Egyptian Employment Law: Applicability To Foreign Workers

Egypt's labour laws are designed to protect the rights of employees while promoting a fair and safe working environment. The laws cover various aspects of employment, including working hours, rest periods, overtime, leave, and termination. Compliance with these laws is mandatory for employers to ensure they provide their employees with fair treatment and a safe workplace.

The Egyptian Labour Law No. 12 of 2003 regulates the relationship between employers and employees in the private sector. It applies to all private employers, including those employing foreigners. However, foreign workers must obtain a work permit from the competent ministry and be authorised to enter and reside in the country for work purposes.

This text aims to provide an overview of the topic by discussing the applicability of Egyptian employment laws to foreigners, the process of obtaining work permits, and the rights and protections offered by these laws to foreign workers in Egypt.

Foreign workers must obtain a work permit

Firstly, foreign nationals must obtain a temporary or tourist visa, which can be done upon arrival at Egyptian airports and is valid for 30 days. This can then be converted into a work visa once the individual has obtained a work permit.

To obtain a work permit, the following steps must be completed:

• The employee must obtain a security clearance from the National Security Agency in Egypt.
• The employer must submit the following documents to the Ministry of Manpower and Training Facilities at the Tahrir complex:

• A completed application form.
• Seven passport-size photos.
• Two copies of the company's incorporation contract.
• Two copies of the employee's tax ID card.
• Two copies of the individual's academic degrees and certificates.
• A copy of the company's commercial register.
• A license for exercising the profession, if applicable.

• The employer must provide a memorandum justifying the reason for hiring a foreigner and proof that no Egyptian nationals are qualified for the position.
• The employer must obtain approval from the related authority and ensure that a company representative acts on the employee's behalf to apply for the work permit.
• The employee must pay the permit fees of 1,000 EGP.

Once the work permit request is approved by the Ministry of Manpower and Immigration, they will notify the closest Egyptian consulate to authorise a tourist visa for the employee. The employee can then enter Egypt and spend four to six weeks securing their work permit. They are permitted to work during this time, provided they have submitted all the necessary documents.

It is important to note that Egyptian law encourages employers to give jobs to locals rather than foreigners, and there are quotas in place for work permits. For example, non-Egyptian workers should not exceed 10% of the total staff and 20% of the total payroll. Additionally, employers must comply with immigration laws, tax legislation, and employment regulations to avoid hefty fines and penalties.

Foreign workers' salaries cannot exceed 20% of total salaries

Egyptian labour law applies to all private employers, regardless of their registered legal form of business entity in Egypt. This includes residents and foreigners working for Egyptian employers, who may enjoy various entitlements under Egyptian labour law.

However, Egyptian labour law does not apply to residents working for foreign entities abroad, even if they are based in Egypt. In this case, Egyptian income tax may still apply.

The Egyptian Senate passed a draft labour law in February 2022, which replaced the 2003 labour law. This new law is designed to keep in sync with current labour markets and international labour agreements.

The new labour law will be enacted once the House of Representatives clears the bill and the President gives assent.

One of the most significant changes in the new labour law is the introduction of paternity leave. Employers must grant one day's paid paternity leave to eligible employees.

Another key change is the limit on foreign workers' salaries. According to the new law, employers can have a maximum of 10% of foreign employees, and their salaries cannot exceed 20% of the total wages. This provision ensures that Egyptian workers are not disadvantaged by the employment of foreigners, who may have different salary expectations or requirements.

The 20% limit on foreign workers' salaries is designed to protect Egyptian workers' rights and ensure they are not priced out of the job market. It also encourages employers to invest in the local workforce and promote equal opportunities.

The law also outlines sanctions for companies that do not comply with employee welfare provisions. For example, private employers who do not pay the minimum wage can be fined between EGP 1,000 and EGP 5,000 per employee.

The Egyptian government is keen to attract private sector investment to boost economic development. However, employers looking to hire foreign talent must comply with the country's labour laws, including the 20% limit on foreign workers' salaries.

Overall, the Egyptian labour law aims to protect the rights of all employees, promote a fair and safe working environment, and ensure compliance with international labour standards.

Work permits are temporary

Work permits in Egypt are temporary, lasting for one year and may be extended to five years. The work permit is initially valid for six months and can be renewed for another six months. The number of work permits issued is subject to a quota.

To obtain a work permit, foreigners must obtain a temporary or tourist visa and convert it into a work visa. This process can lead to a work permit as long as the employee applies with the Ministry of Manpower and Immigration. The person will also need to show proof of prospective employment and a clean bill of health.

The process of obtaining a work permit in Egypt can be challenging and time-consuming, with some applications taking up to a year or more to be processed. It is important for employers to ensure that their team members have the proper work permits and visas to work in Egypt and comply with immigration laws, tax legislation, and employment regulations. Non-compliance can result in hefty fines and penalties.

The work permit application process in Egypt involves several steps and requirements. Here are the key steps and requirements for obtaining a work permit in Egypt:

• Obtain a temporary or tourist visa: Foreign nationals must first enter Egypt with a valid temporary or tourist visa.
• Apply for a work permit: The employee should submit a completed work permit application form, along with their passport, passport photos, academic degrees, certificates, professional license (if applicable), and tax ID.
• Provide justification for hiring a foreigner: The company must provide a memorandum justifying why they chose to hire a foreign employee instead of an Egyptian national.
• Obtain approval from the related authority: The application must be approved by the related government authority, such as the Ministry of Manpower and Immigration.
• Pay the permit fees: The employer or employee is typically required to pay permit fees, which may vary depending on the specific type of work permit.
• Notify the nearest Egyptian consulate: Once the work permit is approved, the Ministry of Manpower and Immigration will notify the nearest Egyptian consulate to authorize the issuance of a tourist visa for the employee.
• Collect the tourist visa: The employee can then visit the Egyptian embassy or consulate to collect their tourist visa, which allows them to enter the country and finish the work permit application process.
• Take an HIV test: As part of the work permit requirements, employees must undergo an HIV test and provide a negative test result.
• Prove the need for foreign talent: Employers must demonstrate to the Egyptian government that they were unable to find local talent for the position and had no choice but to hire from outside the country.
• Register with the Egyptian police: Upon arriving in Egypt, employees must register with the Egyptian police. This can be done with the assistance of the tourist police or at the employee's hotel.

Foreign workers must be authorised to reside in Egypt

The process of obtaining a work permit for foreigners in Egypt can be complex and time-consuming. It involves several stages and requires various documents, including a valid passport, passport photos, academic degrees, certificates, and a negative HIV test. The specific requirements for a work visa will depend on the employee's country of origin.

Foreign workers who fall into certain categories may be exempt from obtaining a work permit. For example, administrative employees working in embassies and consulates of foreign countries are not required to obtain a work permit. Additionally, Egypt offers short-term work authorisations for foreign nationals performing hands-on activities for less than 90 days.

It is important to note that non-compliance with Egyptian employment laws can result in hefty fines and penalties for both employees and employers. Therefore, it is crucial for employers to ensure that their foreign employees have the proper work permits and visas to work legally in Egypt.

The employment regulations in Egypt recognise two types of contracts between an employer and an employee: a contract for an unspecified period or an indefinite period, and a contract for a definite period. Employers in Egypt typically prefer a definite period employment contract as it provides them with the option to terminate the agreement justly upon term expiry or the accomplishment of a particular task.

When employing foreign workers, it is important to be mindful of the numerical limitations. Egyptian law allows employers to recruit foreign employees with experience and skills not available in Egypt, up to a maximum of 10% of the number of Egyptian workers, after approval by the competent minister.

Foreign workers must have relevant expertise

Foreign workers in Egypt must have relevant expertise to obtain a work permit. According to Egyptian law, foreign workers must have qualifications and experience that match the job they are applying for, with a minimum of three years of experience in their field. This requirement ensures that foreign workers bring valuable skills and knowledge to the country, contributing to Egypt's economic growth and development.

The process of obtaining a work permit for foreign workers in Egypt can be complex and lengthy. The first step is to submit an application to the Central Administration to Regulate Employment and Labour Market Information at the Ministry of Manpower and Immigration. The application must include detailed information about the worker's qualifications and experience, which will be carefully evaluated by the authorities.

Egyptian law also sets specific conditions that must be met when granting work permits to foreign nationals. Firstly, the expertise of the foreign worker should align with the profession for which the permit is sought, ensuring that their skills are relevant to the job. Secondly, foreign workers should not compete with the local labour force. Egypt aims to protect the interests of its citizens by ensuring that local workers have ample job opportunities.

Additionally, the country's economic needs and interests, as well as the specific requirements of the facility seeking to hire foreign talent, are taken into consideration. The law stipulates that the number of foreign workers in any facility should not exceed 10% of the total labour force. However, exceptions can be made in cases where the country's interests are better served by employing foreign experts.

The process of obtaining a work permit involves multiple stages and requires various documents, including a clear copy of the foreigner's passport, qualifications, and experience endorsed by the Egyptian authorities, a health certificate, and company documents. The duration of the work permit can vary, and the associated fees must be paid accordingly.

It is important to note that certain professions, jobs, and crafts are prohibited for foreigners in Egypt, such as export and import businesses. Additionally, work permits are temporary, and foreign workers must renew them periodically. Overall, Egypt's regulations regarding foreign workers aim to balance the country's economic needs with protecting local employment opportunities.

Frequently asked questions