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As businesses continue to cope with an ever-changing marketplace, skills and training become increasingly important. The ability to upskill staff on short notice is no longer a luxury; it’s a necessity in order to stay competitive and drive long-term success.

To that end, many businesses are investing in training, certifications, and other programs as part of their talent development strategy. However, the costs associated with these initiatives can often be prohibitively high. As such, companies must find cost-effective ways to fund their training programs while still remaining profitable.

To get you started on your journey towards the right funding model for your company’s unique needs, we’ve compiled throughout this helpful article a list of potential options for your business.

Training and Development Funds

The purpose of the new draft labor law is to establish the principle of linking wages to production in order to balance and compensate the two parties’ interests, reassure national and foreign investors, and motivate workers to work as hard as they can. This was finally decided by the Senate.

The draft law describes the establishment of a fund for training and rehabilitation, its national scope, and its duties to finance the training process and develop human resources and skills. In addition to establishing, supporting, developing, and modernizing training centers, for example, the national infrastructure of the training process as a whole is developed by this law.

The training process is characterized by the establishment of training programs, etc., and the conditions and rules must be followed in the training process, whether the technology or infrastructure aspects of the training process are concerned, and follow-up and evaluation of the programs funded by the fund are required.

The National Commission for Human Resources and Skills Development is the coordinating entity.

Training and Qualification Fund’s resources program

The draft Labor Law, Article 19 defines the Training and Qualification Fund’s resources as follows:

One-quarter of the social insurance contributions for public sector establishments, public business enterprises, and private companies employing 30 or more employees (minimum five pounds, maximum 50 pounds per employee), will be collected by the company in exchange for the services provided in the preceding article.

The percentage is collected in accordance with the non-cash payment method law.

The fund’s board of directors may accept subsidies, donations, and gifts in accordance with the rules set forth in the articles of association in accordance with the law.

The Central Bank of Egypt keeps track of the fund’s resources and its investment returns, and the fund has a special account at one of the commercial banks.

Each year, the fund submits a financial statement to the Central Auditing Organization, which maintains control of the fund’s resources, and the money is carried over from one year to the next.

Workers employed in local administration units, public bodies, domestic service jobs, and other non-private sector companies are excluded from the provisions of the draft labor law.

Conclusion

It’s important to choose a funding model that works with your specific business model, as well as your company’s long-term goals. Only then will you be able to ensure the financial sustainability of your company’s training programs.

Starting a business in Egypt can be challenging, many foreigners and first-time entrepreneurs face difficulties when setting up a company in Egypt due to the various laws and restrictions that need to be adhered to so we’re familiar with all governmental regulations, investigations, and procedures and when necessary, we defend or enforce our client’s interests to reach their business objectives.

Read on to learn more about the process of setting up an Egyptian company, what makes it challenging, and what you should know before registering your business in Egypt.

In order to make things simpler and faster for entrepreneurs, the government has streamlined the procedure for establishing companies in Egypt.

If you feel that setting up a business is difficult and time-consuming, or if you are not familiar with the relevant laws, you will find all the information you need in this piece, whether you want to establish your own company or compete in your industry.

You will find all the information you need to establish a corporation in Egypt from the comfort of your own home in accordance with the law.

You won’t run the risk of committing tax evasion.

 

Know the different types of companies in Egypt

When choosing the business structure for your company, you’ll need to decide which type of company to go for.

The structure of your company will determine the taxation and legal obligations that you’ll need to comply with.

There are some types of companies that you can choose from when setting up an Egyptian company, namely – Sole Proprietorship, Partnership (Joint Venture), Limited Liability Company (LLC), and Public Joint Stock Company (PJSC).

 

Registering a company in Egypt

The first step to launching your business in Egypt is to register your company. You can do this by contacting the Commercial Registration Division of the Ministry of Trade and Foreign Investment.

There are a few steps to setting up a company in Egypt, including choosing a legal name for your business, finding registered agents, and getting a Tax ID number.

You’ll also need to submit certain documents to the government, including business plans and financial statements. The time frame for registration will depend on a number of factors.

Once your company is registered, you’ll need to maintain compliance with the law, you’ll be responsible for keeping your business license up-to-date and reporting any changes that may happen within the business. Your business license is an important part of your company and shouldn’t be overlooked.

 

Tax Requirements for Company Incorporation in Egypt

The tax requirements and obligations for your business will depend on which type of company you’ve chosen to register.

Sole Proprietor businesses and Partnerships will be taxed as normal income, while LLCs and PJSCs are taxed as corporate income.

When registering your company in Egypt, you’ll sign a contract where you agree to pay taxes based on the revenues that your business brings in.

When it comes to registering a company in Egypt, it’s important to know that you’re responsible for paying all taxes and complying with the law. You’ll have to make sure that your business is paying all taxes, otherwise, you’ll face the risk of fines, penalties, or even closure. There are several taxes that you need to be aware of when establishing a company in Egypt.

Therefore when our clients start their business, we make sure that they are compliant with legislation applicable to their activities and we ensure compliance with their internal regulations as well.

We put the objectives of our clients, predominantly minimizing risk, as an integral goal for us.

 

Conclusion

Starting a business in Egypt can be challenging. Many foreigners and first-time entrepreneurs face difficulties when setting up a company in Egypt due to the various laws and restrictions that need to be adhered to.

The process is not easy, but it can also be rewarding as there are many benefits of establishing a company in Egypt as an individual or a group of individuals.

It has been our experience that working together with our clients on a broad range of general corporate issues has contributed greatly to our understanding of their businesses, which has in turn considerably enhanced our strong ability to help our clients on establishing a company in Egypt.

The decree aims to improve Egyptian’s work-life balance and provide better job security for workers. It also aims to increase productivity and regulate wages through collective agreements.

 

What is the Decree About?

The Decree regulates collective negotiations in many aspects, including its levels, topics, and procedures. It aims to improve Egyptians’ work-life balance and provide better job security for workers.

It also aims to increase productivity and regulate wages through collective agreements.

The Decree is the culmination of a few years of work. The Ministry of Manpower engaged in several workshops and studies to determine the best way to regulate collective negotiations in Egypt.

 

Who is Subject to the Decree?

According to Labor Law No.12 for 2003 (the “Labor Law”), collective negotiations, in general, are governed. Furthermore, decree No. 124 for 2003 establishes the procedures and levels of collective negotiations.

Collective negotiations, as defined by the new decree, refers to negotiations between an employer or a group of employers and workers, through their unions or associations, to improve working conditions and settle employment disputes.

To elaborate more, in the new Decree, the procedures are further defined. Collective bargaining occurs when an employer or a group of employers negotiates with employees through their unions or associations to improve their working conditions and solve labor problems.

All employees, including those working for the private sector, public sector, public works sector, investment sector, common sector, and public utilities not administered by the State, are covered by the Decree. However, military and police personnel are not covered.

According to the law, the representatives of the Union Committee, the General Union, and the employer must negotiate collectively in businesses with more than 50 employees. The employer and the representatives of the union that has a presence in the business, if there is no union, must negotiate with the employer and five workers to be chosen by the relevant General Union, three of which must be from the establishment’s workers. If the firm has less than 50 employees, negotiations are conducted between representatives of the relevant General Union and representatives of the employer.

According to the law, in establishments that employ 50 or more workers, negotiation takes place between representatives of the trade union committee in the establishment and the general union and the employer. Establishment workers

 

If a party refuses to start collective negotiations the other party may request from the competent administrative authority to notify the relevant Union Organization or the employers’ association, to begin the negotiations on behalf of the party that refuses to negotiate.

 

At least 50 employees must be employed at an establishment to form a union committee, and at least 10 union committees, each with at least 15,000 employees, may form a General Union.

The Decree provides for an extensive range of negotiable issues, ranging from issues that may improve the employees’ working conditions to issues that allow employer and employee cooperation to improve employee social welfare. It also covers disputes arising between the employer and employees.

 

The collective negotiations phase is a very important process in which the employer and the union representing the employees come to an agreement on various terms and conditions related to employment.

This process is very important because it sets the tone for the future relationship between the employer and the employees. It is also important because it establishes the ground rules for how the employees will be treated by the employer.

During the collective negotiations phase, the employer is prohibited from issuing any decision related to the matters subject to the negotiations except in the case of urgency and provided such decision will be on a temporary basis.

After the phase of the collective negotiations, the Collective Negotiations Agreement is drafted to be a legal document between an employer and a union representing the employees documenting the terms agreed upon by both parties in the phase of the collective negotiations.

The outcome of the collective negotiations phase is very important because it can set the tone for the future relationship between the employer and the employees.

 

Conclusion

The Decree aims to improve Egyptians’ work-life balance and provide better job security for workers. It also aims to increase productivity and regulate wages through collective bargaining agreements.

 

The Decree regulates collective negotiations in many aspects, including its levels, topics, and procedures, the trade unions or business organizations can negotiate the topics and procedures they consider necessary. The Ministry of Manpower can issue new procedures to expedite the collective negotiations.