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Egyptian Labour Law

Egyptian Labour Law

The Labour Law Number 12 of 2003 (the Labour Law) is needed to undergo specific changes for being abreast with the existing practices and for avoiding the unwanted adverse effects on the employer-employee relations in the economy. The Labour Law replaced that previous Law Number 127 of 1981 and is being formerly getting negotiated at the Egyptian Parliament. The Parliament is discussing several amendments, but the promulgation date is still under substantial discussions.

The main intention of reforming the Labour Law is not to decrease the rights of the employees but also to provide clarity and flexibility for the companies conducting business without the need for resorting to solutions that are unregulated. The Egyptian Parliament is also discussing the possibility of ventures which will attract international investors for an investment strategy.

The existing regime which governs the labour relations has witnessed its self-inability for dealing with the ever-changing market practices and has been fairly obvious since the time it has come into effect. When compared to the previous law, the Labour Law has made prominent strides in the correct direction, but it still stays with not being able to deal with certain market tendencies.

The Government has undertaken intensive and rigorous strategies for the improvement of the conditions for conducting business and setting up in the market. The steps are inclusive of administrative, legislative developments that have had a substantial and countable impact on the economic growth and the competition in the economy. But there are still improvements to be made for modernisation of the Labour Law.