Egypt
Employee resignations and settlement/termination arrangements
Impact date: 14 September 2025 A Decree introduces a unified framework for managing both resignations and settlement/termination arrangements, aiming to enhance procedural clarity, safeguard employee rights, and minimize potential disputes. As part of this framework, the Ministry of Labor now plays a central role in confirming the validity and voluntariness of resignations, ensuring that termination decisions are properly documented and legally sound. To support consistent application of these rules, the Ministry of Labor has also issued two standard official templates for employers and employees to follow—one for submitting a resignation and another for documenting mutual settlement/termination.
Written and signed resignation: The employee must submit a formal written resignation to the employer, duly signed either by the employee personally or by an authorized representative acting on their behalf. The resignation must be authenticated and approved by the competent labor offices, either within the location of the employer’s main headquarters or one of its branches, or by the competent labor directorate. The employee’s service does not end immediately upon submitting a resignation. Instead, termination becomes effective only when the employer issues a formal written approval or when a period of ten days passes without any response from the employer. The employee has right to withdraw the resignation within ten days from the employer’s acceptance date. The withdrawal must be in writing and authenticated by the same Labor Office.
Mutual settlement/termination agreement: the Decree confirms that the resignation procedures do not apply when the employer and employee mutually agree to end the employment relationship, regardless of whether the contract is for a limited or unlimited term. In such cases, the parties must execute a mutual settlement/termination agreement that expressly confirms the employee has received all financial entitlements.
Employer implications/action needed Employers must ensure they comply with the standard official templates and required process for resignation and mutual settlement/termination.
Employer risk Failure to comply with the prescribed templates and procedural requirements may render the resignation or mutual settlement/termination null and void.
Work permit procedures for foreign employees
Impact date: 18 September 2025 A Decree aims to facilitate the work permit procedures by exempting foreign employees from submitting experience certificates and from complying with the standard national-to-foreign employee quota requirement (i.e., ten Egyptian employees for every foreign employee). It applies only to foreign nationals employed by smaller business entities operating in Egypt such as retail outlets, restaurants, public service venues, and sole proprietorships. There is a grace period of three-months from the date of the Decree’s issuance, during which all foreign nationals are required to submit their work permit applications to obtain such exemptions.
Pursuant to the Decree, the employer and employee are required to submit a set of documents as follows:
- Copy of the company’s commercial register (original for review)
- Copy of the company’s tax card (original for review)
- Copy of the foreign employee’s passport (original for review)
- 12 personal photos for the foreign employee and
- HIV medical certificate (issued from governmental hospital/clinic)
Employer implications/action needed The employer and employee must submit the work permit application within the grace period.
Employer risk Failure to submit the required documents within the grace period may result in the employee losing eligibility for the exemptions granted under the Decree, including the waiver of the experience certificate requirement and the exemption from the standard foreign-to-Egyptian workforce ratio.
Submitting employment contracts to the Labor authority
Impact date: 5 October 2025 A Decree provides guidance on the procedure for submitting a copy of employment contracts, including their renewal, non-renewal, and termination to the competent Labor authority, either in hard copy or electronically via the official email address of the respective Labor authority.
Where the employment contract is submitted electronically, employers must use the company’s official email address and include the following documents:
- Copy of the company’s commercial or industrial register and tax card
- Copy of the national ID or passport of the employer or the company’s chairman
- Stamped employee statement, provided in both PDF and Excel formats, including each employee’s name, national ID number, salary, job title, and—where applicable—the duration of the limited-term contract and
- Copy of employment contracts, each attached as a separate PDF file and stated with the employee’s name and national ID number
The employer is not required to comply with these obligations where the employment relationship is governed by an unlimited contract that was executed before the Labor Law became effective on 1 September 2025. However, for limited term enter prior to the Labor Law’s effective date must be submitted to the authorities at the time of its first renewal.
Employers must submit the original renewed limited term contract or documentary evidence of the renewal to the competent Labor authority within 15 days of the renewal date. In cases of non-renewal or termination, the Labor authority must be notified within 15 days of the relevant action.
Employer implications/action needed Employers must submit all employment contracts—along with any renewals, non-renewals, or terminations—to the competent Labor Authority, either in hard copy or electronically using the company’s official email and attach the supporting documents.
Employer risk The obligation to submit a copy of the employment contract arises directly from the Labor Law, with non-compliance risking fines ranging between EGP 500 and EGP 5,000 which shall be multiplied by the number of relevant employees and doubled in case of recidivism. Although the Decree introduces the obligation to notify contract renewals, non-renewals, and terminations, it does not currently state any explicit penalties for failing to comply with these submission requirements.
Contact

Omar S. Bassiouny Founding Partner & Head of Corporate M&A
E: omar.bassiouny@matoukbassiouny.com
T: +202 2796 2042

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