The Tunisian Parliament on Wednesday passed, by a wide majority, a new labor law that prohibits both fixed-term employment contracts and subcontracting arrangements—one of President Kais Saied’s key initiatives aimed at reforming the national labor market.

The legislation, which was debated beginning Tuesday, mandates the conversion of all fixed-term contracts into open-ended contracts. It also introduces a six-month probationary period, which can be extended only once.

According to AFP, the bill was approved by 121 lawmakers, with only four abstaining.

This legal reform is part of broader government efforts to reduce job insecurity and enhance employment stability, particularly for workers in precarious positions.

Fixed-term and outsourced contracts are widely used in both the private and public sectors, especially in fields such as security and cleaning services. With the new law now enacted, thousands of subcontracted workers are expected to have their employment status regularized.