Decree of the Minister of Manpower
Decree of the Minister of Manpower and Immigration regarding the Conditions and Procedures for Foreigners’ Work Permits
Background
The Labor Law No. 12 of 2003 provides in its articles 27, 28, 29 and 30 that the recruitment of foreigners at private and public sector companies as well as administrative and governmental authorities is subject to the requirement to obtain a work permit for any work, profession or craft. The Minister of Manpower shall decree the conditions and procedures for obtaining work permits as well as the cases of cancellation and exemption and the professions that may not be carried out by foreigners in Egypt. In this context, the Ministry of Manpower had previously issued decision No. 136 of 2003 as amended by decision No. 292 of 2010, both cancelled by the present Decision.The Amendments
The Decision provides for all the conditions, requirements and procedures applicable to the recruitment of foreigners.- Who is Subject to the Requirement to Obtain a Working Permit?
Article 1 of the Decision provides for the prohibition of foreigners to carry out any work until they have obtained a work permit from the directorate of manpower in whose territorial jurisdiction lies the employing establishment or from any of the directorate’s satellite offices hosted at some governmental agencies, e.g. the General Authority for Investment and Free Zones and the Egyptian General Petroleum Corporation. To obtain a work permit, foreigners must be authorized to enter the country for work. Nevertheless, the Decision provides certain exemptions, most importantly:
- Exempt individuals in accordance with international conventions to which Egypt is party;
- Administrative staff of diplomatic and consular missions as well as international and regional organizations in accordance with the decisions issued in this respect by the competent bodies in their countries of origin;
- Foreign correspondents;
- Foreign investors who have obtained an investment residence to carry out activities in Egypt and general partners with a capital contribution of not less than USD 35,000 or its equivalent in Egyptian pounds; and
- Foreigners conducting work carried out in only one or a few days.
Any establishment employing foreigners exempt from the permit requirement must notify the competent directorate within seven days from the date of the foreigner’s start of work and at the end of his service.
The Decision further provides that the number of foreigners working in one establishment may not exceed 10% of the total number of employees at such establishment except in cases approved by a committee especially formed to approve such exceptions.
- Permit requirements
The Decision provides for a number of conditions and requirements for obtaining foreigners’ work permits:
- Adequate experience of the applicant for the work to be carried out with an experience of no less than three years. The three years’ experience was introduced as a new requirement by the Decree.
- Fulfillment and holding of the profession’s permit according to the laws and regulations of the foreigner’s country of origin.
- Not competing with the local work force. This requirement is often considered an impediment for obtaining work permits given the high rates of unemployment in many sectors of the Egyptian economy. Preference is given to Egyptian workers and hence obtaining work permits for foreigners often proves difficult.
- Real need of the employing establishment for the foreign expertise. This needs to be adequately evidenced by the establishment.
- Appointing at least two Egyptian workers to assist the foreign employee with an obligation lying on the foreign employee to train such assistants and to prepare annual reports on their progress.
It is worth noting that the Decision excludes touristic guides, export and import, and custom clearance from the professions that may be undertaken by foreigners.
- Duration and fees of work permits
Work permits are issued for one year or less and fractions of a year count as one year. The fees collected for work permits are EGP 3,000 for every year of the duration of the work permit up to the third year.
Starting from the fourth year up to the sixth year the fees are increased to become EGP 5,000 annually and are subsequently increased by EGP 1,000 for each subsequent year with a maximum of EGP 12,000 for each year. A fee of EGP 5,000 is imposed on establishments exempt from the 10% maximum referred to above, which fee is to be increased by EGP 1,000 for each subsequent year with an annual maximum of EGP 15,000. This is a significant increase in fees compared to the fees imposed pursuant to previous decrees which were at EGP 1,500 for each year for the duration of the work permit, payable at the issuance and every subsequent renewal.
Nevertheless, one must also note that the Decision exempts certain nationalities from the permit fees, for example nationals of Sudan, Palestine and Lebanon in addition to foreigners listed in international conventions and donations that Egypt is party to.
- Renewal and Termination of Work Permits
Renewal applications are submitted to the competent directorate or any of its satellite offices and in case of renewal applications for a fourth year or more, applications are submitted to the competent central department at the Ministry of Manpower.
Work permits are terminated in specific cases provided for in an exhaustive list by the Decree, most importantly in the following cases:
- If the permit is used for work or with an establishment other than permitted;
- In case of objection by the security authorities for reasons related to economic, social or national security interests of the country or for any other reason. The Decision has introduced “any other reason” as justification for the security authorities’ objection to granting of work permits which is a manifestation of the Government’s policy to grant security authorities absolute power and discretion to approve or object to the issuance of work permits.
- Obligations of Establishment Employing Foreigners
Establishments employing foreigners are under an obligation to:
- Hold a record of their foreign employees with information regarding their professions, certificates, the names of their Egyptian assistants and other information listed by the Decision.
- Notify the competent directorate about the termination of any foreign employee.
- Provide the competent department at the Ministry of Manpower with detailed information regarding all foreign employees containing all information entered in the record referred to above.
- Provide the directorate within the first week of January and July of every year with the names of all foreign employees, the names of their Egyptians assistants and the number and job titles of all the Egyptians working for the establishment attaching social insurance form No. 2.
Conclusion
The Decision was issued to amend the previous regime governed by decision No. 136 of 2003 as amended by decision No. 292 of 2010. It has done so by introducing important amendments such as the significant increase in fees, more demanding requirements for the foreigner applying for a work permit as well as the expansion of the role assumed by the security authorities in relation to the authority to approve the issuance of work permits. [1] Minister of Manpower and Immigration's Decision No. 305/2015 on the conditions and procedures for foreigners’ work permits, Official Gazette, Issue No. 211, 14 September 2015.Background
The Labor Law No. 12 of 2003 provides in its articles 27, 28, 29 and 30 that the recruitment of foreigners at private and public sector companies as well as administrative and governmental authorities is subject to the requirement to obtain a work permit for any work, profession or craft. The Minister of Manpower shall decree the conditions and procedures for obtaining work permits as well as the cases of cancellation and exemption and the professions that may not be carried out by foreigners in Egypt. In this context, the Ministry of Manpower had previously issued decision No. 136 of 2003 as amended by decision No. 292 of 2010, both cancelled by the present Decision.The Amendments
The Decision provides for all the conditions, requirements and procedures applicable to the recruitment of foreigners.- Who is Subject to the Requirement to Obtain a Working Permit?
Article 1 of the Decision provides for the prohibition of foreigners to carry out any work until they have obtained a work permit from the directorate of manpower in whose territorial jurisdiction lies the employing establishment or from any of the directorate’s satellite offices hosted at some governmental agencies, e.g. the General Authority for Investment and Free Zones and the Egyptian General Petroleum Corporation. To obtain a work permit, foreigners must be authorized to enter the country for work. Nevertheless, the Decision provides certain exemptions, most importantly:
- Exempt individuals in accordance with international conventions to which Egypt is party;
- Administrative staff of diplomatic and consular missions as well as international and regional organizations in accordance with the decisions issued in this respect by the competent bodies in their countries of origin;
- Foreign correspondents;
- Foreign investors who have obtained an investment residence to carry out activities in Egypt and general partners with a capital contribution of not less than USD 35,000 or its equivalent in Egyptian pounds; and
- Foreigners conducting work carried out in only one or a few days.
Any establishment employing foreigners exempt from the permit requirement must notify the competent directorate within seven days from the date of the foreigner’s start of work and at the end of his service.
The Decision further provides that the number of foreigners working in one establishment may not exceed 10% of the total number of employees at such establishment except in cases approved by a committee especially formed to approve such exceptions.
- Permit requirements
The Decision provides for a number of conditions and requirements for obtaining foreigners’ work permits:
- Adequate experience of the applicant for the work to be carried out with an experience of no less than three years. The three years’ experience was introduced as a new requirement by the Decree.
- Fulfillment and holding of the profession’s permit according to the laws and regulations of the foreigner’s country of origin.
- Not competing with the local work force. This requirement is often considered an impediment for obtaining work permits given the high rates of unemployment in many sectors of the Egyptian economy. Preference is given to Egyptian workers and hence obtaining work permits for foreigners often proves difficult.
- Real need of the employing establishment for the foreign expertise. This needs to be adequately evidenced by the establishment.
- Appointing at least two Egyptian workers to assist the foreign employee with an obligation lying on the foreign employee to train such assistants and to prepare annual reports on their progress.
It is worth noting that the Decision excludes touristic guides, export and import, and custom clearance from the professions that may be undertaken by foreigners.
- Duration and fees of work permits
Work permits are issued for one year or less and fractions of a year count as one year. The fees collected for work permits are EGP 3,000 for every year of the duration of the work permit up to the third year.
Starting from the fourth year up to the sixth year the fees are increased to become EGP 5,000 annually and are subsequently increased by EGP 1,000 for each subsequent year with a maximum of EGP 12,000 for each year. A fee of EGP 5,000 is imposed on establishments exempt from the 10% maximum referred to above, which fee is to be increased by EGP 1,000 for each subsequent year with an annual maximum of EGP 15,000. This is a significant increase in fees compared to the fees imposed pursuant to previous decrees which were at EGP 1,500 for each year for the duration of the work permit, payable at the issuance and every subsequent renewal.
Nevertheless, one must also note that the Decision exempts certain nationalities from the permit fees, for example nationals of Sudan, Palestine and Lebanon in addition to foreigners listed in international conventions and donations that Egypt is party to.
- Renewal and Termination of Work Permits
Renewal applications are submitted to the competent directorate or any of its satellite offices and in case of renewal applications for a fourth year or more, applications are submitted to the competent central department at the Ministry of Manpower.
Work permits are terminated in specific cases provided for in an exhaustive list by the Decree, most importantly in the following cases:
- If the permit is used for work or with an establishment other than permitted;
- In case of objection by the security authorities for reasons related to economic, social or national security interests of the country or for any other reason. The Decision has introduced “any other reason” as justification for the security authorities’ objection to granting of work permits which is a manifestation of the Government’s policy to grant security authorities absolute power and discretion to approve or object to the issuance of work permits.
- Obligations of Establishment Employing Foreigners
Establishments employing foreigners are under an obligation to:
- Hold a record of their foreign employees with information regarding their professions, certificates, the names of their Egyptian assistants and other information listed by the Decision.
- Notify the competent directorate about the termination of any foreign employee.
- Provide the competent department at the Ministry of Manpower with detailed information regarding all foreign employees containing all information entered in the record referred to above.
- Provide the directorate within the first week of January and July of every year with the names of all foreign employees, the names of their Egyptians assistants and the number and job titles of all the Egyptians working for the establishment attaching social insurance form No. 2.