Egypts New Labour Law 2025 (Law No. 14 of 2025)

Why this topic is so important

Those investing in Egypt often plan in multi-year cycles: site selection, building an organization, scaling, export. In this phase, labor law is not only an "HR topic", but a central steering lever for costs, predictability and risk.

The new law brings more structure for employers, but also more formalities. In particular in disciplinary and termination cases, in implementing the minimum wage and in occupational safety, clear documentation and procedural requirements apply. Violations can - depending on the facts - lead to significant fines; in individual constellations, business closures or personal liability of responsible persons are also provided for.

For European companies it is additionally relevant that many international customers, banks and insurers expect a robust compliance and EHS system anyway. Anyone who implements labor law in Egypt properly improves not only legal certainty, but also auditability and ESG profiles.

Note (important): The following article is a practice-oriented summary for companies and decision-makers, not legal advice. The authoritative text is the Arabic legal text (Official Gazette). For specific projects (site selection, HR setup, restructuring, terminations, expat assignments) you should work with local legal counsel and payroll/HR specialists. The basis of this article is the English translation of the Labor Law No. 14 of 2025.

1. Scope of Application and Basic Principles

The law generally applies to employment relationships in the private sector. Explicitly excluded are, among others, employees of public authorities as well as domestic workers. Important for international companies: Unless otherwise regulated, the provisions also apply to foreign employees working in Egypt.

A central guiding principle is the protection of acquired rights: Rights already acquired (e.g., wage components or benefits) should not fall below the new minimum. For investors this means: In business transfers or harmonization of remuneration systems, a clean comparison with prior rules is required.

The law works heavily with ministerial decrees and implementing decisions. Especially for new work models (remote work, part-time, flexible models), supplementary regulations are provided for. Investors should therefore keep an eye not only on the legal text, but also on the subsequent implementing decrees.

2. Employment Contracts: Form, Language, Types, Probationary Period

Form and language: The individual employment contract must be in writing in Arabic and kept in multiple copies. For foreign employees, an additional version in their language may be prepared; in case of doubt, the Arabic version prevails. In terms of content, the law requires at least information on commencement, employer/place of work, employee data, type of activity, as well as remuneration and its payment modalities (Art. 89).

Types of contract: The law recognizes indefinite-term and fixed-term contracts. Fixed-term contracts are permissible if the nature of the work requires it; renewal is possible (Art. 87). 

Special attention: If a contract is not in writing or the term is missing, it is deemed indefinite; continuing to work after a fixed-term contract expires without written renewal also leads to an indefinite contract (Art. 88).

Probation: The probationary period may be a maximum of three months. A repeated probationary period with the same employer is not permitted (Art. 90).

Practical tip for investors: Prepare standard contract templates in Arabic (and, if applicable, English/German as working versions), define clear job profiles and remuneration components, and ensure that the contract documents are also consistently filed early on for social insurance and labor authority purposes.

3. New Work Models: Remote Work, Part-Time, Flexible Models

The law explicitly recognizes "new work models" and defines, among others, remote work, part-time, flexible work and job sharing (Art. 96). For European companies with shared services, IT, engineering or project business, this is particularly relevant because hybrid and international forms of work are thus more firmly anchored in the legal text.

Principle: The essential employee rights and obligations also apply to new work models - including minimum wage, social protection, training as well as collective rights (Art. 97). At the same time, the competent minister is to issue implementing decisions that regulate contractual guardrails, evidence rules and practical implementation details (Art. 100).

Practical tip: If you plan remote work or flexible models, you should define internal policies (working time, IT/data protection, performance evidence, occupational safety in the home office) before the start. This avoids later friction when ministerial detailed rules take effect and audits are pending.

4. Remuneration, Minimum Wage, Payment Deadlines and Deductions

Remuneration framework: Wages can be set via the individual contract, collective agreements or internal regulations. If there is no contractual stipulation, comparative wage/industry practice applies; if necessary, a competent judge can set the wage (Art. 107).

Minimum wage and annual increase: The National Wages Council sets the national minimum wage and also determines the minimum level of the annual periodic increase. The periodic increase may not be below 3% of the insurable wage and is generally due after one year (Art. 12, Art. 102). Companies may apply for reduction or exemption under exceptional economic conditions; decisions can be challenged (Art. 102, Art. 106).

Payment modalities: Wages must be paid in legally recognized currency at the workplace or transferred to a bank account. For monthly wages, at least once per month; in other cases at least weekly, unless otherwise agreed. After termination of employment, outstanding claims must be paid within seven days after being requested (Art. 108).

Wage protection: The law prohibits unjustified withholding of wage components and requires that income does not fall below the minimum wage (Art. 108). Employer loans may be repaid at a maximum of 10% of wages, without interest (Art. 113). Garnishment/assignment is generally limited to 25% (up to 50% for maintenance); certain deductions (taxes, social insurance) must be taken into account in advance (Art. 114).

Documentation: Wages are legally deemed "paid" only once the employee signs a payroll list or the payment is demonstrably made to their account. In addition, a detailed payroll statement must be provided (Art. 115).

Practical tip: Establish a clean payroll and HRIS system early (even if you initially start with Excel). For European groups, it makes sense to link local payroll processes with global compliance standards (e.g., four-eyes principle, audit trail).

5. Working Time, Rest Periods and Overtime

Basic rule: Actual working time may generally not exceed eight hours per day or 48 hours per week ; breaks do not count (Art. 117). The competent minister may set lower limits for certain activities or industries.

Breaks: The working day must include at least one hour break for meals and rest. The organization must ensure that no one works more than five hours continuously without a break (Art. 118).

Spread-over: Start and end of working time should be organized so that the span between start and end does not exceed ten hours per day. For activities of an intermittent or special nature, presence of up to twelve hours may be permissible (Art. 119).

Weekly rest period: At least 24 consecutive hours per week after no later than six working days; the weekly rest period is paid (Art. 120). In remote areas or in continuous operations, rest days can be bundled, but only within certain limits and via internal regulations.

Overtime: In cases of urgent need or extraordinary circumstances, deviations from the standard rules are possible; the authority must be informed within seven days (Art. 121). Overtime must be remunerated with surcharges, at least 35% (day) or 70% (night) on the normal hourly wage. Work on the rest day leads to an additional day's wage and a compensatory rest day in the following week (Art. 121).

Posting obligation: Employers must visibly post a working-time and rest-day schedule and notify the authority of changes within seven days (Art. 122). Certain categories (e.g., employer representatives, preparatory/supplementary activities, security and cleaning) are partially exempt; details are regulated by a ministerial decree; overtime pay remains in place (Art. 123).

Practical tip: For shift operations (production, chemicals, logistics), a formalized working-time and shift system with documented overtime approvals is critical. This reduces not only legal risks, but also cost leakages due to unplanned overtime.

6. Leave, Absences and Special Protection Rights

Annual leave: Entitlement to paid leave (excluding public holidays and weekly rest days) is 15 days in the first year, 21 days from the second year, 30 days after ten years or from age 50. For persons with disabilities and persons of short stature: 45 days (Art. 124). For dangerous, unhealthy or remote workplaces, leave may be increased by seven days (Art. 124).

Leave planning: The employer sets the timing according to operational needs; interruptions are permissible only for compelling reasons (Art. 125). Minimum use: At least 15 days per year must be taken, of which at least six days consecutively. Leave balances or compensation must be cleared at least every three years; upon termination, remaining entitlements must be paid out (Art. 125).

Examination leave: Employees with examinations may set the timing of their leave if they announce it in time; additional paid time off for exam days is possible, subject to evidence requirements (Art. 126).

Emergency leave and special days: Up to seven days per year (max. two at a time) as emergency absence, which is deducted from annual leave. In addition, there is an entitlement to a paid special day on the day a child is born (up to three times during working life) (Art. 128).

Public holidays: Paid public holidays as determined by ministerial decision. If work is required, there is an entitlement to double pay or - upon written request - a compensatory rest day (Art. 129).

Pilgrimage: After five years of service, there is a one-time entitlement to one month of paid leave for Hajj or a visit to Jerusalem (Art. 130).

Illness: Sick leave and continued remuneration are generally governed by the competent medical authorities and the rules of social insurance. For certain industrial companies, the law provides specified gradations within a three-year period (Art. 131).

Maternity protection and breastfeeding breaks: Paid maternity leave of four months (of which at least 45 days after birth), up to three times in working life. From the sixth month of pregnancy, daily working hours must be reduced by at least one hour; overtime is prohibited during pregnancy and up to six months after birth (Art. 54). Breastfeeding employees additionally receive, besides regular breaks, two breastfeeding breaks of at least 30 minutes each, counted as paid working time (Art. 56).

Childcare: In establishments with 50 or more employees, there is an entitlement to up to two years of unpaid leave for childcare (up to three times, under conditions) (Art. 57). With 100 or more female employees at one location, there are obligations to establish or commission childcare (Art. 60).

Practical tip: For EU investors, it is worth standardizing leave policies and HR workflows (applications, evidence, approvals, payroll impact) early. Maternity leave, breastfeeding breaks and illness cases in particular should be planned cleanly from a shift and safety perspective in production environments.

7. Internal Regulations, Duties, Disciplinary Procedures

Internal work regulations: Employers with ten or more employees must create internal rules for work organization. These must cover, among others, promotion/transfer, wages, breaches of duty and disciplinary measures. The rules must be drawn up within 60 days, submitted to the authority for review/confirmation and visibly posted; if the authority does not respond within 30 days, they are deemed effective (Art. 137).

Employee duties: The law explicitly lists classic duties (care, following instructions, working hours, protection of company assets, respectful conduct, confidentiality) (Art. 134). For investors, this is a good basis to translate codes of conduct, IT and compliance rules, as well as EHS duties, into internal policies.

Disciplinary procedure: Sanctions range from warning to termination of employment (Art. 139). The procedure is important: Before a sanction, written notice, a hearing and documentation of the investigation are required; investigations must begin promptly and be completed, with limited possibilities for extension (Art. 141). A sanction may not be imposed more than 30 days after completion of the investigation (Art. 138).

Suspension: Employers may temporarily suspend employees in certain cases (up to 60 days) with full pay, for example if an investigation requires it or in certain criminal allegations (Art. 145). An extension can be applied for in court; procedural details and pay consequences must be strictly observed (Art. 147).

Termination as a disciplinary measure: It is particularly relevant that termination as a disciplinary measure may only be pronounced by the competent labor court. The employer cannot simply "dismiss without notice", but must pursue the judicial route in serious cases. The law lists examples of "serious misconduct" (including forgery, serious damage with reporting obligation, repeated violations of safety rules, disclosure of secrets, competition, drugs/alcohol, assaults) (Art. 148).

Imposing sanctions: Under Egyptian Labour Law No. 14 of 2025, disciplinary sanctions are clearly limited: For a single misconduct, pursuant to Art. 143 at most the equivalent of five days of basic wage may be deducted; moreover, all penalty deductions within a month may likewise not exceed five days of basic wage in total. Under Art. 139, the annual salary increase may be postponed by up to three months as a disciplinary measure or reduced by no more than 50%. If an employee culpably causes damage to company property (including products), Art. 151 allows, after a proper investigation, a wage deduction in the corresponding amount; however, this is limited to a maximum of five days' wages per month and may not exceed, in total, the equivalent of two months' wages.

Practical tip: Companies should establish standardized case management (investigation protocols, evidence preservation, witness statements, deadline monitoring). This is not only legally sensible, but also essential to meet international compliance requirements.

8. Termination of Employment Relationships: Fixed Term, Notice, Severance

Fixed-term contracts: Generally end upon expiry of the term. If the contract (new or renewed) is concluded for more than five years, the employee may terminate after five years with three months' notice. If, in this constellation, the employer terminates, an entitlement to severance arises of one month's wage per year of employment (Art. 154).

Indefinite-term contracts: Both parties may terminate, but must generally give three months' written notice (Art. 156). Termination may not be subject to conditions; the notice period starts upon receipt (Art. 158). During leave, the period is suspended; in case of illness during the notice period, the period is interrupted and then continues thereafter (Art. 159).

Legitimate reason: Termination without "legitimate and sufficient reason" is not permissible; this applies to both employers and employees. In addition, the timing of termination must fit the nature of the work (Art. 157).

Duties during the notice period: The employment relationship continues during the period. Employers may release employees from work, but must continue to pay wages; the period counts as length of service (Art. 160, Art. 163). In case of employer termination, employees receive the right to paid time to look for a job (one day per week or eight hours) (Art. 162).

Termination without notice: If the employer terminates without observing the notice period, it owes wage compensation for the notice period or the remainder (Art. 164).

Unlawful termination: If the employer terminates without a legitimate reason, the employee is entitled to damages of at least two months' wages per year of employment (Art. 165). The law names impermissible reasons including union membership, complaints/lawsuits, wage garnishment, use of statutory leave as well as discrimination characteristics (color, gender, marital status, responsibilities, pregnancy, religion, political opinion) (Art. 165).

Resignation and absence: A written resignation/termination by the employee requires official confirmation; the employment relationship ends only with an acceptance decision (or after the expiry of a period). In addition, a resignation may be withdrawn within certain periods (Art. 167). Absence without reason may be treated as resignation, but only after defined thresholds and after prior formal warning by registered mail (Art. 166).

Termination due to illness: Termination solely due to illness is permissible only once sick leave and remaining leave have been exhausted; the employer must notify its intention to terminate within 15 days, and if recovery occurs before notification, termination is impermissible (Art. 173).

Economic reasons (closure/downsizing): For full or partial closure or reduction of scope/activity, there is a formalized approval procedure via committees, including deadlines, justification, information of the union and selection criteria (Art. 236 to 240). Alternatively, the employer may temporarily change contract conditions (e.g., other tasks, wage reduction down to at least the minimum wage). In this case, the employee may terminate without notice; however, a severance entitlement still arises according to a legally defined scale (Art. 241).

Practical tip: Particularly in international groups, exit management in Egypt should be standardized early. Many risks do not arise from the decision to separate, but from deadlines, documentation and choosing the wrong procedural route.

9. Occupational Safety in Industry and Chemicals: Duties Investors Must Take Seriously

For industrial investors, "Book Four" of the law is particularly relevant. It regulates prevention of accidents and health damage and applies to virtually all workplaces, including land-, sea- and air-based facilities (Art. 242 to 244).

Hazard categories: Employers must provide measures against physical hazards (e.g., heat/cold, noise, vibration, radiation, explosion risks) (Art. 246), against technical/engineering hazards (mechanical, electrical, construction, ergonomics) (Art. 247), against biological hazards (Art. 248) and against chemical hazards (Art. 249). The chemical article in particular requires, among other things, compliance with limit values, control of inventories, records of hazardous substances, labeling and safe disposal in accordance with waste law (Art. 249).

Emergency management: Companies must prepare risk analyses for industrial and natural disasters, develop emergency plans, test them in practice (drills) and train employees. When storing/using hazardous substances, authorities must be informed; employees have the right, in case of acute serious danger, to leave the workplace to a safe zone (Art. 253).

Non-hostile workplace: Employers are obliged to ensure a safe work environment free from harassment, bullying and violence; effective prevention and complaint mechanisms should exist (Art. 254).

Medical precautions and EHS organization: Provided for are, among others, pre-employment examinations, fitness assessments, training, information about hazards, personal protective equipment without wage deduction, regular inspections, and documentation obligations (Art. 266 to 269). For larger sites there are requirements for first aid, nursing staff and medical care; treatment costs may be assigned to the employer (Art. 270).

Reporting: From 30 employees, semiannual statistical reports on illnesses, accidents and injuries must be submitted; serious accidents must be reported within 24 hours. In addition, electronic reporting via a platform is to take place (Art. 260).

Practical tip: For European investors in the chemical environment, OSH obligations are not only a local legal topic. They should be integrated into a global EHS management system (hazardous substance management, MOC, permit-to-work, incident reporting). Anyone who sets this up properly reduces not only fine risks, but also downtime, insurance premiums and reputational risks.

11. Inspections, Dispute Resolution and Judicial Enforcement

Documentation obligations run throughout the law: Personnel files (including contract copy, social insurance, medical check) (Art. 92), postings (working-time schedules, internal rules) (Art. 122, Art. 137) and registers (e.g., financial disciplinary penalties) (Art. 153). For investors, these obligations are not "bureaucracy", but protection: Anyone who documents properly reduces dispute and liability risks.

Labor disputes: For individual disputes, the law initially provides a path via a conciliation/settlement structure, which is to work within defined deadlines (Art. 149). If settlement fails, the case goes to the labor court; termination disputes are to be decided quickly, and in certain cases the court may award wage compensation of up to six months (Art. 150). In terminations due to union activity, reinstatement may be ordered upon request (Art. 150).

In practice a clear "dispute playbook" approach is recommended for investors: who internally escalates which cases, which documents are needed, which deadlines are running, and how amicable solutions are prepared without creating precedent risks.

12. Sanctions and Liability Risks: Fines, Closure, Personal Responsibility

The law contains its own catalogue of sanctions (Art. 281 to 298). The range extends from lower fines for formal breaches of duty to high fines, business closure and in some cases even custodial sentences.

Particularly relevant for investors is the "multiplication principle": Many fines are imposed per affected person and doubled in case of repetition. This means that even seemingly small violations (e.g., missing posting, faulty documentation) can quickly become expensive with larger workforces.

Also critical for industrial practice are obligations around minimum wage/payroll, working time, leave, occupational safety and reporting. Violations of core duties can - depending on the article - lead to fine ranges from several thousand to hundreds of thousands of Egyptian pounds; in certain areas, temporary business closure is also provided for.

Liability pass-through: The law expressly provides that the person responsible for the actual management of a legal entity can be punished like the offender if knowledge and breach of duty can be proven. The legal entity is jointly and severally liable for fines and awarded damages (Art. 298).

Practical tip: Implement a compliance management system that explicitly maps local labor-law and EHS duties (policies, training, audits, incident handling). In Egypt this is not a "nice-to-have", but an instrument for preventing liability.

13. Practical Implementation: 30-60-90 Day Plan for Investors

The following steps have proven themselves for European companies when building or expanding a site in Egypt. They are formulated so that HR, Legal, Finance/Payroll and EHS can work in parallel.

30 days (build the basics):
• Finalize standard employment contract (Arabic; optionally bilingual).
• Define HR core data model (personnel file, document storage, roles/access).
• Design payroll process (pay dates, bank transfer, payroll statement, audit trail).
• Roughly define working-time and shift system; define posting/notification processes.
• Conduct OSH gap assessment for the site (esp. chemicals/industry).
• Sketch code of conduct / anti-harassment policy and complaint mechanism.

60 days (operationalize compliance):
• Draft internal work regulations and disciplinary rules, organize coordination with employee representation/union, submit to authority.
• Implement leave management (annual leave, emergency days, maternity protection, sickness workflow) in HR/payroll.
• Set up a training plan for managers and HR on investigations/disciplinary procedures.
• Build EHS structures: hazardous substances register, labeling, emergency plan, drills, reporting templates.
• Define processes for work permits/foreign employees (if relevant).

90 days (scaling and auditability):
• Conduct internal audits (working time, payroll, leave, personnel files) and close findings.
• Finalize dispute playbook and documentation standards.
• Set up KPI set (overtime rate, incident rate, leave balance, turnover) and establish management routine.
• Review supplier/contractor management (joint liability, safety briefings, access control).

If you implement these steps in a structured way, you create a robust basis for growth. European parent companies in particular benefit from HR and EHS compliance in Egypt becoming audit-ready - which facilitates scaling, financing and insuring the site.

14. Common Pitfalls and Best Practices from an Investor Perspective

Many labor-law risks do not arise from "big" decisions, but from small process errors. International companies in particular often underestimate at the beginning that in Egypt formal requirements (language, postings, registers, administrative procedures) must be lived operationally - otherwise they become a disadvantage in disputes.

Typical pitfalls in practice:

• Employment contracts are signed, but are not consistently maintained in Arabic or are not integrated into the necessary filing and reporting processes.
• Fixed terms "extend in practice", because work continues after expiry without written renewal - with the effect of becoming indefinite.
• Working time/overtime are managed informally, but not properly approved and documented.
• Terminations are handled "from HR" as in Europe, even though certain termination/dismissal constellations trigger judicial or administrative requirements.
• Resignations are accepted without observing the confirmation/notice logic provided for in the law.
• EHS systems exist "on paper", but hazardous substance registers, labeling, drills and 24-hour notifications are not properly implemented.

Best practices that have proven themselves:

• Bilingual document set: Arabic master documents (contractual/official), plus English working versions for management and HQ.
• Manager enablement: Short trainings for line managers on working time, disciplinary procedures and documentation-safe communication.
• HR and EHS audit routine: Monthly spot checks (personnel files, payroll, working time records, leave balances, incident logs).
• "One source of truth": A central HR and document archive (also possible as a lean SharePoint/Drive solution), with role rights and versioning.
• Early coordination with local experts: Especially for restructuring, closure/downsizing and contractor management, the process should be designed in advance.

Minimal document set (as a checklist):

• Standard employment contract (Arabic) incl. remuneration definition and payment mode.
• Internal work regulations and disciplinary code (for >=10 employees) incl. posting.
• Working time/shift plans and overtime approval process incl. posting and notification logic.
• Leave policy (annual leave, emergencies, illness, maternity protection) incl. payroll interface.
• Anti-harassment/non-hostile workplace policy incl. complaint path.
• EHS core documents: Hazardous substances register, labeling, emergency plans, drill protocols, incident reporting, PPE issuance.
• Process description for work permits/foreign employees (if relevant).

If you implement these basics properly, labor law in Egypt becomes predictable - and you create the prerequisite to scale faster, pass international audits and sustainably reduce operational risks.

Note: This text is a general overview. For specific implementation questions (e.g., contract drafting, restructuring, terminations, work permits, EHS requirements) we would be happy to connect you with local specialist advisors.

Primärquelle (Textgrundlage)

1) Translation of Labor Law No. 14 of 2025 (English translation, PDF)    

https://eg.andersen.com/wp-content/uploads/2025/05/Translation-of-Labor-law-No.-14-of-2025.pdf

Zusätzliche, externe Einordnung

2) EY – Egypt enacts new labor law with changes affecting employers beginning 1 September 2025   

https://www.ey.com/en_gl/technical/tax-alerts/egypt-enacts-new-labor-law-with-changes-affecting-employers-beginning-1-september-2025

   (Alternative EY-Spiegelseite / Global Tax News)  

https://globaltaxnews.ey.com/news/2025-1555-egypt-enacts-new-labor-law-with-changes-affecting-employers-beginning-1-september-2025

3) State Information Service (Egypt) – Egypt raises minimum wage for private sector to EGP 7,000 

https://sis.gov.eg/en/media-center/news/egypt-raises-minimum-wage-for-private-sector-to-egp-7-000/

4) Ministeriumsseite (moic.gov.eg) – The First Meeting of the National Wages Council (Minimum wage + periodic allowance) 

https://moic.gov.eg/news/1998

5) Shand & Partners – Legalizing Remote Work Across Borders: Egypt’s Labor Law No. 14 of 2025 and the legal status of cross-border employment 

https://www.shandpartners.com/insights/firm-news/legalizing-remote-work-across-borders-egypts-labor-law-no-14-of-2025-and-the-legal-status-of-cross-border-employment/

6) Ahram Online – Egypt raises minimum wage for private sector to EGP 7,000   

https://english.ahram.org.eg/NewsContentP/3/540106/Business/Egypt-raises-minimum-wage-for-private-sector-to-EG.aspx