Labor Laws in Egypt

Labor Laws in Egypt are very liberal. The Constitution protects the rights of employees. Protections include minimum wage and a prohibition on forced labor. The Unified Labor Law, for instance, protects children under 12 years of age from any training (Azzam, 2019). Egypt’s current minimum wage for the public sector stands at an average of 174 USD per month for every worker (MinimumWage.org, 2022). Organized labor, with authority for collective bargaining, disputes resolution, and strike action is supplemented by dialogue by the Ministry of Labor and Social Policy. The country aims to formalize national urban employment through improved labor contracts, social security registration, pension insurance, and worker protections. The constitution covers employee rights and other benefits like days off and reduced work hours.

Employment in Egypt

The majority of the population is employed in the service sector and members of the public sector. One in five workers are underemployed, and there is a large informal economy that employs a significant amount of people (Assaad et al., 2020). Employers must provide employees with fifteen days of annual leave. Certain industries such as transportation and agriculture are governed by separate laws enforced by the minister of labor and employment. For instance, stores open from 09:00 to 23:00, but the law requires that stores close at 19:00 (Bakri, 2022). The work week is only eight to ten hours as required by law, with workers receiving fifteen hours of rest per week. Work on Sundays or any other public holiday is allowed if requested by the employer or union. More than 50 percent of workers are classified as semi- or unorganized sector workers (Soliman, 2022). Workers also have the right to a minimum wage, overtime pay, sick leave, paid vacation days, and other benefits. The government regulates labor and employment laws, providing for the allowed minimum wage and respect for fundamental human rights.

Barriers of trade in the workforce 

Barriers to trade affect the workers in Egypt. Egypt outlawed their companies to hire more than 10 percent of foreigners in the workplace (Egypt – Trade Barriers, 2022) Foreigners are also prohibited from certain jobs simply as tourist guides . Women are affected more from tariffs because they are less likely to get hired. As a women in Egypt you’re also most likely going to be paid less than a man (Zaki, C. (n.d.) . Especially If you’re a foreigner. In Egypt private sectors rather hire men. Some jobs that are effected the most are computer and tech jobs. Egypt states that they want about 60 percent of their top-level management would be legally an Egyptian within three years of the start-up date (Egypt – Trade Barriers | Privacy Shield, n.d.). Private sectors Egypt is also apart of the World Trade Organization and there isn’t a difference between investors. Foreign investors in the oil , gas and real estate make up their own ventures (2021 Investment Climate statements: Egypt, 2021). Therefore the tariffs may fluctuate from different sectors.

Egyptian Work Culture

In Egyptian cultural barriers are displayed throughout various statuses of employment. Some examples of cultural barriers would include correct formal greetings to one another. “When addressing your Egyptian counterparts for the first time, you should use their title followed by their surname until invited to do otherwise. Titles are a sign of stature and are viewed with pride; therefore, it is important to use them.”(Today Translations, 2022) Employment culture is extremely important when it comes to building a relationship between the employer and employee that helps maintain high working standards and work culture. Work culture is a combination of attitudes, beliefs, and actions that constitute the standard atmosphere in a workplace. In Egypt, maintaining relationships is considered more important than completing tasks. “Important values for Egyptians are family and kinship. Nepotism is considered a positive in Egypt and you’ll often find several members of the same family at high levels within the same company.” (Walentynowicz,2016) Egypt’s work culture relates with employees to feel like they belong to and adhere to their group. Also allowing their employees to express personal choices, having employees embracing this type of work culture maintains long-lasting dependable connections. “Egyptian workers don’t climb the ladder. They find their place on the ladder and protect it. To fortify his place, a worker may withhold important information from co-workers, or avoid teaching them vital skills.” (Klasne,2004) In Egyptian workplaces culture is highly respected, employees must demonstrate correct business etiquette to continue thriving in such environments. “ Since Egyptians judge people on appearances, wear good quality conservative clothes and present yourself well at all times. Egyptians believe direct eye contact is a sign of honesty and sincerity, so be prepared for disconcertingly intense stares.” (Commisceo Global Consulting,2020) The approach of employees of higher rank dress at work and at business meetings exemplifies conspicuous consumption across Egyptian workplace culture. “Since Egyptians judge people on appearances, wear good quality conservative clothes and present yourself well at all times.” (Commisceo Global Consulting,2020)

Holidays Related to the Workforce

Egyptian holidays are important for Egyptian companies, many Egyptian holidays are either considered extremely religious or significant due to its value to history. For example the National Day of Egypt is celebrated on July 23 which coincides with the annual celebration of the Egyptian revolution of 1952 when the modern republic of Egypt was declared, ending the period of the Kingdom of Egypt.(Humphreys A, 2002). On this significant day, many companies follow similar regulations their government follows, which allows workers to have an extended rest period. Religious holidays are integrated into Egyptian work culture because of how Egyptian society embraces religion solemnly. One example would be Ramadan, Ramadan is an Islamic holy month, the dates of which change each year according to the Islamic calendar. The fundamental Ramadan tradition is fasting, which requires Muslims to refrain from eating and drinking between sunrise and sundown. (Britannica, T. Editors of Encyclopedia, 2022) For a religious holiday like Ramadan, companies must follow Egyptian labor laws and provide shorter work hours. “Public sector employees’ work days are shorter by about three hours during Ramadan. They are allowed to arrive for work an hour later than usual – at 9am – and to leave work at 2pm instead of 4pm.” (Kamal Tabikha, 2022) Many companies have different PTO (Paid time off) options for employees, for “vacation leaves’’ employees are provided 21 days of paid annual leave per year if they have been employed for at least 6 consecutive months. According to (Lockon Global Compliance 2022) another PTO option would be “casual leave” “where employees are entitled to up to six days off from work per year and are not required to state a reason for taking the leave.” Holidays in the workforce are significant to Egyptians since it allows Egyptians to celebrate their vast cultural history and traditions.