Egypt's parliament rejected on Wednesday the controversial Civil Servants Law after the majority of MPs voted against it - 332 out of 468.

The law, which was signed by Egypt's cabinet in November 2015, has met with widespread criticism by many state employees, labour unions and other labour rights activists, who say the legislation, would destroy the long held rights such as job security, and could also push many thousands of the six million government workers out of work.

However, the legislation which failed to garner majority on Wednesday, is likely to be returned by the floor to the parliamentary committee on labour issues for further review and modifications before returning to the general assembly again.

Earlier on Wednesday, the recently convened parliament, passed a lawbarring third-party challenges to state contracts after voting it down earlier this week, and sending it back to the committee on economic issues for review.

MP Medhat El-Sherif told Ahram Online the voting came after the minister of Legal and Parliamentary Affairs Magdy El-Agaty, clarified the importance of the law and why rejecting it would “negatively impact investment.”