On May 5, 2025, President Abdel Fattah El-Sisi ratified Egypt’s new Labor Law, replacing the decades-old 2003 legislation. This reform is a pivotal development in Egypt’s employment landscape, aiming to strengthen worker protections, promote gender equality, and address the realities of a modern workforce. The law will come into effect in September 2025, giving employers a short window to review and update their compliance practices.

1. Enhanced Protections for Working Women

Maternity Leave: Article 70 guarantees three months of fully paid maternity leave, available up to three times during a woman’s employment. Pregnant employees receive reduced working hours from the sixth month and are protected from overtime during pregnancy and for six months post-childbirth.

Childcare Leave: Article 72 entitles women in establishments with 50+ employees to up to two years of unpaid childcare leave, up to three times, with an option to receive 25% of their salary during this period.

Breastfeeding Breaks: Women are now entitled to two paid breastfeeding breaks per day for two years after childbirth, counted as part of working hours.

2. Abolishing Arbitrary Dismissal
The infamous “Form #6,” previously used for arbitrary dismissals, has been eliminated, significantly strengthening job security and preventing unjustified termination.

3. Formalizing Employment Relationships
All hiring and termination procedures must be documented in official employment contracts, closing loopholes and ensuring transparency between employers and employees.

Employers must submit detailed employee data to the Ministry of Labour by October 1, 2025, and update it annually, enhancing regulatory oversight.

4. Modern Work Models Recognized
The law formally recognizes remote work, freelancing, and platform-based employment, extending legal protections to non-traditional workers for the first time.

5. Gender Equality and Non-Discrimination
The law explicitly prohibits dismissal of female employees during pregnancy or maternity leave, aligning with international labor conventions and reinforcing workplace equality.

6. Training and Retention
If an employer funds an employee’s training, the employee is required to remain with the company for a specified period or reimburse the training costs, unless otherwise agreed.

7. Access to Justice
Specialized labor courts will be established to expedite dispute resolution, with workers exempt from judicial fees in employment-related litigation.

8. Collective Representation and Social Dialogue
The creation of a High Council for Social Dialogue aims to foster cooperation between the state, employers, and workers, promoting balanced industrial relations.

Legal Implications for Employers

Compliance Deadline: Employers must review and update employment contracts, HR policies, and data reporting procedures before the law’s effective date (September 2025).

Broader Coverage: The law’s scope is clearly defined, with certain categories (e.g., civil servants, domestic workers) explicitly excluded, but with a call for future regulation of domestic work.

Joint Liability: Main contractors are now jointly liable for workers employed by subcontractors, closing gaps in accountability within contracting chains.

Beyond the Headlines

Why This Law Matters:
This law is not just legislative reform—it is a strategic shift that redefines employer-employee relationships in Egypt. By integrating modern work models and reinforcing protections for vulnerable groups, Egypt positions itself as a regional leader in labor rights.

For Employers:
Immediate action is required to audit existing HR practices, update contracts, and ensure compliance. Failure to adapt could expose businesses to legal risks and reputational harm.

For Employees:
The law empowers workers with greater job security, clearer rights, and improved access to justice, especially for women and those in non-traditional roles.

For the Legal Community:
This is an opportunity to advise clients on compliance, represent them in new labor courts, and help shape the evolving landscape of Egyptian employment law.