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Regulatory Authorities' Heads May b

Regulatory Authorities' Heads May be Sacked
On 9 July 2015, Presidential Decree-Law No. 89 of 2015 was issued to provide the rules for sacking the heads - and members - of independent regulatory agencies in Egypt (the "Law").[1] The new Law is an application of Article (216) of the 2014 Egyptian Constitution, which stated that the termination of employment of the heads of independent regulatory agencies shall be in accordance with the conditions determined by law. This is what the President has done by issuing this new Law, on the basis of the exceptional legislative authority granted to him by Constitution during the absence of Parliament. This is a new subject on the Egyptian legal scene, and deserves some background explanation, prior to considering its specific provisions.
Independent Regulatory Agencies
Egyptian Constitutions did not in the past deal with this subject (except the now abolished 2012 Constitution), and it thus represents an important addition. In the new 2014 Constitution, Articles (215) to (222) deal with this subject by providing certain general rules applicable to all independent regulatory agencies, then describing the role of each of the four main agencies: the Central Accounting Agency, the Central Bank of Egypt, the Egyptian Financial Supervisory Authority, and the Administrative Control Agency. It is, however, worth noting that whereas the Constitution has specifically mentioned these four agencies, the notion of "independent regulatory agency" could include other entities in the future, firstly because Article (215) of the Constitution states that such agencies are determined by law, and secondly because it lists the four agencies mentioned above as a matter of example.
General Rules
  • Independent regulatory agencies enjoy technical, financial and administrative independence. This means that they enjoy significant flexibility in administrative and human resource matters, albeit subject to the Civil Service Law and the maximum wage provisions.
  • The role performed by each agency as well as the guarantees needed to preserve its independence and neutrality is determined by law.
  • Each independent regulatory agency must submit an annual report to the President, Parliament and the Prime Minister, as well as make it publicly available.
Conditions for Termination of Employment
According to the new Law, the President has the power to "excuse" the heads and members of independent regulatory agencies in the four following cases:
  1. If he/she behaves in a way that threatens national security or safety.
  2. If he/she loses confidence and respect.
  3. If he/she fails to fulfil his/her duties in a way that is detrimental to the state or its institutions.
  4. If he/she loses one of the preconditions of appointment.
Whereas the issuance of this Law is compatible with the Constitution and logical because no public servant should have total immunity in employment, the four conditions stated above are stated in such vague language that they make the sacking of the head of an independent regulatory agency not subject to clear guidelines, and therefore does not fulfil the constitutional protection.   [1] Presidential Decree-Law 89/2015 on the rules for sacking the heads and members of independent regulatory agencies, Official Gazette, Issue No. 28 (a), 9 July 2015.
On 9 July 2015, Presidential Decree-Law No. 89 of 2015 was issued to provide the rules for sacking the heads - and members - of independent regulatory agencies in Egypt (the "Law").[1] The new Law is an application of Article (216) of the 2014 Egyptian Constitution, which stated that the termination of employment of the heads of independent regulatory agencies shall be in accordance with the conditions determined by law. This is what the President has done by issuing this new Law, on the basis of the exceptional legislative authority granted to him by Constitution during the absence of Parliament. This is a new subject on the Egyptian legal scene, and deserves some background explanation, prior to considering its specific provisions.
Independent Regulatory Agencies
Egyptian Constitutions did not in the past deal with this subject (except the now abolished 2012 Constitution), and it thus represents an important addition. In the new 2014 Constitution, Articles (215) to (222) deal with this subject by providing certain general rules applicable to all independent regulatory agencies, then describing the role of each of the four main agencies: the Central Accounting Agency, the Central Bank of Egypt, the Egyptian Financial Supervisory Authority, and the Administrative Control Agency. It is, however, worth noting that whereas the Constitution has specifically mentioned these four agencies, the notion of "independent regulatory agency" could include other entities in the future, firstly because Article (215) of the Constitution states that such agencies are determined by law, and secondly because it lists the four agencies mentioned above as a matter of example.
General Rules
  • Independent regulatory agencies enjoy technical, financial and administrative independence. This means that they enjoy significant flexibility in administrative and human resource matters, albeit subject to the Civil Service Law and the maximum wage provisions.
  • The role performed by each agency as well as the guarantees needed to preserve its independence and neutrality is determined by law.
  • Each independent regulatory agency must submit an annual report to the President, Parliament and the Prime Minister, as well as make it publicly available.
Conditions for Termination of Employment
According to the new Law, the President has the power to "excuse" the heads and members of independent regulatory agencies in the four following cases:
  1. If he/she behaves in a way that threatens national security or safety.
  2. If he/she loses confidence and respect.
  3. If he/she fails to fulfil his/her duties in a way that is detrimental to the state or its institutions.
  4. If he/she loses one of the preconditions of appointment.
Whereas the issuance of this Law is compatible with the Constitution and logical because no public servant should have total immunity in employment, the four conditions stated above are stated in such vague language that they make the sacking of the head of an independent regulatory agency not subject to clear guidelines, and therefore does not fulfil the constitutional protection.   [1] Presidential Decree-Law 89/2015 on the rules for sacking the heads and members of independent regulatory agencies, Official Gazette, Issue No. 28 (a), 9 July 2015.