Egypt’s New Labor Law: Advancing Equity and Workplace Stability.
Key Reforms in Employment Protections, Contract Security, and Women’s Rights.
Legal Analysis of Egypt’s New Labor Law: Advancing Equity and Stability in the Workplace
By Alaa Khamis – Head of Legal Research, Middle East — LexDesk360
In a significant legislative development, Egypt’s House of Representatives has approved a comprehensive overhaul of the labor law, aiming to modernize employment regulations and enhance protections for workers. This reform addresses critical issues such as arbitrary dismissal, women’s rights, contract security, and the recognition of emerging work models.
Elimination of Arbitrary Dismissal and Reform of Form 6
The new law abolishes the practice of arbitrary dismissal, notably through the elimination of “Form 6,” which employers previously used to unilaterally terminate employment. Under the revised legislation, dismissals must now be justified and are subject to judicial oversight, ensuring that employees cannot be terminated without due process. This change strengthens job security and aligns with international labor standards.
Enhanced Protections for Working Women
The legislation introduces several provisions to support female employees:
- Extended Maternity Leave: Paid maternity leave has been increased from three to four months, with at least 45 days allocated post-delivery. This leave is available up to three times during a woman’s employment tenure.
- Breastfeeding Breaks: Women are entitled to two daily breastfeeding breaks, each lasting no less than 30 minutes, during the first two years following childbirth.
- Reduced Working Hours: Pregnant employees are granted a reduction of at least one hour in their daily working hours starting from the sixth month of pregnancy.
- Protection Against Dismissal: Employers are prohibited from terminating a female employee’s contract during maternity leave.
Conversion of Fixed-Term Contracts to Permanent Status
To prevent the exploitation of fixed-term contracts, the new law stipulates that any fixed-term employment relationship exceeding four years will automatically convert to an indefinite-term (permanent) contract. This provision ensures greater job stability for employees.
Mandatory Annual Salary Increases
Employers are now required to provide employees with an annual salary increase of no less than 3% of the wage used to calculate social insurance contributions. This measure aims to protect workers’ purchasing power against inflation.
Recognition of Remote Work and Digital Platforms
Acknowledging the evolving nature of work, the revised law formally recognises remote work and employment through digital platforms. This inclusion provides a legal framework for non-traditional work arrangements, ensuring that workers in these sectors receive appropriate protections and benefits.
Establishment of a Fund for Irregular Workers
The law mandates the creation of an emergency relief fund dedicated to irregular workers, such as freelancers and gig economy participants. This fund aims to provide social protection and financial support during periods of unemployment or economic hardship.
Workplace Free from Harassment and Bullying
Employers are now legally obligated to maintain a work environment free from harassment and bullying. The law introduces stricter penalties for violations, including imprisonment and fines, to deter such misconduct and promote a safe workplace.
Conclusion
Egypt’s new labor law represents a progressive step towards creating a more equitable and stable work environment. By addressing longstanding issues and adapting to modern work practices, the legislation seeks to balance the interests of employers and employees. However, the effectiveness of these reforms will largely depend on their implementation and enforcement.