Background and Objective: This study aims to provide a sociological and critical examination of the welfare system stipulated in Chapter Eight of the Labor Law of the Islamic Republic of Iran. The central research question concerns the extent to which the welfare provisions for workers have contributed to the realization of effective welfare, social justice, and improvements in workers’ quality of life, as well as the major structural and implementation-related challenges facing this welfare system. Drawing on theories of social welfare, the welfare state, social inclusion, Amartya Sen’s capability approach, and equity theory, the study analyzes the various dimensions of workers’ welfare provisions.

Method: The research employs a documentary analysis and critical review of Articles 147–156 of Iran’s Labor Law. In addition, a comparative perspective is adopted to examine selected experiences of advanced countries in the field of workers’ welfare and labor-related social policies.

Findings: The findings indicate that although the welfare system outlined in Chapter Eight of the Labor Law adopts a supportive approach at the legal level, in practice it is characterized by a minimal, compensatory, and subsistence-oriented orientation. Rather than focusing on the empowerment of workers and the enhancement of their social and economic capabilities, the system primarily seeks to meet basic living needs and mitigate the consequences of labor market insecurity. Furthermore, the transfer of a significant share of welfare responsibilities to employers, the dependence of welfare provision on the economic capacity of enterprises, limited social inclusion, inequalities in access to welfare services, and the gap between legal provisions and their practical implementation constitute the major challenges of this welfare framework. Overall, the study concludes that despite its protective objectives, Iran’s labor welfare system has not succeeded in developing into a comprehensive, justice-oriented, and empowering welfare regime for workers.