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Egypt - Compensation & Benefit Legislation

CAPITAL

Cairo

 

CLIMATE

Desert climate: hot, dry summers with moderate winters.

 

LANGUAGES

Arabic (official), English and French are widely understood by educated classes.

 

LEGAL SYSTEM

Egypt’s legal system is based on English common law, Islamic law, and Napoleonic codes. Judicial review by Supreme Court and Council of State (oversees validity of administrative decisions). Egypt accepts compulsory ICJ jurisdiction, with reservations.

 

CURRENCY

Egyptian Pound (1 USD = 4.67000 EGP as of April 15, 2002).

 

EGYPT - COST-OF-LIVING

ERI's Relocation Assessors is a recommended source for cost-of-living data.

 

EGYPT - EMBASSY/CONSULATES

U. S. Embassy at Cairo

5 Latin America Street

Garden City Cairo

Egypt

APO AE 09839-4900

Cairo, Egypt

Telephone: [20] (2) 797-3300

Fax: [20] (2) 797-3200

http://usembassy.egnet.net/

 

Embassy of the Arab Republic of Egypt at Washington D.C.

3521 International Court NW

Washington D.C. 20008

Telephone: (202) 895-5400

Fax: (202) 244-5131

E-mail: embassy@egyptembdc.org

http://www.embassyofegyptwashingtondc.org

 

EGYPT - HOLIDAYS

 

EGYPT - LEAVE

Annual Leave: Minimum 21 days of paid annual leave (after completion of 1 year of service).

 

Maternity Leave: 50 days – 100% of pay (paid by social security and the employer).

 

EGYPT - MINIMUM AGE

The Government takes seriously the problem of child labor; however, in general it does not devote adequate resources to implement its child labor policies. Under the Child Law the minimum age for employment is 14 years of age in nonagricultural work.

 

The Labor Law of 1996 and associated ministerial decrees greatly limit the type and conditions of work that children below the age of 18 may perform legally. Children under the age of 14 are not permitted to work in the cotton fields. Provincial governors, with the approval of the Minister of Education, may authorize seasonal work for children between the ages of 12 and 14, provided that duties are not hazardous and do not interfere with schooling. Preemployment training for children under the age of 12 is prohibited.

 

It is prohibited for children to work for more than 6 hours a day. One or more breaks totaling at least 1 hour must be included. Children may not work overtime, during their weekly day off, between 8 p.m. and 7 a.m., or for more than 4 hours continuously.

 

(Section 6.d. Acceptable Conditions of Work, Egypt – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

EGYPT - MINIMUM REMUNERATION

For government and public sector employees, the minimum wage is 140 Egyptian pounds a month for a 6-day, 36-hour workweek (approximately $33).

 

The minimum wage, which is set by the Government and applied nationwide, generally is enforced effectively by the Ministry of Administrative Development. Larger private companies generally observe the requirement and pay bonuses as well; however, smaller firms do not always pay the minimum wage or bonuses. The minimum wage does not provide for a decent standard of living for a worker and family; however, base pay commonly is supplemented by a complex system of fringe benefits and bonuses that may double or triple a worker's take-home pay.

 

(Section 6.e. Acceptable Conditions of Work, Egypt – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

EGYPT - REMUNERATION

ERI's Geographic and Salary Assessors are recommended sources for international remuneration covering 189 countries.

 

EGYPT - REPORT OF HUMAN RIGHTS PRACTICES (2001, U.S. DEPARTMENT OF STATE)

Section 6 Worker Rights

 

a. The Right of Association

 

There are no legal obstacles to establishing private sector unions, although such unions are not common. Workers may join trade unions but are not required to do so. A union local, or workers' committee, may be formed if 50 employees express a desire to organize. Most union members, about one-quarter of the labor force, are employed by state-owned enterprises. The law stipulates that "high administrative" officials in Government and in public sector enterprises may not join unions.

 

There are 23 trade unions, all required to belong to the Egyptian Trade Union Federation (ETUF), the sole legally recognized labor federation. The International Labor Organization's (ILO's) Committee of Experts repeatedly has emphasized that a law that requires all trade unions to belong to a single federation infringes on freedom of association. The ILO also has consistently criticized ETUF control over the nomination and election procedures for trade union officers, as well as the fact that the right of workers' organizations to organize their administration, including their financial activities, without interference from public authorities is not protected. However, the Government has shown no sign that it intends to accept the establishment of more than one federation. The ETUF leadership asserts that it actively promotes worker interests and that there is no need for another federation. ETUF officials have close relations with the NDP, and some are members of the People's Assembly or the Shura Council. They speak vigorously on behalf of worker concerns, but public confrontations between the ETUF and the Government are rare. Disputes more often are resolved by consensus in private.

 

The labor laws do not provide adequately for the right to strike. The Government considers strikes a form of public disturbance and therefore illegal. Workers who strike may face prosecution and prison sentences of up to 2 years; however, there were no such cases during the year.

 

There were roughly two dozen strikes during the year. Strikes mainly were over issues of anticipated sales of companies, compulsory leave, wage cuts, and delayed payment of salaries. Nearly all labor actions during the year were 1-day wildcat strikes. In one instance, employees of a private plastics firm shut down the plant and went on a hunger strike for several days because salaries were 9 months in arrears. Another private factory with 350 employees was closed permanently when employees protested that salaries were 6 months in arrears.

 

Some unions within the ETUF are affiliated with international trade union organizations. Others are in the process of becoming affiliated.

 

b. The Right to Organize and Bargain Collectively

 

Collective bargaining does not exist in any meaningful sense because by law the Government sets wages, benefits, and job classifications. The ILO for years has claimed that the Labor Code undermines the principle of voluntary bargaining by providing that any clause of a collective agreement that might impair the economic interest of the country is null and void. Under the law, unions may negotiate work contracts with public sector enterprises if the latter agree to such negotiations, but unions otherwise lack collective bargaining power in the public sector.

 

Firms in the private sector generally do not adhere to government-mandated standards. Although they are required to observe some Government practices, such as the minimum wage, social security insurance, and official holidays, firms often do not adhere to government practice in nonbinding matters, including award of the annual Labor Day bonus.

 

Labor law and practice are the same in the six export processing zones (EPZ's) as in the rest of the country.

 

c. Prohibition of Forced or Compulsory Labor

 

The Constitution prohibits forced labor, and domestic and foreign workers generally are not subject to coerced or bonded labor; however, the Criminal Code authorizes sentences of hard labor for some crimes. The law does not prohibit specifically forced and bonded labor by children, and UNICEF has reported on the practice of poor rural families making arrangements for daughters to be employed as domestic servants in the homes of wealthy citizens (see Section 6.d.).

 

d. Status of Child Labor Practices and Minimum Age for Employment

 

The Government takes seriously the problem of child labor; however, in general it does not devote adequate resources to implement its child labor policies. Under the Child Law (see Section 5), the minimum age for employment is 14 years of age in nonagricultural work.

 

The Labor Law of 1996 and associated ministerial decrees greatly limit the type and conditions of work that children below the age of 18 may perform legally. Responding to criticism in a January report by Human Rights Watch on abusive child labor practices in cotton farming, the Ministry of Agriculture issued Decree 1454 in April, which forbids children under 14 years of age from working in cotton fields. Provincial governors, with the approval of the Minister of Education, may authorize seasonal work for children between the ages of 12 and 14, provided that duties are not hazardous and do not interfere with schooling. Preemployment training for children under the age of 12 is prohibited. It is prohibited for children to work for more than 6 hours a day. One or more breaks totaling at least 1 hour must be included. Children may not work overtime, during their weekly day off, between 8 p.m. and 7 a.m., or for more than 4 hours continuously.

 

The Government continued to take steps during the year to address the problem of child labor. For example, Prime Minister Atef Ebeid and First Lady Suzanne Mubarak are involved personally with the problems of working children through their leadership positions on the National Council for Children and Motherhood. The Government worked closely during the year with international organizations--in particular UNICEF and the ILO--as well as international and domestic NGO's and labor unions to implement programs designed to address child labor and its root causes. The Government established a Steering Committee for the Elimination of Child Labor in 1999 that includes members from Government, the private sector, and NGO's to address the task of eliminating illegal child labor. In 2000 the Ministry of Manpower established a child labor unit, with inspectors who have been trained by donors and international labor organizations. One of the first tasks of the child labor unit has been to create a database for tracking child labor in the country. In September the unit carried out its first raid, removing 112 children from 17 auto repair workshops in a Cairo neighborhood. The children were returned to their parents upon the parents' commitment that their children would not be allowed to work in hazardous places; however, the Government did not take any action against the employers.

 

Statistical information regarding the number of working children is difficult to obtain and often out-of-date. NGO's estimate that up to 1.5 million children work. Government studies indicate that the concentration of working children is higher in rural than in urban areas. Nearly 78 percent of working children are in the agricultural sector. However, children also work in tanneries, auto repair workshops, and carpet and furniture factories in Cairo and Alexandria.

 

While local trade unions report that the Ministry of Labor adequately enforces the labor laws in state-owned enterprises, enforcement in the private sector, especially in the informal sector, is lax. Many of these children are abused, overworked, and exposed to potentially hazardous conditions by their employers, and the restrictions in the Child Law have not improved conditions due to lax enforcement on the part of the Government.

 

Although the law does not prohibit specifically forced and bonded labor by children, UNICEF has reported on the practice of poor rural families making arrangements for a daughter to be employed as a domestic servant in the home of wealthy citizens (see Sections 6.c.).

 

The Government has not ratified ILO Convention 182 on the worst forms of child labor.

 

e. Acceptable conditions of work

 

For government and public sector employees, the minimum wage is approximately $33 (140 Egyptian pounds) a month for a 6-day, 36-hour workweek. The Labor Law stipulates that 48 hours is the maximum number of hours that may be worked in 1 week. Overtime for hours worked beyond 36 per week is payable at the rate of 25 percent extra for daylight hours and 50 percent extra for nighttime hours. Some government agencies have instituted a 5-day, 36-hour workweek. The minimum wage, which is set by the Government and applied nationwide, generally is enforced effectively by the Ministry of Administrative Development. Larger private companies generally observe the requirement and pay bonuses as well; however, smaller firms do not always pay the minimum wage or bonuses. The minimum wage does not provide for a decent standard of living for a worker and family; however, base pay commonly is supplemented by a complex system of fringe benefits and bonuses that may double or triple a worker's take-home pay.

 

The Ministry of Labor sets worker health and safety standards, which also apply in the EPZ's; however, enforcement and inspections are uneven.

 

The law prohibits employers from maintaining hazardous working conditions, and workers have the right to remove themselves from hazardous conditions without risking loss of employment.

 

The Ministry of Manpower estimated in October that there were 20,100 foreign workers with work and residence permits. Unofficial estimates of undocumented workers are as high as 116,000. Foreign workers with the required permits enjoy legal protections. There are occasional reports of employer abuse of undocumented workers, especially domestic workers. A few employers were prosecuted during the year for abuse of domestic workers, but many claims of abuse go unsubstantiated because undocumented workers are reluctant to make their identities public.

 

f. Trafficking in Persons

 

The law does not prohibit specifically trafficking in persons; however, the law prohibits prostitution and sex tourism. There were no reports that persons were trafficked to, from, or within country.

 

EGYPT - SOCIAL SECURITY

Social Security Office of International Programs:

 

http://www.ssa.gov/SSA_Home.html

 

EGYPT - STANDARD WORKWEEK

The standard workweek is a 6-day, 36-hour workweek. The Labor Law stipulates that 48 hours is the maximum number of hours that may be worked in 1 week. Overtime for hours worked beyond 36 per week is payable at the rate of 25 percent extra for daylight hours and 50 percent extra for nighttime hours.

 

Some government agencies have instituted a 5-day, 36-hour workweek.

 

(Section 6.e. Acceptable Conditions of Work, Egypt – Report of Human Rights Practices, 2001, U.S. Department of State.)