Employment law

Employment Law in Algeria

• The Labor Law in Algeria is administered by the Ministry of Labor, Employment and Social Security.
• The Labor Law covers holidays, leave, hours of work, minimum wage, overtime, termination pay, and wage payments, but does not cover employee compensation or retirement plans, which are covered under social taxes.

Employees' Rights and Obligations

• Employees have the right to exercise union rights, collective bargaining, participation in the employing organization, social security and retirement, health, safety, and occupational medicine, recovery, and participation in the prevention and resolution of labor disputes, and strike action.
• Employees also have the right to actual occupation, respect for physical and moral integrity and dignity, protection against discrimination in employment, professional training and promotion in the workplace, regular payment of remuneration, social benefits, and all benefits arising specifically from the employment contract.

Working Hours and Overtime

• The working week typically runs from Sunday to Thursday, with a maximum of 40 hours per week and 8 hours per day (exclusive of a 1-hour break).
• Friday is a statutory day of rest each week.
• Women are not permitted to work between 9 pm and 5 am unless specific exceptions are granted by the Labour Inspectorate where the nature of the activity/job role requires.
• Overtime hours must not exceed 20% of the maximum working hours (i.e., 8 hours per week).
• Employees are entitled to overtime pay of at least 150% of the normal hourly wage if required to work additional hours.
• If circumstances require an employee to work on their weekly day off, they must be granted another day off (in lieu) and 150% of their wage for the overtime period.

Annual Leave

• Employees are entitled to a minimum of 30 calendar days' paid annual leave.
• Employees working in Southern provinces are granted an additional 10 calendar days' paid annual leave.
• Employees can also take a maximum of 30 calendar days' paid leave to perform Hajj, once in their employment.

Sick Leave

• Employees are entitled to 15 days' paid sick leave at half salary; and full salary from the 16th day of sickness onwards.
• Sick pay and the reimbursement of medical expenses are funded by the National Fund of Social Security, based on mandatory social contributions paid by the employed and the employee.

Family Rights

• A female employee is entitled to 14 weeks' fully paid maternity leave, including a compulsory period of leave before the expected date of birth and following delivery of not less than six weeks.
• Maternity pay is borne by the National Social Security Fund.
• Employees are entitled to three days' paid leave in the event of family events such as marriage, birth of a child, circumcision of a child, marriage of a descendant, death of an ascendant, descendant, or blood relative to the first degree, or death of the spouse.

Social Security

• Employers must register all employees with the Social Security Fund and make social security contributions on behalf of all employees.
• Employers must report any new employee to the relevant authority within 10 days of hiring.

Contributions

• Social security contributions are based on gross compensation paid, including fringe benefits and bonuses.
• Employer contributions are 25%, and employee contributions are 9%.
• Employers must make an additional 1% contribution for the funds for social action.

Health Care

• Health care covers both preventive and curative care required for maintaining and restoring a person's health.
• The National Social Security Fund refunds the cost of medical treatment, varying with the nature of the treatment, the status of the insured, and the care provider's capacity.

Sickness Benefits

• Sick pay offers benefits in kind and a daily cash benefit for employees.
• Benefits in kind include coverage of expenses such as medical expenses, surgery, pharmaceutical, hospital, etc.
• The daily indemnity cannot be less than eight times the net amount of the hourly minimum guaranteed salary (20,000 DZD) or greater than 1/30 of the monthly salary for the employee's position.

Work-Related Accidents

• All salaried persons are covered against accidents at work and accidents on the way to and from work.
• A victim of an accident at work is entitled to reimbursement of the costs for hospital care, physiotherapy, medical, surgical, dental, and pharmaceutical care, as well as orthopaedic equipment.

Family Benefits

• Family benefits comprise several allowances, of which ordinary family allowance is the most important.
• The amount of the family benefits depends on the family revenue.

Maternity Benefits

• Pregnant women are entitled to maternity leave during the prenatal and postnatal periods.
• Social security protection offers benefits in kind to mothers on maternity leave, including reimbursement of expenses linked to pregnancy and birth.