Egypt

Impact date: 5 December 2025 This Decree regulates the protection and priority of employees’ wages and entitlements arising from the employment relationship. It defines wage and entitlements broadly to include leave payments, early retirement compensation, severance, amicable settlements, and any other compensation provided under the Labor Law, employment contracts, internal regulations, or final court judgments. These amounts enjoy a legal privilege over all the employer’s movable and immovable assets and are paid before judicial expenses, public treasury dues, and other privileged debts. In cases of dissolution, liquidation, bankruptcy, closure, or downsizing of an establishment, a judicial ruling or competent authority decision is required, and it must set a deadline that does not exceeds one year for the payment of employees’ dues. The decree also establishes monitoring and reporting obligations to ensure timely settlement and provides safeguards against any acts that prejudice employees’ rights.

Impact date: 5 December 2025 The Decree establishes a formal framework for the mutual settlement of individual labor disputes under the Labor Law. This Decree allows either employers or employees to request a mutual settlement within ten days of a dispute by submitting a request to the mutual settlement committee, which is to be established and composed of the employee or their representative, the employer, and the president of the competent Labor Directorate. The Committee is required to attempt an amicable settlement within 21 days from the date the request is submitted. If a settlement is reached, the agreement must be ratified by the labor court to become enforceable. In cases where settlement is not achieved, the dispute is referred to the labor court along with a detailed report from the Committee, and a hearing must be held within 20 days of the referral. Moreover, the Decree also establishes expedited procedures for dismissal disputes in accordance with the Labor Law. Labor courts are mandated to issue a ruling on dismissal cases within three months from the date of the first hearing. If the court, based on the submitted documents, rules in favor of the employee, it will order the employer to pay the employee’s salary from the date of dismissal, up to a maximum of six months. This ruling is final. Any salary amounts awarded under this provision will be deducted from any subsequent compensation awarded to the employee, if applicable.

Impact date: 5 December 2025 The Decree regulates the conduct of labor inspections at night and outside official working hours, expanding the enforcement powers of the Ministry of Labor. The Decree authorizes inspectors to enter workplaces freely between sunset and sunrise or beyond normal business hours, particularly in establishments operating night shifts, seasonal activities, or employing women or children, as well as workplaces presenting heightened health and safety risks. It also defines the circumstances warranting such inspections, including emergency safety situations and verification of compliance with rest periods and closing time requirements. The Decree defines night-time inspections as those conducted between sunset and sunrise and clarifies that out-of-hours inspections are those carried out beyond inspectors’ official working hours as determined by the competent authority. It further outlines the circumstances justifying such inspections, including emergency safety situations and verification of compliance with rest periods and closing time requirements. Employers must fully cooperate with inspectors and provide all requested documentation, while inspection authorities are required to maintain periodic statistical reporting to enhance oversight and transparency. Further, the Decree increases inspection exposure beyond standard business hours and reinforces continuous compliance obligations.

Impact date: 12 December 2025 whereas for employees working in industrial establishments, the impact date is 5 December 2025. The general rule is that employees are subject to the standard rest periods during the working day - that the employee must be granted one or more breaks for rest and meals totaling at least one hour and no employee may work more than five consecutive hours without a break. However, there are activities that are exempt from the standard rest hours if it requires continuous operation such as utilities (water, electricity, sanitation), transportation (rail, land, air, maritime), ports, hospitals, bakeries, pharmaceutical industries, pharmacies, certain digital platform services (e.g., delivery and ride-hailing), and other specified activities. In such cases, employers must provide compensatory rest periods, allow meal and drink during work, ensure that continuous work does not exceed six actual working hours (or five hours for drivers), as well as strenuous work in which rest periods are counted as actual working hours. Additionally, statutory provisions states strenuous work in which rest periods are counted as actual working hours (e.g., metal smelting, explosives manufacturing, glass melting, welding, lead-related industries, battery production, asphalt, tanning, exposure to toxic fumes, and construction in extreme weather).

Furthermore, the organization of working hours and rest periods establishes that the period between the start and end of the workday must not exceed ten hours, with rest periods counted as part of presence time if the employee remains at the workplace. An exception is made for employees engaged in work of an intermittent nature, defined as activities that inherently involve waiting or stoppage periods during actual working hours, such as transport, certain maritime services, agricultural storage, emergency healthcare, logistics, digital support services, and data center monitoring. For these categories only, daily presence at the workplace may extend to a maximum of 12 hours. Also, the same rules apply for supplementary, cleaning, security, and preparatory works under the Labor Law.

In terms of employees working in industrial workplaces, actual working hours may not exceed eight hours per day or 48 hours per week, excluding rest and meal periods, while permitting overtime in cases of operational necessity or exceptional circumstances in accordance with the overtime rules and compensation mechanisms set out in the Labor Law.

Regarding the use of overtime under the labor law it is limited to cases of unusual work or exceptional necessities, subject to notifying the competent Labor Directorate and specifying the required duration. The minimum overtime compensation is 35% (thirty-five percent) for daytime overtime and 70% (seventy percent) for nighttime overtime, if the work is performed on a weekly rest, then the employer is entitled to double pay and a substitute rest day in the following week. In all events there is a maximum daily presence of 12 hours within the workplace.

Impact date: 25 December 2025 The Decree establishes a national system for measuring employees’ skill levels and licensing the practice of professions and trades to ensure alignment with labor market needs and nationally recognized occupational standards. It applies to all employees, whether trained formally or informally, and provides for theoretical and practical testing based on national occupational classifications. Employees must apply through the relevant Labor Directorate, pay the prescribed fees, and obtain a skill-level certificate unless exempt, such as certain technical and university graduates working in their field. Skill levels are categorized from assistant employees up to specialized technicians and trainers. Licenses to practice a trade or profession require proof of skill level and may involve additional testing. Fees are specified, with exceptions for persons with disabilities and certain protected families. Central units may also be established to process applications and issue certificates or licenses within defined timelines. Labor authorities are responsible for oversight and ensuring compliance at worksites.

Impact date: 25 December 2025 The Decree maintains the objective criteria for selecting employees for termination in cases of partial closure or reduction of establishment size or activity, or workforce downsizing for serious economic, technical, or organizational reasons. Such Decree applies to all establishments subject to the Labor Law. It requires that any selection of employees for termination be carried out in accordance with principles of transparency, objectivity, and non-discrimination, while balancing the interests of the establishment with workers’ social and family stability. In the absence of a governing collective agreement, the employer must follow specific priority criteria, including seniority, professional competence, performance history, disciplinary record, and social considerations such as family responsibilities, disability, or health conditions. The Decree preserves the application of any collective agreement standards and confirms the employer’s obligation to provide statutory notice, settle all financial entitlements including unused leave balance and the minimum statutory compensation, and notify the competent administrative authority, which may review compliance with the prescribed criteria.

Impact date: 26 December 2025 The Decree establishes a comprehensive regulatory framework governing among others private and electronic recruitment agencies, electronic recruitment platforms, and entities engaged in facilitating employment opportunities inside Egypt and abroad. It also regulates licensing requirements, operational obligations, reporting mechanisms, fees, inspections, and enforcement measures, thereby implementing the relevant provisions of the Labor Law. Only licensed entities may place employees, and employers cannot charge employees any fees, which must instead be collected from the hiring company. Agencies must submit contracts, job requests, and agreements to the Ministry of Labor within five days for approval, with the Ministry of Labor having 15 days to object. They must also provide semiannual reports including employee data, contracts, employment duration, and wages. Private recruitment agencies must be incorporated as joint-stock, limited liability, or single-person companies, with minimum capital requirements EGP 250,000 for domestic operations and EGP 500,000 for international operations, and majority Egyptian ownership. They must submit founding documents, management information, criminal records, tax card, commercial registration, office lease or ownership proof, and maritime expertise certification if applicable. Agencies are required to maintain accurate registries for applicants, contracts, and financial transactions, ensure advertised jobs are real, contracts are adhered to, wages match agreed terms, and update all data regularly. Companies must provide employee contracts in Arabic for four copies or in the employee’s language, transport employees for overseas assignments, and ensure conditions match those agreed. Additionally, electronic recruitment platforms must comply with technical, accessibility, and cybersecurity requirements, protect user data, and update content regularly, with non-compliance resulting in license revocation. Finally, all recruitment entities must provide pre-departure orientation programs for overseas employees and establish complaint-handling units to investigate and resolve employee grievances.

Impact date: 31 December 2025 The Decree establishes a framework for apprenticeships and professional training, applying to all establishments regardless of size or sector. It defines the trainee as someone joining a workplace to learn a profession, trade, or craft in exchange for compensation for a fixed period, formalized in a written agreement. The Decree emphasizes a combination of practical and theoretical training, staged over one to three years with regular evaluations, and ensures fair remuneration, social and health benefits, and a safe working environment. A committee, headed by the Minister of Labor, oversees strategy, planning, monitoring, and promotion, while the Ministry coordinates domestic and international partnerships and recognizes qualifications. The trainees must be at least 14 years old, cannot be exposed to strenuous work, and have the right to end agreements with notice. The agreement must protect interns’ freedom to move in the labor market and include clear obligations, rest periods, and stage-wise progression, with Ministry oversight at all stages.