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Legal consultation: By Abdelaal A Khalil Thursday, 15 September 2011 02:11
Question:
Answer:
The current labor law No. 14/2004 points out that the employer must pay the end of service benefits to the worker who completed in the work one year or more and this remuneration shall be determined with an agreement between the parties provided that it is not less than the wage of three weeks of each year of service and the employee is entitled to the compensation for the fractions of the year for the period of his service.
The previous Labour Law No. 3/1962 stipulates that the employer shall pay the end of service gratuity to the worker, who completes his term and it shall be calculated on the basis of the basic salary of the worker plus the cost of living allowance, if any, for three weeks of each year of first five years of service. It shall be calculated on the basis of the basic salary plus living allowance, if any, for four weeks of each year of the following five years. It shall be calculated on the basis of the basic salary of the worker plus the cost of living allowance, if any, for five weeks of each year of the next ten years of the services and finally the employee’s end of service gratuity shall be calculated on the basis of basic salary of the worker plus the cost of living allowance, if any, for six weeks of each year of continuous service which increases the period of service over twenty years in addition to calculation of the reward for the fractions of the year he spent on the service at the end of service of the employee either in case of resignation of the worker and he will get a third of the end of service gratuity if the period of service is more than two years and less than five years, but if the period of the service is more than five years and not more than ten years, he will get two-third of compensation. He shall get the complete end of the service gratuity if he worked more than ten years.
The current labour Law No. 14/2004 points out that the employer must pay the end of service gratuity to the worker who completed a year or more and this remuneration shall be determined with an agreement between the parties provided that it is not less than the wage of three weeks for each year of service and the employee is entitled to the compensations for the fractions of the year for the period of his service.
The article 40 of the Labour Law No. 14/2004 points out that if the employment contract is for a fixed term, it must not be more than five years. The contract can be renewed for a period or other similar periods with the agreement of the parties. If the contract was not renewed and both the parties continued to implement it after the expiry without an explicit agreement, the contract shall be considered as renewed for an indefinite period with the conditions contained therein. The period of renewal shall be an extension for the previous period. The service of the worker shall be calculated with effect from the date of his entry in the service of the employer for the first time and the end of service gratuity shall be calculated according to the last basic wage received by the worker.
So, the questioner must refer to the employment contract concluded between him and the employer, especially the conditions for the duration of the employment contract whether it is for a fixed term or indefinite term. He also must know whether the contract has been extended for another period under a new contract and new conditions or the employer and he continued the implementation of first employment contract, without concluding a new contract and thus the employment contract shall be for an indefinite duration and shall be continuous for an indefinite period under the same conditions contained in the old contract. There is no doubt that the basic conditions of the employment contract vary according to the agreement of the worker, employer and the conditions of the contract.
Applying what has been mentioned above it is clear that the old Labour Law is more beneficial to the employee who completed more than ten years in the service in the case of dismissal and resignation and the new Labour Law No. 14/2004 shall be more beneficial to the employee who resigned. Finally the employee must make the worker aware of the labour law for the performance of his duties compeletly and preserve his rights and claim them.
The basic principle is that the rights set forth in the Labor Law No 14/2004 represent the minimum of worker’s rights and every condition contrary to the provisions of this law shall be null and void even if it was before the date of the work, unless it was more beneficial to the worker. Therefore, the end of service benefits of employees shall be calculated under the old law as it is more beneficial to the employee who served more than ten years according to the conditions and details contained in Labour Law No. 14/2004, which points out that the rights provided in this law represent the minimum of workers’ rights and every condition contrary to the provisions of this law shall be null and void even if it was before the date of the work, unless it was more beneficial to the worker. A person working with a semi-government institution since 1988 intends to resign by the end of 2011. He is asking about the end of service benefits and how the same shall be calculated. Whether they are subject to the new labour law or old labour law?Question: A person working with a semi-government institution since 1988 intends to resign by the end of 2011. He is asking about the end of service benefits and how the same shall be calculated. Whether they are subject to the new labour law or old labour law?
Answer:
The basic principle is that the rights set forth in the Labor Law No 14/2004 represent the minimum of worker’s rights and every condition contrary to the provisions of this law shall be null and void even if it was before the date of the work, unless it was more beneficial to the worker. Therefore, the end of service benefits of employees shall be calculated under the old law as it is more beneficial to the employee who served more than ten years according to the conditions and details contained in Labour Law No. 14/2004, which points out that the rights provided in this law represent the minimum of workers’ rights and every condition contrary to the provisions of this law shall be null and void even if it was before the date of the work, unless it was more beneficial to the worker.
The current labor law No. 14/2004 points out that the employer must pay the end of service benefits to the worker who completed in the work one year or more and this remuneration shall be determined with an agreement between the parties provided that it is not less than the wage of three weeks of each year of service and the employee is entitled to the compensation for the fractions of the year for the period of his service.
The previous Labour Law No. 3/1962 stipulates that the employer shall pay the end of service gratuity to the worker, who completes his term and it shall be calculated on the basis of the basic salary of the worker plus the cost of living allowance, if any, for three weeks of each year of first five years of service. It shall be calculated on the basis of the basic salary plus living allowance, if any, for four weeks of each year of the following five years. It shall be calculated on the basis of the basic salary of the worker plus the cost of living allowance, if any, for five weeks of each year of the next ten years of the services and finally the employee’s end of service gratuity shall be calculated on the basis of basic salary of the worker plus the cost of living allowance, if any, for six weeks of each year of continuous service which increases the period of service over twenty years in addition to calculation of the reward for the fractions of the year he spent on the service at the end of service of the employee either in case of resignation of the worker and he will get a third of the end of service gratuity if the period of service is more than two years and less than five years, but if the period of the service is more than five years and not more than ten years, he will get two-third of compensation. He shall get the complete end of the service gratuity if he worked more than ten years.
The current labour Law No. 14/2004 points out that the employer must pay the end of service gratuity to the worker who completed a year or more and this remuneration shall be determined with an agreement between the parties provided that it is not less than the wage of three weeks for each year of service and the employee is entitled to the compensations for the fractions of the year for the period of his service.
The article 40 of the Labour Law No. 14/2004 points out that if the employment contract is for a fixed term, it must not be more than five years. The contract can be renewed for a period or other similar periods with the agreement of the parties. If the contract was not renewed and both the parties continued to implement it after the expiry without an explicit agreement, the contract shall be considered as renewed for an indefinite period with the conditions contained therein. The period of renewal shall be an extension for the previous period. The service of the worker shall be calculated with effect from the date of his entry in the service of the employer for the first time and the end of service gratuity shall be calculated according to the last basic wage received by the worker.
So, the questioner must refer to the employment contract concluded between him and the employer, especially the conditions for the duration of the employment contract whether it is for a fixed term or indefinite term. He also must know whether the contract has been extended for another period under a new contract and new conditions or the employer and he continued the implementation of first employment contract, without concluding a new contract and thus the employment contract shall be for an indefinite duration and shall be continuous for an indefinite period under the same conditions contained in the old contract. There is no doubt that the basic conditions of the employment contract vary according to the agreement of the worker, employer and the conditions of the contract.
Applying what has been mentioned above it is clear that the old Labour Law is more beneficial to the employee who completed more than ten years in the service in the case of dismissal and resignation and the new Labour Law No. 14/2004 shall be more beneficial to the employee who resigned. Finally the employee must make the worker aware of the labour law for the performance of his duties compeletly and preserve his rights and claim them.