- Overview: Egypt
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Contractor vs. employee: which is better?
Global HR Compliance in Egypt
If you hire an international workforce, or plan to hire, then Hiring and Firing Workforce in Egypt Guide below will help you understand the nuances of labor legislation in the country.
When the company is planning to enter a new foreign market of Egypt and has a need to employ a local national there, the first question to answer is how it is going to make local hires.
We have designed a Global Employer of Record service to help you outsource global employment of your foreign workforce to companies like ours.
This solution helps you employ your global sales force in Egypt as well as in other 180+ countries of the world, and provide pay and benefits to your employees, as well as administer any business expenses with our help.
Our solution is different from other hiring modes in that it helps you engage your foreign workforce in full compliance with the local labor legislation. This means you are protected from any non-compliance and employee misclassification risks while we bear all employment risks, not you.
So, it looks very much like hiring your in-house sales force in your home country. However, you focus on only on your global business development while we admin your global HR. In addition, you don’t need to open your own entities in the foreign countries and can leverage our infrastructure in Egypt instead. With our service, you can become a global company with reduced costs and minimized time and effort on your end.
Your employed foreign sales force will devote 100% of their time to your company product and may stay with you longer than foreign independent sales reps.
Global Employer of Record solution is 100% compliant solution that guarantees you and your employees fully compliance with local legislation in Egypt .
We are experts in global workforce employment in Egypt, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.
Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.
With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Egypt.
See Hiring and Firing Workforce in Egypt Guide below for a general overview of labor rules and regulations in the country. Or contact us if you need to employ workers in Egypt or would like to get more details.
Hiring and Firing Workforce in Egypt Guide
This article is written to help those who are contemplating expanding their business operations in Egypt but are still not sure what to expect, what doing business in Egypt will be like. Please note that this article is simple an overview of the country’s employment relationship, hence must be no substitute for professional legal advice.
Below are a few tips on what the Egyptian employment law says about hiring and firing your workforce in the country.
In Egypt, Employment contracts are required to be in writing, in Arabic, and in triplicate, with the employer, employee and social insurance office each keeping a copy of the employment contract.
There are three different types of contracts that regulate an employer-employee relationship in Egypt: open-ended, fixed-term and task based contract. Fixed-term contracts can be given in a one-year term and can be renewed at the end of each year. Other contract types can have a varying duration which is determined by the employer. At a minimal, a contract of employment must contain the employers name and address, employee’s name, qualification, job description, position and responsibilities, probationary period, wage and time of payment.
Minimum statutory employment right
Hours of work
The number of working days per week is generally 6 days. Employees in the industrial sectors operate on a 42-hour work week basis. Others are permitted to work a normal 48 hours per week. In the same vein, employees are required to work no more than 8 hours in each work day, except for special occasions where they can be allowed to work up to 9 hours. By law, employees must be given a full day rest in every work week.
However, most private sector employees work 5 days a week, usually Sunday to Thursday, leaving Friday and Saturday as the weekend.
An employee may be put on probation if it was clearly stated in his contract of employment. An employee can be given a probation up to 3 months, but must not be extended once the agreed period ends. An employee can have more than one probationary period with an employee only if the subsequent one(s) is given under a different job and contract. A probation period can be put back in the event of the employee’s sickness. An employer has the right to cancel an employee’s contract during the period of probation without prior notification or any other obligation.
Employees are obligated to give their employees a fully paid day off in each of the legally approved public holidays which include: Coptic Christmas, Revolution Day / Police Day, The Prophet Mohamed’s birthday, El Hijra (Islamic New Year), Sham El Nessim, Sinai Liberation Day, Labor Day, Eid al-Fitr, Revolution Day, Eid al-Adha and Armed Forces Day.
In addition, employees who have stayed with a company for a minimum of 6 months but not up to a year are entitled to an annual leave that its length will be proportional to the period of service. Employees who have serviced for at least one year, but not up to nine years are entitled to 21 days annual leave. Those having at least 10 years of working experience with the company must be given up to one-month annual leave. This also includes employees who may/may not have worked for 10 continuous years but are over 50 years of age.
Employees that engage in hazardous and dangerous works will be entitled to 7 additional days to their annual vacation.
Employee who has spent five consecutive years in the service has the right to fully paid leave for a period not exceeding one month for performing pilgrimage; however, this may only be utilized once during the entire period of service.
Female employees are entitled to only two maternity leave benefits throughout their service years with an employer. An employee who has worked for an employee for at least 10 months are entitled to receive 90 days of fully paid maternity leave, and are not expected to resume work until after the 45th day of her delivery.
The length of sick leave entitlement that can be given to any sick employee is usually determined by the medical officials.
The Labour Law provides that an employee whose sickness is established and determined by the concerned medic responsible is entitled to sick leave, and shall be compensated according to the Social Insurance Law.
For the first 90 days, the employee shall be entitled to compensation equal to 75% of his/her salary to be increased afterwards to 85% for the rest of the 180 days, provided that such compensation will not at any time be less than the minimum wage specified under the Labour Law.
To further ensure workers’ rights, an employer is strictly prohibited from terminating the employee’s service due to sickness unless the employee has exhausted the aforementioned period.
Overtime in Egypt is considered any hours of work that top the normal 48 hours in a week. Employees are required to compensate for every overtime at a rate of 35 percent premium if the work is performed in the daytime, of 70 percent premium if done in the night hours, of 100 percent premium if performed on a weekend and of 200 percent premium if the work is done on any of the national holidays.
State minimum salary
Effective from February of 2014, the minimum wage in Egypt is 1200 EGP and is paid on a monthly basis.
Either of the employment parties can terminate the employment contract at any time provided he/she notifies the other party 2 months ahead of time (if the employee’s years of service in the company is less than 10 years) or 3 months ahead (if the employee’s years of service is up to 10 years). An employer can dismiss his employee only on the basis of justifiable reasons as stipulated in the Labor Code, otherwise, may be charged to compensate the employee. This is not the case if the reason for the termination is a gross misconduct. A dismissed employee has the right to receive at least 2 months’ salary for each year he worked in the company and a payment for unused leave, if any.
Acumen International can help you fast-track your possibilities of entering and expanding your business in Egypt by providing you with an Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any requirement to set up a legal entity first or thereafter.