Background Checks

Before finalizing employment, conduct necessary background checks:

• Identity Verification: Confirm the candidate’s identity through official ID documents.
• Criminal Record Check: Ensure the candidate’s criminal history does not pose a risk to the organization.

Verification and New Hire Reporting

• Employers must register new employees with the Egyptian Social Insurance Authority to ensure compliance with social security laws.
• Employment contracts must be filed with labor authorities, particularly for foreign workers.
• Companies may be required to submit hiring reports to relevant government agencies, depending on industry-specific regulations.

Onboarding Process & Documentation

Employers are responsible for gathering essential documents from new hires, including:

• National ID or passport for identity verification
• Work permits (if applicable) for foreign employees
• Social insurance registration to ensure coverage under Egypt’s social security system
• Employment contract, which must be written in Arabic and signed by both parties
• Medical examination records, if required for specific roles

Healthcare

Mandatory Social Health Insurance: All employees registered under social security receive basic health coverage. However, this system may limit hospital, clinic, and specialist choices and scope of services.

• Prevalence of Private Health Insurance: Many employers offer private health insurance to supplement or replace basic social coverage. Plans vary in coverage levels (inpatient, outpatient, dental, optical), network size, and annual limits.
• Employer Contributions: Companies typically cover most costs for employees, with options for workers to add family members at a subsidized or full cost.
• Impact on Job Decisions: The quality and scope of an employer’s health insurance plan influence job selection and employee satisfaction.
• Employer Compliance: Businesses must ensure employees are registered with social security and properly manage contributions and administration for private plans they offer.

Retirement

Primary retirement system is the mandatory social security pension, which is funded by both employer and employee contributions throughout an individual’s career. The pension system ensures financial security after retirement, as well as disability and survivor benefits for employees and their families.

Eligibility & Benefits

• Employees must contribute to the national social security system throughout their working life to qualify for retirement benefits.
• Pensions are calculated based on total years of contribution and salary history, ensuring proportional benefits.

In addition to retirement pensions, the system includes:

• Disability benefits for employees who are permanently unable to work due to illness or injury.
• Survivor benefits for eligible family members in the event of an employee’s death.

Social Security

Egyptian labor law requires employers to provide several essential benefits to employees, ensuring compliance with national labor regulations.

Social Security Contributions that employers and employees must contribute to Egypt’s social security system, which covers:

• Pensions
• Health insurance
• Work injury compensation
• Unemployment benefits

Contribution rates are legally mandated and based on an employee’s salary, with specific percentages for both employer and employee. Employers must ensure timely registration of employees and accurate calculation and payment of contributions to remain compliant.

Employment Contract Details

Egyptian labor law primarily recognizes two main types of employment contracts: fixed-term and indefinite-term, each with different implications for termination rights and obligations.

Fixed-Term Contracts

• Set for a specific duration or project
• Automatically terminates upon expiration or completion
• Can be renewed, but if extended for more than five years, it may convert into an indefinite contract
• Multiple renewals may also result in indefinite status, especially in termination disputes

Indefinite-Term Contracts

• No fixed end date
• Continue until legally terminated by either party
• Subject to standard notice periods and severance pay regulations

Egyptian labor law requires key elements in contracts to ensure validity and transparency:

• Identification of Parties – Full names and addresses of both employer and employee
• Job Title & Description – Detailed outline of duties and responsibilities
• Start Date – Official employment commencement date
• Contract Type – Clearly specifies fixed-term or indefinite-term, with duration/project details if fixed-term
• Compensation Details – Salary, wages, allowances, bonuses, and payment frequency
• Working Hours – Daily and weekly working hours, ensuring compliance with labor laws
• Location of Work – Primary workplace where duties will be performed
• Annual Leave – Minimum paid vacation entitlements based on legal provisions
• Social Insurance – Confirmation of registration in Egypt’s social security system

Additional Considerations

• Contracts must be written in Arabic and prepared in duplicate, with one copy for each party
• Employers and employees may include additional clauses, but must comply with Egyptian labor laws

Probation Period

The maximum duration of a probationary period is three months, and an employee cannot be placed under probation more than once with the same employer. During this period, either party may terminate the contract without notice or severance pay, as long as the dismissal is not arbitrary or discriminatory.

Visas

Visa Type:

• Tourist Visa: For tourism, valid for 30 days.
• Business Visa: For business activities, valid for up to 90 days.
• Student Visa: For educational courses over 90 days.
• Work Visa: For employment.
• Transit Visa: For travelers transferring through Egypt.

Required Documentation:

• Valid passport
• Visa application form
• Photographs
• Travel itinerary
• Roof of financial means
• Invitation letter, if applicable

Application Process:

• Steps include determining visa type, gathering documents, submitting applications, paying fees, attending interviews, and waiting for processing.

Independent Contractors

Several factors distinguish an employee from an independent contractor, including that:

• An employee is subordinate to his or her employer
• An employer is responsible for an employee’s mistakes, while a contractor is responsible for his or her own mistakes
• An employee’s work term is concluded upon the end of its duration or once the employee reaches the age of retirement, while a contractor works on a fixed-term contract
• The responsibility of the employee falls within the doctrine of vicarious liability, while the contractual responsibility of a contractor is based on the responsibility for tort.

Paid Time Off

Employees are entitled to 21 days of paid annual leave after one year of service. This entitlement increases to 30 days after ten years of service or for employees over fifty years of age.

Public Holidays

The government is entitled to decide if public holidays falling on weekends should be moved to a weekday or it will be lost.

• Coptic Christmas Day (Sunday)
• Revolution Day (Thursday)
• Eid al-Fitr (Wednesday) – Tentative
• Eid al-Fitr Holiday (Thursday) – Tentative
• Eid al-Fitr Holiday (Friday) – Tentative
• Sinai Liberation Day (Thursday)
• Labor Day (Wednesday)
• Sham el Nessim (Monday)
• Arafat Day (Sunday)
• Eid al-Adha (Wednesday) – Tentative
• Eid al-Adha Holiday (Thursday) – Tentative
• Eid al-Adha Holiday (Friday) – Tentative
• Eid al-Adha Holiday (Saturday) – Tentative
• June Revolution Day (Sunday)
• Islamic New Year (Monday) – Tentative
• July Revolution Day (Tuesday)

Bereavement

Employees in Egypt are entitled to paid bereavement leave following the death of an immediate family member. The duration of bereavement leave varies based on company policy or collective agreements.

Maternity Leave

Female employees are entitled to 90 days of paid maternity leave with full salary and the right to return to their previous role.

• Must have been employed for ten consecutive months
• Entitled to 100% of their salary (Social Security 75%, employer 25%)
• Entitled to take two periods of maternity leave during their total employment service

Paternity Leave

There are no provisions in the law regarding paternity leave.

Parental Leave

If a company has at least 50 employees, female employees are entitled to take up to 24 months of unpaid leave for each child. This type of leave can be taken twice during the employee’s entire service with the company.

Sick Leave

Employees are entitled to up to six months of paid sick leave with a medical certificate.

The first 90 days of the leave, the employee is entitled to 75% of their regular salary rate, than will increase to 85% for another 90 days.

Termination Requirements

An employer who wishes to terminate an employee must first present their case to a committee with judicial powers at the Ministry of Manpower and Migration. This committee has 15 days to decide whether to approve the termination request. If the committee grants the request, the employer can proceed with the dismissal. However, the employee retains the right to challenge the dismissal in court.

Employer is not entitled to terminate an employment contract unless the employee breaches the contract by committing a grave fault as follows:

• An assumption of a false identity or the submission of forged documents
• Continuous violation of safety instructions
• Absence from work for more than 20 non-consecutive or 10 consecutive days in a given year
• Disclosure of the employer’s secrets, resulting in material loss
• Competition with the employer in the same line of work
• Being in an intoxicated state during working hours
• Assault of the employer, general manager or any superiors
• Professional incompetence

Notice Period

The required notice period depends on an employee’s length of service:

• Less than ten years of service, the notice period is two months increasing to three months for employees with more than ten years of service.
• No notice is required during the probation period.

Severance Pay

An employee who continues working for the employer beyond the age of 60 is entitled to severance pay upon termination of employment for each year worked after turning 60. The compensation is as follows:

• 50% of their monthly salary for each year of service during the first five years
• 100% of their monthly salary for each year of service after the first five years

The severance pay is calculated based on the last salary paid to the employee.

Unemployment Insurance

Egypt provides unemployment benefits to eligible workers through its social insurance system. Here’s an overview of the key requirements and provisions:

Eligibility Criteria To qualify for unemployment benefits, an individual must:

• Have contributed to social insurance for at least six months
• Not have left their job voluntarily
• Not have been dismissed for misconduct
• Not refusing a suitable job offer during the unemployment period

Employer Contributions

• Employers are required to contribute 1% of the payroll toward unemployment insurance.

Anti-Discrimination Practices

Egyptian labor law prohibits discrimination based on gender, religion, disability, or social status. Employers must ensure equal treatment in hiring, promotions, and workplace policies. Harassment, including sexual harassment, is strictly prohibited, and employees have the right to file complaints with labor authorities if violations occur.

Workplace Safety Standards

Workplace safety is governed by Labor Law No. 12 of 2003, which outlines employer responsibilities for maintaining safe working conditions.

• Employers must conduct risk assessments, provide safety training, and ensure compliance with occupational health standards.
• Regulations cover hazardous materials, equipment safety, and emergency preparedness.
• Violations of workplace safety laws can result in penalties and legal consequences.

Workers’ Compensation

Employers are required to provide compensation for work-related injuries and illnesses.

• The Social Insurance Authority oversees benefits, including medical treatment, rehabilitation, and financial support for injured workers.
• Employees who suffer from permanent disabilities may be entitled to long-term compensation.

Labor Law Sanctions

Use of Pre-Signed Resignation Forms (Form 6): Employers who coerce employees into signing pre-dated resignation forms face nullification of the resignation and potential administrative penalties. All resignations must now be ratified by the Labor Office.

Unlawful Dismissal Without Judicial Approval: Employers cannot dismiss employees for disciplinary reasons without a court ruling. Violations may result in reinstatement orders, compensation, and fines.

Failure to Pay Termination Compensation: If an employer terminates a contract without misconduct, they must pay two months’ salary per year of service. Failure to comply can lead to legal claims and financial penalties.

Non-Compliance with Employee Data Submission: Employers must submit employee data to the Ministry of Labor within 30 days of the law’s effective date and update it annually. Non-compliance may result in administrative sanctions or fines.

Discrimination or Gender Inequality: Discriminatory practices in hiring, pay, or promotion based on gender, disability, or other protected characteristics are punishable by fines and potential civil liability.

Violation of Work Hour and Leave Regulations: Employers who fail to comply with mandated work hours, overtime pay, or leave entitlements (e.g., maternity, annual, sick leave) may face labor court action and monetary penalties.

Failure to Recognize Modern Work Patterns: Employers refusing to accommodate legally recognized work models (e.g., remote work, part-time, job-sharing) may be subject to compliance orders and labor disputes.

Obstruction of Labor Inspections: Hindering labor inspectors or failing to provide requested documentation can result in fines and potential suspension of business licenses.