Coronavirus Labor Law – Snapshot Updates

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If anyone is wondering about Coronavirus’s impact on Employment Relationships in Egypt. We have to mention these quick and important updates:

  • Update#1: Employers Could pay only 50% of the wages/salaries to their employees as long as the employers are heavily impacted by the Coronavirus. This is based on a 2019 Precedent rendered by the Egyptian Court of Cassation. The same was applied in the case of the 2011 Revolution in Egypt.

  • Update#2: The wages/salaries, in this case, will be calculated depending on the fixed part of the salary only. This means that the variable portions of the wages/salaries might be excluded depending on a case-by-case basis. This is also based on another 2019 Precedent rendered by the Egyptian Court of Cassation.

  • Be Cautious: the above principles should not be applied in the same manner across all industries. Therefore, we advise that employers seek legal advice before applying any of these measures.

For more information on these Cassation Judgments and how to tackle labor law issues during this period, please contact our Partner Ibrahim Shehata at