Fairwork Egypt Ratings 2021: Towards Decent Work in a Highly Informal Economy
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Fairwork Egypt
Ratings 2021:
Towards Decent Work
in a Highly Informal
Economy
2 | Fair work Eg ypt Ratings 2021
Executive Summary
This is the first Fairwork report for Egypt. The report covers seven
digital labour platforms spanning four different sectors (ride hailing,
courier-delivery, tutoring, and home services). In a country dominated
by informality, digital labour platforms present unique and flexible
opportunities for workers to earn an income in Egypt. Nevertheless,
there are issues with the gig work model. The Fairwork report for Egypt
examines the working conditions in the platform economy, with the aim to
help improve conditions, protections and benefits to workers.
In January 2021, the size of the The gig economy refers to a labour fairness—fair pay, fair conditions, fair
Egyptian labour market was recorded market comprising freelance and contracts, fair management, and fair
at 29.3 million1 people out of a total short-term jobs—or ‘gigs’—wherein representation—giving each platform a
population of 101.5 million people— organisations contract with fairness rating out of ten. FilKhedma,
the largest population in North Africa.2 independent workers on a non- a platform offering a variety of home
The conditions of the gig economy in permanent basis, rather than recruiting services, leads the 2021 table with
Egypt, therefore, have the potential full-time employees.4 In this report, five points, while Mrsool (a courier-
of impacting millions of lives. There the platforms we rate are “location- delivery platform) and Orcas (a tutoring
are no official statistics on the size based”; in other words, their work must platform) are tied in second place with
of the gig economy in Egypt, but the be done in a specific place at a specific four out of ten points. Next comes Swvl
number of workers who rely on digital time. This is a particular type of work (a bus hailing platform), scoring three
platforms for income has been on the within the broader platform economy. points. Talabat (a delivery platform),
rise in Egypt in recent years. The active Mongez (a courier-delivery platform),
number of Uber drivers alone was The report assesses seven of the and Uber (a ride-hailing platform)
recorded at 90,000 in 2019.3 country’s location-based digital labour scored one point each.
platforms against five principles of
Key Findings
� Fair Pay: paying work-related costs out of � Fair Conditions:
Three of the seven platforms pocket. The scores also factored There are numerous risks gig
featured in this report in waiting times between jobs. workers face in the course of their
(FilKhedma, Orcas and Swvl) Considering in these additional work, ranging from road safety
provided evidence that workers’ costs—such as unpaid waiting issues to crime and violence.
gross pay is at or above the times, travel costs, vehicle Five of the platforms were able
minimum wage after costs, maintenance, gas, and traffic to evidence that they are aware
which for 2021 was EGP 2,000 fines incurred—meant that the of these risks and that they take
(USD 127.31) per month. This minimum wage point could not some action to protect workers
corresponds to EGP 333 (USD be awarded to the other four from risks that arise during the
21.2) per week for a 6-day work platforms. When extending this course of their jobs. Mongez and
week at 8 hours a day. When net calculation to consider a Mrsool, both courier-delivery
assessing minimum wages, the living wage, currently assessed platforms, have adequate policies
scores took into account not only as EGP 3500 for 2021 (USD in place to deal with malicious
the amount paid by the platform 222.81) per month, or EGP 583 orders, though road safety is
to the worker for hours worked, (USD 37.11) per week, only two the major risk courier workers
but also the cost of providing platforms could evidence this face. Mongez provides personal
task-specific equipment and principle of fair pay (Orcas and protective equipment (PPE) to
Swvl).
Towards Decent Work in a Highly Informal Economy | 3
its workers, albeit at a reduced notified of proposed changes in a point for ensuring equity in the
cost to be deducted monthly a reasonable timeframe before management process, as it takes
from their income. Mrsool offers the changes came into effect. All meaningful steps to be inclusive
an accident reimbursement platforms have a clause in their of women. Orcas was unable to
system that ensures that workers terms and conditions limiting or score the point since there was
are compensated for any road excluding liability on the part of no evidence presented of steps
accidents and associated the platform, and thus none were taken for inclusivity, in addition to
recovery costs. FilKhedma, the able to score the second point for lack of an appeals process.
home-services platform, has fair contract terms (point 3.2).
a detailed safety manual and
offers training on such issues to
its workers. Orcas, the tutoring
� Fair Representation:
platform, ensures that workers’
� Fair Management: Workers’ collective action
Three platforms, FilKhedma, bodies are assessed in the light
incomes are secured in case of
Mrsool, and Talabat, presented of the wider Egyptian context.
any cancellations, which is the
evidence that they provide due One platform out of seven was
main risk associated with the job.
process for decisions affecting awarded the point. Mrsool
Uber has policies and procedures
their workers, including evidence was the only platform that
in place to protect drivers,
of an avenue for workers to provided evidence that points
including an insurance policy.
meaningfully appeal disciplinary to meaningful collective worker
action. For the remaining voice mechanisms, in the form
four platforms, the appeals of regular forums and meetings
� Fair Contracts: process was inadequate, or where workers can organise
Not all platforms have clear and workers were disadvantaged and present a collective voice.
accessible terms and conditions, for voicing concerns, and thus Additionally, the same platform
and only three platforms were they were unable to score the publicly declared that they
awarded the first point for fair first point. In consultation with support government led efforts to
contracts (FilKhedma, Orcas the Fairwork Egypt team, two establish a courier’s trade union
and Swvl). For the remaining platforms (FilKhedma and Orcas) and that they would engage in
four platforms that did not score have implemented an anti- negotiations with it.
this point, the main reason discrimination policy. However,
was that workers were not only FilKhedma was able to score
4 | Fair work Eg ypt Ratings 2021 Fairwork Egypt 2021 Scores Score (out of 10)
Towards Decent Work in a Highly Informal Economy | 5
Editorial:
Global Platforms
and Local Start-ups
in a Highly Informal
Economy
The launch of Uber Egypt in 2014, followed shortly by a local
competitor Careem, marked the introduction of location-based
digital labour platforms to the Arab world’s largest country by
population and third largest economy. This came at a time when
socio-economic and political grievances remained high in the
aftermath of the 2011 uprisings.
Egypt’s economy has been penetration reached 95 percent in With the exception of Uber and a few
characterised by persistent June 2021,11 with mobile internet other smaller scale regional players,
unemployment, especially among subscribers reaching 55 percent of the platform economy businesses in
young people and the educated, mobile subscriptions.12 Egypt are nascent and homegrown.
estimated in 2019 at 26.54 percent,5 One estimate places gig economy
and 22.14 percent,6 respectively. Against this backdrop, Egypt’s local workers (outside Uber) to represent
This has come in the context of a start-up scene has boomed and 10 percent of the 100,000 gig workers
youth bulge, where 60 percent of the diversified to include new digital in 2019.17 Local entrepreneurs in the
population is under 30 years old.7 In labour platforms in different sectors platform economy are harnessing
addition, Egypt has continued to have a such as transportation, education, opportunities and identifying market
sizeable informal economy, estimated domestic services and courier/delivery needs while overcoming hurdles and
to be over 50 percent of GDP in services. These platforms have offered navigating cumbersome and outdated
2019,8 as well as high rates of female new work opportunities that tend to legislation. This applies to four of
unemployment, reaching 21.3 percent be seen as a better (if not the only) the seven platforms we cover in this
in 2019.9 opportunity for the masses of educated report, working in the areas of tutoring,
and unemployed youth.13 In the case home services, bus hailing, and
The 2011 uprisings were coupled with of Uber, it was estimated in 2019 courier-delivery services. The other
a marked increase and accelerated that there were 90,000 active drivers three (international) platforms work in
pace of digitization and connectivity. operating in about half of Egypt’s 27 the areas of ride hailing and courier-
Over the past decade internet governorates,14 reaching a figure of delivery services.
penetration has more than doubled, 200,000 in 2020.15 These platforms
from 21.6 percent in 2010 to 57.3 have also opened some opportunities While Egypt’s budding platform
percent in 2019/2020.10 Mobile phone for women’s work.16 economy offers new opportunities for
6 | Fair work Eg ypt Ratings 2021
much needed work, documentation Indeed, we have witnessed genuine
and fair standards for work conditions interest from some local platforms to
are still modest and only in their engage with the Fairwork principles
preliminary stages of development. and to try to work towards them. We
While a lack of standards is reflective have also—understandably, perhaps—
of the informal sector as a whole, the faced resentment and concern from
increasing digitization and impact of others. This process of engaging
the pandemic on the platform economy with platforms has highlighted many
make this an opportune moment for of the context-specific obstacles
the Fairwork Project and the Egypt but also opportunities that are
team to engage with stakeholders— presented to workers, platforms
including workers, platforms and and other stakeholders in Egypt’s
regulators—to help set fair, inclusive platform economy at large. We hope
and dignified standards for work in that the findings in this report will
this growing sector and and encourage help all the relevant stakeholders
digital platforms to act as model work collaboratively to ensure fairer
businesses for other informal and standards, inclusion and sustainability
formal SMEs alike. in Egypt’s platform economy.
Fairwork Egypt team
Nagla Rizk, Nagham ElHoussamy, Nadine Weheba,
Khadiga Hassan, Haya El Zayat, Adel Osama
Towards Decent Work in a Highly Informal Economy y | 7
Contents
05 Editorial:
Global Platforms and Local Start-ups
in a Highly Informal Economy
08 The Fairwork Framework
10 Background:
Overview of the Egyptian Gig Economy
12 The Legal and Policy Context
17 Fairwork Scores
Pay
Conditions
Contracts
Management
Representation
18 Platform in Focus:
FilKhedma
20 Platform in Focus:
Mrsool
22 Workers’ Stories
23 Theme in Focus:
Platform work in a highly
informal economy
25 Impact and Next Steps
29 Appendix:
Fairwork Scoring System
34 Credits and Funding
36 Endnotes
8 | Fair work Eg ypt Ratings 2021
01 The five
principles
Fair Pay
Workers, irrespective of their
employment classification, should
earn a decent income in their home
jurisdiction after taking account of
work-related costs. We assess earnings
according to the mandated minimum
wage in the home jurisdiction, as well as
the current living wage.
Fair Conditions
Platforms should have policies in place
to protect workers from foundational
risks arising from the processes of work,
and should take proactive measures
The
to protect and promote the health and
safety of workers.
Fair Contracts
Fairwork
Terms and conditions should
be accessible, readable and
comprehensible. The party contracting
Framework
with the worker must be subject to
local law and must be identified in the
contract. Regardless of the workers’
employment status, the contract is free
of clauses which unreasonably exclude
liability on the part of the platform.
Fairwork evaluates the working
conditions of digital platforms and Fair Management
ranks them on how well they do. There should be a documented process
through which workers can be heard,
Ultimately, our goal is to show that can appeal decisions affecting them,
and be informed of the reasons behind
better, and fairer, jobs are possible those decisions. There must be a
clear channel of communication to
in the platform economy. workers involving the ability to appeal
management decisions or deactivation.
The use of algorithms is transparent
To do this, we use five principles that digital platforms should and results in equitable outcomes for
comply with in order to be considered to be offering ‘fair work’. workers. There should be an identifiable
We evaluate platforms against these principles to show not only and documented policy that ensures
what the platform economy is, but also what it can be. equity in the way workers are managed
on a platform (for example, in the hiring,
The five Fairwork principles were developed at a number of multi-
disciplining, or firing of workers).
stakeholder workshops at the International Labour Organisation.
To ensure that these global principles were applicable in the
Egyptian context, we then revised and fine-tuned them in Fair Representation
consultation with platforms, regulators, academics, and other
Platforms should provide a documented
stakeholders in Cairo.
process through which worker voice
Further details on the thresholds for each principle, and can be expressed. Irrespective of their
the criteria used to assess the collected evidence to score employment classification, workers
platforms can be found in the Appendix. should have the right to organise in
collective bodies, and platforms should
be prepared to cooperate and negotiate
with them.Towards Decent Work in a Highly Informal Economy | 9
02 Methodology
overview 03 How we
score
Each of the five Fairwork principles is
Scoring platforms according to the through desk research and worker
Fairwork principles relies on a range interviews. broken down into two points: a basic
of different data sources collected by point and a more advanced point that
the in-country research teams. These Worker Interviews can only be awarded if the basic point
data include desk research, evidence has been fulfilled. Every platform
The third method is interviewing
submitted by the platforms and semi- receives a score out of 10. Platforms
platform workers directly. A sample
structured interviews with both workers are only given a point when they
of 5-10 workers are interviewed for
and management from each platform. can satisfactorily demonstrate their
each platform. These interviews do not
implementation of the principles. Failing
aim to build a representative sample.
to achieve a point does not necessarily
They instead seek to understand the
mean that a platform does not comply
Desk Research processes of work and the ways it
with the principle in question. It
is carried out and managed. These
The process starts with desk research to simply means that we are not – for
interviews enable the Fairwork
ascertain which platforms are currently whatever reason – able to evidence its
researchers to see copies of the
operating in the country of study. From compliance.
contracts issued to workers, and learn
this list the largest and most influential about platform policies that pertain to The scoring involves a series of stages.
platforms are selected to be part of workers. The interviews also allow the First, the in-country team collates
the ranking process. If possible, more team to confirm or refute that policies the evidence and assigns preliminary
than one platform from each sector or practices are really in place on the scores. The collated evidence is
(ie. e-hailing or food delivery) are platform. then sent to external reviewers for
included to allow for comparisons within
All interviews were conducted in independent scoring. These reviewers
each sector. The platforms included
Cairo. Workers are approached using a are both members of the Fairwork
in the ranking process are both large
range of different channels, including teams in other countries, as well as
international ones as well as national/
approaching them by ordering a service members of the central Fairwork team.
regional ones. Desk research also flags
on the platform on which they operate, Once the external reviewers have
up any public information that could
and subsequently requesting an assigned their scoring, all reviewers
be used to score particular platforms
interview. Snowball recruitment from meet to discuss the scores and decide
(for instance the provision of particular
prior interviews was also used. Due to final scoring. These scores, as well as
services to workers, or ongoing
the lockdown restrictions arising from the justification for them being awarded
disputes).
the COVID-19 pandemic, all of the or not, are then passed to the platforms
The desk research is also used to interviews were conducted over the for review. Platforms are then given the
identify points of contact or ways telephone. opportunity to submit further evidence
to access workers. Once the list of to earn points that they were initially not
platforms has been finalized, each The interviews were semi-structured awarded. These scores then form the
platform is contacted to alert them and made use of a series of questions final annual scoring that is published in
about their inclusion in the annual relating to the 10 Fairwork (sub) the annual country Fairwork reports.
ranking study and to provide them principles. In order to qualify for the
with information about the process. interviews, workers had to be over the Further details on the Fairwork
All platforms are asked to assist with age of 18 and to have worked with the Scoring System are in the Appendix.
evidence collection as well as with platform for more than two months.
contacting workers for interviews. Interviews were conducted in Arabic,
and translated by the Fairwork Egypt
Platform Interviews team into English.
The second method involves
approaching platforms for evidence.
Platform managers are invited Putting It All
to participate in semi-structured Together
interviews as well as to submit evidence
for each of the Fairwork principles. This This threefold approach provides a
provides insights into the operation way to cross-check the claims made
and business model of the platform, by platforms, while also providing the
while also opening up a dialogue opportunity to collect both positive
through which the platform could agree and negative evidence from multiple
to implement changes based on the sources. Final scores are collectively
principles. In cases where platform decided by the Fairwork team based on
managers do not agree to interviews, we all three forms of evidence. Points are
limit our scoring to evidence obtained only awarded if clear evidence exists on
each threshold.10 | Fair work Eg ypt Ratings 2021
Background:
Overview of the
Egyptian Gig Economy
Egypt has the largest
population in North Africa,
recorded at 101.5 million
in January 2021.18 Of this
population, 29.3 million,
around 29 percent, make
up the labour market.
Sixty percent of the general
population are under 30
years old,19 with 27 percent
of these not being in
education, employment, or
training.20
For decades, the Egyptian economy significantly high for women, the medium enterprises (SMEs) in Egypt
has been characterized by heavy educated, and the youth. belong to the informal sector, with
dependence on external sources “difficulty in obtaining the necessary
for finance, primarily from oil and For years, there have been concerns licences [and] high tax rates” stated
gas, Suez Canal receipts, tourism, regarding the growing informal as the main reason start-ups resort
and remittances of workers in the economy in Egypt, sometimes referred to informal market transactions.28
Gulf.21 These last three sources alone to as the ‘shadow economy’.25 Recent Evading rigid policies and bureaucratic
reached 14.5 percent of GDP in 2020.22 calculations put the informal sector procedures also allows SMEs to
Limited economic diversification at over 50 percent of GDP,26 and over better absorb market shocks and
has restricted the growth of job 60 percent of the total employed more rapidly recover from crises.29 In
opportunities, creating unemployment population.27 This prevalence of fact, according to a 2016 World Bank
that is both structural and sticky.23 informality in Egypt is partially enterprise survey, 45.8 percent of
While the unemployment rate as linked to the country’s rigid business formal enterprises in Egypt reported
officially announced in 2021 stood at environment, bureaucracy and resorting to Informal practices in order
7.3 percent of the total labour force,24 structural obstacles which inhibit to reduce costs, increase dynamism
the rate of unemployment remains start-ups and new business ventures. and flexibility, and more effectively
Roughly 90 percent of small andTowards Decent Work in a Highly Informal Economy | 11
compete with growing informal plus 3.3 children, with 1.5 people Nevertheless, and despite a growing
enterprise competition.30 working, is EGP 3,500 (USD 222.81) number of new platforms, the platform
per month. 35 economy still represents a small niche
A high rate of informality across sectors within Egypt’s large informal economy.
in Egypt means that irregular or gig Since the economic crisis in the wake It is estimated to include anywhere
workers constitute a significant share of the 2011 uprisings and subsequent from 100,000 to 200,000 workers,39
of Egypt’s labour force. Egypt’s informal unrest leading up to the 2016 floatation about 90 percent of whom are Uber
sector has been known for its agility of the Egyptian Pound, Egyptian skilled drivers.40
compared to its formal counterpart workers have turned to freelance
and its ability to absorb market shocks. work as a means to supplement Swvl began operations in Egypt in
Nevertheless, the COVID-19 pandemic their income. The ongoing digital 2017. Originally based in Egypt,
has had debilitating impacts on both transformation in Egypt, cemented in Swvl is headquartered in the United
sectors, with the informal sector the ‘Digital Egypt’ strategy adopted by Arab Emirates (UAE) and operates in
bearing the brunt of the short-term the Ministry of Communications and Egypt, Kenya, Pakistan, Jordan, and
consequences.31 Reduced labour Information Technology,36 has led to a the countries of the Gulf Cooperation
demand in both the formal and informal growing demand for online freelance Council (GCC). Swvl offers users a
sectors has come as a result of global work in general, and ‘gig’ work in private, technology-enabled mass
industry shocks, with massive layoffs in particular, as a flexible alternative to transportation system, as well as other
both formal and informal employment. traditional work. Following the rise in organisational transportation solutions
Uber Egypt alone dismissed 40 percent internet penetration rate from only such as school and university transport,
of its staff in May 2020.32 30 percent in 2010 to 54 percent in and business transport for company
2020,37 gig work has offered increased employees.41 Swvl has become the
In June 2021, the National Wage opportunities to find work easily, region’s first ‘unicorn’, listed on Nasdaq
Council (NWC) announced a rise in the especially for workers in the informal in the summer of 2021 with a valuation
monthly minimum wage for private- economy, women and unemployed of USD1.5 billion.42
sector employees from EGP 2,000 educated youth.
(USD 127) to EGP 2,400 (USD 152), Of the seven platforms covered in this
effective from January 2022.33 This Ride-hailing services were the first type study, three are delivery-related, two
stipulation applies to private sector of gig work to break into the Egyptian provide ride-hailing, one is a tutoring
employees only, and hence leaves out market, with the launch of Uber in platform, and one offers an online
the informal workers who constitute 2014. Since then, there has been an marketplace for home maintenance
more than 60 percent of the labour expansion in platform services beyond and improvement services. Four of the
force, out of whom 75 percent earn ride-hailing, particularly in the delivery platforms are homegrown by Egyptian
less than the minimum wage.34 The sector. The COVID-19 pandemic has entrepreneurs, and (apart from Swvl),
living wage used in this report for a further catalysed this trend, leading represent small players in their
typical family consisting of two parents to a 230 percent surge in demand respective markets.
for delivery services alone in Egypt.3812 | Fair work Eg ypt Ratings 2021
The Legal and
Policy Context:
Egypt’s platform economy falls into an already complex legal
environment, with a plethora of related legislations including
those governing labour relations, workers’ organisation and data
protection. The challenge introduced by the platform economy
is how to integrate a new business model where economic
relationships overlap, into a pre-existing legislative infrastructure
which typically governs labour relations in a binary form of
‘employee and employer’.43 These challenges are therefore multi-
layered, with the existing challenges to conventional work topped
by the emerging challenges of the gig economy’s new business
model.
the law was drafted, and the sector platform employees to pay social
Regulation of the continues to be dominated by large security insurance,49 however it
Platform Economy players such as Uber and its then doesn’t clarify the status of workers
regional competitor Careem, later as ‘employees’ versus ‘independent
In its first attempt to regulate gig bought by Uber. The terms set by contractors’. Indeed, the majority of
economy platforms, Egypt introduced the law disadvantaged both workers gig workers in Egypt are classified
‘The Ride Hailing Apps Act’ in response and the smaller start-ups that were as independent contractors rather
to demonstrations by taxi drivers 2019 attempting to enter the scene and than employees. This leaves other
(resolution 2180/ 2019 to Law No. 87 compete with the larger established employment issues, such as working
of 2018).44 The act regulates licensing players.46 As Mostafa Kandil, SWVL’s hours and minimum wages, equally
fees to be paid by platforms and drivers founder, explained at the time, the unaddressed by the legislation.50 This
as well as issues pertaining to data price sensitivity of the ride hailing is one reason why gig workers are
protection. It requires platforms to market in Egypt and the fact that often mislabelled and lumped within
pay up to USD1.71 million to obtain small start-ups could not afford the statistics on informal workers.
operating licences and requires drivers hefty licensing fees meant that small
who work via platforms to pay an companies had to increase their fees.47 Despite the fact that Egypt’s
annual licence of EGP 2,000 (USD He recommended that further vehicular location-based platform economy is
127) in addition to paying a 25 percent licensing categories be introduced, dominated by multinational ride hailing
premium to the taxes paid by taxi and that a tier-based licence model be companies, there is a budding local
drivers.45 adopted within a more inclusive legal scene of start-ups in other sectors,
framework that takes company size including clean energy, healthtech,
Ride hailing represented the vast into consideration.48 education and fintech.51 As such, future
majority of platform economy legislation should be tailored to be
businesses operating at the time The 2019 ride-hailing law requires more inclusive of smaller, homegrownTowards Decent Work in a Highly Informal Economy | 13
businesses, and—equally important— Egyptian local authorities. Eventually, stipulates that “personal data may not
more inclusive of the workers they a compromise was reached whereby be collected, processed, disclosed, or
engage with. Legislation should also ride hailing platforms were to provide revealed by any means except with the
be broad enough to include platform the government with customer data explicit consent of the Data Subject,
enterprises engaged in activities when requested, and the law dictates or where otherwise permitted by
beyond ride hailing. that all relevant data must be kept for law”.53 It is a novel law, introducing the
a duration of six months and provided concept of ethical data management
Personal Data upon request to the Ministry of regulation in the Egyptian economy
Transport.52 for all stakeholders. Many businesses,
Protection in Egypt’s especially the growing scene of local
Platform Economy The second attempt at regulating data
management, and which is relevant
technology start-ups, are still working
towards adopting and implementing
The protection of riders’ data was a to the platform economy, comes in ethical data management, and are
point of contention between Uber the 2020 Personal Data Protection bound within nascent regulations on
and the Egyptian government in Law, which carries many elements the matter in Egypt.
drafting the ride hailing act, with of the European Union’s General
Uber refusing to share user data and Data Protection Regulation (GDPR).
access to its data servers with the The Personal Data Protection Law14 | Fair work Eg ypt Ratings 2021
writing, an employee is allowed to given the ambiguity around some
Persisting Challenges present (before the court) all probative labour regulations. This, coupled with
in Labour Law evidence (such as a pay slip or even stagnant wages in the public sector,
testimony of a coworker) to prove the has contributed to the growth of the
During the Nasserist era in the 1960s, employment relationship”.61 The law informal economy beyond the bounds
labour regulations in Egypt were part also governs labour provisions such as of labour law. Indeed, the labour
of the ‘social contract’ that guaranteed working hours, annual leave, sick leave, law applies only to private sector
state employment to all “secondary, maternity leave, and a minimum seven firms, and not to “public servants of
technical institutes and university percent annual wage increase. It also state agencies” or to “self-employed
graduates to encourage education outlines due process for the dismissal workers”, which is the category that
and to provide a safety net”.54 During or termination of employment, such platform workers fall into.71 Platform
Sadat’s rule (1970–1981), two labour as notice periods, severance pay and work thus falls outside the reach of the
laws were passed, governing civil packages.62 Fired employees have the labour law.
servants and public sector employees right to appeal.63
(Laws No. 47 and 48 of 1978).55 In 2020, a number of Uber drivers in
These regulations resulted in an Articles 208, 211, 212, and 214 of the Egypt were arbitrarily suspended by
overstaffed, inefficient, and wage- Egyptian labour law also require the Uber, and attempted (unsuccessfully)
stagnant public sector, since it was employer to provide all the necessary to bring a lawsuit against the company.
deemed the preferred employer due means for protection of employees At the time, Yasser Saad, a lawyer at
to the social and financial stability it from occupational hazards and to the Legal Collective to Promote Labour
offered. Gradually, some public sector ensure that workplace safety standards Awareness, commented that according
employees started seeking additional are maintained.64 Furthermore, the to Egyptian labour law (as explained
income via informal work, and more law stipulates that any employee above), a work relationship exists
recently, ride-hailing gigs.56 covered by social insurance shall be when a task is performed by a worker
entitled to a “workplace injury benefit”, for an institution or a company, even
With the shift towards a free market although it does not specify the amount in the absence of a written contract.
economy in the 1990s, Law No. 12 of contribution to be made by the And thus, if this work relationship is
of 2003 was adopted to encourage employer.65 Additionally, employees terminated before the task is complete,
private sector employment.57 Referred whose injury results in temporary compensation is still due. Although no
to as the “Egyptian Labour law”, it inability to work are entitled to 100 case was brought forward, Saad offered
introduces more flexibility for private percent of their wage amount until they his expert opinion on the matter saying,
firms with the objective of relieving are able to return to work.66 “this means that gig work platforms,
the bottleneck for employers and even if no employment contract exists,
replacing the previously stringent According to the most recent statistics, are in a professional relationship
regulations, particularly with regards to 94.1 percent of all Egyptian public with drivers, which cannot be legally
termination. Employers had previously sector employees have a work contract, terminated without the involvement
been prohibited from terminating a compared to only 30.9 percent of of the Labour Bureau and the Labour
worker’s contract after a probation private sector workers in formally Court”.72 In practice, however, this is
period and were required to change registered enterprises.67 Additionally, not observed. Gig workers in Egypt, like
the status of a temporary contract while public sector employees earn elsewhere, face arbitrary suspension
to a permanent one at the time of an average salary of EGP 1278 (USD given their lack of official employment
renewal.58 The Law No. 12 of 2003 81) per week, formal private sector status. For example, Uber Egypt was
then introduced more flexibility for employees earn an average of EGP 877 able to carry out layoffs during the
employers in terms of hiring and firing (USD 56) per week.68 Social insurance COVID-19 pandemic without prior
by allowing private sector employers to coverage in the formal private sector informed consent. As Karam Saber,
“renew a temporary contract without also remains low at 34 percent, while director of the Land Center for Human
transforming it automatically into a only 47 percent of formal private sector Rights, has explained: “the relationship
permanent employment status” as had employees enjoy paid vacation.69 Given between Uber and similar ridesharing
been stated in the previous law.59 sub-par working conditions and little companies and their drivers is defined
guarantees of basic ‘formal’ rights by forced acquiescence. The company
Article 32 of the law obligates the such as healthcare and pensions, the states its conditions and the driver’s
existence of a contract, and that three workforce in Egypt feels little loyalty to only option is to tap accept on the
copies should be issued for each of the traditional ‘formal’ work. app”.73
following: the employer, the employee,
and the social insurance authority.60 Despite the introduction of this unified
However, the law also mandates that labour law, formal labour market
employment law is still applicable even rigidity is still present.70 Informal
if employees have no contract: “where practices and loopholes are common
no contract of employment exists in even in formal employment settings,Towards Decent Work in a Highly Informal Economy | 15 Fairwork Egypt 2021 Scores Score (out of 10) The breakdown of scores for individual platforms can be seen on our website: www.fair.work/ratings
16 | Fair work Eg ypt Ratings 2021
Explaining the scores
Fair Pay Fair Conditions Fair Contracts
↘ Three of the platforms, FilKhedma, ↘ Gig workers face numerous risks in ↘ Not all platforms have clear and
Orcas, and Swvl, evidenced that the course of their work. These range accessible terms and conditions;
workers’ gross pay is at or above the from road safety issues to crime and only three platforms were awarded
minimum wage, which for 2021 was violence. Five of the platforms were the point for fair contracts. These are
EGP 2,000 per month (USD 127.31), able to evidence that they are aware FilKhedma, Orcas, and Swvl.
or EGP 333 per week (USD 21.2) for of these risks, and that they take
a six-day work week. When assessing some action to protect their workers. ↘ The remaining four platforms did
minimum wage, the scores took into The platforms are: Mongez, Mrsool, not score this point, mainly because
account not only the amount paid by FilKhedma, Oras, and Uber. workers were not notified of proposed
the platform to the worker for hours changes in a reasonable timeframe
worked, but also the cost of providing ↘ Mongez and Mrsool, both courier- before the changes came into effect.
task-specific equipment and pay work- delivery platforms, have adequate
related costs out of pocket. The scores policies in place to deal with malicious ↘ All platforms have a clause in
also factored in waiting times between orders. Mongez provides personal their terms and conditions limiting or
jobs. protective equipment (PPE) to its excluding liability on the part of the
workers, albeit at a reduced cost platform, and thus none was able to
↘ Adding in these additional costs— to be deducted monthly from their score the point for fair contract terms
such as unpaid waiting times, travel income, while Mrsool offers an accident (point 3.2).
costs, vehicle maintenance, gas, and reimbursement system that ensures
traffic fines incurred—meant that the that workers are compensated for any
minimum wage point could not be road accidents and associated recovery
awarded to the other four platforms. costs.
↘ When extending this net calculation ↘ FilKhedma, the home-services
to consider living wage (currently platform, has a detailed safety
assessed as EGP 3500 per month (USD manual and offers training on such
222.81), or EGP 583 per week (USD issues to workers. Orcas, the tutoring
37.11) for 2021), only two platforms platform, ensures that workers’
(Orcas and Swvl) can evidence this incomes are secured in case of any
principle of fair pay. cancellations, since payment in the
case of cancellations is one of the main
risks associated with the job. Uber has
policies and procedures in place to
protect drivers, including an insurance
policy.
↘ None of the platforms featured in
this study provide a safety net, which
is one of the greatest risks gig workers
face. However, one platform provided
evidence of practices in place to
ensure that in the event of inability to
work, income is not always negatively
affected (see Platform in Focus:
Mrsool).Towards Decent Work in a Highly Informal Economy | 17
Fair Management Fair Representation
↘ Three platforms, FilKhedma, Mrsool, ↘ By law, the Egyptian Trade Union
and Talabat, provided evidence that Federation is the sole trade union
they provide due process for decisions federation in Egypt overseeing the
affecting their workers, including formation and formalization of workers
evidence of an avenue for workers to associations and trade unions.74 It
meaningfully appeal disciplinary action. represents 2.5 million workers in
23 unions representing different
↘ For the remaining four platforms, industries.75 While Law no. 213/2017
either the appeals process was allows for the formation of workers’
inadequate, or workers are unions from different industries and
disadvantaged for voicing concerns. a number of freedoms of association
Hence, they were unable to score the rights, these are yet to fully materialize
point. in practice.76
↘ In consultation with the Fairwork ↘ Given this context, only one
Egypt team, two platforms have platform, Mrsool, was able to score
implemented an anti-discrimination the points for fair representation. It
policy (FilKhedma and Orcas). was the only platform that provided
However, only FilKhedma was able evidence of meaningful collective
to score the point for ensuring equity worker voice mechanisms, in the form
in the management process. This is of regular forums and meetings where
because the platform takes meaningful workers can organize and present a
steps to be inclusive of women (See collective voice. Additionally, Mrsool
Platform in Focus: FilKhedma). Orcas publicly declared that they support
was unable to score the point since the establishment of a courier’s trade
there was no evidence presented of union and that they would engage in
steps taken for inclusivity, in addition to negotiations with it.
lack of an appeals process.18 | Fair work Eg ypt Ratings 2021
Platform in Focus:
FilKhedma
Total
Principle 1: Pays at least the local Pays at least a local living
minimum wage after costs wage after costs
Fair Pay
Principle 2:
Mitigates task-specific risks Provides a safety net
Fair Conditions
Provides clear and
Principle 3: Does not impose unfair
transparent terms and
contract terms
Fair Contracts conditions
Principle 4: Fair Provides due process for Provides equity in the
decisions affecting workers management process
Management
Assures freedom of
Principle 5: Fair association and the Supports democratic
expression of collective governance
Representation worker voice
FilKhedma overall score 05
FilKhedma is a homegrown Egyptian-based startup, founded
in September 2014, that provides a platform offering a variety
of home services.79 The original idea stemmed from attempting
to organize the home services market in Egypt, and to “end the
‘phone a friend’ system” as FilKhedma founder Omar Ramadan
calls it.80
The market for home maintenance FilKhedma provides an array of and development” company for
services in Egypt is challenging. maintenance services such as fixes, individuals, as founder Omar Ramadan
Workers are mostly informal, not carpentry and plumbing, in addition told the Fairwork Egypt team in an
always competent, and usually reached to services like PCR testing, regular interview. Their business model is
through word of mouth—hence the cleaning, pest control, and painting.77 centred around being a marketplace
‘phone a friend’ expression. Prices They have an application, a website that connects these service providers
are also often vague and subject to and a hotline where customers can (gig workers) to customers, in return for
negotiation and bargaining between seek service providers based on their a fee for that match up (20-30 percent
homeowner and the service provider. needs, with the price and time set upon of the service fee).
Given this context, FilKhedma was booking.78 Similarly to other platforms
founded to fill a much-needed gap in in the gig economy, FilKhedma does FilKhedma has a set price per hour
the Egyptian market. not consider itself an employer. Instead for each service that is offered on
they consider themselves a “training their website, which is above theTowards Decent Work in a Highly Informal Economy | 19
Egyptian local minimum wage rate. workers. In most of our management services, which tend to attract women
According to an eight hour work day, interviews, providing monetary workers. Again, in consultation with
the hourly minimum wage rate in Egypt compensation for a gig worker while the Fairwork Egypt team, FilKhedma is
is EGP 12.5, or USD 0.8. FilKhedma they are unable to work was viewed implementing an anti-discrimination
maintenance workers earn an average as unusual, given that the platform policy. The policy will ascertain
of EGP 169 per hour (USD 10.8) and only views itself as a matchmaker or a FilKhedma’s commitment to equality,
cleaners earn around EGP 61 (USD marketer of worker services. inclusion, and anti-discimination,
3.88) per hour (both after costs). committing to not discriminating
FilKhedma was therefore able to score Filkhedma was the only platform in based on race, religion, national, orgin,
point 1.1 for Fair Pay, but not point this study to score both points on disability, sex, martial status, age or
1.2, as workers do not earn above principle 4, for Fair Management. any other charactersitic protected
the local living wage after costs. A Through the platform interface, under the applicable law.
common issue with platforms such workers can communicate with a
as FilKhedma is that workers may human representative, or alternately FilKhedma is one of the few platforms
experience long drought periods where call the hotline for human support. that has a formal contractual
they have no requests or orders, since Moreover, and as stipulated in their relationship with its gig workers,
it is a more specific service (than ride signed contract, FilKhedma workers defined by more than the workers’
hailing, for example), and hence there can visit the company’s headquarters simple acceptance of terms and
is uncompensated idle time. to communicate, share their concerns, conditions on the application. The
and appeal low rating or deactivation. contract provides a detailed description
In recognition of the various job Interviewed workers mentioned that of the obligations of the workers,
hazards that come along with the in-app chat service response rate and the compensation scheme, and
maintenance work, FilKhedma has an is very fast, within one or two minutes, is available to workers in a tangible
extensive health and safety guidelines and that they also have the option of copy. However, like all other platforms
training document that spells out calling the hotline. Workers also have featured in the report, the contract
the guidelines that each worker the opportunity to meet with someone has a clause limiting liability for
should follow based on the service from management once a week to the platform, and thus falls short of
they are providing. This is used in voice their concerns, as stated in the ensuring that it does not impose unfair
the onboarding training for any new worker interviews. conditions.
service providers. None of the workers
interviewed cited on-the-job hazards Maintenance work in Egypt is typically FilKhedma did not score any points for
as a risk they face, indicating that undertaken by men. FilKhedma have principle 5, as there was insufficient
the training they receive is sufficient shown an awareness of the gender evidence of freedom of association and
in preventing any accidents. At the bias against women when it comes the expression of collective workers’
onset of the COVID-19 pandemic, to maintenance work, and have taken voice. Neither was there the evidence
FilKhedma provided workers with measures to ensure the representation of democratic governance needed to
masks, sanitizers and overshoes—proof for women by offering cleaning satisfy the requirements for point 5.2.
of policies in place to protect workers
from task-specific risks. Workers
interviewed mentioned that FilKhedma
provides them with “masks, sanitizers,
and overshoes.”
As for the data management policy,
after discussions with the Fairwork
Egypt team, the company has agreed to “After discussions with the
implement a data management policy
that satisfies the requirements for point
Fairwork Egypt team, FilKhedma
2.1. FilKhedma’s data management
policy will follow the guidelines set
has agreed to implement a data
forth by the European Union’s General management policy that will follow
Data Protection Regulation (GDPR).
FilKhedma did not score point 2.2 as the guidelines set forth by the
there was no evidence of a safety net
for workers. It is important to note that
European Union’s General Data
no platform studied within this project
in Egypt scored point 2.2, mainly as
Protection Regulation (GDPR)”
a result of the employer–employee
relationships that platforms have with20 | Fair work Eg ypt Ratings 2021
Platform in Focus:
Mrsool
Total
Principle 1: Pays at least the local Pays at least a local living
minimum wage after costs wage after costs
Fair Pay
Principle 2:
Mitigates task-specific risks Provides a safety net
Fair Conditions
Provides clear and
Principle 3: Does not impose unfair
transparent terms and
contract terms
Fair Contracts conditions
Principle 4: Fair Provides due process for Provides equity in the
decisions affecting workers management process
Management
Assures freedom of
Principle 5: Fair association and the Supports democratic
expression of collective governance
Representation worker voice
Mrsool overall score 04
Mrsool is a Saudi Arabian platform that was established in 2015,
and launched in Egypt in mid-2019. It is an on demand delivery
service that allows its users to send a service provider on the
platform (the courier) to get any item they need from partner
stores and businesses on the app.
Mrsool changed the typical delivery described this as a “freelance model”. in Egypt. Egypt’s country manager
service model in the region that was stated that the virus has increased
usually focused only on food delivery As it stands today, Mrsool operates in demand for delivery service in Egypt
options. The company established three countries (Egypt, Bahrain and by 230 percent, and Mrsool wishes to
a more flexible model that connects Saudi Arabia), with over 10 million capitalise on that by expanding their
users to service providers (couriers) users and 800,000 couriers across registered couriers in Egypt to one
through the option of chat-based these countries. Egypt comprises million within the next five years.
ordering. Users then have a chance between 10-15 percent of that
to specify exactly what service they business volume, with 130,000 Mrsool allows its courier service
need, whilst also allowing couriers the couriers currently registered. There providers to set their own rate with an
option to set their own price based on has been a huge surge in demand average of 26 Egyptian Pounds (USD
the request. Mrsool’s country manager for delivery couriers since COVID-19 1.66) per order, and an average ofTowards Decent Work in a Highly Informal Economy | 21
10 orders per day. Even though most system in place for compensation discrimination policy or provisions for
interviewed workers had an income for inability to work, but added that advancing disadvantaged groups.
that rose above the minimum wage, this is partially due to an archaic
some of them had weekly incomes legal system which restricts setting This report highlights Mrsool positive
that fell below it. This is reflective certain policies, and that the company practice on principles 5.1 and 5.2
of the “freelance business model” nevertheless tries to take measures to in the context of Egypt. Through
mentioned by the country manager. help gig workers. For example, there worker and management interviews,
Workers have full freedom to bid their was one case in which a worker was Mrsool demonstrated that there are
own prices and work as many days, injured on the job and consequently mechanisms for the expression of
hours and orders as they want, and could not ride a motorcycle to deliver worker voice, including regular forums
without an income policy or wage floor orders anymore, so Mrsool reallocated and meetings, and demonstrated
some workers fall below the minimum him to another department within responsiveness to issues raised. An
wage. Hence Mrsool did not score point the company for the duration of his example of such practice is when a
1.1 or consequently 1.2. Whilst the injury to ensure his livelihood was not large number of Mrsool workers had
bidding system appears to give workers threatened. There is also evidence of a complaint about a three second
freedom of valuing their own services, them covering accident costs ranging “wait period” on the application which
most workers interviewed complained up to 20,000 EGP (USD 1275). resulted in some lost orders, the
of price gouging, resulting from some management responded and altered
workers accepting low bids for services Mrsool fell short on principle 3 as the application to remove this wait
on a bidding system with no wage floor. a whole. The platform was initially period. Mrsool also publicly declared
founded in Saudi Arabia, and even that they support the establishment of
Central to Mrsool’s values is ensuring though it operates fully in Egypt, the a courier’s trade union and that they
that their workers are protected platform’s terms of use state that it would engage in negotiations with
while working a relatively dangerous “complies with all applicable laws and such a union, thereby recognizing an
job. The country manager admits to regulations in the Kingdom of Saudi independent body of workers.81 Mrsool
knowing that working on the street Arabia”, and was therefore unable to management told the Fairwork Egypt
could be quite dangerous, and thus score point 3.1. The terms of use also team that they are currently working
the company has a thorough accident explicitly exclude liability from the towards this. Hence, Mrsool scored
reimbursement policy. The policy platform, and therefore fails to satisfy both points for principle 5, being the
guarantees workers full coverage of any point 3.2—a point that none of the only platform in this study to do so.
accident-related costs incurred while platforms scored, for the same reason.
on the job, thereby protecting their
workers from task-specific risks. A new Mrsool has a thorough, detailed
job risk surfaced during the pandemic, communication channel that
that is, working during and after curfew encompasses appeals, problem
hours, and dealing with potential police resolving and complaints from
harassment. Mrsool ensured that they its workers. The process allows
addressed this by providing all couriers management to track complaints
with an official paper to show police as they come, resolve them as soon
as possible and receive workers’
“Mrsool publicly
if stopped. The paper stated that they
were affiliated with Mrsool and were appeals against low scores. Workers declared that
working in delivery, which at the time are contacted multiple times with
was exempted from lockdown during warnings before potential deactivation. they support the
(Deactivation means workers cannot
curfew. Furthermore, Mrsool sent
workers constant reminders to keep take orders, but they are not banned establishment of
this document with them at all times from the app, which means that they
are still able to contact management.)
a courier’s trade
while working during the pandemic.
Additionally, Marsool’s terms and Moreover, workers have a dedicated union and that
conditions state clearly that the Facebook page for raising concerns
platform will protect their workers’ and contacting management. Mrsool they would engage
therefore was able to score point 4.1,
data. Thus, Mrsool was able to score
point 2.1. as there was evidence of effective in negotiations
As for point 2.2, there is no evidence of
communication channels that were
outlined in the terms of use. Even
with such a union,
a systematic approach to compensate though Mrsool’s verification process of thereby recognizing
for income loss due to inability to joining the platform did not include any
work, and therefore they did not discriminatory language or points, they an independent
score point 2.2. The country manager still did not score point 4.2 because
acknowledged that there is no specific they did not have an official anti- body of workers”22 | Fair work Eg ypt Ratings 2021
Workers’ Stories
Ahmed* is a 29-year-old, married man this type of gig work there is only an informal
with two children. Ahmed retired from his contract that lays out an agreement of the
formal job after an incident with Human worker receiving the vehicle.” He mentioned
Resources, and decided to try out gig work. that he prefers having a formal contract with
Ahmed* He was one of the first drivers to join Swvl, the platform, because without the contract
Swvl-Driver a transportation platform, that launched in the platform has “control over you”. Unlike
Egypt in 2017. Ahmed works for eight hours, most platform workers in Egypt who only
seven days a week, driving passengers on have experience with informal work and
the routes assigned by the platform. When who lack the basic knowledge of labour
we asked Ahmed if he had a contract with legislation, Ahmed was very aware that the
Swvl his response was “not at all”. According presence of a legal document or a contract
to him, an official contract is usually present will provide workers basic protection and
when third party contractors are involved rights.
(ex. hotels or airports). He also added, “with
Mona* is a 61-year-old single mother of a complaint is at great risk of deactivation.
five children. She joined Uber six years ago She shared with us an unfortunate incident,
as part-time work to support her family. In “Two people attacked me when I was in my
the six years since she has worked there, car and stole my bag, one of them placed
Mona* Mona explained that working conditions on a knife near my neck, I felt like I was about
Uber-Driver the platform have greatly deteriorated. She to die”. The platform did not offer any
said, “the platform wishes to satisfy the compensation for her lost items or support,
passenger only, if I raise a complaint against their only concern was if a passenger was
the passenger, they don’t do anything, but with her in the car. Mona also mentioned
if the passenger filed a complaint against that there are no clear terms and conditions
me, I get a deactivation warning from the available. She shared with us that many
platform”. She expressed her frustration fellow female drivers decided to quit
of not being able to appeal. For her, gig mainly because of the platform’s unfair
work would be more pleasant if platforms management. Although she is very tempted
value drivers the same way they value their to quit as well, Mona still works for the
passengers. platform because she desperately needs the
additional income from gig work to support
She said that the communications channel her family.
is not effective, and any driver who raises
*Names changed to protect worker identityYou can also read
