On 03 May 2025, the President approved the final draft of the new Labour Law (the “New Labour Law”). This legislation cancels the old labour law No. 12 of 2003 in full (the “Old Labour Law”) as well as law No. 125 of 2010 concerning employees’ privileges.
The New Labour Law aims to align with Egypt’s employment framework with recent socio-economic developments and evolving workplace practices. According to the Minister of Labour, the New Labour Law has been drafted in accordance with international labour standards and treaties to which Egypt is a signatory.
The changes reflect the legislature’s broader effort to modernize employment regulations in response to shifting work patterns, technological advancements, and global best practices. To ensure a smooth transition, the Old Labour Law is expected to remain in force for ninety (90) days following the enactment of the New Labour Law, allowing both employers and employees time to adjust to the new legal framework.
The New Labour Law introduces significant reforms across key areas of the employment relationship, including contract duration and renewal, resignation procedures, maternity and childcare leave, overtime regulation, and the recognition of modern work models.
This brief overview highlights some of the key changes and distinctions between the Old and New Labour Laws.
The New Labour Law significantly expands the definition of employment relationships, embracing a range of modern economic models that fall outside traditional frameworks.
A new work pattern is defined as any work performed by the employee in a non- traditional manner, regardless of work performance or method of implementation, as long as it benefits the employer, falls under their management and supervision, and is compensated, regardless of the payment form. The following are the introduced new work patterns:
The key concern on the work patterns chapter added under the New Labour Law is that, while it reinforces the core elements of employment relationships (i.e. management, supervision and payment of salary), it also raises questions about their application. Failing to distinguish between traditional and non-traditional employment relationships not only adds no value but also creates ambiguity.
The New Labour Law introduces strict provisions against sexual harassment, bullying, and workplace violence, it mandates clear complaint mechanisms and disciplinary actions. Employers are also required to provide a safe, non-hostile work environment.
The scope of this chapter now extends to, among others, freelancers and individuals working for their own benefit. Employers are also obliged to notify the concerned authority in the event of escape of its foreign employee, in case of absence for fifteen (15) consecutive days without lawful reason.
The New Labour Law provides for new definitions such as bullying, harassment and informal sector employees. In addition, there are other new regulations such as relating to, among others, child labour, foreigners’ employment, sick leaves and employees’ training expenses.
Employers are required to ensure equal pay for male and female employees performing work of equal value. This requirement applies to all forms of compensation, including salaries, in-kind benefits, bonuses, and incentives.
The New Labour Law introduces an explicit option for employers to maintain digital ledgers of employees’ files.
The New Labour Law explicitly stipulates that the legal person shall be jointly liable for the payment of any imposed financial penalties and compensation imposed.
Under the new health measures, employees living with a family member diagnosed by with a contagious disease are entitled to up to three (3) months of paid leave. The list of applicable diseases will be determined by the minister competent with health matters.
Amendment | Current Labour Law | New Labour Law |
Training Fund Contribution | 1% (one percent) of net profits of employer as outlined under their approved financial statements. | 0.25% (zero point twenty five percent) of minimum social insurance salary per employee, with a minimum of EGP ten (10) and maximum of EGP thirty (30). All pending disputes regarding the payment of the one percent (1%) contribution to the Fund, currently under review before the Egyptian courts and have not been decided by a final judgment, shall be dismissed unless the concerned establishment opts to continue the dispute. |
Employee File | The file shall include the employee’s name, profession, degree, skill level at the date of hiring, place of residency, marital status, date of commencement of service, salary, any developments to the employment, any imposed penalties, obtained leaves, termination date and reasons. | Adds an obligation to include proof of the employee’s registry at the social insurance authority and the initial medical checkup form.
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Overtime
| Prior approval of the competent authority is required. | Notification suffices. No need to obtain the prior approval. |
Maternity Leave | Three (3) months after ten (10) months of service at any employer. Maximum of two (2) times per employment. | Four (4) months, without limitation on the service period at the employer. However, it is important to note that the Social Insurance Law No. 148 of 2019 obliges that the employee should have been registered at the social insurance authority for at least ten (10) months. Maximum of three (3) times per employment. |
Entitlement to Childcare Leave | Maximum two (2) times per employment for female employees working in an establishment having fifty (50) or more employees.
| Maximum three (3) times per employment working in an establishment having fifty (50) or more employees provided that the employee served a minimum of one (1) year of service at the employer. Period between the two leaves is not less than two (2) years. |
Annual Leaves | Twenty-one (21) days per annum. | Fifteen (15) days during 1st year of service, then twenty-one (21) per annum. Forty-five (45) days for disabled employees and dwarfs |
Paternity Leave | Not specified. | On their child’s day of birth for a maximum of three (3) times per employment.
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Emergency Leave | Maximum six (6) days per annum, with a maximum of two consecutive days at a time. | Maximum seven (7) days per annum, with a maximum of two consecutive days at a time. |
Public Holidays | Double pay of salary in addition to normal salary for that day | In addition to normal salary for that day, either double the salary or compensatory day-off in lieu of the holiday. |
Study Leave | Calculated from the employee’s annual leave balance.
| The employees shall have the right to determine the date of their annual leave if they are preparing for an exam in any of the educational stages, provided that the employee notifies the employer at least fifteen (15) days prior to the leave. Actual exam days are excluded from the employee’s annual leave balance, provided that the employee: – notifies the employer at least ten (10) days prior to the exam date; and – provides evidence of attendance to an actual exam. |
Resignations | Employers should accept employees’ resignations within a maximum of seven (7) days from its submission. If no action is taken within this period, the resignation is deemed to be automatically approved.
| Timeline for approval or rejection of resignations is increased to ten (10) days. Resignations now must be signed by the employee and ratified by the competent administrative authority. In case an employee withdraws their resignation, the same must be ratified by the competent administrative authority. Unjustified absence shall now be deemed as resignation as opposed to being a gross misconduct under the Old Labour Law. |
Employee File Retention | One (1) year following termination of the employee. | Extended to five (5) years following termination of the employee. |
Statutory Annual Salary Increment | At least 7% (seven percent) of basic salary as determined by the National Wage Council.
| – At least 3% (three percent) of social insurance salary as determined by the National Wage Council. – Employers facing financial hardships can request temporary exemptions from the statutory annual increases. – The Council shall meet at least twice (2) a year to review wage adjustments and economic conditions. |
Overtime | Employers are required to obtain prior approval of the competent authority to make their employees work overtime. | The New Labour Law simplifies overtime procedures. Employers are no longer required to obtain prior approval from the competent authority; a simple notification suffices. |
