Egypt is the most densely populated Arab nation and the third highest in Africa. Located in Northern Africa and bordering the Mediterranean Sea, Egypt’s rich ancient history, as well as its modern impact in the region have made it both a major tourist attraction as well as a regional flash-point. As the seat of one of the most ancient civilizations in the world, Egypt’s rich trove of art, literature and architecture have attracted visitors from near and far. However, recent political turmoil, starting in 2011, has slowed down economic progress and failed to increase employment particularly among youths. Egypt’s GDP was $235.37 billion in 2017 with an unemployment rate estimated at 11.9%. The official language spoken in Egypt is Arabic although an elite class comprehends both English and French. Most of the population identifies as Muslim, with a substantial minority of Coptic Christians.
The Labor Code of Egypt defines permanent employment as work performed for an indefinite term. Employment contracts can be concluded for an indefinite period and renewed for similar periods by mutual agreement. An employment contract is considered to be indefinite where:
It is not written
The duration is not specified
If it was initially for a fixed period, but both parties continue to perform under the contract after its expiration without a written agreement
In Egypt, the Labor Code requires employment contracts to be in writing. The contract must be written in Arabic, and 4 copies must be provided: for the employer, for the employee, for submission to the social insurance office, and for the relevant administrative authority.
The fourth copy of the employment contract, which must be deposited with the competent Labour Directorate, may be submitted either in person (hard copy) or electronically via the Directorate’s official email address. Electronic submission must be sent from the company’s officially registered email and include the required documentation.
The same submission requirements apply to contract renewals and to notices of non-renewal or termination, which must be filed within 15 days of the relevant event. Employers are not required to submit the fourth copy for indefinite-term contracts concluded before September 1, 2025. However, fixed-term contracts concluded before that date must be submitted upon their first renewal.
For employees who do not speak Arabic, employers must prepare the employment contract in both Arabic and the employee's language. The Arabic version shall prevail in the event of a discrepancy in interpretation.
The contract must contain the following information:
The name of the employer and the workplace address
The name of the employee, their qualifications, profession, or craft, social insurance number, and home address
The nature and kind of work that is the subject of the contract
The wages to be paid to the employee, as well as the benefits in cash and in kind that were agreed upon
The probation period, if there is to be one
Any non-compete or non-solicitation agreements
If an employer wishes to conclude a non-compete or non-solicitation agreement with the employee, it must be in writing. The clause should stipulate what activities the employee is prohibited from engaging in, how long the employee must refrain from engaging in the activity, and in what geographic area. The clause can also stipulate compensation for breaching the terms of the clause. No specific regulations in Egyptian law define limitations on these agreements, but the agreement can only prohibit activity so far as it harms the employer.
The Egyptian Labor Law classifies temporary workers into 3 categories.
Temporary Work: tasks related to the employer's business, limited in duration or purpose
Casual Work: unrelated to the employer’s core business and not exceeding 6 months
Seasonal Work: work performed during recognized recurring seasons
The Labor Law allows for multiple renewals of temporary labor contracts by express agreement between both parties.
The probation period in an individual employment contract may not exceed 3 months, and an employee cannot be placed on probation more than once with the same employer.
In Egypt, the Labor Law stipulates that the standard working hours are 48 hours a week or 8 hours a day. This does not include the time given to an employee for meals and rest. A workday must include 1 or more rest and meal periods that total at least 1 hour. The total working hours, including rest periods, cannot exceed 10 hours a day. Rest periods are considered part of the employee's workday if they remain on-site during those periods. Employees who engage in work that is intermittent by nature or of a special nature are exempt from this restriction. In such cases, the total time the employee is present at the establishment shall not exceed 12 hours per day.
According to Egyptian labor law, employees are entitled to paid annual leave that excludes official holidays, public occasions, and weekly rest days. Employees are entitled to 15 days of paid annual leave in their first year of service and 21 days of paid annual leave starting from the second year. Employees who have completed 10 years of service with 1 or more employers, or who are over 50 years old, are entitled to 30 days. Employees with disabilities or dwarfism are entitled to 45 days.
For employees who have completed a period of service of less than 1 year, annual leave is granted proportionally to the time spent in service, provided the employee has completed at least 6 months of service with the employer. For employees working in hazardous, unhealthy, or remote locations, the duration of annual leave is increased by 7 days.
In Egypt, the labor code provides employees with sick leave if their illness is confirmed by a report from the relevant medical authorities. During the period of sickness, the worker is entitled to wage replacement compensation from the Public Authority for Health Insurance. The employee is eligible for sick leave with a sickness allowance up to 180 days in a year.
The sickness allowance is paid by the Public Authority for Health Insurance as 75% of the daily wages of the employee for the first 90 days of the sickness and 85% of the daily wages for the next 90 days of sickness. In the case of tuberculosis, mental illness, or a chronic disease, 100% of the wage is paid while the employee is sick until recovery.
The Egyptian Labour Law provides that female employees are entitled to 4 months of paid maternity leave. Leave is compulsory for 45 days after childbirth. An employee is required to submit a medical certificate indicating the expected date of delivery. Employees are entitled to maternity leave 3 times during their period of service with the employer.
The daily work hours for a pregnant employee are reduced by at least 1 hour beginning from the sixth month of pregnancy. Employers may not require a pregnant employee to work overtime during her pregnancy or for up to 6 months after the delivery.
An employer is prohibited from terminating a female worker during her maternity leave.
Employees are entitled to 1 day of paid emergency leave on the day of their child's birth and up to 3 times during their total period of service, even if they are employed by different employers.
Under Egypt’s Labour Law, an employer may terminate an open-ended contract only by giving at least 3 months’ written notice. The notice period begins when the employee receives it, cannot be waived or shortened, and the contract remains fully in force during this time. Notice cannot be issued while the employee is on leave, and sick leave pauses the notice period. If the employer terminates the contract, the employee is entitled to paid time to job-search (1 day per week or 8 hours weekly). If the employer terminates without notice or ends the contract early, they must pay wages equal to the full notice period or the remaining portion. Employees may be dismissed without notice only for grave misconduct as defined in the law.
Under Egypt’s Labour Law, employers must provide severance in several situations. If the employer terminates a fixed-term contract longer than 5 years, the employee is entitled to 1 month’s wage for each year of service. Employees are also owed severance for service after age 60 (or before age 18 for apprentices) when those periods are not covered by the Social Insurance and Pensions Law. This is calculated at half a month’s wage for each of the first 5 years and 1 month per year thereafter, based on the employee’s last wage. Any severance due is also payable to beneficiaries if the employee dies. Additionally, for terminations due to economic reasons, employees are entitled to 1 month’s wage for each of the first 5 years of service and 1 and a half months’ wage for each subsequent year.
