Decision pertinent to labor

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Al Waqa’ea Al Misreya – No. 92 on 22nd April 2014 Ministry of Manpower and Immigration Decision No. 127 for 2014 Minister of Manpower and Immigration Regarding disposition of the collection of pecuniary penalties imposed on workers

Upon review of the Companies’ Law promulgated by Law No. 159 for 1981; and 

On the Public Sector Companies’ Law promulgated by Law No. 203 for 1991; and

On Article No. (75) of the Labor Law promulgated by Law No. 12 for 2003; and

On the Ministerial Decision No. 372 for 2013 regarding disposition of the collection of pecuniary penalties imposed on workers ; and

On the approval of the General Union of Egypt Workers’ Syndicates


(First Article)

A committee shall be formed in each establishment hiring ten or more workers, comprising of:

(a) The employer of whomever he may delegate, as (Chairman).

(b) Two workers from the establishment’s workers to be elected by the syndicate committee, and if no syndicate committee exists, then the workers shall elect these two, as (members)

Upon the requests of the Chairman or any member, the meetings of the committee may be attended by a representative of the competent directorate of manpower and immigration, and he shall preside the meeting.

(Second Article)

The collection of the pecuniary penalties imposed on the establishment’s workers shall be disposed off in social, cultural, and cultural purposes of the establishment’s workers.

Such amounts may not be expended in settlement of commitments stipulated in article (222) of the mentioned Labor Law, as a bonus or to purchase welfare commodities such as food or clothes.

Further, the said amounts many not invested in any work that is profit or loss gaining, except for participating in consumption cooperative societies.

(Third Article)

The validity of the meeting of the committee shall be conditional to the attendance of all its members, and shall issue its decisions by the approval of the employer or whomever he may delegate, and at least one workers’ representative. In the event of discrepancy between the Chairman and the workers’ representative, then the meeting should be held again in the presence of a representative of the competent ministry of manpower and immigration. If the votes are equal, then the side on which the chairman is on shall prevail.

The establishment is obligated to deposit or send the committee’s decision to the directorate with a maximum time of fifteen days as of the date of issuance of the decision by the committee, for endorsement.

If the directorate did not object within 30 days as of the date of receipt thereof, then it shall be considered enforceable.

(Fourth Article)

Partial Donation may be made from the pecuniary penalties monies for national purposes after obtaining the opinion of the general union of Egypt’s workers’ syndicates and endorsement of the minister of manpower and immigration.

(Fifth Article)

If the establishment has a branch or more, then each branch shall prepare a record to register all the pecuniary penalties imposed on its workers, and the benefit of the collected monies shall be limited to that branch, unless the committee sees the possibility of making one general project that inures benefit on all the establishment workers, and in this event, the project should be approved by a committee containing members representing the workers’ representatives in different branches.  

(Sixth Article)

The committee, hereinabove mentioned should convene at least twice a year in order to dispose of the pecuniary penalties monies in accordance with the provision of the previous Article, and the committee may postpone disposition to a following year or more.

(Seventh Article)

Establishments subject to the provisions of the Labor Law, should submit the collected monies of the pecuniary penalties imposed on its workers, every six month, as follows:

(70%) for workers’ cultural institution.

(30%) for workers’ social institution.

(Eighth Article)

Upon liquidation of an establishment – the monies collected shall be divided equally among the workers present at the time of liquidation.

(Ninth Article)

Any previous decision that is contradicting or contrary to this decision shall be cancelled.

(Tenth Article)

This decision shall be published in Al Waqa’ea Al Misreya, and shall be applicable on the next day of its publication, and pending the issuance of the new labor law.

Issued on 31/3/2014

Minister of Manpower and Immigration

Dr. Nahed Hassan Ashry