HUMAN RESOURCES MANAGEMENT

Employee Relations & Labor Law

LABOR AND EMPLOYMENT LAW

EMPLOYER

EMPLOYEE
2

LABOR AND EMPLOYMENT LAW

WHAT IS LABOR LAW

WHY DO WE NEED LABOR LAW

WHAT IS SOCIAL INSURANCE LAW

WHAT IS TAXATION LAW

DEFINITIONS
The Goal of Labor Law: The goal of labor law is to equalize the bargaining power between Employers and Employees . Labor laws grant the Employees the right to unionize and allow the Employers and Employees to engage in certain activities: strikes, seeking orderetc. so as to have their demands fulfilled.

DEFINITIONS
The need for Labor Laws:
Organizing relations between workers and employers Organizing and coordinating the workers professional life Preventing workers employers disputes Organizing foreign labor and hiring workers outside the country Guaranteeing equal employment opportunities Preventing work injuries and work accidents

DEFINITIONS
The Social Insurance Law:
An insurance program carried out or mandated by a government to provide economic assistance to the unemployed, the elderly, or the disabled

DEFINITIONS
The Taxation Law:
The nation of Egypt has two primary categories of taxes. One deals with taxes on income from individuals and corporations. The other encompasses taxation of goods, services and property.

DEFINITIONS
EMPLOYEE: A PERSON HIRED BY ANOTHER ONE (THE EMPLOYER): A PERSON OR AN

ORGANISATION- TO A CERTAIN JOB

UNDER CONTRACT. THE EMPLOYER HAS THE POWER/RIGHT TO CONTROL AND DIRECT THE EMPLOYEE OF HOW THE WORK IS TO BE PERFORMED.
8

DEFINITIONS
EMPLOYER: A PERSON OR INSTITUTION THAT HIRES EMPLOYEES OR WORKERS.
THE EMPLOYERS LEVEL OF POWER OVER EMPLOYEES DEPENDS UPON CERTAIN FACTORS.

DEFINITIONS

EMPLOYER/EMPLOYEE RELATIONSHIP: THIS RELATIONSHIP IS BASED ON:

1. Interests: economic pressures that affect their profits

10

DEFINITIONS
2. Control: Defined methods for reaching targets 3. Motivation: Something that moves a person to action, and continues him in the course of action.

11

DEFINITIONS
THE CHANGED ROLE OF HR PROFESSION:
The objective of HR Department is to maximize the return on investment from the organization human capital and minimize financial risk. HR professionals can play a key role in labor relations by developing policies and procedures that help ensure that the entire organization, its managers and supervisors remain in compliance and out of court.
12

EMPLOYMENT RELATIONSHIP

13

EMPLOYMENT RELATIONSHIP
I. BEGINNING

II. MIDDLE (DURING) III. END (TERMINATION)

14

EMPLOYMENT RELATIONSHIP
I. BEGINNING:
1. General provisions: A. Labor Law no.12/2003 (compromises 257 articles) B. Equal Employment Opportunities (who has the right to work?) No discrimination: Color, Sex, Religion, Physical Disability, Political Beliefs.
15

EMPLOYMENT RELATIONSHIP

C. Regulations within the new labor law are only applied and all previous regulations are considered invalid, except if there are better benefits that the worker might obtain.

16

EMPLOYMENT RELATIONSHIP

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

17

EMPLOYMENT RELATIONSHIP
E. It is the responsibility of the successor to satisfy all previous agreements. F. Bankruptcy, merge or selling of the organization doesnt relief the employer from fulfilling all obligations within a work contract.

18

EMPLOYMENT RELATIONSHIP

2. Recruitment & Hiring: A. Labor Registration Form: During January of each year, the employer is committed to submit this form to the legal authorities including: a. no. of workers b. employees age c. educational degrees d. positions e. nationalities

19

RECRUITMENT & HIRING (cont.)

The Labor Registration Form also includes vacant positions and all changes that might have occurred in addition to the expected vacancies during the year.

20

RECRUITMENT & HIRING (cont.)

B. Using Recruitment Agencies: The employer has the right to use any of the legal recruitment channels. The concerned Minister sets all rules regarding the operations of the recruitment agencies: Approval and renewal of the license (every 5 years)

21

RECRUITMENT & HIRING(CONT.)

All founders, managing directors and board members should be Egyptians. The agency capital should not be less than one hundred thousand pounds.

22

RECRUITMENT & HIRING

The license may be cancelled if the agency: - Collects money from the worker .

- Submits incorrect information .

- Is involved in any illegal practices.

23

EMPLOYMENT RELATIONSHIP
II. During the Employers Service: Contract: A work contract is an agreement between two parties where the employee (second party) accepts to work for and under the supervision of the employer (First party) in return for a compensation.

24

EMPLOYMENT RELATIONSHIP
During the employees service (cont.): Types of Contracts: 1. Definite Contract: Time limited contract where the employee will work for the employer at a certain position under certain conditions for a definite time which is not less than six months and may be agreed upon for one year or more.
25

EMPLOYMENT RELATIONSHIP
2. Provisional Contract: (Conditional) A contract signed and agreed by two parties where the second party is committed to complete certain tasks or production requirements at certain time and with specific quality. A compensation is given upon completion of these provisions and paid at the end or as agreed.
26

EMPLOYMENT RELATIONSHIP
3. Temporary contract:
A contract related to certain working requirements such as: casual work and jobs for less than 6 months. The employer is committed to write the contract in Arabic in Three copies:
The employer keeps a copy The employee keeps a copy

The social insurance office keeps a copy

27

EMPLOYMENT RELATIONSHIP
Probation Contract:
If an employee is hired on probation, the employment contract should indicate the probationary period, which cannot exceed three months.

The employee shall not be appointed under probation more than once for the same employer unless the jobs are different.
In case the employee proves unsuitable for the job during the allowed period; thus, allowing the employer to cancel the contract.

28

EMPLOYMEN RELATIONSHIP
Contents of a work contract (essential): (32) Name of the company/address/telephoneetc. Name of the employer: himself/representative Name of the employee/personal info. Position occupied by the employee/ compensation Duration of the contract / renewal
29

EMPLOYMENT RELATIONSHIP
Contents of the contract (cont.) Working hours/days off/ leaves Confidentiality agreements / training agreements Probation period Code of ethics..If found Regulations of termination of contract.
30

EMPLOYMENT RELATIONSHIP
Employment File:
Purpose: Keeping the EMPLOYEES essential personal and professional information to keep track and refer to any of the employees info.

31

Employees File (cont.)

Employees education credentials Qualifications Training Certificates Resume Experience Certificates Performance Appraisal Photos - Contract Work permit-kaab amal

Employee File (cont.)

Criminal record investigation certificate Military certificate: completed or exempted Disputes might arise as a result of incomplete or lack of information

RECRUITMENT & HIRING (CONT.)

USING FOREIGN LABORERS

34

USING FOREIEN LABORERS

Foreigners are allowed to work only if:
They obtain work permit from the concerned ministry. Obtain residency Foreign labor include all kinds of work together with domestic services Employers should notify the concerned authorities upon hiring an expert within 7 days, the same period upon termination.

35

USING FOREIGN LABORERS (cont.)

The following are excluded from obtaining work permit:

1. Exempted personnel according to international agreements. 2. Administrators of embassies, international agencies and organizations.

USING FOREIGN LABORERS (cont.)

3. Reporters. 4. Religious people who are not receiving wages. 5. Experts working on Egyptian Ships.

37

USING FOREIGN LABORERS

9. Members of The Swiss Institute for Architecture and Ancient Egyptian Archeology 10. Trainees who will live in only for one year, where the employer should notify the concerned authorities of the training program: contents, duration, names of trainees
38

USING FOREIGN LABORERS(cont.)

Number of experts within any company should not exceed 10% except : 1. Representative offices 2. Management of the branches 3. The owner and sons 4. Companies with not more than Five Egyptian workers.
39

USING FOREIGN LABORERS (cont.)

Rules for hiring foreign laborers/obtaining work permits: Trainers, experts, rare specialists, and those who have exclusive know how Presence of actual need to the expert Non competition with the local laborers Preparing periodic reports on trainees progress
40

USING FOREIGN LABORERS(cont.)

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.

41

USING FOREIGN LABORERS(cont.)

Workers permits are issued for around L.E. 1000 while the following are excluded: Citizens of Sudan Citizens of Palestine Citizens of Greece Italians of more than five years residency
42

USING FOREIGN LABORERS(cont.)

Work permits are cancelled in the following cases: If convicted of a felony or breach of ethics Submitting false or misleading information If the work permit was used in a work unlike the licensing profession Cases that affect the countrys economic, social or security interests
43

USING FOREIGN LABORERS(cont.)

Foreigners are not allowed to work in the following fields: 1. Tourism Guidance 2. Export and customs clearance

44

RECRUITMENT&HIRING (cont.)
Using Egyptian Laborers: Equal Employment Opportunity (EEO) provides equal opportunity for all qualified individuals without distinction or discrimination: color, sex, age, or physical disability. Egyptian laborers should register themselves at the labor office.

45

EMPLOYEE COMPENSATION
What is compensation? (34) It is an appreciation due to be given by the employer to the employee upon completion of a certain task.

Employee Compensation(cont.)
Types of Compensation: 1. Salary: payment given to the employee in return of work paid on monthly basis. 2. Wage: payment given to the employee in return of work paid on weekly or hourly basis.

Compensation (cont.) WHO ASSIGNS COMPENSATION RATE

A national council for salaries is conducted headed by the Minister of Economic Development. This council assigns the minimum level of salaries in respect with several factors: - Economic situation - Levels of inflation - Prices (34)

COMPENSATION (CONT.)
Rules for Administering Compensation: No discrimination (35) Annual increase not less than 7% (34) Basic & variable pay Paid in local currency Wages are paid once every week or as agreed in the contract. If the wage is related to production for more than two weeks, the worker should receive a percentage of the payment every week or as associated to amount of production. (38)

COMPENSATION(CONT.)
Rules for administering compensation (cont.): In case of work termination, the employer gives the worker all his compensation and other financial rights. (38) Workers on salary scale may be transferred to wage scale upon agreement of the worker & vice versa (40)

COMPENSATION(CONT.)
Rules for administering compensation (cont.) The employer is not allowed to force his employees to purchase any commodities or services produced by the employer (42) The employer cannot deduct more than 10% of the monthly compensation, in case of the employee has taken a loan, the employer is prevented from taking interest on the loan. (43)

COMPENSATION(CONT.)
Rules for administering compensation (cont.) The employer should receive the employees signature on admission of compensation.

LABOR RELATIONS LAWS

1. 2. 3. 4. 5. 6. Probation Period Working hours/overtime and breaks Leaves Employing female workers Children .. And handicapped workers Prohibited acts& immediate dismissals

Employment Relations (contin.)

1. Probation Period: (33) Three months starting from the employees hire date. Probation is conducted ONCE within the same employer Extension of probation is NOT ALLOWED.

Employment Relations(CONT.)
2. WORKING HOURS, OVERTIME & BREAKS: Working hours are 8 hrs. a day or 48hrs. a week excluding break periods. (80) Total working hours should not exceed 10 hrs. including the break period, some professions might extend for 12 hrs. (82) Working hours should include a total of one hour break period, workers should not work continuously- for more than FIVE hours. (81)

Employment Relations (CONT.)

Working hours (cont.) The WEEK END must not be less than 24hrs. after working SIX days. (83) Workers at remote areas or certain nature professions may work continuously for 8 weekends after which they receive a compensation of weekend (84)

Employment Relations(cont.)
Working hours (cont.) Employers may not follow the previous articles in case of emergencies, or necessary work requirements. (85) Overtime: If exceeding working hours you should have: 35% morning overtime 70% evening overtime (85) Working hours should not exceed 10 hours.

Employment Relations (cont.)

3 LEAVES: (47) Official Holidays ( Public Holidays) Annual Leave Emergency/ Accidental/ Casual Leave Sick Leave Maternity and Child Care Leave Pilgrimage Leave Unpaid Leaves .. Other Leaves

Employment Relations(CONT.)
Leaves: (cont.) A. Official Holidays: 7th of January/ Eastern Christmas 25th of January (Police Day) 1st and 2nd day of Shawal (1st Bayrum) The 9th, 10th, and 11th days of Zoelhega (2nd Bayrum) 25th of April (Sanai Liberation Day) 23rd of July (Revolution Day)

LABOR RELATIONS (cont.)

Leaves Official Leaves (cont.) 6th of Oct. (Armed Forces Day) The 12th day of Rabie the first (Prophet Mohameds Birthday) Spring Day (Sham EL Neseem) 1st day of Moharam (Islamic New Year) 1st day of May (Labor Day)

LABOR RELATIONS(cont.)
Leaves: (cont.) Christians ONLY holidays: Epiphany Palm Sunday Covenant Thursday Resurrection Feast

LABOR RELATION (cont.)on

Leaves: (cont.) B. Annual Leave: (47) Duration of 21 days annual leave on full pay for those who spent a full year in service, increased to 30 days for employees spent working for 10 years of service with an employer or more, or for those over the age of 50.

LABOR RELATIONS(cont.)
Annual Leaves: (cont.)
Official holidays are not included in the Annual Leaves. An increase of 7 days to the annual leave is given for workers: - in difficult, dangerous or harmful to health - In remote areas. This should be approved by relevant minister. - If employees are required to work during holidays, the employees are entitled to overtime (paid at double their normal rate at weekends and triple their normal rate at official holidays)

LABOR RELATIONS(CONT.)
Annual Leaves: (cont.) If the duration of the service was less than one year, the employee earns leave for time spent at work provided that s/he has spent six

months at the employers service. (47)

LABOR RELATIONS(CONT.)
Annual Leaves: (cont.) The employer sets dates of annual leave upon the requirements and conditions of the work. Leaves may not be carried only for reasons related to work interest. (48)

LABOR RELATIONS(CONT.)
Annual Leave: (cont.) Leaves requests should be submitted and approved by the employer, and if the employee fails to carry out his/her leave, it may not be compensated or rescheduled. (48) Employees should receive an annual leave of six consecutive days. (48)

LABOR RELATIONS (cont.)

Annual leave: (cont.) The employer is obliged to settle the balance of leaves or pay the corresponding payment every THREE years. (48) If the work relation is terminated before using the leaves balance, the employer is committed to pay the days untaken. (48)

LABOR RELATIONS (cont.)

Annual Leave: (cont.) The worker should notify the employer before his leave 15 days at least. (49) The employer has the right to deduct the number of days taken as annual leave from the monthly salary if proven that the worker has worked at another employer during the leave.

LABOR RELATIONS (cont.)

C. Accidental/ Emergency/ Casual: Employees are entitled to six accidental leaves per year with a maximum of TWO days consecutively. Employees direct manager /supervisor has to be notified before taking the leave.

LABOR RELATIONS(cont.)
D. Sick Leave: Workers have the right for paid sick leaves as assigned by the social insurance organization. (54) For every three years , the worker who proves his/her illness : - one month fully paid - 75% pay for eight months - three months without pay

LABOR RELATIONS(cont.)
D. Sick Leave (cont.):
The worker has the right to use the untaken annual leave as sick leaves in case sick leaves have been used totally. (54)

LABOR RELATIONS( CONT.)

E. Maternity Leave:
A Female having spent 10 months in the service of an employer shall be entitled to a maternity leave of 90 days with full wage payment including the period preceding giving birth (91) During the 24 months following the date of childbirth, she has the right to two periods of rest daily (30 minutes each) for breast feeding her child, with the option to combine both periods in one.

LABOR RELATION (cont.)

E. Maternity Leave: (cont.) Females are entitled to TWO maternity leaves per working life . Employers are prevented from terminating work relation or firing a female during maternity leave. (92)

LABOR RELATION (CONT.)

E. Maternity Leave: (cont.) If a female works for another employer

during the maternity leave , the main

employer may deprive her from ALL rights. (92)

LABOR RELATIONS (cont.)

Pilgrimage Leave: (53) Workers spent Five years at an employer has the right for One Month paid leave for pilgrimage. This leave is given once during the employment period.

LABOR RELATION(cont.)
F. Unpaid Leaves: Females in organizations of 50 workers and more have the right for 2 years non paid vacation ( 2 years TWICE in the employment duration) (94) Accompanying spouse.

LABOR RELATIONS (cont.)

I. Other Leaves: Marriage leave. Educational leaves

LABOR RELATIONS (CONT.)

Employing Female Workers:

LABOR RELATIONS (cont.)

Employing Female Workers: WHY DOES LABOR LAW INCLUDE SPECIAL ARTICLES FOR FEMALE WORKERS ? Females are NOT to work between 7.00 p.m. and 7.00 a.m. UNLESS agreed between the worker and the employer. (89)

LABOR RELATIONS (cont.)

Employing Female Workers: (cont.) Unsuitable jobs physically and ethically.(90)

Female work rules should be shown at a visible place in organizations of 5 females or more. (95)

LABOR RELATIONS (cont.)

Employing Female Labor: (cont.) Organizations of more than 100 females at the same work premises should construct a day care for the workers children or register at a private day care. (96) Female workers are entitled TWO Maternal breaks each not less than 30 minutes + their original breaks. (93)

LABOR RELATIONS (cont.)

Employing Children Workers:

LABOR RELATIONS (cont.)

Employing Children Workers: (cont.) The children in the application of the provision of this law - are those : 1. who reached 14 years old or 2. over the age of completion of primary education but less than 18 years old . (98)

LABOR RELATIONS (cont.)

Employing Children Workers: (cont.) Every employer uses children from the age of 14 shall obtain a license from the labor office. Maximum hours for working children are 6 hours. (101)

LABOR RELATIONS (cont.)

Employing Children Workers: (cont.) Maximum continuous working hours are 4 hours. (101) Children are forbidden from working extra hours, at weekends or at official holidays. (101) Children are prohibited from working between 8.00 p.m. & 7:00 a.m. (101)

LABOR RELATIONS (cont.)

Employing Handicapped Workers: Companies having more than 50 employees should assign 5% for handicapped. The employer has the authority to choose out of the handicapped candidates.

LABOR RELATIONS (cont.)

Workers Obligations: The worker is obliged to : 1. Carry out all the duties and responsibilities handed to him/her and to perform those responsibilities meticulously and honestly. (56 A)

LABOR RELATIONS (cont.)

Workers Obligations: (cont.) 2. Be committed to all agreements and concessions stated in the work contract. 3. Carry out all orders and duties as requested by the employer within the frame of the position and tasks assigned to the employees and in respect to ethical and legal regulations. (56 B)

LABOR RELATIONS (cont.)

Workers Obligations: (cont.) 4. Respect working hours.

(56 C)

5. Keep with care all instruments, documents, and equipment she/he received from the employer. (56 D)

LABOR RELATIONS (cont.)

Workers Obligations: (cont.) 6. Respect and cooperate with all fellow colleagues, subordinates and supervisors. (56 E) 7. Represent the organization well. (56 F) 8. Take care of the organization and work premises safety. (56 G)

LABOR RELATIONS (cont.)

Workers Obligations: (cont.) 9. Keep information belonging to the employer and organization confidential and secret. (H) 10. Provide True information: personally and professionally to the work place. 11. Follow development procedures and training requirements as stated and planned by the employer.

LABOR RELATIONS (cont.)

Prohibited Acts: (57) Working for another employer with or without salary, if this job will jeopardize the welfare of the main employer or causes his/her ability to perform the original job properly, causes ethical harm or disgrace to the original employer or organization, or help others to obtain Classified information or competes with the employers interest.

LABOR RELATIONS (cont.)

Prohibited Acts: (cont.) Keep original document(s) that belongs to the work. Accepting gifts or givens related to performing normal duties of the work. Collect money, donations, signatures, disseminate flyers, or magazines.

III. Terminating Employment Relations

A. Immediate Termination: (69) Submission of wrong misleading information. Committing a professional or technical fault causing serious damage to the employer, the employee should notify the concerned authority within 24 hours.

Termination (cont.)
A. Immediate Termination: (cont.) Carelessness regarding the safety of the workplace or fellow colleagues, taking into consideration that the safety regulations are shown in a clear place seen by all employees.

TERMINATION (cont.)
Immediate Termination: (cont.) Unjustified absenteeism for more than 20 scattered days a year OR 10 consecutive days, taking into consideration that the employee is delivered a formal termination notice after 10 days in the first case and 5 days in the second case.

TERMINATION (CONT.)
Immediate Termination (cont.) Leaking or transferring of confidential information that cause damage to the institution and the employer. Practicing and competing the employer in a similar profession.

TERMINATION (cont.)
Immediate Termination: (cont.) Drunk or drug affected during working hours. Assault or physical attack towards the employer or a superior. Harassment. Illegal practices.

TERMINATION
B. TERMINATION OF WORK RELATION: 1. Conclusion of Employment Contract: If the contract is signed for a determined period of time unless the two parties stated their interest to renew the contract. (105)

TERMINATION (cont.)
Conclusion of Employment Contract (cont.): If the contract is stated for more than Five years duration, the employee can end the working relationship, he will only have to notify the employer Three Months prior to the resignation date. (104)

TERMINATION (cont.)
Conclusion of Employment Contract: (cont.) If the contract is stated for more than Five years and it is conditioned to be concluded upon having a certain job accomplished, the employee can not terminate the contract BEFORE the job is accomplished. (107)

TERMINATION (cont.)
Conclusion of Employment Contract: (cont.) The employer and the employee can terminate the working contract at any time; however, any of the two parties has to inform each other in a written form with the reason and times of termination: 1. The employer: unsatisfactory performance 2. The employee: personal, financial, health (110)

TERMINATION (cont.)of Employment

Conclusion of Employment Contract: (cont.) If the employer terminates the employee without a legal justification, the employer has to compensate the employee with the amount of TWO Months Pay for each year of his service. The employee can have the right to resort his case to the judicial authorities. (122)

TERMINATION (cont.)
Notification Period:
If the employee spent less than 10 years service at a certain employer, notification shouldnt be less than TWO months / THREE months if the service duration exceeds TEN years. (111)
The workers service duration is calculated from his/her hire date till end of notification period . (112)

TERMINATION (cont.)
Notification Period: (cont.) Notifying an employee of terminating his/her contract shouldnt take place during the leaves (notification starts after reporting back to work) (113) The notification period can be extended, however, Not Cancelled Nor Reduced. (115)

TERMINATION (cont.)
Notification Period (cont.) The conditions and terms mentioned in an employment contract are due and valid to work with till end of notification period (114) If the termination is initiated by the employer, the employee has the right to take a leave of one day per week-paid by the employerduring the notification period to seek a new job. (116)

TERMINATION (cont.)
Notification Period (cont.) The employer may exempt the employee from working during the notification period, however, his compensation and service duration are due to be paid and stated during this period. (117)

TERMINATION (cont.)
Notification Period (cont.) An employee resignation is not considered unless being presented in a written form and approved by concerned parties. (119) The employee has the right to withdraw his/her resignation in a week time from approving the resignation. (119)

TERMINATION (cont.)
2. Death of Employer or Employee: (123) The employment contract is concluded upon the death of the employee. If the employee dies while on service of an employer, the latter pays TWO months compensation to his family for funeral expenses: min. L.E. 250

TERMINATION (cont.)
2. Death of Employee or Employer (cont.) The employer also pays a THREE months gross salary as a service compensation + the employees other financial dues. (123) The employment contract does not conclude if the employer fall down. (123)

TERMINATION (cont.)
3. Total or Partial Disability: (124) The employment contract is concluded if the worker undergoes a total disability to perform his work. The employment contract is not concluded if the worker under goes a partial disability.

TERMINATION (cont.)
4. Employee Retirement: No age less than 60 years is determined for an employee to retire. (125) The employee who reaches this age at the service of an employer is entitled for a compensation of: - for the first Five years: half a month of gross pay for each year - for any year after: a month compensation for each year of service. (126)

TERMINATION (cont.)
5. Female Labor: A female worker can terminate her employment contract for marriage, birth, or child care reasons. She is to notify her employer Three months of the date needed. (128)

TERMINATION (cont.)
6. Dues on the Employer Upon the end of the employees service, the employer has to fulfill all his/her financial dues, return the employees documents from the employees file, and grant the employee a certificate of proof of employment stating the duration, position title, and compensation of the employee of his employment service.