HR policies in Egypt

Egypt, over the years, has seen a steady rise in their economic growth. The annual growth rate of Egypt has been 4.8% (2005 est) and is estimated to grow in a higher rate and this is also affecting the HR policies of Egypt. Employment rates have started to rise in Egypt and this is only because of the current HR policies of Egypt. Government is trying its best to raise the salaries in different sectors so that a lot of people are interested in taking up jobs in Egypt. There are a lot of opportunities in the field of management and IT jobs. Lots of foreign nationals are being employed in different sectors as there is a shortage of skilled native workers in Egypt. The HR departments in Egypt are charting out new HR policies to replace the foreign workers with local or native workers from abroad.

Recruitment Policies:

Employers can only hire local citizens for a particular post. A contract needs to be signed between the employer and the employee. Labor contracts are of 2 types-temporary and permanent. Temporary contracts are for those hired for a specific time and permanent contracts are open ended contracts. Foreign workers recruited should contain all the legal papers and work license required for working in Egypt. Foreign companies are allowed to hire expatriates only if there are no skilled persons available locally. The ratio should be 1 foreigner to 10 Egyptians.

Termination Policies:

An employee’s service can be terminated only in the occasion of breach of the contract of services and in the occasion of negligence or

misconduct. Absent for 20 days without any legitimate reason can also lead to termination of job An employee can terminate his/her services upon the non payment of salary after seven days from the last date of salary payment. Termination can also take place at the end of contract of services. 2 months of prior notice is required if the employee wants to resign or if the employer wants to terminate the employee.

Pension and benefits:

The pension system in Egypt is carried through the Employee’s Provident Fund, which is entitled to monthly contributions by both employer and employee during the service period. After attaining retirement, the employee is eligible to receive he pension funds.

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