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Saad proposes Labor Law reforms to boost investment

Businessmen Team news 12 February 2026 09:16 PM
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Saad proposes Labor Law reforms to boost investment

Dr. John Saad, a tax expert, was invited to review several key proposals to amend Ministerial Decree No. 301 of 2025. The aim was to draft a legally sound document that can guide the preparation of official memoranda or proposed amendments.

Dr. Saad explained that the rationale for the amendments includes streamlining procedures and reducing administrative burdens on business owners. He emphasized the importance of keeping pace with digital transformation and linking the decree to the ministry’s electronic platforms. He also noted that clarifying ambiguous provisions and balancing the protection of workers’ rights with encouraging investment are essential. Unifying interpretations across different directorates is another key objective.

He stated that the proposed amendments cover the article on procedures and deadlines. The current timelines would be adjusted to flexible periods ranging from 30 to 60 days depending on the nature of the activity. Dr. Saad noted that applications and documents can be submitted electronically through the ministry’s official platform. The date of electronic registration will be used to calculate the legal timeframe.

Dr. Saad said the goal of these amendments is to provide business owners with a realistic timeframe. He added that this would reduce disputes arising from missed deadlines.

He highlighted the importance of adding a digital transformation provision. The ministry would adopt electronic signatures and legally approved digital methods for all procedures under the decree. Electronic documents will hold the same legal validity as official records.

Regarding penalties for violations, Dr. Saad proposed a graduated system. First-time violators will be issued a warning and granted a minimum 15-day correction period before any penalty is applied. Financial penalties would only apply in cases of repeated violations or failure to correct the issue.

He also addressed clarifying the competent authority and appeals process. Appeals against decisions issued under the decree may be submitted within 30 days of notification. The appeals will be considered by a central committee appointed by the minister. Decisions of the committee will be reasoned and administratively final. This ensures transparency and clarity in the appeals process.

Dr. Saad was asked to propose provisions for sectors with special characteristics. The minister would issue subsequent regulatory decisions defining controls for seasonal or temporary sectors, taking into account their operational nature.

He recommended issuing a simplified procedural guide explaining the decree and its amendments. He also suggested holding workshops with the business community before implementation. A clear effective date should be set, with a transition period of no less than three months.

Recently, the Minister of Labor issued Decree No. 301 of 2025 on objective criteria for selecting workers to be laid off. This decree is part of implementing the new Labor Law No. 14 of 2025. It regulates the procedures and standards employers must follow when partially closing operations, reducing activity, or downsizing the workforce.

The decree applies to all establishments subject to Labor Law No. 14 of 2025. It covers cases of partial closure, reduced activity, or workforce reduction for any proven economic, technical, or organizational reason.

If no collective agreement with objective criteria exists, the employer must hold serious consultations with the relevant labor union, if any. This is to identify employees at risk of being laid off at least seven working days before implementation.

Employers must be transparent when presenting the economic or technical reasons for selecting employees for potential layoff.