{"id":7935,"date":"2025-03-16T17:26:58","date_gmt":"2025-03-16T17:26:58","guid":{"rendered":"https:\/\/shehatalaw.com\/law-update\/new-labour-law-draft-vs-current\/"},"modified":"2026-01-20T19:45:00","modified_gmt":"2026-01-20T19:45:00","slug":"new-labour-law-draft-vs-current","status":"publish","type":"sp-law-updates","link":"https:\/\/shehatalaw.com\/zh-hans\/law-update\/new-labour-law-draft-vs-current\/","title":{"rendered":"The New Labour Law Draft vs. The Current Labour Law in Egypt: Key Changes You Need to Know"},"content":{"rendered":"\t\t
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Labour regulations are undergoing a major transformation. The forthcoming draft Labour Law, set to replace Labour Law No. 12\/2003, introduces crucial updates aimed at streamlining employment practices and fostering a more adaptable, business-friendly landscape. These reforms signal a shift towards a modernized framework that balances economic growth with workforce development.<\/p>

At Shehata & Partners Law Firm, we have carefully examined the main differences between the existing law and the new draft, shedding light on the potential implications for both employers and employees.<\/p>

Let\u2019s break down these crucial updates to help you navigate the future of labour relations in Egypt.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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1. Limited-Term Employment Contracts<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The current Labour Law stipulates that if a limited-term employment contract exceeds five years, the employee may terminate it without compensation after completing five years, provided they give the employer three months’ notice.<\/p>

The new draft law introduces stricter regulations on limited-term contracts to ensure clearer employment terms. It mandates that limited-term contracts must be at least one year in duration. If renewed, the total period cannot exceed four years. Upon reaching this threshold, the contract automatically converts into an unlimited-term contract.<\/p>

Additionally, under the draft law, either party may terminate a limited-term contract during its four-year period with a two-month written notice. However, if the termination is initiated by the employer, the employee is entitled to compensation equivalent to one month\u2019s salary for each year of service.<\/p>

Current Law:<\/strong> Employees can terminate contracts exceeding five years with three months’ notice, without compensation.<\/p>

New Draft Law:<\/strong> Limited-term contracts must last at least one year. If renewed beyond four years, they automatically convert to unlimited-term contracts. Termination before the four-year limit requires a two-month notice, and employer-initiated termination includes severance pay.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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2. Unlimited-Term Employment Contracts (Notice Period)<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Currently, the notice period varies based on the employee\u2019s tenure\u2014two months for under 10 years, and three months for 10 years or more. The new draft law standardizes this notice period to three months for all employees, regardless of their tenure.<\/p>

Current Law: <\/strong>Notice period ranges from two to three months.<\/p>

New Draft Law: <\/strong>Standardized three-month notice period.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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3. Maternity Leave<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The current law grants women 90 days of maternity leave with full pay, but only after 10 months of service. The new draft law reduces the service requirement to just six months and extends maternity leave to four months. Additionally, it increases the number of leave entitlements from two to three times during their career.<\/p>

Current Law:<\/strong> 90 days after 10 months of service.<\/p>

New Draft Law:<\/strong> Four months after six months of service, with three entitlements over the employee\u2019s career.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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4. Resignation<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Under the current Labour Law, Article 69 defines fundamental breaches that may justify termination, including unauthorized absences. Under this provision, an employer could dismiss an employee for excessive absences without valid justification.<\/p>

The new draft law removes such absences from the category of fundamental breaches and instead treats them as resignations. An employee will be considered resigned if they are absent for more than 20 separate days or 10 consecutive days within a one-year period, without a legitimate justification.<\/p>

This resignation takes effect after the employer follows a prior warning procedure, which requires:<\/p>

  • For separate absences: A warning must be issued after 10 days of absence.<\/li>
  • For consecutive absences: A warning must be issued after 5 days of absence.<\/li>
  • The warning must be delivered via registered mail with acknowledgment of receipt.<\/li><\/ul>

    Current Law:<\/strong> Unauthorized absences could be classified as a fundamental breach under Article 69, allowing the employer to dismiss the employee.<\/p>

    New Draft Law:<\/strong> Extended absences are no longer a fundamental breach. Instead, the employee is considered to have resigned, shifting the burden from employer-driven dismissal to employee-initiated resignation.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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    5. Childcare Leave<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    The current law allows unpaid childcare leave of up to two years for female employees in larger establishments. The new draft law increases this leave to three times during employment, provided each leave is at least two years apart and that the female employee has been in work for at least one year for the employer.<\/p>

    Current Law:<\/strong> Unpaid leave for up to two years, twice during employment.<\/p>

    New Draft Law: <\/strong>Up to three times, with at least two years between leaves and one year of employment.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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    6. Medical Tests for Employees<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    One of the most notable additions in the new draft Labour Law is the provision allowing employers to request medical tests for employees to detect drug use or infectious diseases. These tests must be carried out confidentially, and employers are prohibited from disclosing employees’ medical information.<\/p>

    Current Law: <\/strong>No provision for medical testing.<\/p>

    New Draft Law: <\/strong>Employers may request medical tests, with confidentiality assured.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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    7. Wages and Payment Methods<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    The new draft law brings a key update in wage payment practices. Employers will now have the option to pay wages via bank transfer, in addition to the current method of paying at the workplace.<\/p>

    Current Law: <\/strong>Payment made at the workplace in cash.<\/p>

    New Draft Law: <\/strong>Payment may also be made to the employee\u2019s bank account.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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    8. Disability and Employment of Disabled Individuals<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    The new draft law mandates rehabilitation entities to notify the competent administrative authority of a child\u2019s rehabilitation, register their names, and issue a free certification to the child or their representative.<\/p>

    The competent authority must assist registered children with disabilities in finding suitable employment based on their age, skills, and location and provide a monthly report to the Directorate of Social Solidarity on employed children.<\/p>

    Current Law:<\/strong> No formal registration or employment support for rehabilitated children with disabilities.<\/p>

    New Draft Law:<\/strong> Requires registration, certification, and job placement support, ensuring greater workforce inclusion.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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    9. Child Labour<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    The new draft law raises the minimum employment age from 14 to 15 years old and increases the minimum age for eligibility for training programs from 12 to 14 years, ensuring that training does not interfere with children\u2019s education.<\/p>

    Current Law: <\/strong>Minimum employment age is 14, training age is 12.<\/p>

    New Draft Law: <\/strong>Minimum employment age is 15, training age is 14.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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    10. Temporary Suspension of Employees<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    The new draft Labour Law expands the conditions under which an employer may temporarily suspend an employee, introduces a right to appeal, and clarifies the judicial review process for such suspensions.<\/p>

    Under Article 122 of the draft law, an employer may suspend an employee for up to 60 days with full pay in the following cases:<\/p>