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1 Labor Law and Employment Relations Center For Adult and Continuing Education Business Studies Division

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Labor Law and Employment Relations

Center For Adult and ContinuingEducation

Business Studies Division

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Outline

Introduction to the Course

Introduction - Egyptian Labor Market

The Story of the Four Contestants

History of Labor Law

Definitions & General Provisions

Labor Law Articles

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Labor Law & Employment Relations

Course Description:

This course is an introduction to labor and socialinsurance legislation; this course discusses thehistory of labor law, its purpose, definition, andits stated articles and applications.

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Labor Law & Employment Relations

Timing & Duration:

12 ClassesFeb 28 2011 - May 28, 2011Sundays 6:00 pm till 8:45pm

Course Grades:

Class Attendance & Participation4 Assessments 70Final Exam 30

Final Grade 100

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*Egypt

Introduction: Egyptian Labor Market

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A country of 80 million people

96% of the population live in Nile Valley & Delta

16 million people reside in Cairo & 6 million in Alex (25% of the labor workin these two cities where 47% of economic & social institutions arelocated)

Literate Population is average of 57.8%

Illiterate Population is average of 42.2% (Females 53.1%, Males 31.7%)

Population

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Egypt Ranks 17th worldwide in number of yearlygraduates

1,200,000 high school graduates.

250,000 university graduates.

Egypt’s Civilian Labor

Yr.1990 Yr.1995 Yr. 2000

14.8 M 16.8 M 20.6 M An Average of 49.2% is employed (F21.4% & M76.2%)

29% Agriculture, 22% Industry, 49% Services

Population

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A remarkable recovery throughan extensive economic and

social reform program

Egypt is witnessing its reincarnation into amodern, liberal , private sector driven

economy.

An emerging market with a multitudeof opportunities for investments.

A competent and cost-effective laborforce.

Economy

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Most populous in the ME and Africa, with huge supply ofeducated,motivated,and often multi-lingual young people

A good basic education system, and a national characterthat rates education highly

A good work ethics base, especially if enhanced andsupported by a strong culture in the work place

The cost base is substantially less than equivalent inWestern economies

The key strengths of the Egyptian labormarket

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The Story of the Four Contestants

Mr. JudicialAuthority

Mr. Employee Mr. Employer Mr. HR

Employment Relationship

LABORLAW

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History of Labor LawWhat is Labor Law?•Labour law (also known as employment or labor law) is the body of laws, administrative rulings, and modelswhich address the legal rights of, and restrictions on, working people and their organizations.•There are two broad categories of labour law:• Collective labour law relates to the tripartite relationship between employee, employer and union• Individual labour law concerns employees' rights at work and through the contract for work.

What emerged the Labor Law?The state of labour law is the product of, and a component of, struggles between:Workers demands: better working conditions and returnsEmployers demands: to control performance, productivity, to manage labor costs and restrict the powers ofworkersMarket demands: changes in global/regional/local economy and labor moves

Mile Stones of Labor Ministry in EgyptNovember 1930 : First labor authority functioning under supervision of the ministry of interior, thentransferred to the ministry of commerce in 19351939: first ministry of social affairs1954: general directorate of labor as part of social insurance ministry1955: ministry of labor planning1961: first ministry of labor5 amendments has occurred to adapt the labor laws in order to be more suitable to international changes inthe labor market and most important to organize work relations, last amendment occurred at the year 1996followed by the changes known as the law 12 for year 20037 ministries took responsibility of the ministry of labor , current minister: Eisha AbdelHady since Jan 2006

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Important Definitions Employmenta contract between two parties, one being the employer and the other beingthe employee.

Important Highlights:* Globalization: certain economic factors that controls and affects the employment

relations* Organizational Culture: "specific collection of values and norms that are shared bypeople and groups in an organization and that control the way they interact with eachother and with stakeholders outside the organization”

Employer- a person or institution that hires employees or workers- The employers’ relative level of power over employees is dependent

upon Three Main Factors:a) Interests: economic pressures that is placed on orgs. in their pursuit of profitb) Control: defined methods for reaching targetsc) Motivation: something that moves a person to action, and continues him in the

course of action

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Important Definitions

Employeeany person hired by an employer to do a specific "job".“A person in the service of another under contract of hire where the employerhas the power or right to control and direct the employee in the materialdetails of how the work is to be performed.”Most individuals attain the status of employee after a thorough process of interviewswith several departments within a company.

The Changed Role of HR Profession•The objective of Human Resources is to maximize the return on investment fromthe organization's human capital and minimize financial risk. It is the responsibility ofhuman resource managers to conduct these activities in an effective, legal, fair, andconsistent manner.Human resource management serves these key functions:•Recruitment Strategy Planning•Hiring Processes (recruitment)•Performance Evaluation and Management•Compensation & Benefits (pensions, allowances, bonuses etc..)•Training & Development•Employee Relations•Personnel Operations (Record keeping of all employee data, …)

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The Employment Relationship

Beginning Middle End

- Definitions & General Provisions- Recruitment Planning &Sourcing Labor- Egyptian Labor- Foreign Labor

- Working Contract- Employee File- Compensation (Salaries,Wages)- Social Insurance- Work Regulations:a)Probation Periodb)working hrs+ breaks+ overtimec) Leavesd) worker& employer obligationse) Prohibited acts & Dismissalsf) Investigation with workers- Female Employment- Child Employment- Handicapped Employment- Vocational Training andapprenticeship- Employee Health & Safety- Collective Labor Relationships

- Termination of workingrelationship-Terminating Contract- Termination notices &notification periods-Employee Resignation- End of Service Bonus&Rewards- Certificate of Experience- Pension

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General ProvisionsLabor Law No. 12 for Year 2003 (comprises 257article)

Equal Employment Opportunities (who has the right to work?)Everyone has the right to work, to free choice of employment, to just and favorableconditions of work and to protection against unemployment.No distinction of: (Religion, Color, Race, Sex, Physical disability, Political beliefs)

Regulations within the new labor law are only applied and all previous regulations are consideredinvalid , specially if there are better benefits that the worker might obtain

All agreements and concessions within a work contract that are infracted from the genuineregulations shall be considered invalid within validation period of the contract or after 3 months of itstermination.

In case there are more than one employer, they all are considered responsible legally to fulfill theregulations and agreements of work contract

It is the responsibility of the successor to satisfy all previous agreements

The resolution , bankruptcy, merge or selling of the organization doesn’t relief the employer fromfulfilling all obligations within a work contract

Arbitrators who do not rejoice the law raved;- The laborers in state devices- The domestic laborers- Family of employer who wails them

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Recruitment&

Hiring Laws

Labor Registration Form

Using Recruitment Agencies

Using Foreign Labor

Using Egyptian Labor

Employment Contract

Employee File

Employee Compensation

Recruitment & Hiring Laws

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Recruitment & Hiring Laws• During the month of January of each year, the employer is committed to submit to

the labor legal authorities , data including the following;– number of workers– their educational degrees– positions– ages– nationalities– wages

• The form will also include vacant positions, all changes or amendments that mighthas occurred in addition to expected vacancies during the year

• The employer has the right to use any of the legal recruitment channels includingconsultancy agencies / recruitment offices

• Recruitment offices charges the employer for its services what is equivalent for onemonth salary of the appointed candidate or 12% of the annual gross salary, howeverthey do not charge the worker for any fees . however they might charge the workerfor what is equivalent to 2% of one month salary in return for admin fees.

• The minister of labor force and migration sets all rules regarding the operations of therecruitment agencies which include

• Approval and renewal of the license which is renewed every five years

• All founders, managing directors and board members should be Egyptian citizens

• The agency capital should not be less than 100 thousand L.E

• Agencies that hire workers outside the country should contain majority of ownershipand capital to Egyptians which should not be less than 51%

The license may be cancelled according to one of the following conditions;

• collecting fees form the worker

• submitting incorrect information

• involvement in any illegal practices

LaborRegistration

Form

usingrecruitment

agencies

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Recruitment & Hiring Laws• Foreigners are not allowed to work unless they obtain work permit , works

indicates all professions that might be carried out by expats includingdomestic services, residence and approval form the concerned ministry

• The employer should notify the related authorities upon hiring an expat within7 days and the same period upon termination of work relation.

The following are excluded from obtaining work permits;• exempted personnel according to international agreements• administrators of embassies and consulates , international agencies and

organizations• reporters• religious personnel who are not receiving wages• expats working on Egyptian ships• workers of the commonwealth countries• SOS workers• Hans Seidel foundation workers• Members of the Swiss institute for architecture and ancient Egyptian

archeology• Trainers who will reside only for 1 year, where the employer should notify the

authorities of the training program and names of the trainees

Number of expats within any company should not exceed 10 % except• representation offices• management of the branches• the owner and sons• companies with not more than 5 Egyptian workers

usingForeign

Labor

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Recruitment & Hiring Laws

Rules for hiring foreign labor / obtaining work permits• Trainers, experts , rare specialties and those who has exclusive know how• Presence of actual need to the expat• Non competition with the local labor• Assigning of trainees of matching qualifications with the expat expert or

technician and preparing periodic reports on the progress of those trainees• Approval of security authorities• AIDS free test which is done once upon issuing of the work permit and in

case the worker has left the country and at renewal

Work permits are issued for 1000 L.E, while the following are excluded– Citizens of Sudan– Palestine citizens– Italians of more than 5 years residency– Citizens of Greece

Work permits are cancelled in the following cases• If convicted of a felony or misdemeanor breach of ethics or integrity or morals• Submitting false or misleading info• If the work permit was used in a work unlike the licensing profession• Cases that affect the country's economic, social or security interests

Foreigners are not allowed to work in the following professions:– tourism guidance– oriental dancing

– export and customs clearance

usingForeign

Labor

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Recruitment & Hiring Laws• EEO equal employment opportunity (providing equal employment and

advancement opportunity for all qualified individuals without distinction ordiscrimination because of race, color, sex, pregnancy, religion, age, sexualorientation, national origin, physical or mental disability)

• Egyptian labor should register themselves at the labor office

usingEgyptian

Labor

• A work contract is an agreement between two parties where a second party(employee) consent to work for the first party (employer) , under hissupervision and management in return for a compensation

• An employment contract is an agreement entered into between an employerand an employee at the commencement of the period of employment andstating the exact nature of their business relationship, specifically whatcompensation the employee will receive in exchange for specific workperformed.

Types of contracts:

• Definite contract / time limited contract: Is a contract that is agreed uponby two parties , employer and employee , so that the worker will work for theemployer at a certain position under certain conditions for a definite timewhich is not less than 6 months and may be agreed upon for 1 or moreyears.

Employmentcontract

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Recruitment & Hiring Laws• Provisional contract / conditional: Is a contract signed and agreed by two

parties so that the second party is committed to complete certain tasks orproduction requirement at certain time and with specific quality . Uponcompletion of these provisions , a compensation is given. The compensationmay be paid at the end of completion of the task, according to production orcorner stones or at agreed upon intervals.

• Temporary contracts: These are contracts related to certain workingrequirements such as casual work – seasonal work or jobs for period lessthan 6 months

• The employer is committed to write the work contract in Arabic language ofthree copies, where the employer keeps a copy, the second is kept by theemployee and the third copy is kept at the social insurance office

Content of the work contract essential terms:• Name of the company – address – Telephone• Name of the employer ( himself or representative )• Name of the employee , Personal information of the employee ( name-

address – Date of birth – place of birth – ID )• Position occupied by the employee, Compensation ( salary – bonuses –

benefits, Annual raises• Duration of the contract , Renewal regulations• Working hours , Days off , Leaves• Confidentiality agreements, Training agreements• Probation period• Code of ethics if found• Regulations of termination of contract

Employmentcontract

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Recruitment & Hiring Laws

Purpose of employee’s file: keeping the employee’s essential personaland professional information to keep track and resort back to any ofthe employee’s info.

Documents included in the employee file:

• Employee education credentials

• Military certificate

• Training certificates

• Qualifications

• Resume

• Experience certificates

• Performance appraisal

• Photos

• Criminal record investigation certificate

• Contract

• Work permit – Kaab Amal

disputes might arise as a result of incomplete or lack of employees files

EmploymentFile

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Recruitment & Hiring Laws• What is compensation?

It is an appreciation due , to be given by the employer tothe employee upon completion of certain job or workdone.

• Definition of Salary: Payment or compensation given tothe employee in return for work paid on monthly basis.

• Definition of Wage: Payment or compensation given tothe employee in return for work paid on weekly or hourlybasis

• Who assigns compensation rates?

A national council for salaries is conducted headed by theminister of planning, the council assigns the minimumlevel of salaries in respect with several factors:

- Economical situation

- Levels of inflation

- Prices

EmployeeCompensation

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Recruitment & Hiring Laws

Rules for administering compensations:

No discrimination in salaries or wages cause of race, religion,political views, gender,…

Annual increase not less than 7% Basic & Variable Pay Paid in the local currency Paid during a working day (if not transferred to a bank account ) Wages are paid once every week or as agreed in the contract. If

the wage is related to production, and the production is extendedfor more than two weeks, the worker should receive a percentageof the payment every week or as associated to amountof production (debit/credit)

In case the work relation is terminated , the employer gives theworker all his compensation and other financial rights

Workers on salary scale may be transferred to wage scale afteragreement of the worker and voice versa

In case the worker has reported to the work premises and couldnot proceed with working either cause of reasons caused by theemployer or reasons against the will of the employer.

The employer is not allowed to force employees to purchase anycommodities that are produced by the employer or services

The employer cannot deduct more than 10% of the monthlycompensation in case the employee has took a loan , theemployer is also prevented from collecting interests on the loan

The employer should receive the employees signatures onadmission of compensations

EmployeeCompensation

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IndividualLabor

RelationshipsLaws

probation period

working hours, overtime and breaks

Leaves

employing female workers

children & handicapped workers

worker’s obligations

prohibited acts & immediate dismissals

Individual Labor Relationships Laws

Vocational Training & Apprenticeship

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Individual Labor Relationships Laws

• 3 months starting from employee’s hire date

• probation is appointed only once within thesame employer

• extension of probation is not allowed

• Working hours are 8hrs a day or 48hrs a weekexcluding break periods

• Total working hours should not exceed 10 hoursincluding the break period , some professionsmight extend for 12 hrs

• Working hours should include a total of 1 hourbreak period ,workers should not workcontinuously for more than 5hrs

• The Week End not less than 24hrs after workingfor 6days.

Working hours,overtime and

breaks

Probationperiod

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Individual Labor Relationships Laws

• Workers at remote areas or certain nature professionsmay work continuously for 8 weekends after whichthey receive a compensation of weekend.

• Employers may not follow the previous articles incase of emergencies, or necessary workrequirements.

• Overtime: if exceeding 10 working hours (1.5*work hr)

- 35% morning overtime

- 70% evening overtime

Working hours,overtime and

breaks

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Individual Labor Relationships Laws

1. Official Holidays

2. Annual Leave

3. Emergency / Accidental/ Casual Leave

4. Sick Leave

5. Maternity Leave

6. Pilgrimage Leave

7. Unpaid Leaves

8. Other Leaves

Leaves

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Individual Labor Relationships Laws1. Official Holidays (13 days + Christian holidays)

- 7th of January , Christmas

- Bayrum (2 days)

- Greater Bayrum (3 days)

- 25th of April – Sinai liberation day

- 23rd of July - revolution

- 6 of October

- prophet Mohamed birthday

- Sham el nesim

- Hijri new year

- 1st of may labor day

Christian Only- Holidays:

* Epiphany

* Palm Sunday

* Covenant Thursday

* Resurrection feast

** The employer may ask the workers to work duringpublic holidays in return for two times the dailypayment

Leaves

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Individual Labor Relationships Laws2. Annual Leave

Duration of 21 days annual leave on full pay for those who spenta full year in service, increased to 30 days for employees spentworking in the ten years of service with an employer or more, andfor those over the age of fifty, leaves are not included in thecalculation of official holidays and week ends.

An increased in duration of 7days of annual leave is given forworkers who work in the difficult or dangerous or harmful tohealth or in remote areas, which should be approved by therelevant minister

If the duration of the service was less than 1 year , theemployee earns leave for time spent at work, provided that it hasspent six months in the service of the employer.

The Employer sets dates of annual leave upon therequirements and conditions of work. Leaves may not be carriedonly for reasons related to interest work.

Leaves requests should be submitted and approved by theemployer, and if the employee fails to carry out his/ her leave, itmay not be compensated or rescheduled.

Leaves

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Individual Labor Relationships Laws2. Annual Leave

Employees should receive an annual leave of 6 consecutivedays

The employer is obliged to settle the balance of leaves or paythe corresponding payment every three years

If the work relation was terminated before using the leavesbalance , the employer is committed to pay the days untaken tothe employee

The worker has the right to determine the date of annual leave ifit had been ahead of the performance test in a phasededucation requirement

The worker should notify the employer before his leave 15days at least.

The employer has the right to deduct number of days taken asannual leave , from the monthly salary if proven that theworker has worked at another employer during the leave

Employees are entitled to 6 accidental leaves per year with amax of 3 days consecutively

Leaves

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Individual Labor Relationships Laws3. Accidental/ Emergency/ Casual Leave

Employees are entitled to 6 accidental leaves per yearwith a max of 3 days consecutively.

Te accidental leave is deducted from the annual leavebalance

Direct manager or supervisor has to be notified beforetaking the leave

4. Sick Leave

• Workers have the right for paid sick leaves as assignedby the social insurance institution

• The worker who proves his illness 1 month fully paid,75% pay for eight months and then three months withoutpay

• The worker has the right to use untaken annual leave assick leaves in case sick leaves has been utilized totally

Leaves

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Individual Labor Relationships Laws

6. Pilgrimage Leave

Workers spent 5 years at an employer has the right for onemonth paid leave for pilgrimage

This leave is given once during the employment period

5. Maternity Leave

Females completed 10 months at an employer has the right forlabor leave of 90 paid days, females are not to work for the 45days following Birth of a baby

Females are entitled to two labor leaves per working life at anemployer

Employers are prevented from terminating work relation or firing afemale during Maternity leave

If a female work for another employer during the Maternity leave,the main employer may deprive her form all rights

Leaves

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Individual Labor Relationships Laws

8. Other Leaves

Marriage Leave

Educational Leave

7. Unpaid Leave

Females in organizations containing 50 workers andmore has the right for 2 years non paid vacations

Child Care Leave (2 years – twice in the employmentduration)

Accompanying husband

Leaves

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Individual Labor Relationships Laws

The children - in the application of the provisions of the law - allwho reached fourteenth year or over the age of completion ofprimary education but less than seventeen years of age.

every employer uses children under the age of the sixteen shallobtain a license from the labor office

maximum hours for working children are 6 hours

minimal break is one hour combined or split

maximum continuous working hours are 4 hours

children are forbidden from working extra hours, at week ends orat official holidays

Children are prohibited from working between 8 p.m & 7 a.m.

Why there has been a law made for female workers?

females are not to work between 7:00 p.m and 7:00 a.m unlessagreed between the worker and employer

Unsuitable jobs physically and ethically

Female work rules should be shown at a visible place inorganizations containing 5 females or more

Organizations containing more than 100 females at the samework premises should construct a day care for the workerchildren or register at a private day care

Female workers are entitled for two maternal breaks each notless than 30 min+ their original break.

EmployingFemale Labor

EmployingChildren Labor

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Individual Labor Relationships Laws

Companies having more than 50 employees shouldassign 5% for handicapped labor

The employer has the authority to choose out of thehandicapped candidates

EmployingHandicapped

Labor

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Individual Labor Relationships Laws

• carry out all the duties and responsibilities handed to him / her ,and to perform those duties meticulously and honestly

• be committed to all agreements and concessions stated within thework contract

• carry out all orders and duties as requested by the employerwithin the frame of the position and tasks assigned to the employeeand in respect to ethical and legal regulations

• respect working hours

• keep with care all instrumentation, documents and equipmentreceived from the employer by him ,her

• respect and cooperate with all fellow colleagues and subordinatesand supervisors

• well represent the organization

• take care of the organization and the work premises safety

• keep confidentiality and secrecy of information belonging toemployer and organization

• provide true information – personally and professionally to thework place

• follow development procedures and training requirements asstated and planned by the employer

Worker’sObligations

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Individual Labor Relationships Laws

• Keep original document that belongs to work

• Working for another employer with or with out salary, if thisjob will jeopardize the welfare of the main employer, or causeshis / her ability to perform the original job properly, causesethical harm or disgrace to the original employer ororganization, or may help others to obtain classified informationor competes with the employer interest

• Accepting gifts or givens related to performing normal duties ofthe work

• Collect money, donations, signatures, disseminate flyers,magazines, or conduct meetings

ProhibitedActs

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Individual Labor Relationships Laws• Submission of wrong or misleading information

• Committing a professional or technical fault causing seriousdamage to the employer, the employer should notify theconcerned authority within 24 hours

• carelessness regarding the safety of the workplace or fellowcolleagues, taking into consideration that the safety regulationsare shown in a clear place seen by all employees

• Unjustified Absenteeism for more than 20 scattered days ayear or 10 consecutive days, taking into consideration that theemployee is delivered a formal termination notice after 10days in the first case and 5 days in the second case

• Leaking or transfer of confidential information that causeddamage to the institution and the employer

• Practicing and competing the employer in a similarprofession

• Drunk or drug affected during working hours

• Assault or physical attack towards the employer or asuperior

• Harassment

• Illegal practices

ImmediateTermination

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Individual Labor Relationships Laws• Conclusion of employment contract:

- If the contract is signed for a determined period of time and unless thetwo parties stated their interest to renew the contract.

- If the contract is stated for more than 5 yrs duration, the employee canend the working relationship, he will only have to notify the employer 3months prior to resignation date.

- If the contract is stated for more than 5 yrs and it’s conditioned to beconcluded upon having a certain job accomplished; the employee cannot terminate the contract before having the job accomplished.

- The employer and the employee can terminate the working contract atany time, however any of the two parties have to inform each other in awritten form with the reason and times of termination (e.g: for theemployer: unsatisfactory performance of the employee; for theemployee: personal, financial or health condition)

- If the employer terminate the employee without a legal justification, theemployer will have to compensate the employee with the amount of 2months pay for each year of his service. And the employee can havethe right to resort his case to the judicial authorities.

• Notification Period:

- If the employee spent less than 10 yrs service at a certain employer:notification shouldn't be less than 2 months AND 3 months if theservice duration exceeded 10yrs

- The worker’s service duration is calculated from his hire date and tillend of notification period (resignation date)

Terminationof Work

Relationship

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Individual Labor Relationships Laws• Notification Period:

- Notifying an employee of terminating his contract shouldn’t beaddressed during his annual or sick leave (notification starts a day afterher reports back to work)

- The notification period can be extended, however not cancelled norreduced.

- The conditions and terms mentioned in an employment contract are dueand valid to work with till end of the notification period.

- If the termination is initiated by the employer, the employee has the rightto take a leave of one day per week during the notification period toseek a new job. This leave is due to be paid by the employer.

- The employer may exempt an employee from working during thenotification period, however, his compensation and service duration aredue to be paid and stated during this period.

- An employee’s resignation is not considered unless being presented ina written form approved by concerned parties.

- The employee has the right to withdraw his resignation in a week timefrom approving his resignation.

• Death of Employee or Employer:

- The employment contract is concluded upon the death of the employee.If the employee dies while on service of an employer, the employer paysa 2 months compensation to his family for funeral expenses (min of250LE). The employer also pays a 3months gross salary as a servicecompensation + the employee’s other financial dues.

- The employment contract doesn’t conclude if the employer descends.

Terminationof Work

Relationship

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Individual Labor Relationships Laws• Total or Partial Disability of employee:

- The employment contract is concluded if the worker undergoes a totaldisability or incapacity to perform his work. The employer overtakes thecompensation of the employee had the disability occurred in the workpremises

- The employment contract is not included if the worker undergoes apartial disability.

• Employee Retirement:

- No age less than 60 yrs is determined for retiring an employee

- The employee who reaches this age at the service of an employer isentitled for a compensation of ( for the first 5 yrs: half a month of grosspay for each year; then for any year after the first 5yrs, the employee isgranted a month compensation for each year of service)

• Female Labor:

- A female worker can terminate her employment contract for marriage,birth or child care reasons. The employee has to notify her employer 3months of the date of contracting her marriage/pregnancy/childbirth.

• Dues on the employer:

- Upon the end of an employee’s service, the employer has to fulfill allhis/her financial dues, return the employee’s documents from theemployee file, and grant the employee a certificate of proof ofemployment stating the duration, position title, and compensation ofthe employee of his employment service.

Terminationof Work

Relationship

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Individual Labor Relationships Laws• Vocational Training:

- It is the learning means that enable an individual to acquire a better skillor knowledge to do a certain job

• Vocational Guidance:

- It is advising, guiding and helping an individual on an apprenticeshipprogram to determine his qualifications and set the best suitable job orcraft for him to pursue.

• General Provisions:

- The higher council for HR Development undertakes the responsibilityof planning, setting and providing the funds for national vocationaltraining for the Egyptian labor in different business sectors.

- The development plans are set in coordination with the concernedministries and training institutes to address the needs of the public andprivate labor market.

• Training Institutes:

- Exercising vocational training is conditional upon obtaining a licensefrom the concerned ministry and administrative authority, the followingare excluded from obtaining a license:

- companies undertaking the training of their workers

- institutes training the handicapped

- training institutes established by the state of government

- some non-governmental associations

VOCATIONALTRAINING &

APRENTICESHIP

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Individual Labor Relationships Laws• Exercising Vocational Training:

- The training institutes authorized to exercise vocational training mustsubmit their training programs for approval from the concernedministries for approval, the following should be considered:

a) state the conditions to be fulfilled by the trainees to join the trainingprograms

b) state the cost of the training programs

c) state the subject matters, fields, no. of hours/days of training

d) state the levels of expertise of trainers (trainers exercising vocationaltraining should require a license from the concerned administrativeauthorities to conduct the training)

e) state expected level of skill that the trainee is to acquire by end ofthe training program

- Upon completion of training, the training institute should grant thetrainees a certificate of training indicating: (name of training course,duration of training, grade of the trainee’s performance during training)

- Any worker desiring to exercise a certain craft should obtain a licensefrom the concerned administrative authority to approve the individual'squalification to perform the craft.

- Any individual joining an employer with the aim of learning a certaincraft is considered an apprentice.

- Apprenticeship should be stated in a written agreement stating theperiod of training, content of training and grade of progress of theapprentice during the training program)

VOCATIONALTRAINING &

APRENTICESHIP

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Vocational Health & Safety Laws

Vocational Health&

Safety Laws

This law shall apply to all establishments, work sites on shore and offshore.

A central committee formed of:

a) the ministry of manpower

b) the ministry of health

c) the ministry of electricity and water resources

d) the ministry of housing

e) the ministry of interior

f) the ministry of environmental affairs

The committee is formed to:

• study the conditions of work and its required environment and theprobable vocational dangers for each industry

• set the criteria and conditions for granting licenses toestablishments and stores in public and private sectors

• set the criteria for inspecting on work sites to ensure the security,safety and health conditions are followed

Another committee is formed in each governorate consisting of: thesecretary general of the governorate, representatives of one of theconcerned ministries, and a third local committee representingdistricts in each governorate is set to:

• grant approvals to issue licenses for establishing stores and worksites for companies

• follow up on the procedures of granting the licenses and executingthe rules and conditions set for the vocational health & safety.

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Vocational Health & Safety Laws

Vocational Health&

Safety Laws

Each establishment has to provide the means for vocational health & safety

by ensuring the security of the work environment especially for the

following:

• severity and intensity of heat or chilliness

• Noise and vibrations

• Harmful and dangerous radiations

• Atmospheric pressure changes

• Static and dynamic electricity

• Explosion risks

• Lighting

All establishments should take the right precautions against:

• mechanical dangers (lifting equipments, apparatuses, means oftransport, power transmission, solid work tools)

• construction dangers (building, digging, risks of collapse anddownfall)

• bacterial infection (working with bacteria, viruses, fungi, parasitesand other biological means, dealing with infected animals, peopleand their wastes)

• chemical dangers ( dealing with solid, liquid, gaseous chemicalsubstances)

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Vocational Health & Safety Laws

Vocational Health&

Safety Laws

All establishments are obliged to:

• provide the necessary precautions and procedures to protect theworkers against vocational dangers

• training the workers on the health and safety procedures andenlightening them about the vocational dangers and rescue means

• placing instructions for health and safety on bulletin boards in eachand every floor in the building

• keep clear procedures particularly for dealing with chemical andbiological material and disposing their wastes

• reporting immediately cases of infection and illness o workers dueto vocational dangers and accidents

• providing the workers with all possible emergency procedures (likekeeping a resident doctor, nurse an first aid kit and medication)within organizations

• provide all the means of cleanness and arrangement andorganization of workplace, keeping dangerous material and wastesaway and locked in storages away from workers

• provide workers in distant work sites with the needed food,transportation, proper dwelling and housing

• provide pre-employment medical check up for employees and havethem checked regularly

• develop and establish fire fighting system and train workers onrescue procedures

• the company shall not charge any employee on his health andsafety establishments

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Vocational Health & Safety Laws

Vocational Health&

Safety Laws

• each company should carry out analysis and evaluation on thevocational risks, expected environmental risks and prepare anemergency plan for protection of workers

• each company has to notify the concerned administrative authoritywith the emergency plan and ensure that the plan is effective andtested

• in case any establishment fails to follow the health and safetyprocedures or emergency plans, the admin authority may orderclosing down the company totally or partially. And the salaries ofworkers are due to be paid during the period of closure

• the establishment should carry out daily inspection on the workplaces in each shift specially dangerous ones to discover andreport risks

• the establishment should send a semi annual report of diseases,injuries, accidents in the work place to the administrative authorities

• the establishment should coordinate with the health insuranceauthority to carry out periodical medical inspections of the workersto ensure and maintain their health fitness and safety

• if any worker is diagnosed for having an infection or illness becauseof his job, all medical treatment is to be paid by the employer

• all establishments with more than 20 employees should pay anamount of 5LE to the social, health and cultural fund

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Vocational Health & Safety Laws

Vocational Health&

Safety Laws

• The Administrative authorities shall:

• prepare specialized agency for inspection on establishments (thisagency consists of expertise in fields of medicine, engineering,science, sociology an other) this agency is set to control theimplementation of health and safety procedures in organizations

• organize specialize training programs to enhance the proficiency ofthe inspection representatives

• provide the inspection representatives with all new measuringequipments to help them in analyzing and evaluating the health andsafety actions in each organization

• take samples of substance handled by workers in industrialprocesses and revie quantities of dangerous materials in stock todetect their dangerous risks on the establishment or surroundingenvironment

• review emergency plans and analyze risks in organizations

• review kinds and causes of reported vocational accidents

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CollectiveLabor

RelationshipsLaws

General Provisions

Collective Negotiation

Collective Labor Agreements

Collective Labor Disputes

Strikes

Collective Labor Relationships Laws

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Collective Labor Relations• General Provisions:

- A consulting council for labor is formed upon the decree of the primeminister. Members of the council includes:

a) Employers / business men

b) Workers elected by their relevant organizations

c) Persons of expertise

d) Administrative authorities

This council is set to discuss:

a) opinions in the drafted laws of labor relations

b) opinions about international labor relations

c) Means of strengthening cooperation between employer and employee

d) Subjects concerned with national productivity

e) Propose proper solutions for preventing collective labor disputes

• Collective Negotiation:

- It is the discussions carried out between labor unions and employers.Those discussions are carried on the organization level/ industriallevel/ or national level, concerning:

1. Improving labor laws and working conditions

2. Cooperating between labor parties to realize better socialdevelopment for the workers

3. Setting disputes between workers and employers

COLLECTIVELABOR

RELATIONS

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Collective Labor Relations• Collective Negotiation:

- If one party refuses to undergo the negotiation, the administrativeauthority is addressed to assign whom another parties in thediscussions.

- The employer is obliged to present all needed information to thenegotiating committee id proved necessary and essential forproceeding with the negotiation

- The agreements reached after the negotiations should be documentedand signed by all concerned parties and presented to theadministrative authorities.

• Collective Labor Agreements:

- It is an agreement regulating labor conditions and terms signedbetween one or more labor union and employers

- This agreement should be written in Arabic and submitted to the boardof general federation of Egyptian trade unions to be approved within30 days of signing the agreement

- All provisions set in the collective agreement that contradict with laborlaw are considered null

- If the collective agreement includes items that will benefit the workerand not mentioned in the employment contract, the agreementconditions are applied

- Agreements validity goes up to 3 yrs, the agreements can beamended and renewed in light of social or economic changes

- Employers should communicate terms of approved agreements to allemployees in the organization and print it clear in written form onbulletin boards

COLLECTIVELABOR

RELATIONS

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Collective Labor Relations• Collective Labor Agreements:

- If the admin authorities refuse to sign the agreements, the concernedparties can present their case to the court which has the authority tofinalize the approval

• Collective Labor Disputes:

- If any dispute happens, a collective committee is set to settle itcordially

- If the dispute is not settled with 30days of negotiation, theadministrative authority is addressed to provide a council to set thedispute

- A list of mediators is proposed by the admin authority in consultationwith the general federation of Egyptian trade unions and concernedministry

- The employer and the worker elect the mediators on list who arechosen upon:

- The mediators is appointed to study and investigate the dispute andpresent a list of recommendations to settle the dispute

- If the concerned parties didn’t approve or abide by therecommendations, the whole dispute is escalated to the court

COLLECTIVELABOR

RELATIONS

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Collective Labor RelationsStrikes:

•The workers shall have the right to stage a peaceful strike.

•The strike’s purpose and duration has to be approved by at least two third ofthe members of the general trade union.

•The admin authority and the employer have to be notified via a registeredletter with acknowledgment of receipt 10 days before the determined date ofthe strike.

•The notification should state the reason for promoting the strike and itsduration

•Strikes are prohibited if their aim is to modify an approved collective laboragreement during its validity.

•Calling for strikes are prohibited in strategic or vital institutions that woulddisturb national security or basic citizens services.

•Workers on strike are considered on unpaid leave till the strike ends.

•If the employer, for economic reasons, would have to partially or wholly close /downsize his organization. The employer should present a request of closure/downsizing of establishment to concerned admin authority.

•The admin authorities in coordination with the general federation of tradeunion, determine the numbers and names of the workers to lay off.

•In case the employer terminates some working contracts , the employeeshould take a compensation of one month total gross salary for each of the first5 years of service, and one and half month for each year to follow.

•The employer can change some conditions into the working contract and canreduce wages. In this case the employee can end his contract without abidingby a notification period.

COLLECTIVELABOR

RELATIONS