Algeria Labor Law and Employment Policy Overview

Employment Law Overview

• Key Legislation:
  • Labor Law No. 90-11 of 1990
  • Ordinance No. 94-09 of 1994 (Redundancy Law)
• Legal Characteristics:
  • Aims to protect employee rights and promote harmonious labor relations.
  • Regulates matters such as minimum wage, working hours, leave, severance pay, and social security.

Employment Contract Requirements

• Contract Types:
  • Fixed-term contracts
  • Indefinite-term contracts
• Contractual Provisions:
  • Must include clauses on job description, remuneration, working hours, leave, and severance pay.
• Language and Currency:
  • Contracts must be written in Arabic.
  • Currency is the Algerian Dinar (DZD).

Working Hours Regulations

• Standard Working Hours: 40 hours per week, 8 hours per day.
• Rest Days and Breaks: 2 weekly rest days (Friday and Saturday), 1-hour break after each daily work period.

Leave Policy

• Annual Leave: 30 days of paid annual leave per year.
• Public Holidays: 10 statutory public holidays.
• Special Leave:
  • Sick Leave: 15 days of paid sick leave, starting from the first day of illness.
  • Maternity Leave: 14 weeks of paid maternity leave.
  • Paternity Leave: 3 days of paid paternity leave.
  • Parental Leave: Up to 18 weeks of part-time paid parental leave.

Employee Termination and Contract Termination

• Notice Period:
  • 6 months (up to 12 months for highly skilled employees)
  • Additional 5 days for each year of service, up to a maximum of 30 days
• Severance Pay:
  • Employees with more than 2 years of service and not dismissed for misconduct are entitled to severance pay.
  • Severance pay amount depends on years of service.
• Unfair Dismissal Protection:
  • Employers must provide notice for dismissal, absence, and serious misconduct.
  • Employees have the right to appeal unfair dismissals.

Tax Laws

• Personal Income Tax:

  • Salary Range (DZD)	Tax Rate
    0 - 240,000	0%
    240,000 - 480,000	23%
    480,000 - 960,000	27%
    960,000 - 1,920,000	30%
    1,920,000 - 3,840,000	33%
    3,840,000 and above	35%

• Social Security Contributions: 26% social security contributions shared between employees and employers.

Health Insurance

• Insurance Policy:
  • Employees are required to participate in public health insurance provided by the National Social Security Fund.
• Coverage:
  • Basic medical services, hospitalization, and medication.

Compensation and Benefits

• Minimum Wage: DZD 20,000 per month.
• Salary Structure:
  • Base salary
  • Bonuses
  • Allowances

Work Permits and Visas

• Permit Requirement:
  • Foreign employees require work permits.
• Application Process:
  • Application made by the employer to the Ministry of Labor.

Confidentiality and Non-Compete Clauses

• Enforceability:
  • Confidentiality and non-compete clauses are enforceable in Algeria.
• Common Provisions:
  • Restrict employees from using or disclosing the employer's confidential information after leaving employment.
  • Restrict employees from working for competitors after leaving employment.

Training and Development

• Legal Requirements:
  • Employers must provide safety training and skills development training to employees.
• Government Support:
  • Government provides funding and incentives to support employee training.

Workplace Diversity and Inclusion

• Legal Requirements:
  • Discrimination based on race, gender, religion, or disability is prohibited.
• Enforcement Measures:
  • Employers must develop and implement anti-discrimination policies.

Remote Work Policy

• Legal Framework:
  • No specific legal framework for remote work in Algeria.
• Tax and Insurance Implications:
  • Tax and social security implications of remote work depend on specific circumstances.

Authoritative Website Addresses

• Algerian Ministry of Labor: https://www.mtess.gov.dz/