Egyptian Labor Law 2025: A Landmark Reform for Egypt’s Workforce

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Egypt has officially enacted Labor Law No. 14 of 2025, replacing the long-standing Labor Law No. 12 of 2003. This comprehensive reform, published in the Egyptian Official Gazette on May 3, 2025, represents a significant modernization of Egypt’s employment framework and will take effect on September 1, 2025.

Key Reforms Transforming Employment Relations

Enhanced Employee Protection and Benefits

The new law introduces substantial improvements to employee rights and protections. Maternity leave has been extended from 90 to 120 days and may be claimed up to three times during employment, compared to twice under the previous law. Additionally, the law grants paternity leave for the first time, providing male employees with one fully paid day off on the day of childbirth, available up to three times throughout their service.

Emergency leave has been increased from six to seven days annually, with no more than two consecutive days permitted. Female employees receive enhanced protection during pregnancy, including reduced working hours by at least one hour starting from the sixth month of pregnancy. The law also prohibits requiring pregnant women to work overtime during pregnancy and for six months after childbirth.

Modern Work Arrangements Recognition

A groundbreaking aspect of the new law is its formal recognition of contemporary employment models. The legislation explicitly addresses remote work, part-time employment, flexible working hours, and job sharing. These modern arrangements are now legally protected, with employees able to work for multiple employers simultaneously, provided confidentiality and non-compete obligations are respected.

Strengthened Anti-Harassment Measures

The Egyptian Labor Law 2025 introduces comprehensive anti-harassment and anti-bullying provisions, requiring employers to ensure safe, respectful work environments free from harassment, bullying, and violence. Employers must implement appropriate preventive measures and policies to protect employees from such misconduct.

 

Business and Investment Impact

Simplified Compliance Requirements

The new Egyptian Labor law 2025 streamlines several administrative processes for employers. The Training and Rehabilitation Fund contribution has been restructured from 1% of net profits to 0.25% of minimum social insurance salary for establishments with 30 or more employees. This change resolves numerous legal disputes that arose under the previous system.

Employment contract requirements have been updated to mandate four copies instead of three, with the additional copy submitted to the competent administrative authority. For foreign employees, contracts may be issued in both Arabic and the employee’s native language, though Arabic prevails in legal disputes.

Enhanced Foreign Worker Framework

The law introduces significant changes for foreign employees. Work permit fees now range from EGP 5,000 to EGP 150,000, with procedures and conditions to be specified by ministerial decree. Employers must notify authorities if foreign employees are absent for 15 consecutive days without justification.

Importantly, the law eliminates the previous exception for foreign workers regarding contract conversion, meaning definite-term contracts with foreign employees will now convert to indefinite-term if both parties continue performance after expiration.

 

Legal System Modernization

Specialized Labor Courts

Beginning October 1, 2025, specialized labor courts will be established within each primary court jurisdiction to expedite dispute resolution. These courts will have exclusive jurisdiction over employment-related disputes, including insurance rights and labor union matters.

Appeals to the Court of Cassation will be restricted to cases involving custodial sentences, with specialized circuits created to handle eligible employment appeals. Employees are exempt from judicial fees in employment-related litigation, improving access to justice.

Digital Integration and Record Keeping

The law embraces technological advancement by permitting electronic file maintenance and contract execution. Employee records may be kept electronically or in hard copy, with the retention period extended to five years from employment termination. This digital integration aligns with Egypt’s broader modernization efforts.

 

Economic and Social Implications

Supporting Egypt’s Vision 2030

The new law aligns with Egypt’s Vision 2030 for inclusive economic development and represents a balanced approach to labor relations. By modernizing employment practices and incorporating international labor standards, the legislation aims to attract foreign investment while protecting worker rights.

Equal Pay and Gender Equality

The law establishes the principle of equal pay for work of equal value, particularly benefiting female employees. Enhanced protections for working mothers, including extended maternity leave and breastfeeding breaks, demonstrate Egypt’s commitment to gender equality in the workplace.

Implementation Timeline and Transition

The 90-day implementation period allows employers to adjust their practices and ensures financial calculations between parties can be completed smoothly. All pending disputes regarding the Training and Rehabilitation Fund will be terminated unless employers specifically request continuation within six months.

Ministerial implementing regulations are expected by September 1, 2025, providing detailed guidance on the law’s practical application. Companies are encouraged to begin reviewing current practices and updating policies to ensure compliance with the new framework.

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