Egypt

Impact date: 1 September 2025 The New Egyptian Labor Law No. 14 for the year 2025 has been published (the “New Labor Law”), replacing the long-standing Labor Law No. 12 of 2003 (the “Previous Labor Law”).

Reflecting Egypt’s Vision 2030 for inclusive economic development and a fair labor environment, the New Labor Law represents a significant shift and a major advancement in aligning the interests of both employers and employees. It effectively strikes a balanced approach to labor relations, addressing key concerns on both sides. Overall, the introduction of this legislation marks the achievement of several important objectives aimed at fostering a more equitable and modern labor framework.

Summary of the key changes are set out below.

The minimum annual pay rise becomes 3% of the insured wage, triggered only upon the completion of one full year of employment. Employers facing hardship may petition the National Wages Council for a reduction or exemption. Further, employers with over thirty employees are now required to contribute 0.25% of the minimum insurable wage to the Training Fund (minimum of EGP 10 and a maximum of EGP 30 per employee annually), however employers providing in-house training are exempt from this contribution.

Employment contracts are to be executed in Arabic in four copies (a copy for the employer, the employee, the Social Insurance Office, and the relevant administrative authority). Employee files are permitted to be stored either as hard copies or electronically with their retention period increasing to five years following the termination of the employment relationship. Further, indefinite-term employment contracts have become the default, unless otherwise explicitly agreed in writing between the employer and the employee, and the termination notice period has increased to three months irrespective of the years in service.

The minimum employment age has increased to 15 years, with the eligibility age for training programs set at 14 years and additional restrictions on employing children in certain jobs, professions, or industries that may endanger their physical or psychological safety or threaten their morals or well-being in line with the Internation Labour Organisation’s Worst Forms of Child Labour Convention. Further, the Labour Minister may set quotas for foreign employees and may restrict or prohibit non-Egyptians from working in specific sectors and a work permit system will be implemented for select foreign investors without residency.

An employee’s resignation may be signed by the employee or their agent and must be ratified by the relevant administrative office. The employment relationship does not terminate, and the resignation is not final, until the employer officially approves it within ten days from the employee’s submission. If the employer fails to respond within this ten-day period, the resignation is considered automatically accepted. The resignation withdrawal period has increased to ten days from the date of the employer’s approval and the withdrawal can be executed by the employee or their agent and must be ratified by the relevant administrative office.

Further, unauthorized absence is considered an employee resignation. Employees who are absent for more than 20 separate days or ten consecutive days within a one-year period, without legitimate justification, will be deemed to have resigned. Such resignation only takes effect after the employer issues a prior warning via registered mail, with acknowledgment of receipt, after ten days of separate absence or five days of consecutive absence.

The New Law provides for cases in which an employer may suspend an employee for up to 60 days with full pay with the option for employers to request an extension beyond this period with half-pay.

The New Law stipulates a decreased annual leave of only 15 days for employees during their first year of employment, while it also provides an increased annual leave period of 45 days for employees with disabilities. The New Law entitles female employees to four months of paid maternity leave, up to three times during their employment without any requirement for a minimum prior period of service, while it also entitles male employees to one day of paid emergency leave (paternity leave), separate from the annual leave, on the occasion of their child’s birth, up to three times during the course of their employment. Further, emergency leave has increased to seven days annually. Sick leave for employees at industrial establishments who prove their illness is now increased to full pay for the first three months, 85% of their pay for the subsequent six months, and 75% of their pay for the final three months. Employees are entitled to sick leave every three years if the competent medical authority deems their recovery likely.

The New Law provides provisions for medical tests, allowing employers to request medical tests for employees to detect drug use or infectious diseases which must be conducted confidentially, and employers are prohibited from disclosing employees’ medical information.

The New Law defines and regulates new work patterns (remote work, part-time roles, flexible hours, job sharing, and any other work patterns identified and regulated through decrees issued by the relevant minister) and permits employees to work for multiple employers, provided that it is mutually agreed upon while strictly prohibiting the employees from disclosing any confidential information related to their employers.

The New Law addresses workplace harassment with a clear definition of sexual harassment, requiring employers to ensure a safe and non-hostile work environment free from harassment and violence and to implement measures to prevent harassment and promote workplace safety.