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Prime Minister Forms the Board of D

Prime Minister Forms the Board of Directors of the Emergency Assistance Fund for Workers
The Prime Minister issued a decision to form the Board of Directors of the Emergency Assistance Fund for Workers (the "Decision").[1] The new Decision merely determines the members of the Board of Directors of the Fund; however, it is important as it tackles a crucial issue, which is the Emergency Fund for workers established by virtue of Law No. 156 for 2002.
Background
The importance of the Emergency Assistance Fund for Workers materializes in light of the fluctuations in the Egyptian economy, decreased levels of local production and manufacturing, and recession in tourism, workers' conditions – especially unskilled workers – have worsened whether it be through getting laid-out, less or no wages. The said Fund was established in 2002 with the purpose of providing support to workers who are no longer paid by enterprises that have been completely or partially shut-down, or ones that have downsized the number of socially insured workers.[2] The Executive Regulations of the said Law requires that the Fund's assistance is only utilized to workers non-eligible for unemployment assistance, as specified by Social Insurance Law No. 79 for 1975.[3] It is worth noting that in 2013, the number of enterprises under the provision of the above Law was 11496; 11,096 of which were private sector enterprises and 400 public sector enterprises. Furthermore, the total amount of assistance money paid to workers in those enterprises since the Fund's establishment in 2002 and until the end of 2013 reached around 223 million EGP; around half of this amount (133 million EGP) was spent between 2011 and 2012. [4] The Fund's resources comprise of 1% of basic wages of workers in public sector, public business sector, and private sector enterprises, provided that such enterprises employ 30 or more workers. Resources also come from the assistance, donations, and grants that the Fund Board accepts, fines sentenced in violation of the provisions of the Fund's Law, as well as the Fund's own investment returns. The Fund's money is treated as public money, and thus falls under supervision of the Accountability State Authority.[5] Assistance to workers is paid in accordance with certain rules and regulations, the most important of which is that the paid amount is 100% of the insured basic wage of the worker, with a minimum amount of 200 EGP per month, and for a maximum period of six months. This is valid until: 1) the enterprises facing difficulties are re-activated, or 2) legal procedures are undertaken entailing non-eligibility for assistance, or 3) the worker gets another job. It is worth noting that both the Minister of State-owned Enterprises and the Fund's Chairman of Board are entitled to raise the maximum duration of the assistance, yet, not exceeding 12 months. In general, the assistance could be ceased if the worker gets a new job, if the enterprise is back to business, if the worker-enterprise relationship ends, or if violation of any sort has been proved. The Board has several functions in order to enable the Fund to achieve its objectives. This includes setting general policies to face the shut-down or downsize of enterprises in light of economic hardships, and therefore annulling the core reasons behind failing to pay workers' wages. Other functions include coordinating with certain entities to face economic challenges that could lead to resorting to the Fund, as well as paying refundable assistance in cases of downsizing enterprises in order to meet needs for payment of compensations to workers, given certain conditions that are set by the Executive Regulations.
Amendments to the Formation of the Fund's Board
The new decision amended the formation of the Emergency Assistance Fund for Workers Board, whereby a representative of the Ministry of State-owned Enterprises – the new Ministry that has been established during the last Cabinet change – has been appointed in place of the one from the Ministry of Investment. The decision also established, for the first time, that the term of the Board should be three years.   [1] Prime Minister's Decree No. 962/2016 forming the Board of the Emergency Assistance Fund for workers, Egyptian Gazette, Issue No. 84 (b), 10 April 2016. [2] Article (1), Law No. 156/2002 to establish the Emergency Fund for Workers. [3] Article (1), Executive Regulations for Law No. 156/2002. [4] Ministry of Manpower, available through this link. [5] Article (3), Law No. 145/2002.
The Prime Minister issued a decision to form the Board of Directors of the Emergency Assistance Fund for Workers (the "Decision").[1] The new Decision merely determines the members of the Board of Directors of the Fund; however, it is important as it tackles a crucial issue, which is the Emergency Fund for workers established by virtue of Law No. 156 for 2002.
Background
The importance of the Emergency Assistance Fund for Workers materializes in light of the fluctuations in the Egyptian economy, decreased levels of local production and manufacturing, and recession in tourism, workers' conditions – especially unskilled workers – have worsened whether it be through getting laid-out, less or no wages. The said Fund was established in 2002 with the purpose of providing support to workers who are no longer paid by enterprises that have been completely or partially shut-down, or ones that have downsized the number of socially insured workers.[2] The Executive Regulations of the said Law requires that the Fund's assistance is only utilized to workers non-eligible for unemployment assistance, as specified by Social Insurance Law No. 79 for 1975.[3] It is worth noting that in 2013, the number of enterprises under the provision of the above Law was 11496; 11,096 of which were private sector enterprises and 400 public sector enterprises. Furthermore, the total amount of assistance money paid to workers in those enterprises since the Fund's establishment in 2002 and until the end of 2013 reached around 223 million EGP; around half of this amount (133 million EGP) was spent between 2011 and 2012. [4] The Fund's resources comprise of 1% of basic wages of workers in public sector, public business sector, and private sector enterprises, provided that such enterprises employ 30 or more workers. Resources also come from the assistance, donations, and grants that the Fund Board accepts, fines sentenced in violation of the provisions of the Fund's Law, as well as the Fund's own investment returns. The Fund's money is treated as public money, and thus falls under supervision of the Accountability State Authority.[5] Assistance to workers is paid in accordance with certain rules and regulations, the most important of which is that the paid amount is 100% of the insured basic wage of the worker, with a minimum amount of 200 EGP per month, and for a maximum period of six months. This is valid until: 1) the enterprises facing difficulties are re-activated, or 2) legal procedures are undertaken entailing non-eligibility for assistance, or 3) the worker gets another job. It is worth noting that both the Minister of State-owned Enterprises and the Fund's Chairman of Board are entitled to raise the maximum duration of the assistance, yet, not exceeding 12 months. In general, the assistance could be ceased if the worker gets a new job, if the enterprise is back to business, if the worker-enterprise relationship ends, or if violation of any sort has been proved. The Board has several functions in order to enable the Fund to achieve its objectives. This includes setting general policies to face the shut-down or downsize of enterprises in light of economic hardships, and therefore annulling the core reasons behind failing to pay workers' wages. Other functions include coordinating with certain entities to face economic challenges that could lead to resorting to the Fund, as well as paying refundable assistance in cases of downsizing enterprises in order to meet needs for payment of compensations to workers, given certain conditions that are set by the Executive Regulations.
Amendments to the Formation of the Fund's Board
The new decision amended the formation of the Emergency Assistance Fund for Workers Board, whereby a representative of the Ministry of State-owned Enterprises – the new Ministry that has been established during the last Cabinet change – has been appointed in place of the one from the Ministry of Investment. The decision also established, for the first time, that the term of the Board should be three years.   [1] Prime Minister's Decree No. 962/2016 forming the Board of the Emergency Assistance Fund for workers, Egyptian Gazette, Issue No. 84 (b), 10 April 2016. [2] Article (1), Law No. 156/2002 to establish the Emergency Fund for Workers. [3] Article (1), Executive Regulations for Law No. 156/2002. [4] Ministry of Manpower, available through this link. [5] Article (3), Law No. 145/2002.