Contracts in Egypt
Management of Human Resources
- Recruitment Agencies
- Recruitment agencies or head-hunters are private companies commissioned by employers. They often have their own rules. They require registration in their database first, before being able to submit candidacy. They often have their own websites for classifieds and job announcements and can insist upon their own job interviews.
- Recruitment Websites
Jobs in Egypt
Arabo Egypt: advertisement site
American Chamber of Commerce in Egypt
- Type of Contract
- The work contracts are governed, in the order of importance, by the legal provisions, collective agreement and individual negotiation. The two types of contract frequently used are the limited duration contract and the open-ended contract. There is also the temporary work contract which is used with the purpose of giving the employee a well-specified assignment. There is no maximum duration. The occasional work contract exists in the case of a specific assignment and its duration cannot exceed 6 months. The seasonal work contract highly used in the tourism sector is concluded for a work which is required to be repeated every year at around the same fixed date. This type of contract cannot be renewed. Dismissal / layoff criteria are also very rigid compared to the employment conditions which are very flexible.
- Breach of Contracts
- 70 to 90% of active workers have access to retirement benefits. It is possible (even compulsory) to retire at the age of 60, depending on the sectors:
- Pension is paid automatically on a monthly subscription booklet;
- The active worker saves through out the years a sum of his choosing, for his retirement, which is paid to him afterwards;
- The active worker opens an investment fund managed by a private company. He could therefore possibly benefit from an additional percentage;
- From the age of 65 years, the State pays an additional EGP100.
- The constraints of dismissal are very rigid unlike the conditions of hire which are extremely flexible.
- Other Possible Methods
- Expiration of the contract, resignation, collective dismissal...
- Legal Framework
- Labor Law no 12 of 2003 governs all employment relationships.
- In the case of a dispute between employer and employee, the State Labor Office first tries to resolve the matter amicably. If no agreement is concluded, the two parties can resort to an arbitration committee and file a complaint within 45 days or more.
- Legal Framework
- See the International Labor Organization.
- Competent Legal Body
- It is a committee made up of two judges, a representative of the Ministry of Labor and Immigration and two members of the Federation of Egyptian Unions. The compensation determined by the committee cannot be less than two months salary. However, matters normally take two to four years to be resolved. In effect, these are complicated undertakings.
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