Mahmoud Abdel-Ghani, head of HR at a private export-import firm, is busy compiling a detailed workforce report including employee numbers, qualifications, roles, age groups, gender, nationality, and salaries to submit to the Ministry of Manpower by 30 September in line with Egypt’s new labour law (Law 14/2025) that came into effect on 1 September.
Under the new law, which governs private sector employment, Iman Zakaria, a pregnant accountant in the company’s finance department, is now entitled to 120 days of maternity leave, up from the 90 days she had when she gave birth to her first child two years ago. The law allows her to take maternity leave up to three times during her service, regardless of how long she has worked at the company.
Her husband, Mustafa, a data analyst at the same company, is entitled to one paid day off on the birth of their child. He can take this leave up to three times during his employment.
Ahmed, the 16-year-old office assistant, is now covered by provisions allowing minors aged 14 and above to work in order “to gradually master a craft or trade”, provided they are not exposed to hazardous environments. He is pleased to have a formal contract, even though the new law does not guarantee hourly wage rates for workers under the age of 18.
The new law also protects workers by criminalising harassment, bullying, and any form of verbal, physical, or psychological violence, whether conducted in person or through digital means. Employers who fail to maintain a safe and respectful work environment or prevent such behaviour may face legal consequences, according to the AMERELLER law firm’s interpretation of the law.
Hala, who is the only caregiver for her 10-year-old autistic child, now has the right to work remotely or choose flexible hours. The new law grants this option to women caring for children with disabilities.
Private sector workers make up the majority of Egypt’s workforce, including those in the informal sector such as irregular and agricultural labourers. For the first time, the law formally recognises such irregular workers, those without traditional contracts or social insurance, and extends basic protections to them through a new Protection and Employment Fund for Irregular Workers.
This will provide financial assistance in emergencies, social insurance, and social and health services. Emergency aid is also guaranteed by presidential decrees.
Freelancers, seasonal labourers, and gig economy workers, such as those employed by platforms like Talabat and ride-hailing apps like Uber, are now covered under the law’s broader definition of employment.
They are entitled to the minimum wage, legal contracts, and access to specialised labour courts.
However, most workers in the informal sector still lack social insurance, leaving them without benefits like healthcare and pensions, according to the Egyptian Initiative for Personal Rights (EIPR), a Cairo think tank.
In its commentary on the new law, the Andersen in Egypt law firm highlighted one of its most significant reforms: its crackdown on the misuse of Form 6, which some employers previously used to facilitate involuntary terminations.
The law invalidates pre-signed resignation forms and prohibits their use as grounds for dismissal. “This measure is a landmark step in protecting workers in Egypt’s private sector, effectively eliminating a major loophole that previously enabled arbitrary dismissals,” the firm stated.
However, despite the reforms, the law has sparked controversy among trade unions and labour rights groups. One of the most debated provisions concerns annual wage increases.
The new law sets a mandatory annual raise of at least three per cent of the employee’s insured wage, compared to the previous seven per cent increase based on the basic wage. Since the insured wage excludes bonuses, commissions, and in-kind benefits, workers now receive smaller guaranteed raises calculated on a narrower portion of their earnings.
This new way of calculating annual bonuses, according to a report by Alternative Policy Solutions (APS), an AUC-affiliated think tank, risks eroding real wages since it does not account for inflation. APS noted that between 2019 and 2023, inflation reduced the average real weekly wage in Egypt by 43 per cent.
APS also pointed out that since raises are tied to the socially insured wage, workers without insurance, roughly 60.5 per cent of the private sector, are excluded. Moreover, the law allows employers to suspend raises during “tough economic conditions”, without clearly defining what qualifies as such.
The EIPR highlighted a lack of clarity around bonus calculations in the new law when the minimum wage is raised more than once a year. The government has increased the private sector minimum wage six times over the past five years, with two hikes each in 2023 and 2024.
The current minimum wage stands at LE 7,000.
“The new law fails to address delayed wage payments, a frequent trigger for private sector strikes,” the EIPR added.
Another contentious article restricts the right to strike, effectively limiting collective bargaining, according to the EIPR.
The new law stipulates that workers must announce strike dates and notify both the employer and the relevant administrative authority at least ten days in advance. The notification must include the reasons for the strike and its duration. The employer is exempt from paying workers’ wages during the strike period.
“The requirement to give prior notification of a strike’s end date is a restriction on the right to strike, not a regulatory measure aimed at ensuring that workers can exercise it,” the EIPR said.
Strikes must be allowed to continue until workers achieve their demands or a compromise is found through collective bargaining, it said.
The new law also prohibits strikes in vital facilities that provide essential services or in exceptional circumstances, without specifying what is considered a vital facility.
The right to strike is included in the constitution, and Egypt is a signatory to International Labour Organisation (ILO) conventions that guarantee it.
Workers on fixed-term contracts can now have their contracts renewed indefinitely. Once a contract is renewed for five consecutive years, the employer must pay end-of-service compensation equal to one month’s salary for each year worked if the employee resigns or the company terminates the contract.
The APS warned that this could undermine job security, however. “The law allows employers to use fixed-term contracts at will, even for roles that are not temporary. Employers may choose not to renew contracts without justification unless the worker has completed five years,” it said.
This opens the door to arbitrary dismissals disguised as contract expirations.
While the law includes irregular workers, even agricultural labourers, it also excludes local domestic workers, classifying their labour as “personal service beyond regulatory reach”.
However, it does regulate contracts for foreign domestic workers. Egypt has over 800,000 domestic workers, mostly women, who have long been promised the right to form a trade union to protect their rights.
Although the law is now in effect, many ambiguities and enforcement challenges remain.
Nadine Khaled, a senior employment counsel at the Al Tamimi & Company law firm, raised several concerns on her LinkedIn account.
“There are practical challenges employers and employees might face in applying these provisions. The law states that if a contract is unwritten, lacks a specified term, or continues beyond its expiry without a new written agreement, it becomes indefinite. But how strictly will this be enforced, and what documentation will be required,” she asked.
She also questioned how new work patterns such as remote work, part-time roles, flexible hours, and job sharing will be interpreted and regulated. “How will productivity be monitored without infringing on employee privacy? Who will bear the costs of equipment and operational expenses for remote work,” she asked.
While the new law introduces important changes to improve working conditions, enforcement remains a major concern. The greater involvement of worker representatives in consultations is needed until the executive regulations of the new law are released, Khaled said.
* A version of this article appears in print in the 25 September, 2025 edition of Al-Ahram Weekly
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