New Decision on Work Permits for No

On 16 July 2019, the Egyptian Gazette published Ministry of Manpower Decision No. 146 of 2019 with the conditions and procedures for work permits to foreigners (the “Decision”).[1] The Decision amends and adds to previous decision No. 305 of 2015[2] by modifying permit fees and their issuing entity, as well as removing a provision that previously exempted certain corporate partners from applying for work permits. Worth noting is that the Egyptian Gazette published a correction[3] effectively changing the date on which this Decision comes into effect from being one day following its publication on 16 July, to one day following its issuance (i.e. 30 June 2019).

Background

The main texts of law governing the matter of work permits for non-Egyptians are Labour Law No. 12 of 2003,[4] and Law No. 89 of 1960 on entry into the country and residence for work purposes.[5] The law grants the Minister of Manpower the mandate to issue decisions regulating work permits and determine cases of exemption, termination conditions, fees, and work that foreigners are prohibited from undertaking. Following the issuance of the Labour Law, a decision was issued to regulate the matter of work permits for foreigners in 2003, following which it was repealed by decision No. 305 of 2015, up until the issuance of the current Decision which states that any provision or law that contradicts its rules is deemed repealed.

The New Decision No. 146 of 2019

• Work Permit Issuing Authority

The new Decision names the Ministry of Manpower, its subordinate directorates, and work permit offices located in other administrative bodies in as the authorities in charge of issuing work permits. This is in contrast to the previous decision which stated that work permits were to be issued from manpower directorates located in the district of the workplace.

• Ratio of Foreign to Egyptian Workers

The law prohibits the number of foreign workers to exceed 10% of the total number of insured workers at any given institution. Two exceptions to this rule are worth noting, one is receiving an approval to exceed this number by a special committee that is formed by the Ministry of Manpower for this purpose. The second exception is a provision in the Investment Law which allows the percentage of foreign workers to be raised up to 20% where there is a lack of availability of qualified Egyptian labour, in addition to certain conditions and procedures which must be met.

• Conditions of Granting a Work Permit

Six  conditions were stipulated in the new Decision, the most important of which include that the worker’s experience matches the role they are going to fill, that they have at least three years of experience in the field, that they are  licensed to practice the profession in question in accordance with the applicable laws and regulations. In addition, foreign workers must not crowd out the national workforce, there must be a demonstrated need for foreign experience in the field both in the country and at the place of business. Institutions that hire foreigners with technical experience must ensure that at least two Egyptian workers with corresponding qualification are placed in the assistance of the foreign works for training purposes. Progress reports must be produced for these assistants on an annual basis, and they must be enclosed with requests for renewing work permits.

• Work Permit Exemptions

The new Decision specified eight exemptions with respect to the issuance of work permits, these include workers who are nationals of countries that have entered into treaties with Egypt, administrative staff in consulates, embassies, international organizations, foreign correspondents, clergy men, experts and members of exploration missions in antiquities or architecture, as well as foreign investors with special permits to reside and undertake investment activities in Egypt. The Decision makes no mention of two categories of exemptions that were previously stipulated, these being an exemption for partners with contributions to capital equal to USD35 thousand or more, and students or interns who enter Egypt for training and remain for no more than six months. Non-Egyptians wishing to complete work that takes a day or a few days can request an approval from the relevant ministry, and pay 10% of their wage (EGP 8,000 minimum and EGP 50,000 maximum), given that the fee is collected with respect to each task separately. Institutions with exempt foreign workers must notify the Manpower directorate in its district within seven days of the worker’s commencement of their work and at its completion.

• Fees

Work permit fees have been increased according to the following: An increase of EGP 2,000 is applied for every year following the 11^th up to a maximum of EGP 50,000. Furthermore, the Decision adds a stipulation for foreigners who have been working in absence of a work permit to rectify their situation by submitting a request to the Ministry of Manpower and paying a fee of EGP 15,000 for each year from the date of their entry into the country.

• Prohibited Occupations, and Permit Cancellation

The Decision retains the cases for permit cancellation, and prohibited occupations that were contained in previous decisions. Non-Egyptians are prohibited from working at tour guides, in the field of exports and imports, and in custom clearance. As for permit revocation this takes place in one of four occasions, a conviction in a felony or a misdemeanour that has bearing on honour or public morality, providing incorrect data for the issuance of the permit, use of the permit for other than what it has been issued for, and in the case of objections by security forces.

• Obligations of Employers of Foreign Workers

Employers are required to inform the relevant directorate at the end of a foreigner’s contract or at their departure from work. The institution must provide a detailed list of all foreign employment to the Ministry “on a regular basis”, which is contrasted to providing a list once every six months on a CD under the previous regulation. In addition, an employer must notify the relevant directorate within the first week of January and the first week of July every year of the names, nationalities, professions, and dates of work permits for all foreign employees, in addition to the names of their Egyptian assistants, in addition to a list of Egyptian employees, their professions, and their corresponding insurance documentations.   [1] Ministry of Manpower Decision No. 146/2019 on the conditions and procedures for work permits to foreigners, Egyptian Gazette, Issue No. 160, 16 July 2019. [2] Ministry of Manpower and Immigration Decision No. 305/2015 on the conditions and procedures for work permits to foreigners, Egyptian Gazette, Issue No. 211, 14 September 2015. [3] Correction to Ministry of Manpower Decision No. 146/2019 on the conditions and procedures for work permits to foreigners, Egyptian Gazette, Issue No. 160 (cont.), 16 July 2019. [4] Law No. 12/2003 on Labour, Official Gazette, Issue No. 14 (bis), 7 April 2003. [5] Presidential Decree-Law No. 89/1960 on the Entry, Residence, and Exit of Foreigners, Official Gazette, Issue No. 71, 24 March 1960.