Distributive justice, efficiency and termination of employment contract

Termination of employment contract is one of the most important sections of a labor contract. Because, how an employment contract terminates is related to fair distribution of job security. Also the quality of termination of an employment contract has a strong relationship with efficiency theory. Therefore, legislator in developing a legal system governing the termination of employment contract, must challenge to maintain distributive justice and efficiency while establish a balance between them. In the present paper, we intend to explain how to ensure distributive justice and efficiency and to establish a balance between them in developing a legal system governing the termination of employment contract with respect to Iran's labor code and moreover, we will see that due to wide- spreading use of temporary employment contract and the risk of not renewing of the mentioned contracts at the end of work, permanency of labor contract principle, and hence fair distributive of job security has been altered. Also complexity of formalities of firing workers has destroyed the efficiency and moreover, caused the lack of a balance between efficiency and distributive justice in termination of employment contract ways .