MEA Employment Predictions 2024: Egypt's New Labour Law

  • Market Insight 05 June 2024 05 June 2024
  • Africa, Middle East

  • Employment, Pensions & Immigration

Stay informed: Anticipated overhaul of Egypt's labour law to drive reform and attract investments.

Keep a close eye on the imminent issuance of Egypt's new labour law, set to replace the existing labour law number 12/2003. This anticipated legislative update is poised to address shortcomings in the current law and contribute to ongoing reforms in Egypt, with the overarching goal of attracting new investments.

The Egyptian Senate has given its initial approval to a new draft of the labour law, signaling its impending issuance as a comprehensive replacement for the current labour law (No. 12 of 2003). This draft introduces key changes aimed at modernising employment regulations and fostering a more favourable business environment.

Noteworthy provisions in the draft law include:

  • Extended Annual Leave: Employees aged 50 and above are set to enjoy an increase in annual leave days, with the proposed change from 30 to 45 days, aligning with efforts to support the well-being of the aging workforce.
  • Maternity Leave Adjustment: Female employees are set to benefit from a more flexible maternity leave policy, reducing the required duration of employment with an employer for eligibility from 10 to 6 months.
  • Inclusivity Mandate: Consistent with law No. 10 of 2018 on the Rights of Persons with Disabilities, the draft law introduces an obligation for entities to hire 5% of their workforce from people of determination, fostering inclusivity in the workplace.
  • Training Fund Modification: The proposed amendment to the training fund fee reduces it from 1% of net profits to 0.25% of total insured salaries, with potential exemptions for entities providing employee training.
  • Employee File Retention: A requirement for employers to retain employees' files for a period of 5 years, a significant extension from the current one-year stipulation, promoting transparency and record-keeping.
  • End of Service Payments: Discussions are underway to introduce an obligation for employers to provide end-of-service payments when terminating both definite and indefinite term contracts, offering enhanced job security.
  • Medical Privacy Measures: Aligned with the Personal Data Protection Law No. 151 of 2020, the draft law emphasises the confidential handling of employees' medical check-up information, emphasising the importance of data privacy.

As Egypt positions itself for economic growth, these proposed changes signify a commitment to fostering a more favourable and progressive work environment. Stay tuned for further developments and insights on the evolving labour landscape in Egypt. 

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