![\"Covid-19.jpg\"](\"http:\/\/www.riad-riad.com\/storage\/app\/uploads\/public\/5e8\/501\/b76\/5e8501b76d2d5836943437.jpg\")
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In the wake of the global COVID-19 outbreak, companies and employers started to consider the various legal alternatives to combat the negative economic impact of the forced closure or the \u200ereduction of their businesses. Such alternatives include \u2013 for example – collective layoff and \u200eredundancies, furloughing employees, granting obligatory annual leaves and reducing salaries.<\/p>\n
In Egypt, the Employees Emergency Fund has a pivotal responsibility in supporting struggling \u200ecompanies to survive through economic crisis and meet their obligations towards employees in such difficult times.<\/p>\n
This Fund had a previous significant role in supporting struggling companies after the 2011 uprising in Egypt; particularly in the hotel and tourism sector as well as the textile industry. We expect the Fund to play a significant role in helping companies in Egypt to face upcoming economic difficulties.<\/p>\n
Riad & Riad herein gives a glimpse of the operation and rules governing the Employee Emergency Fund pursuant to the Egyptian law.<\/p>\n
The Employees Emergency Fund (the \u201cFund<\/strong>\u201d) is established in Egypt by virtue of Law No. 156 of 2002 and its Executive Regulation (the \u201cLaw<\/strong>\u201d). The Fund is a public legal body affiliated to the Ministry of Manpower and its financial resources are treated as public funds.<\/p>\n The Fund aims at providing financial aid and subsidies to employees who have not received salaries from companies facing the risk of (total or partial) closure due to economic crisis or decline in \u200eproduction.<\/p>\n The Fund is managed by a Board of Directors chaired by the Minister of Manpower. The Board of Directors includes as well members representing Employers and Labor Unions.<\/p>\n The Fund gets it money and financial funds from different resources including the following:<\/p>\n The financial aid of the Fund is granted to employees on the basis of an application request by the \u200estruggling company or relevant labor union to the Chairman of the Fund. The application request must \u200ebe accompanied by a report about the financial situation of the company and the reasons for not \u200ebeing able to pay salaries to employees.<\/p>\n If the submitted application request is approved by the Board of Directors of the Fund, the employees of the relevant company will receive financial aid equivalent to 100% of their basic insurance salary, with a minimum of EGP 600 per month. Such financial aid will be paid by the Fund for up to six (6) \u200emonths or until the appropriate re-operation of the company or the employee finds an alternative job (whichever occurs earlier). Employees of the companies which are subject to the application of the provisions of the Law can \u200ebenefit from the financial aid granted by the Fund, provided that those employees are registered under \u200ethe Public Social Insurance System in Egypt.<\/p>\n The Fund will stop paying the Financial Aid in the following situations:<\/p>\n Last week, the Egyptian Prime Minister has issued decree No. 776\/2020 to constitute a special committee headed by the Prime Minister and includes among its members the Minister of Manpower, the Minister of Social Solidarity, the Minister of Planning and Economic Development and representatives from the Information and Decision Support Center (IDSC) affiliated with the Cabinet. The committee is constituted with the purpose of:<\/p>\n R&R can help you with preparing and completing the application form and the other supporting documents, submit the application and liaise with the Fund. <\/p>\n For further information or assistance, please contact Dr.Eman Riad<\/strong> at e.riad@riad-riad.com or Heba El-Abd<\/strong> at h.elabd@riad-riad.com<\/p>\n","protected":false},"excerpt":{"rendered":" In the wake of the global COVID-19 outbreak, companies and employers started to consider the various legal alternatives to combat the negative economic impact of the forced closure or the \u200ereduction of their businesses. Such alternatives include \u2013 for example – collective layoff and \u200eredundancies, furloughing employees, granting obligatory annual leaves and reducing salaries.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"yoast_head":"\nWhat is the Role of the Fund?<\/h4>\n
Who is Responsible for Managing the Fund?<\/h4>\n
What Are the Financial Resources of the Fund?<\/h4>\n
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How to Receive Financial Aid From the Fund?<\/h4>\n
What Sort of Financial Aid is Granted by the Fund?<\/h4>\n
\nThe Minister of Manpower has the authority to extend the period of granting the financial aid up to twelve (12) months and\/or to increase the amount of the financial aid in light of the economic \u200econditions and circumstances of the applicant company.<\/p>\nWho Can Benefit from the Financial Aid of the Fund?<\/h4>\n
When Does the Financial Aid of the Fund Discontinue?<\/h4>\n
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How the Egyptian Government Reacted to Activate the Role of the Fund after Covid-19 Outbreak?<\/h4>\n
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How can R&R Help?<\/h4>\n