Labor Law or Government Regulations: An Analysis of the Context Leading to the Regulating and Approving of Factory Act: 1931-1936

The most comprehensive regulation that was approved between 1930 and 1942 to regulate labor relations in Iran was the Factory Act in 1936. Prior to 1930, government legislation and regulations pertaining to labor and social welfare were solely applicable to government employees. Between 1931 and 1936, only workers employed in road construction projects, railways, and those under the purview of the Industrial and Agricultural Administration were subject to minimal regulations regarding compensation for work-related accidents through provident funds. Workers employed in other sectors remained exempt from these regulations until 1936. However, with the approval of the Factory Act in 1936, all workers employed in institutions with more than ten employees became subject to these regulations. This study seeks to elucidate the underlying factors that necessitated the approval of the Factory Act in 1936. The central argument is that the successful experience of establishing provident funds in road authorities and railway construction companies, which provided minimal social services for workers at their own expense, thereby absolving employers of responsibility in such matters, led to the formulation of these regulations. Therefore, this study will initially provide an overview of the emergence of the industrial sector in Iran, followed by a review of the regulations passed between 1932 and 1936. Subsequently, the provisions of the Factory Act will be elucidated. Finally, an attempt will be made to expound on the necessity and aspect of regulating and approving it by highlighting the similarities and differences between the approved regulations of 1936 and previous ones.