The House of Representatives of Egypt, presided over by Counselor Dr. Hanafi Jabali, convened on March 10, 2025, to discuss important amendments to the Labor Law. During this session, legislators aired various opinions on proposed adjustments, particularly focusing on annual allowances and the procedural requirements for employment contracts.
A pivotal decision made during the session was the establishment of the annual allowance for workers, which was set at no less than 3% of their insurance wage. This figure is not just arbitrary; it forms part of Article 12 of the new draft legislation. The agreement came after heated discussions, wherein several representatives demanded the annual allowance's minimum limit for private sector workers be raised to 7%. This push highlighted concerns over maintaining worker standards as the Egyptian economy progresses.
Among those voicing their concerns was Deputy Abdel-Hadi Al-Qasabi, who questioned: "Is the annual allowance calculated based on the basic wage or the insurance wage?" His inquiry was met with insights from the Minister of Labor, who noted, "Setting the allowance at 3% from the insurance wage is more beneficial to the worker compared to 7% from the basic wage." This emphasis on insurance wages aims to reflect the fluctuated financial growth within the private sector and aims to secure fair compensation for employees as the economy evolves.
Another significant point of the session was the approval of Article 89, requiring employment contracts to be written clearly in Arabic and include four copies—two for the administrative body and two for their employer and employee. This amendment is particularly relevant, as it ensures clarity and accountability on both sides of the employment relationship. If the worker does not speak Arabic, the contract may be prepared in both Arabic and the worker’s language. Through these measures, the House sought to mitigate miscommunication and advocate for worker rights.
The Council has also approved Article 90, which stipulated the probation period for new workers should not exceed three months. This provision aims to protect workers from being subjected to indefinite trial periods and establish clear terms of engagement from the start of their employment.
Article 91, which was validated during the session, lays out the groundwork for the terms of contract obligations; stating plainly, it is impermissible for employers to deviate from agreed-upon terms or assign tasks outside of the originally stipulated duties, barring exceptional circumstances. Consequently, this shows the House's commitment to safeguarding employees from arbitrary alterations to their work conditions.
Further stipulations were included, such as those articulated within Article 92. This article mandates the creation of electronic or paper-based employee files detailing all relevant information about the worker—an effort aimed at organizational integrity and administrative efficiency. The collected details will cover everything from employment start dates, wages, and any penalties imposed, to details of the worker’s developments within the company.
Another key change rests on Article 93, obliging employers to facilitate the transition of workers to their designated workplaces. If the employer fails this, the administrative authority must rectify the situation at their expense. Through these alterations, the law aims to bolster worker security and enforce employer responsibility.
Lastly, the House approved Articles 94 and 95, focusing on maintaining equitable rights among workers, particularly when involving sub-contracting employees. Employers who take on workers from another entity must treat both sets of workers as equals under their legal obligations, reflecting fairness for all workers within the same environment. Meanwhile, workers who received training funded by their employer have the responsibility to fulfill their training commitments; failing to do so would result in fees incurred for the training.
These revisions within the Labor Law mark significant steps forward for worker rights and employer regulations within Egypt. Amidst rising discussions about economic stability, the provisions offered will explore new avenues for workers to secure fair treatment and benefits, setting forth expectations for both employers and employees.