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Requirements
- Applies to all sectors and exemptions may be granted by the competent authority.
- Foreign workers must obtain a work permit and be duly admitted and resident for work; employers cannot employ foreigners without a permit.
- Exemptions from the permit include specified categories such as diplomats, international organization staff, foreign journalists, unpaid clergy, certain seafarers, war graves staff, research experts, and licensed investors.
- Employers using exempt foreigners must notify the competent Labor Directorate within seven days of commencement and termination.
- Prohibitions include tour guiding and export/customs clearance activities, with a stated exception for Palestinians regarding the latter.
- Foreign worker cap is 10% of Egyptian workforce per establishment, with exceptions for free zones, small establishments, and committee-approved cases.
- Permit duration is up to one year; fee schedule escalates by year; higher fee applies where cap exceptions are granted; authority may reduce fees or extend duration.
- Certain nationalities and treaty-covered foreigners are exempt from permit fees pursuant to reciprocity.
- Short-duration assignments up to 14 days require prior approval and a fee equal to 10% of wages for the assignment, subject to minimum and maximum caps; possible fee waiver.
- Renewals must be requested before expiry.
- Permit cancellation grounds exist.
- Employers must maintain a foreign labor register and submit periodic reports and data to labor authorities.
- Foreign workers enjoy labor rights and protections; employers are prohibited from passport retention and discriminatory practices; authorities must facilitate access to permits and remedies.
Impact on Employers
Penalties may be imposed for non-adherence to the above.
Recommended Actions
- Designate a Compliance Liaison within HR or Legal to coordinate and adhere to all statutory requirements and to monitor updates or additional implementing instructions.
- Review Ongoing and Recent Issuances to confirm compliance.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
