Final draft of the Labor Act ready, to be discussed by cabinet today
The Ismail cabinet is set to discuss the final draft of the proposed Labor Act today before introducing the bill to the House of Representatives. The bill would give workers new rights and balance these with the needs of employers, according to Labor Minister Mohamed Safaan. Discrimination in hiring based on union memberships would be forbidden under the law. The right of workers to strike would be enshrined and the arbitrary firing of employees forbidden. The bill would, however, include provisions that enforce a notice period for resignations. The law also allows employers to set wages based on performance. Employers will receive incentives for providing on-the-job training. The act will lengthen maternity leaves and allow women to cut back on working hours starting in the second trimester. It would also ban overtime work for pregnant women. Employment and recruitment companies will see the required capital for establishment reduced to EGP 50,000 from EGP 100K, Al Mal reports.
Is the gov’t going to force the private sector to give annual raises? The government apparently going to knock on the doors of business associations to make sure that the private sector makes good on an annual raise of 7% every January, government sources tell Al Masry Al Youm. According to the sources, the private sector is under obligation to pay out an annual raise, and has the option of paying additional bonuses in July. Sources from the Federation of Egyptian Industries stated that they received no such calls and that they are committed to pay the raise.