ECC 307/71

This case involved a request by a trade union to provide travel allowances to employees. The case had gone to arbitration. Under the law and employee handbook this allowance was reserved for employees but the board directors had a choice on their increases.

Background

A union committee asked the local committee for dispute settlement to order a company to pay travel allowances for its employees. The agreement between the two parties failed and the dispute was referred to the committee of arbitration.

The arbitration committee stated that the employees should be paid the travel allowance.

Decision

The company appealed the ruling before the court of cassation and stated in its grounds of appeal that the ruling had erred in the application of law and the employee handbook appendix reserved this allowance for the employees but made its increase an optional choice for the board of directors.

The court stated that this argument was valid because the company was not obliged to increase this allowance and the board of directors had the option to increase it in accordance with the appendix of Egypt Law No. 48/1978.

The court repealed the ruling.