New Labor Legislation in Egypt to Take Effect Beginning September 1, 2025, Impacting Employers

Egypt's New Labor Law: Enhancing Workers' Rights and Modernizing Employment

The Egyptian government has enacted a new labor law, dubbed Labor Law No. 14 of 2025, which is set to take effect on September 1, 2025. This comprehensive reform aims to foster a conducive business environment while enhancing the working relationship between employers and employees.

The new law replaces previous Labor Law No. 12 of 2003 and Law No. 125 of 2010. It introduces key reforms designed to enhance workers' rights, clarify employer obligations, and adapt to modern work patterns.

One of the significant changes is the extension of maternity leave for employed women. They are now entitled to be paid for four months of maternity leave, without restrictions on their length of service, and can use this leave up to three times during their employment. Additionally, women who have completed at least one year of service working in establishments with 50 or more employees can take unpaid childcare leave for up to two years, a maximum of three times.

The notice period for resignations has also been updated. Employees are now required to give a three-month notice, instead of the previous two-month period.

Regarding annual leave, employees are entitled to 15 working days during their first year of service, increasing to 21 days thereafter. Those who have completed 10 full years at service are entitled to 30 days of leave. Disabled employees are entitled to 45 days of annual leave from the time of starting employment.

The new law also expands the definition of employment relationships to include new work-pattern arrangements such as remote work, part-time work, flexible work arrangements, and job sharing.

Employers must submit a detailed statement to the relevant authorities within 30 days of the new labor law's effective date, including employee data and salaries, and update this statement every January to report any changes. Companies with at least 50 employees must follow this requirement.

The employer should prepare the employment contract in writing in Arabic in four copies, with one copy each retained by the employer, the employee, the competent social insurance office, and the relevant administrative authority.

If an employer terminates a limited-term contract, the employee is entitled to one month's salary for each year of service.

The new law also includes provisions for the training fund. Employers are now required to contribute 0.25% of the minimum social insured salary per employee to this fund, with a minimum of EGP10 and a maximum of EGP30.

The New Labor Law will be in force for labor disputes starting from October 1, 2025. It reflects Egypt's commitment to international labor standards and focuses on inclusivity, robust dispute resolution mechanisms, and health and safety standards.

The old Labor Law remains in force for 90 days following the enactment of the New Labor Law on May 3, 2025. The text of the new law has been published on the Ministry of Labor website.

This news article provides a brief overview of the changes brought about by the New Labor Law in Egypt. For more detailed information, we encourage readers to refer to the official text published on the Ministry of Labor website.

New Labor Legislation in Egypt to Take Effect Beginning September 1, 2025, Impacting Employers