Employment law in Egypt
Employment law in Egypt is primarily governed by Law No. 12 of 2003, known as the Egyptian Labor Law, which regulates various aspects of labor relations, workers’ rights, and employer obligations. In addition to the Labor Law, certain ministerial decrees and other regulations provide further clarification and guidance. Here’s an overview of key points in Egypt’s employment law:
1. Employment Contracts
Written Contracts: It is required for employers to provide written employment contracts for workers. These contracts outline the terms of employment, including job description, working hours, salary, and the duration of the contract (fixed or indefinite).
Indefinite vs Fixed-Term: Both indefinite and fixed-term contracts are permitted, with fixed-term contracts typically being used for temporary or project-based employment.
2. Working Hours
Standard Working Hours: The normal working hours are 8 hours per day or 48 hours per week. This is usually divided into six working days.
Overtime: If employees work beyond their normal working hours, they are entitled to overtime pay, which is typically 1.35 times their regular hourly wage for the first two hours and 1.7 times the regular hourly wage for subsequent overtime hours.
Rest Period: Workers are entitled to a minimum of 1 hour of rest for every 6 consecutive hours worked.
3. Minimum Wage
The Egyptian government sets a minimum wage, which applies to all employees working in the public and private sectors. The minimum wage has been periodically reviewed and adjusted to reflect the country’s economic conditions.
In addition to the base salary, some sectors may provide additional benefits, such as allowances for transportation, food, and housing.
4. Leave Entitlements
Annual Paid Leave: Employees are entitled to 21 days of paid annual leave after working for one continuous year. After five years of service, this increases to 30 days per year.
Public Holidays: Employees are entitled to paid time off for public holidays recognized by the state. If an employee is required to work on a public holiday, they should be compensated with overtime pay (usually 1.5 times the regular rate).
Sick Leave: Employees are entitled to sick leave, which is typically a maximum of 90 days per year. Sick leave is usually compensated at full pay for the first 30 days and 50% of pay for the next 60 days.
Maternity Leave: Female employees are entitled to 90 days of paid maternity leave. They receive full pay for the duration of their maternity leave, provided they have been employed for at least 10 continuous months prior to taking leave.
5. Social Insurance
Egypt has a Social Insurance Law, which requires both employers and employees to contribute to a social insurance fund. The contributions fund pensions, healthcare, and other social security benefits.
Employers are responsible for deducting the employee's contribution and remitting it to the relevant authorities.
6. Termination of Employment
By Employer: Employers can terminate an employee for valid reasons such as misconduct, poor performance, or economic necessity (redundancy). However, employees are entitled to a notice period or severance pay depending on the length of service and the nature of the dismissal.
Dismissal without valid cause may entitle the employee to compensation, including severance pay.
By Employee: Employees are also required to provide a notice period if they wish to resign (usually ranging from 1 to 3 months depending on the contract).
Severance Pay: In cases of dismissal without cause or upon termination of a fixed-term contract, employees may be entitled to severance pay based on the length of service. Typically, severance pay is calculated as one-third of the employee's monthly salary per year of service.
7. Trade Unions and Collective Bargaining
Workers in Egypt have the right to form trade unions and engage in collective bargaining. Labor unions in Egypt have historically played an active role in protecting workers’ rights.
Strikes: Workers can go on strike, but they must follow specific legal procedures. Generally, the union must attempt to resolve the issue with the employer before organizing a strike. The right to strike is limited in certain sectors like public services.
8. Discrimination and Equal Treatment
Discrimination in the workplace based on gender, religion, nationality, or disability is prohibited under Egyptian labor law.
Employers must provide equal opportunities for all employees, and the law mandates that women receive equal treatment and protection in the workplace.
There are specific regulations for preventing sexual harassment in the workplace.
9. Health and Safety
Employers are required to ensure the health and safety of their employees in the workplace, including providing adequate protective equipment and maintaining a safe working environment.
Workers who suffer from work-related injuries or illnesses are entitled to compensation and medical treatment through the social insurance system.
10. Foreign Workers
Foreign workers are allowed to work in Egypt, but they must obtain the appropriate work permits and residency visas.
Employers who hire foreign nationals must adhere to regulations regarding foreign labor, including ensuring that the worker’s employment contract is in line with Egyptian labor law and that they are properly insured under the social security system.
11. Dispute Resolution
Labor disputes are typically resolved through conciliation committees or labor courts. Workers can file complaints with the Ministry of Manpower and Migration or seek legal recourse through the courts if disputes with employers arise.
The Ministry plays a key role in ensuring that workers’ rights are respected and disputes are resolved efficiently.
12. Other Protections
There are specific rules protecting workers from unjust dismissal, and in some cases, employees who are dismissed without cause may receive compensation.
The law also protects the rights of employees who are involved in union activities or those representing the workers' interests in the workplace.
Overall, Egyptian labor law is designed to protect the rights of workers, provide clear guidelines for employment relations, and ensure a balance between the interests of employers and employees. However, enforcement of these laws can vary, and some workers may face challenges in seeking recourse in cases of violation.
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