Egypt is enforcing a new labor law designed to protect workers from unfair dismissal, improve job security, and create a better balance between employees and employers.
However, some provisions are drawing criticism as the country struggles with persistent inflation and widespread circumvention in the private sector.
The new law, which repeals Law No. 12/2003, is the result of over a decade of negotiations. It eliminates the controversial “Form No. 6,” a provision that allowed employers to fire workers without a court order. Now, all dismissals must be confirmed by a final court decision.
The law also establishes specialized labor tribunals, which are required to resolve disputes within 90 days. This change is intended to speed up the resolution of conflicts related to contracts, layoffs, and compensation.
The reform includes other social advancements, such as: Mandatory minimum wage for the private sector. Increased maternity leave to four months. Severance pay doubled to two months’ salary per year worked. A legal commitment to non-discrimination between men and women.
Despite these reforms, a few key provisions are being criticized. The law sets the minimum annual wage increase at just 3%, a significant drop from the 7% proposed in the 2016 version. Given the high inflation and devaluation of the Egyptian pound, many workers and observers question if this increase is sufficient.
Additionally, while the law grants new rights, it doesn’t address the unregulated practices of private recruitment agencies. These agencies are often accused of denying workers social security benefits and charging excessive fees, practices that are regularly condemned by unions.
Presented by Labor Minister Mohamed Gobran as a “fundamental pillar in the protection of workers’ rights,” the law affects nearly 30 million employees. While it marks a significant step in modernizing Egypt’s labor market, its true impact will depend on the government’s ability to enforce the new rules and ensure they are not ignored.
MK/Sf/fss/abj/APA