Egypt’s New Labour Law No. 14 of 2025

Labour Law No. 14 of 2025, also known as Egypt’s new labour law, marks a major legislative shift to protect workers and modernize employment relations.

مصر has entered a new era of employment law reform with the introduction of labour law no 14 of 2025, a transformative piece of legislation that replaces the outdated 2003 framework. Officially enacted in May 2025 and effective from 1 September 2025, Egypt’s new labour law reflects years of dialogue among stakeholders and delivers long-awaited protections for workers while also considering the needs of employers and investors.

Legislative Background and Objectives

Labour law no 14 of 2025 was prepared by the Egyptian Ministry of Labour and ratified by the House of Representatives after extensive consultations. The President of the Republic, Abdel Fattah El-Sisi, approved the law in May 2025, marking a major shift in the legislative landscape. Its core objective is to modernize the relationship between employers and employees, combat arbitrary dismissal, and align national labour standards with international conventions.

This reform stems from long-standing concerns about weak job security, misuse of pre-signed resignation forms, and a sluggish dispute resolution system. In response, Egypt’s new labour law introduces structural protections against unjust terminations, strengthens job security, and promotes gender equality, inclusion of persons with disabilities, and formal recognition of modern work patterns like remote and part-time employment.

Key Highlights of Labour Law No. 14 of 2025

1. Abolition of Arbitrary Dismissal and Form 6 Practices:

One of the law’s most impactful reforms is its direct attack on the widespread abuse of Form 6, which was often misused by employers to facilitate illegal terminations. Labour law no 14 of 2025 explicitly renders pre-signed resignation forms invalid and prohibits employers from using them as a basis to end employment.

The law mandates that all resignations must be ratified by the competent administrative authority (Labour Office), ensuring that they are voluntary and not coerced. This measure is a landmark step in protecting workers in Egypt’s private sector, effectively eliminating a major loophole that previously enabled arbitrary dismissals.

2. Definition and Regulation of Termination:

Egypt’s new labour law distinguishes between “dismissal” (which now requires a judicial ruling) and lawful “termination of employment” due to legitimate causes. Employers may no longer unilaterally dismiss workers for disciplinary reasons unless a court judgment authorizes the dismissal.

For non-disciplinary termination (such as redundancy or business closure), employers must provide prior written notice and pay fair compensation. The law provides a clear formula: two months’ wages per year of service must be paid to employees whose contracts are terminated without misconduct.

This standardization brings clarity to an area that was previously governed by discretionary court judgments, and ensures that employees have a reliable recourse against unfair treatment.

3. Institutionalizing Permanent Employment:

Another innovation of labour law no 14 of 2025 is establishing the presumption that all employment contracts are permanent unless justified otherwise. Employers must issue four formal copies of the employment contract: one each for the employer, employee, social insurance authority, and the Labour Office.

This formality improves transparency, ensures compliance with insurance obligations, and safeguards workers’ rights by making the employment relationship legally enforceable.

4. Empowering Women and Supporting Mothers:

Egypt’s new labour law introduces major advancements in supporting women in the workplace. These include:

• A three-month fully paid maternity leave (up to three times throughout a worker’s career)
• A one-hour daily reduction in working hours starting from the sixth month of pregnancy
• A six-month postnatal exemption from overtime work
• Up to two years of unpaid childcare leave in larger enterprises

These provisions reflect Egypt’s commitment to increasing female participation in the workforce by alleviating the fear of job loss during pregnancy and motherhood.

5. Inclusion of Marginalized Groups: Persons with Disabilities and Informal Workers:

A pivotal feature of labour law no 14 of 2025 is its focus on inclusivity. The law mandates employers to provide an accessible and non-discriminatory work environment for persons with disabilities. Companies are now legally bound to offer suitable roles, training opportunities, and workplace accommodations.

Additionally, Egypt’s new labour law establishes formal legal protections for informal and seasonal workers—including domestic workers and day laborers—who were historically excluded from the social security system. The law integrates them into the framework of social and health insurance, bringing long-overdue stability and benefits to millions working outside traditional employment.

6. Recognition of Modern Work Models:

In a first for Egyptian legislation, labour law no 14 of 2025 formally recognizes alternative work arrangements such as:

• Remote work
• Part-time employment
• Platform-based gig economy roles (e.g., ride-hailing apps)

By offering a contractual framework for such models, Egypt’s new labour law seeks to protect workers in the digital economy while accommodating the evolving structure of the global workforce.

7. National Wage Council and Annual Raises:

The law introduces a National Council for Wages empowered to propose wage policies and set fair compensation standards across sectors. Under labour law no 14 of 2025, private sector employees are entitled to an annual raise of no less than 3% of their insurable wage.

Although some worker unions objected to the reduction from the previous 7% standard, the government asserts that the current rate reflects a more sustainable balance between worker welfare and business viability.

8. Occupational Safety and Anti-Harassment Provisions:

Egypt’s new labour law emphasizes workplace safety and dignity. It enforces mandatory compliance with occupational health standards and provides strict guidelines for safety inspections.

Importantly, the law includes comprehensive anti-harassment provisions, criminalizing sexual harassment and bullying in the workplace. This shift recognizes employee dignity as a non-negotiable right and introduces an obligation for employers to actively prevent and respond to such violations.

9. Role of Labour Courts in Enforcing the Law:

To ensure rapid enforcement, labour law no 14 of 2025 establishes specialized labour courts within primary court jurisdictions. These courts are tasked with resolving labour disputes within 90 days, a dramatic improvement over the previous judicial delays.

Furthermore, the law introduces pre-litigation tri-party reconciliation committees consisting of representatives from the Ministry of Labour, trade unions, and employers. Disputes that are not resolved amicably within 21 days are escalated to the labour courts.

Each labour court includes a dedicated enforcement office and a judge authorized to issue urgent orders—such as suspending a dismissal or enforcing partial wage payments during litigation. These judicial reforms create a faster and fairer system to uphold rights under Egypt’s new labour law.

Balancing Worker Rights and Business Flexibility

Despite its pro-employee tilt, labour law no 14 of 2025 also introduces elements designed to support business operations and investment growth. The law abolishes criminal penalties (such as imprisonment) for labour violations, replacing them with proportional financial fines. Additionally, the vocational training levy on employers has been reduced from 1% to 0.25%, alleviating some financial pressure on companies.

Notably, the law permits business closures and worker terminations in cases of genuine economic hardship, provided workers are compensated and the process is documented and reviewed. These provisions reflect a careful attempt by the Egyptian government to balance job security with operational flexibility for employers.

Addressing Employer Concerns

While worker protections are central to the law, some employers have raised concerns about rising termination costs and limited flexibility. Specifically, the mandated severance pay—two months’ salary for every year of service—can impose a significant financial burden, especially during mass layoffs or restructuring.

Moreover, the legal requirement that dismissals must be based on objective, court-approved justifications could delay urgent HR decisions. Critics argue that this could discourage hiring or lead to overreliance on temporary contracts—ironically undermining the goal of long-term job stability.

However, Egypt’s new labour law offers reassurances to employers through streamlined legal procedures and the potential long-term benefits of a more stable, motivated workforce.

Clear Compensation Rules for Termination

A major strength of labour law no 14 of 2025 is its explicit formula for termination compensation, reducing ambiguity and legal disputes. The law requires employers to:

• Provide severance equal to two months’ wages for each year of completed service (in non-disciplinary dismissals)
• Pay all due wages, benefits, and leave balances upon termination
• Deliver termination compensation promptly; delays may trigger fines or interest

The law also distinguishes between disciplinary termination (which requires a court ruling) and consensual or economic termination (which demands written justification and full financial settlement).

Final Thoughts

In sum, labour law no 14 of 2025 is a watershed moment in Egyptian labour reform. It eliminates the misuse of resignation forms, protects workers against arbitrary dismissal, and establishes enforceable rights for women, informal workers, and those in the gig economy. By emphasizing transparency, formalization, and legal accountability, Egypt’s new labour law represents a decisive shift toward a more equitable employment system.

Although challenges remain in implementation—particularly educating employers and streamlining bureaucracy—the legal framework is a solid foundation for a modern, fair, and competitive labour market.

As the law takes full effect in September 2025, businesses and employees alike must adapt to the new legal landscape. For employers, this means reviewing HR policies and ensuring compliance. For employees, it signals a new era of enforceable workplace rights and dignity.

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