Egyptian Labor Law

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LABOR AND EMPLOYMENT LAW

LABOR AND EMPLOYMENT LAW

DEFINITION:
* What is labor law?
* What emerged labor law?
The Goal of Labor Law:
The goal of labor law is to equalize the bargaining power between Employers and Employees . Labor laws grant the Employees the right to unionize and allow the Employers and Employees to engage in certain activities: strikes, picketing, seeking injunctions, lockouts so as to have their demands fulfilled EMPLOYEE:

A PERSON HIRED BY ANOTHER ONE(THE EMPLOYER): A PERSON OR AN ORGANISATION- TO A CERTAIN JOB UNDER CONTRACT. THE EMPLOYER HAS THE POWER/RIGHT TO CONTROL AND DIRECT THE EMPLOYEE OF HOW THE WORK IS TO BE PERFORMED. EMPLOYER:

A PERSON OR INSTITUTION THAT HIRES EMPLOYEES OR WORKERS.
THE EMPLOYERS’ LEVEL OF POWER OVER EMPLOYEES DEPENDS UPON CERTAIN FACTORS EMPLOYER/EMPLOYEE RELATIONSHIP:
THIS RELATIONSHIP IS BASED ON:
1. Interests: economic pressures that affect their profits 2. . Control: Defined methods for reaching targets
3. Motivation: Something that moves a person to action, and continues him in the course of action.

* THE CHANGED ROLE OF HR PROFESSION:
The objective of HR Department is to maximize the return on investment from the organization, human capital and minimize financial risk. EMPLOYMENT RELATIONSHIP
I. BEGINNING
II. MIDDLE (DURING)
III. END (TERMINATION)
I. BEGINNING:
1. General provisions:
A. Labor Law no.12/2003 (compromises 257 articles)
B. Equal Employment Opportunities (who has the right to work?) No discrimination: Color, Sex, Religion, Physical Disability, Political Beliefs. C. Regulations within the new labor law are only applied , all previous regulations are considered invalid , except if there are better benefits that the worker might obtain. D. In case there are more than one employer, they are all considered responsible legally to fulfill the regulations and agreements of work contract.

E. It is the responsibility of the successor to satisfy all previous agreements F. Bankruptcy, merge or selling of the organization doesn’t relief the employer from fulfilling all obligations within a work contract.

2. Recruitment & Hiring:
A. Labor Registration Form:
During January of each year, the employer is committed to submit this form to the legal authorities including: a. no. of workers
b. ages
c. educational degrees
d. positions
e. nationalities

RECRUITMENT & HIRING (cont.)
The Labor Registration Form also includes vacant positions , all changes that might have occurred in addition to the expected vacancies during the year .

B. Using Recruitment Agencies:
The employer has the right to use any of the legal recruitment channels The concerned Minister sets all rules regarding the operations of the recruitment agencies: * Approval and renewal of the license (every 5 years) * All founders, managing directors and board members should be Egyptians * The agency capital should not be less than one hundred thousand pounds. * Agencies that hire workers outside the country should obtain majority and capital not less than 51% The license may be cancelled if the agency:

- collects money from the worker .
- submits incorrect information .
- is in involved in any illegal practices.

RECRUITMENT & HIRING (CONT.)
USING FOREIGN LABORERS
* Foreigners are not allowed to work unless they obtain work permit. Employers should notify the concerned authorities upon hiring an expert within 7 days , the same period upon termination.

* The following are excluded from obtaining work permit:
1. Exempted personnel according to international agreements. 2. Administrators of embassies and consulates, international agencies and organizations. 3. Reporters.
4....
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