{"id":137488,"date":"2026-04-07T13:44:08","date_gmt":"2026-04-07T13:44:08","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=137488"},"modified":"2026-04-07T13:44:08","modified_gmt":"2026-04-07T13:44:08","slug":"egypt-employment-and-labour-law","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/egypt-employment-and-labour-law\/","title":{"rendered":"Egypt: Employment and Labour Law"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-137488","comparative_guide","type-comparative_guide","status-publish","hentry","guides-employment-and-labour-law","jurisdictions-egypt"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Ibrachy &amp; Dermarkar<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2024\/09\/admin-ajax.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Ibrachy &amp; Dermarkar<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2024\/09\/admin-ajax.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Employment and Labour Law laws and regulations applicable in Egypt<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does an employer need a reason to lawfully terminate an employment relationship? If so, state what reasons are lawful in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, an employer needs reasons to lawfully terminate the employment relationship with an employee, in accordance with the provisions of Article 148 of Labor Law No. 14 of 2025. The authority to impose the penalty of dismissal lies with the competent labor court, and the law stipulates that an employment relationship may not be terminated unless the employee has committed a serious fault. Article 148 specifies certain cases of serious faults, which are:<\/p>\n<p>a) If it is proven that the employee assumed a false identity or submitted forged documents.<\/p>\n<p>b) If it is proven that the employee committed a fault that caused substantial damage to the employer, provided that the employer reports the incident to the competent authorities within twenty-four hours from the time of becoming aware of it.<\/p>\n<p>c) If it is proven that the employee repeatedly failed to follow the necessary instructions for the safety of workers or the establishment, provided that these instructions are written, publicly displayed, and the employee was previously warned in writing to comply.<\/p>\n<p>d) If it is proven that the employee disclosed the establishment\u2019s secrets, causing substantial harm to the establishment.<\/p>\n<p>e) If it is proven that the employee competed with the employer in the same line of business.<\/p>\n<p>f) If it is proven that the employee was under the influence of alcohol or narcotics during working hours.<\/p>\n<p>g) If it is proven that the employee assaulted the employer or general manager or committed a serious assault on any of their superiors during work or because of it.<\/p>\n<p>In all cases, an employer may not terminate an employee\u2019s service without first submitting the case to the competent labor court.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, additional considerations apply if large numbers of dismissals (redundancies) are planned?  How many employees need to be affected for the additional considerations to apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The law grants the employer, in the case of economic necessities, the right to fully or partially close the establishment, or to reduce its size or activities, which may lead to a reduction in the workforce present at the establishment, as stipulated in Article 236 of Labor Law No. 14 of 2025.<\/p>\n<p>Article 239 of Labor Law No. 14 of 2025, along with Minister of Manpower Decree No. 301 of 2025, sets out certain principles and standards that the employer must follow when selecting employees for redundancy. These principles are as follows:<\/p>\n<p>a) Transparency in explaining the economic or technical reasons.<\/p>\n<p>b) Objectivity and non-discrimination among employees.<\/p>\n<p>c) Achieving a balance between the interests of the establishment and protecting the family and social stability of employees.<\/p>\n<p>d) Enabling the trade union to review the necessary data to provide its opinion.<\/p>\n<p>The law also outlines criteria to guide the employer in selecting employees for redundancy according to priorities. These criteria are advisory and include:<\/p>\n<p>a) Seniority.<\/p>\n<p>b) Competence and skills.<\/p>\n<p>c) Conduct and job discipline.<\/p>\n<p>d) Family circumstances.<\/p>\n<p>e) Employee\u2019s health condition.<\/p>\n<p>These criteria are meant to assist the employer in making a decision and do not need to be fully met collectively. The key requirement is to maintain a balance between the interests of the establishment and the social stability of employees.<\/p>\n<p>These criteria do not override any superior standards that may be provided in a collective labor agreement, if one exists.<\/p>\n<p>Furthermore, the employer is obligated to notify the competent administrative authority of the redundancy decision, including the justifications and criteria applied. The administrative authority must verify the accuracy of this information and may request any supporting documents from the employer to ensure compliance with these standards.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, additional considerations apply if a worker\u2019s employment is terminated in the context of a business sale?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no grounds for terminating the employment relationship in this case, as the law protects and secures the rights of employees in the event that the employer sells the establishment to another owner, as provided in Article 11 of Labor Law No. 14 of 2025.<\/p>\n<p>The article stipulates that in the event of the sale of the establishment to another employer, all existing employment contracts of the employees at the establishment are to be maintained, and the new employer shall be jointly liable with the previous employer for fulfilling all obligations arising from these contracts.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do employees need to have a minimum period of service in order to benefit from termination rights?  If so, what is the length of the service requirement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Labor Law No. 14 of 2025 does not set a minimum number of years of service to reach retirement age. Articles 171 and 172 of the law stipulate that the retirement age cannot be set below sixty years. The employer may terminate the employee\u2019s service upon reaching the age of sixty, except in the case of a fixed-term employment contract, in which case reaching retirement age coincides with the expiration of the contract.<\/p>\n<p>An employee is entitled to a reward for the period worked after reaching the age of sixty, calculated as half a month\u2019s salary for each year of the first five years after sixty, and one month\u2019s salary for each year of the following five years.<\/p>\n<p>The obligation to pay this reward falls on the National Social Insurance Authority, with no liability on the employer.<\/p>\n<p>However, if the company\u2019s internal work regulations include a provision granting the employee a reward from the company, this benefit applies, as the law allows the continuation of any such benefits in accordance with Article 6 of Labor Law No. 14 of 2025.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, is the minimum notice period to terminate employment?  Are there any categories of employee who typically have a contractual notice entitlement in excess of the minimum period?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>We find that the notice period related to the termination of employment is explicitly addressed by the Labor Law in fixed-term employment contracts, which automatically end upon the expiration of their term, as stipulated in Article 154 of Labor Law No. 14 of 2025.<\/p>\n<p>However, in the case of notice for indefinite-term contracts, Labor Law No. 14 of 2025 provides that any party wishing to terminate the contract must notify the other party in writing three months prior to the intended termination, in accordance with Article 156 of 2025.<\/p>\n<p>This legal notice period applies to all employees without discrimination and may not be less than three months. Nevertheless, an employment contract may provide for a longer notice period, which would apply as a better benefit for the employee, since any superior benefits for the employee continue in accordance with Article 6 of Labor Law No. 14 of 2025.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to make a payment to a worker to end the employment relationship instead of giving notice?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, an employer may provide monetary compensation in lieu of the notice period for the employee. Article 163 of Labor Law No. 14 of 2025 states that the employer may exempt the employee from serving the notice period, subject to certain conditions and benefits for the employee, which are:<\/p>\n<ul>\n<li>The notice period is counted as part of the employee\u2019s service duration.<\/li>\n<li>This exemption is provided in exchange for the employer paying the employee\u2019s full wage for the entire notice period.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can an employer require a worker to be on garden leave, that is, continue to employ and pay a worker during their notice period but require them to stay at home and not participate in any work?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no objection to an employer requiring the employee to work from home during the notice period without assigning any tasks, as this is considered a benefit granted by the employer. This is valid as long as the employer fulfills the core obligations regarding the notice period set out in Article 163 of Labor Law No. 14 of 2025, which are:<\/p>\n<p>First: Counting the notice period as part of the employee\u2019s service.<\/p>\n<p>Second: The employer\u2019s obligation to pay the employee\u2019s full wage for the notice period.<\/p>\n<p>If the employer complies with these obligations, there is no objection to requiring the employee to remain at home during the notice period. This is considered an additional benefit and does not diminish the employee\u2019s rights, in accordance with Article 6 of Labor Law No. 14 of 2025.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does an employer have to follow a prescribed procedure to achieve an effective termination of the employment relationship? If yes, describe the requirements of that procedure or procedures. Is an employee entitled to appeal against their termination?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, the employer must follow specific procedures when terminating employment.<\/p>\n<p>The employer has the right to take disciplinary actions against employees according to Article 139 of Labor Law No. 14 of 2025, including termination of service.<\/p>\n<p><strong>Procedures to follow before imposing any penalty:<\/strong><\/p>\n<p><em>First:<\/em> No penalty may be imposed on the employee except after:<\/p>\n<ul>\n<li>Informing them in writing of the allegations.<\/li>\n<li>Hearing their statements and investigating their defense.<\/li>\n<li>Documenting this in a report filed in the employee\u2019s personal file.<\/li>\n<\/ul>\n<p><em>Second:<\/em> The investigation must be conducted within seven days of discovering the violation.<\/p>\n<p><em>Third:<\/em> No more than one penalty may be imposed for the same violation.<\/p>\n<p><em>Fourth:<\/em> The decision to impose the penalty must be justified.<\/p>\n<p><strong>In the case of termination as a penalty:<\/strong><\/p>\n<ul>\n<li>The employer may issue a decision to suspend the employee temporarily for a period not exceeding 60 days, with full pay.<\/li>\n<li>The matter must be submitted to the competent Labor Court, which has the final authority to issue a termination decision.<\/li>\n<li>The court must decide on the termination request urgently within three months from the date of the first session.<\/li>\n<\/ul>\n<p><strong>Employee\u2019s right to appeal:<\/strong><\/p>\n<p>The employee has the right to appeal the termination decision before the Labor Court at various levels of litigation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If the employer does not follow any prescribed procedure as described in response to question 8, what are the consequences for the employer?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>If the employer fails to follow the procedures for imposing termination penalties, any actions taken contrary to the law are null and void.<\/p>\n<p>The provisions of Labor Law No. 14 of 2025 are mandatory rules that cannot be waived, according to Article 6 of the same law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How, if at all, are collective agreements relevant to the termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A collective labor agreement may play a legal role, provided there is a legal justification (economic or social reasons) for the workplace.<\/p>\n<p>The duration of the agreement must not exceed three years, and if it does, the parties must negotiate renewal or amendment.<\/p>\n<p>Conditions according to Article 199 of Labor Law No. 14 of 2025:<\/p>\n<ol>\n<li>Any provision that contradicts the law or related regulations is null and void.<\/li>\n<li>The agreement is valid and binding after signing and must be deposited with the competent administrative authority within 30 days; the authority may object to any illegal provisions.<\/li>\n<li>The employer must display the agreement in a visible place at the workplace.<\/li>\n<li>\u00a0Both parties must implement the agreement in good faith and refrain from any actions that hinder its execution.<\/li>\n<li>In the event of unexpected exceptional circumstances that make performance burdensome, the parties must discuss adjustments to balance their interests.<\/li>\n<li>Both parties, as well as any concerned employee or employer, may request enforcement of the agreement or compensation for non-compliance.<\/li>\n<\/ol>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the employer have to obtain the permission of or inform a third party (e.g local labour authorities or court) before being able to validly terminate the employment relationship? If yes, what are the sanctions for breach of this requirement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The employer must submit the termination decision to the competent Labor Court, according to Article 148 of Labor Law No. 14 of 2025, which states that the court has exclusive authority to impose termination penalties.<\/p>\n<p>Failure to follow these procedures renders any actions null and void, as per Article 6 of the law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What protection from discrimination or harassment are workers entitled to in respect of the termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Labor Law No. 14 of 2025 criminalizes all forms of harassment, bullying, and discrimination to ensure a safe and stable work environment.<\/p>\n<p><strong>Explicit prohibitions:<\/strong><\/p>\n<ol>\n<li>Prohibition of forced labor in any form.<\/li>\n<li>Prohibition of harassment and bullying.<\/li>\n<li>Prohibition of verbal or physical violence against any employee.<\/li>\n<li>Prohibition of discrimination in training, employment, work conditions, job advertisements, or employment based on religion, belief, gender, origin, race, color, or language.<\/li>\n<\/ol>\n<p>These prohibitions are confirmed in Articles 4 and 5 of Labor Law No. 14 of 2025.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the possible consequences for the employer if a worker has suffered discrimination or harassment in the context of termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>According to Article 281 of Labor Law No. 14 of 2025:<\/p>\n<ul>\n<li>Fines range from 5,000 to 50,000 EGP.<\/li>\n<li>The fine increases depending on the number of affected employees and doubles in case of recurrence.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are any categories of worker (for example, fixed-term workers or workers on family leave) entitled to specific protection, other than protection from discrimination or harassment, on the termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Special Protections for Workers under Labor Law No. 14 of 2025<\/p>\n<p>In addition to the general protection against discrimination, Labor Law No. 14 of 2025 provides specific protections for certain categories of workers, particularly female employees and workers with family responsibilities.<\/p>\n<p><strong>1- Maternity Leave and Pregnancy-Related Protections<\/strong><\/p>\n<p>Labor Law No. 14 of 2025 grants pregnant employees a maternity leave of four months, covering both the pre- and post-natal periods, provided that the post-natal leave is not less than forty-five days (Article 54). The employee must submit a medical certificate specifying the expected date of childbirth. This leave is fully paid.<\/p>\n<p>From the sixth month of pregnancy, female employees are entitled to reduce their daily working hours by at least one hour. Overtime work is prohibited during pregnancy and for six months following childbirth.<\/p>\n<p>The law permits a female employee to take maternity leave up to three times during her employment (Article 54) and protects her from dismissal or termination by the employer during this period (Article 55).<\/p>\n<p>During breastfeeding, in addition to the prescribed rest period, female employees are entitled to two daily breastfeeding breaks, each not less than thirty minutes, which may be combined. These breaks are considered working hours and are not deducted from wages.<\/p>\n<p><strong>2. Unpaid Childcare Leave<\/strong><\/p>\n<p>Female employees in establishments employing fifty or more workers are entitled to unpaid leave of up to two years for child care. This leave may be taken up to three times during her employment, provided she has completed at least one year of service and that a minimum of two years separates the first and second periods of leave.<\/p>\n<p><strong>3. Termination of Employment for Personal Reasons<\/strong><\/p>\n<p>Article 58 grants female employees the right to terminate their employment due to marriage, pregnancy, or childbirth. Employees must notify the employer in writing within three months of the marriage, confirmation of pregnancy, or childbirth, without affecting their statutory rights.<\/p>\n<p><strong>4. Paternity\/Parental Leave<\/strong><\/p>\n<p>Workers are entitled to paid leave upon the birth of a child, up to a maximum of three times during their employment. This leave is in addition to the annual leave entitlement (Article 128).<\/p>\n<p><strong>5. Religious Leave<\/strong><\/p>\n<p>Employees who have completed five consecutive years of service are entitled to one month of paid leave to perform religious obligations, including Hajj or visiting Jerusalem.<\/p>\n<p><strong>6. Additional Compensation for Fixed-Term Contracts<\/strong><\/p>\n<p>Although fixed-term contracts typically expire upon completion of their term (Article 154), Labor Law No. 14 of 2025 provides additional protection. Employees whose contracts have been renewed for more than five years are entitled to compensation if the employer terminates their contract on the sixth renewal before its expiry. Compensation is calculated as one month\u2019s pay for each year of prior service, in addition to payment for any remaining period under the contract.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are workers who have made disclosures in the public interest (whistleblowers) entitled to any special protection from termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>We find that Labor Law No. 14 of 2025 has protected and safeguarded the employee in this regard, granting the employee full freedom to claim their rights and report legal violations.<\/p>\n<p>This is explicitly confirmed in the third paragraph of the reasons for unlawful termination of employment, as set out in Article 165 of Labor Law No. 14 of 2025, which provides that termination by the employer is considered unlawful if it is carried out because the employee filed a complaint, brought a lawsuit against the employer, or participated in such actions to address the employer\u2019s breach of laws, regulations, or employment contracts.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In the event of financial difficulties, can an employer lawfully terminate an employee\u2019s contract of employment and offer re-engagement on new less favourable terms?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Temporary Modification of Employment Terms for Economic Reasons:<\/p>\n<p>Labor Law No. 14 of 2025 grants the employer, in cases of economic reasons within the establishment, the right to temporarily modify the terms of the employment contract. Under these circumstances:<\/p>\n<ul>\n<li>The employer may assign the employee to tasks that were not originally agreed upon, even if they differ from the employee\u2019s initial role.<\/li>\n<li>The employer may reduce the employee\u2019s wage, provided that it does not fall below the statutory minimum wage, as confirmed in Article 241 of Labor Law No. 14 of 2025.<\/li>\n<\/ul>\n<p>If the employee refuses to continue the employment relationship under these modified conditions, they may terminate the contract without being bound by the notice period. In such cases, the termination is considered justified for both the employer and the employee.<\/p>\n<p>In all scenarios, the employee is entitled to a reward equivalent to one month\u2019s salary for each of the first five years of service, and one and a half months\u2019 salary for each subsequent year.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, risks are associated with the use of artificial intelligence in an employer\u2019s recruitment or termination decisions? Have any court or tribunal claims been brought regarding an employer\u2019s use of AI or automated decision-making in the termination process?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Potential risks:<\/p>\n<ol>\n<li>Discrimination and bias due to training data, potentially favoring some candidates.<\/li>\n<li>Job loss, especially for routine or repetitive tasks, due to AI replacement.<\/li>\n<li>Privacy violations if candidate data is not adequately protected.<\/li>\n<li>Lack of transparency in AI decision-making, making it difficult to understand outcomes.<\/li>\n<li>Legal liability for incorrect or illegal decisions made by AI systems.<\/li>\n<\/ol>\n<p>To date, no lawsuits or claims have been filed before courts or committees regarding an employer\u2019s use of AI in hiring or termination.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What financial compensation is required under law or custom to terminate the employment relationship? How is such compensation calculated?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Financial Compensation under the Law or Custom upon Termination of Employment<\/p>\n<p><strong>First: Compensation at the End of a Fixed-Term Contract<\/strong><\/p>\n<p>The employer is obligated to compensate the employee for the remaining period of a fixed-term employment contract if the employer terminates it before its expiration, in accordance with Article 154 of Labor Law No. 14 of 2025. It should be noted that a fixed-term contract ends automatically upon the expiry of its term.<\/p>\n<p><strong>Second: Compensation for Long-Term Fixed or Renewed Contracts<\/strong><\/p>\n<p>If an employment contract is concluded or renewed for a period exceeding five years, and the termination is initiated by the employer, the employee is entitled to a reward of one month\u2019s salary for each year of service, as provided in Article 154 of Labor Law No. 2025.<\/p>\n<p><strong>Third: Compensation in Indefinite-Term Contracts<\/strong><\/p>\n<p>For indefinite-term employment contracts, the employer is obliged to compensate the employee at the rate of two months\u2019 salary for each year of service, according to Article 165 of Labor Law No. 14 of 2025.<\/p>\n<p><strong>Additional Note:<\/strong><\/p>\n<p>This compensation does not prejudice the employee\u2019s right to claim any other entitlements granted by law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can an employer reach agreement with a worker on the termination of employment in which the employee validly waives his rights in return for a payment? If yes, in what form, should the agreement be documented?  Describe any limitations that apply, including in respect of non-disclosure or confidentiality clauses.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Mutual Agreement for Termination of Employment<br \/>\nAn employer may reach a mutual agreement with an employee upon termination of employment through the execution of a mutual termination agreement, signed by both the employer and the employee.<\/p>\n<p>For the agreement to be valid and enforceable, it must include the following conditions:<\/p>\n<p><strong>1. Written Request by the Employee:<\/strong><br \/>\nThe employee must submit a written request to the employer expressing their desire to terminate the employment. The date of this request must be recorded in the mutual termination agreement.<\/p>\n<p><strong>2. Full Legal Entitlements:<\/strong><br \/>\nThe agreement must ensure that the employee receives all legal entitlements provided by law, their employment contract, the company\u2019s internal regulations, or customary benefits traditionally granted by the employer.<br \/>\nAny deduction from the employee\u2019s legally prescribed rights renders the agreement invalid, in accordance with Article 6 of Labor Law No. 14 of 2025, which states that any agreement contrary to the law or diminishing the employee\u2019s rights is null and void.<\/p>\n<p><strong>3. Employee Acknowledgment of Rights:<\/strong><br \/>\nThe employee must acknowledge in the agreement that they have received all legal entitlements and have fully released the employer from any further obligations regarding those rights.<\/p>\n<p><strong>4. Clearance and Experience Certificate:<\/strong><br \/>\nThe employer must provide the employee with a clearance certificate and a certificate of experience for the duration of their service.<\/p>\n<p><strong>5. Waiver of Claims:<\/strong><br \/>\nThe employee must acknowledge that they waive all past and present claims or complaints and agree not to initiate any future legal disputes against the employer.<\/p>\n<p><strong>6. Confidentiality:<\/strong><br \/>\nThe employee must explicitly acknowledge their obligation to maintain confidentiality and not disclose any information relating to the employer.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to restrict a worker from working for competitors after the termination of employment? If yes, describe any relevant requirements or limitations.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Restrictions on Employee Competition with the Employer:<\/p>\n<p>Labor Law No. 14 of 2025 regulates the restrictions on an employee competing with their employer and sets provisions limiting the employee from engaging in any competing activity during or after the employment relationship.<\/p>\n<p><strong>1. Competition During Employment:<\/strong><\/p>\n<p>Paragraph 3 of Article 136 of Labor Law No. 14 of 2025 states that:<br \/>\nAn employee is prohibited from engaging in any activity similar to the business of the employer during the employment relationship, by any means of competition, whether as a partner or as an employee.<\/p>\n<p>The law considers engaging in competition with the employer as a serious misconduct, which entitles the employer to take legal action to terminate the employee before the competent labor court. Article 148 of the same law confirms that competition with the employer in their line of business constitutes serious misconduct justifying termination.<\/p>\n<p><strong>2. Competition After Termination of Employment<\/strong><\/p>\n<p>Article 686 of the Civil Code provides that the employer may agree with the employee on a non-compete obligation after the termination of employment, provided that the nature of the employee\u2019s work gives them knowledge of the employer\u2019s clients and access to trade secrets.<\/p>\n<p><em>Conditions for a post-employment non-compete clause:<\/em><\/p>\n<p>The employee must be of legal age and sign the clause.<\/p>\n<p>The restriction must be limited in terms of time, geographic scope, and type of work, and must be no more than necessary to protect the employer\u2019s interests without excess.<\/p>\n<p>The parties may also agree on a penalty clause for breach of the non-compete obligation, provided it is not excessive, as any clause that unduly harms the employee\u2019s interests is considered void. Article 687 of the Egyptian Civil Code No. 131 of 1948 affirms this principle.<\/p>\n<p><strong>3. Compensation for Non-Compete Commitment<\/strong><\/p>\n<p>Whether the employee receives compensation for adhering to the non-compete obligation is a matter of agreement between the parties and is legally permissible.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to restrict a worker from soliciting customers or clients, or employees of the employer, after the termination of employment? If yes, describe any relevant requirements or limitations (including any payments that must be made to the worker for the restriction to be valid and enforceable).<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong>1. Possibility of Restricting the Employee<\/strong><\/p>\n<p>Yes, it is legally possible to restrict an employee from soliciting clients or employees after the termination of employment.<\/p>\n<p>Article 136, Paragraph 3 of Labor Law No. 14 of 2025 prohibits an employee from engaging in any competing activity during the employment relationship.<\/p>\n<p>Engaging in competition with the employer is considered serious misconduct, which entitles the employer to terminate the employee (Article 148).<\/p>\n<p><strong>2. Conditions and Limitations<\/strong><\/p>\n<p>Under Article 686 of the Civil Code No. 131 of 1948, a non-compete clause may be agreed upon for the post-employment period if:<\/p>\n<p>The employee has knowledge of the employer\u2019s clients or trade secrets.<\/p>\n<p>The employee is of legal age and has signed the non-compete agreement.<\/p>\n<p>The restriction is limited in terms of time, geographic scope, and type of work, and is no more than necessary to protect the employer\u2019s legitimate interests.<\/p>\n<p>A penalty clause may be included in case of breach, provided it is not excessive or harmful to the employee\u2019s rights.<\/p>\n<p><strong>3. Financial Consideration<\/strong><\/p>\n<p>Parties may agree to provide financial compensation to the employee for adhering to the non-compete obligation.<\/p>\n<p>Such compensation is not mandatory under the law and is a matter of negotiation between the parties.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can an employer require a worker to keep information relating to the employer confidential after the termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Obligation to Maintain Confidentiality<\/p>\n<p>The employer has the right to require the employee to maintain the confidentiality of the employer\u2019s information, whether during the employment period or after the termination of the employment relationship.<\/p>\n<p>Labor Law No. 14 of 2025, Article 134, Paragraph 9, affirms this right, stipulating that the employee must preserve trade and work-related secrets and refrain from disclosing any information related to the work, whether inherently confidential or designated as such by written instructions from the employer.<\/p>\n<p>Additionally, Article 685 of the Egyptian Civil Code No. 131 of 1948 provides that the employee must maintain the confidentiality of commercial and industrial secrets even after the termination of the employment relationship.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are employers obliged to provide references to new employers if these are requested?  If so, what information must the reference include? What duties apply to employers giving references?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Employer\u2019s Obligation to Provide Experience Certificates and Clearance under Labor Law No. 14 of 2025<\/p>\n<p>The employer is obligated to provide an experience certificate to the employee in accordance with Article 175 of Labor Law No. 14 of 2025. The article stipulates that the employee is entitled to receive an experience certificate upon request, either during the period of employment or upon termination of the employment relationship, and that this certificate is provided free of charge.<\/p>\n<p>The experience certificate must be requested in writing by the employee and submitted to the employer. It must include the following information:<\/p>\n<ul>\n<li>The date the employee joined the company.<\/li>\n<li>The date of termination of employment.<\/li>\n<li>The type of work performed by the employee.<\/li>\n<li>The benefits the employee received.<\/li>\n<li>The salary the employee earned.<\/li>\n<li>The reason for the termination of employment.<\/li>\n<li>The employer must provide the experience certificate within 15 days from the date of the employee\u2019s request, as stipulated in Article 175.<\/li>\n<\/ul>\n<p>In addition, the employer is also obligated to provide the employee with a clearance certificate regarding the contractual relationship, in accordance with the same article.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, in your opinion, are the most common difficulties faced by employers in your jurisdiction when terminating employment and how do you consider employers can mitigate these?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong>Key Challenges Faced by Employers When Terminating Employment<\/strong><\/p>\n<p>Employers encounter several challenges when seeking to terminate an employment relationship. The main difficulties can be summarized as follows:<\/p>\n<p><em>1. Limited Authority to Terminate:<\/em><\/p>\n<p>The decision to terminate an employee is not solely at the discretion of the employer. The employer\u2019s role is generally limited to submitting the employee\u2019s file to the competent labor court, which makes the final decision regarding termination.<\/p>\n<p><em>2. Financial Compensation:<\/em><\/p>\n<p>Compensation owed to the employee in the event of termination by the employer can be significant if the termination is not based on a lawful reason.<\/p>\n<p>Fixed-term contracts: The employee is entitled to compensation for the full remaining term of the contract.<\/p>\n<p>Indefinite-term contracts: The employee is entitled to compensation equivalent to two months\u2019 salary for each year of service.<\/p>\n<p><em>3. Employee\u2019s Right to Terminate the Contract:<\/em><\/p>\n<p>Labor Law grants employees the right to terminate a fixed-term contract if they have completed more than five years of service, specifically upon the sixth renewal. The employee must notify the employer three months in advance. This right may affect the employer\u2019s interests if continued employment of the employee is required.<\/p>\n<p><em>4. Additional Compensation for Renewed Contracts:<\/em><\/p>\n<p>The law provides for additional compensation if the employer wishes to terminate a fixed-term contract in the sixth year of renewal. The employer must pay one month\u2019s salary for each year of service, in addition to statutory compensation and payment for the full remaining term of the contract.<\/p>\n<p><strong>Mitigation Measures<\/strong><\/p>\n<p>To reduce the legal and financial risks associated with terminating employment, employers can adopt the following measures:<\/p>\n<p><em>1. Compliance with Legal Procedures:<\/em><\/p>\n<p>Follow all procedures prescribed by Labor Law and consult legal expertise to organize contractual obligations between the employee and employer, including drafting clear employment contracts and detailed workplace regulations that clearly define the contractual relationship.<\/p>\n<p><em>2. Effective Communication:<\/em><\/p>\n<p>Enhance communication between employees and management to understand and meet operational needs effectively, reducing the likelihood of future disputes.<\/p>\n<p><em>3. Accurate Documentation:<\/em><\/p>\n<p>Document all procedures and correspondence between the employee and employer to ensure a clear legal record is available if needed.<\/p>\n<p><em>4. Training and Skill Development Programs:<\/em><\/p>\n<p>Implement training and development programs to enhance employee skills and performance. This can reduce the need for termination and minimize potential compensation claims, providing added value to the employer instead of paying financial compensation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are any legal changes planned that are likely to impact the way employers in your jurisdiction approach termination of employment? If so, please describe what impact you foresee from such changes and how employers can prepare for them?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong>I. Direct Impact on Employers under the New Labor Law No. 14 of 2025<\/strong><\/p>\n<p><em>The direct impact on employers includes several aspects:<\/em><\/p>\n<p>Increased Costs: Employers may face higher costs due to statutory compensation required when terminating employment contracts without a valid reason.<\/p>\n<p>Limited Authority to Terminate: Employers cannot make unilateral termination decisions; the matter must be submitted to the competent labor court, which holds the final authority.<\/p>\n<p>Documentation Requirements: Employers must maintain comprehensive records of all procedures and official correspondence with the employee.<\/p>\n<p><strong>II. Measures Employers Should Take<\/strong><\/p>\n<p><em>Compliance with Legal Procedures:<\/em><\/p>\n<p>Follow all procedures prescribed by Labor Law and seek legal expertise to organize contractual obligations between the employee and employer. This includes drafting clear employment contracts and preparing detailed workplace regulations that outline all aspects of the contractual relationship.<\/p>\n<p><em>Effective Communication:<\/em><\/p>\n<p>Maintain active communication between employees and all management departments to understand operational needs and implement them effectively.<\/p>\n<p><em>Accurate Documentation:<\/em><\/p>\n<p>Document all procedures and correspondence between the employee and employer to ensure a clear legal record is available if needed.<\/p>\n<p><em>Training and Development Programs:<\/em><\/p>\n<p>Implement employee training and development programs to maximize employee potential and avoid premature termination decisions. Training can improve employee performance, the services they provide to the employer, and potentially reduce compensation obligations in case of termination.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">5592<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/137488","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=137488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}