to large companies, and the requirement to maintain paper records creates a situation where digitalized companies are penalized. The IACE argues that this not only creates a paradox but also undermines the transparency and organization that digitalization provides.
The IACE has called for the rapid amendment of articles 130 and 144 to recognize digital documentation as an acceptable alternative to paper records. According to the Institute, this can be achieved through a simple regulatory text, without the need for a new law. The IACE estimates that this reform can be implemented within zero to three months, making it a high-priority recommendation.
The issue of digital records is not an isolated problem, as the IACE has also highlighted discrepancies in the definition of an enterprise in the Labour Code compared to other laws. This dissonance, according to the Institute, creates uncertainty and undermines the security of the legal framework. The Labour Code has undergone numerous amendments, including a recent amendment in May 2025, but the issue of digital records remains unresolved.
Despite the criticism, the IACE notes that the practical impact of the current regulations is limited. The labour inspection authorities tend to prioritize mediation and conflict resolution over control and sanctions. However, the Institute emphasizes that the issue remains a theoretical infraction, and companies that have digitalized their systems are still technically in violation of the law.
The Ministry of Social Affairs has announced plans to prepare a new partial amendment to the Labour Code, but details are scarce. The IACE has recommended a comprehensive review of the Code, which could take 36 to 60 months to complete. In the meantime, the issue of digital records remains a pressing concern for companies operating in Tunisia.
The controversy surrounding the Labour Code highlights the challenges of balancing regulatory requirements with the needs of a rapidly changing business environment. As Tunisia continues to navigate its economic development, the need for a modernized and flexible Labour Code that accommodates digitalization and innovation has become increasingly pressing.
Key points
- The Tunisian Labour Code requires companies to maintain paper records of employee leave and wages, despite digitalization efforts.
- The Arab Institute of Business Leaders (IACE) has called for rapid amendments to the Code to recognize digital documentation.
- The issue of digital records is part of a broader set of dysfunctions in the Labour Code, including discrepancies in the definition of an enterprise.
