Coronavirus or (COVID-19) has, unfortunately, hit the economies of most countries causing severe consequences that have impacted almost all industries on a global basis. The Egyptian market is no exception...Continue reading
Coronavirus Labor Law – Snapshot Updates
If anyone is wondering about Coronavirus’s impact on Employment Relationships in Egypt. We have to mention these quick and important updates:
Update#1: Employers Could pay only 50% of the wages/salaries to their employees as long as the employers are heavily impacted by the Coronavirus. This is based on a 2019 Precedent rendered by the Egyptian Court of Cassation. The same was applied in the case of the 2011 Revolution in Egypt.
Update#2: The wages/salaries, in this case, will be calculated depending on the fixed part of the salary only. This means that the variable portions of the wages/salaries might be excluded depending on a case-by-case basis. This is also based on another 2019 Precedent rendered by the Egyptian Court of Cassation.
Be Cautious: the above principles should not be applied in the same manner across all industries. Therefore, we advise that employers seek legal advice before applying any of these measures.