As part of the implementation of Egypt’s labour law no. 14 of 2025 (the “Labour Law”), the Ministry of Labour continues to issue supplementary decrees to clarify and support its application.

This article outlines the key provisions under the following decrees:

1. decree no. 279 of 2025 regulating the licensing and regulation of foreign nationals’ employment in Egypt (the “Foreign Work Permit Decree”);
   
2. decree no. 300 of 2025 establishing new rules on the conciliation of collective labour disputes (the “Collective Labour Disputes Decree”);
   
3. decree no. 301 of 2025 regulating employee selection during downsising and partial closures (the “Employee Selection Decree”); and
   
4. decree no. 266 of 2025 establishing skill measurement and licensing for professions (“Skill Measurement and Licensing Decree”).

This publication is merely a brief overview of the Labour Law’s supplementary decrees and may not be treated as a legal opinion or relied on in any manner whatsoever. Separate legal advice should be sought where appropriate.

1. Foreigners’ Work Permit Regulations

1. Overview

The Foreign Work Permit Decree regulates the licensing and regulation of foreign nationals’ employment in Egypt.

The Foreign Work Permit Decree sets out the rules governing the issuance, renewal, amendment, and cancellation of work permits, the obligations of employers, applicable restrictions and exemptions, related fees, and the Ministry of Labour’s supervisory and enforcement powers, thereby implementing the foreign employment provisions of the Labour Law.

Previously, under the Labour Law, the employment of foreign employees in Egypt was generally governed by Ministerial Decree No. 146 of 2019, which set out the conditions of foreigners work permits; and Ministerial Decree No. 485 of 2010, which regulated the applicable procedures (together, the “Decrees”).

2. Scope of Application

The Foreign Work Permit Decree mainly applies to the employment of foreign nationals in all establishments across the private and public sectors.

It is important to note that, for the purpose of implementing the Foreign Work Permit Decree, the term “work” has been broadly defined, in line with the Labour Law, to include subordinate employment, self-employment, work for one’s own account, professional activities, trades, crafts, and domestic work.

3. Key Provisions

The Foreign Work Permit Decree sets out detailed rules governing the licensing of foreign nationals, beginning with general requirements and extending to exemptions, quotas, fees, monitoring, and enforcement.

Certain key provisions under the Decrees have been retained, while others have been amended or newly introduced. The retained provisions include, among others:

• the general prohibition on foreign nationals working in Egypt without a valid work permit and residency;
• the application of a 10% (ten per cent) statutory cap on foreign labour within an establishment’s workforce (the “Legal Percentage”);
• the existing exemptions from the work permit requirement; and
• the existing prohibitions on foreign nationals engaging in certain professions and activities (i.e. tourist guiding and customs clearance).

4. Key Changes

1. Procedures, Conditions and Fees for Applying to a Work Permit

The Foreign Work Permit Decree sets out the procedures, conditions, and applicable fees for applying for and renewing work permits for foreign nationals, including the following:

• work permit applications must be supported by, among others, a duly executed employment contract;
• a specific exception was introduced whereby, for engagement of foreign nationals lasting between six (6) months and one (1) year, submission of an employment contract is not mandatory;
• although the Decree expressly recognises different forms of work as above explained, it does not establish a clear framework for foreign freelancers or self-employed or independent foreign nationals, leaving their legal and procedural position unclear;
• the Decree further introduces an increase ranging between approximately 15% (fifteen per cent) to 20% (twenty per cent) in work permit fees across all renewal brackets compared to the prior Decrees, with a maximum cap of EGP 100,000 (one hundred thousand Egyptian pounds), as opposed to EGP 50,000 (fifty thousand Egyptian pounds). This increase also applies to establishments that are exempt from the Legal Percentage; and

• work permit fees are to be paid in the name of the foreign national through the Ministry of Labour’s electronic collection mechanisms, using the institutional code of the Ministry of Labour or the relevant Labour Directorates, as applicable.

2. Employers’ Reporting Requirements

Employers are required to notify the competent authority of, among others:

1. the commencement and termination of employment of foreign nationals, including those who are exempt from the work permit requirement, within seven (7) days of said commencement or termination of employment;
2. cases of absence of foreign employees, including prolonged or unjustified absence, which may result in the temporary suspension or cancellation of the relevant work permit, within seven (7) days following an absence of fifteen (15) consecutive days;
3. cases of absence of foreign employees for five (5) consecutive working days without a valid excuse; and
4. if the employer establishes that the foreign employee is no longer present at their registered address, the employer must file an administrative report with the competent police department and notify the relevant Labour Directorate.

In addition, establishments employing foreign nationals are required to:

1. maintain detailed registers containing the information of its foreign employees; and
2. submit periodic reports to the Ministry of Labour and the competent Labour Directorates, including bi-annual submissions during January and July of each year, detailing the number of foreign employees, their positions, permit status, and related workforce data.

3. Legal Percentage Exceptions

Even though the Foreign Work Permit Decree maintains the Legal Percentage, it sets out specific, new, and clear exceptions to this cap. These include small establishments, such as shops and restaurants, which are subject to a separate maximum limit for foreign labour, to be determined by the competent authority, taking into account incentive initiatives launched by the Ministry of Labour following submission by the competent administration.

4. Short-Term and Task-Based Work

The Foreign Work Permit Decree continues to subject short-term and task-based work to a special fee regime; however, it now expressly defines and limits such engagements to a maximum duration of fourteen (14) days, whether completed in a single day or over several days. This clarification effectively resolves the previous ambiguity surrounding the meaning of “few days” under Article 4 of Decree No. 146 of 2019 and confirms that the exemption regime is limited to assignments of up to fourteen (14) days only. 

Where an establishment seeks to engage a foreign national for such work, it is required to submit a request to the competent authority and pay a fee calculated at 10% (ten per cent) of the foreign national’s remuneration for the relevant work, subject to a minimum fee of EGP 15,000 (fifteen thousand Egyptian pounds) and a maximum fee of EGP 100,000 (one hundred thousand Egyptian pounds), applicable to foreign nationals of all nationalities. The applicable fee is payable separately for each task performed by the foreign national.

The Foreign Work Permit Decree expressly prohibits the foreign national from commencing such work prior to obtaining written approval from the Ministry of Labour.

2. Collective Labour Disputes Decree

1. Overview

The Collective Labour Disputes Decree regulates in detail the conciliation of collective labour disputes under the Labour Law, setting out its rules and procedures.

Collective Labour Dispute is defined as “any dispute that arises between an employer or a group of employers or their organisations, and all the employees of the establishment or a group of them or their relevant trade union organisations, concerning the terms of work, its conditions, or employment.”

2. Conciliation Process and Rules

Applications for conciliation may be submitted by either the employee or employer. Said decree specifies the information that must be included in the conciliation application, as well as the supporting documents required, including copies of minutes reflecting the negotiation sessions that took place, reflecting discussions, claims, and defences of each party.  

The collective dispute resolution unit within the Labour Directorate (the “Unit”) is empowered to actively manage negotiations, propose compromises, and prevent escalation. The parties to the dispute are restricted from adopting any decision or procedure related to the subject-matter of the dispute during the conciliation phase, except in emergencies and provided that the same is temporary.

The Collective Labour Disputes Decree places particular emphasis on maintaining the confidentiality of the conciliation process, protecting the interests of employees, the trade union, and their representatives.

Conciliation requests should be submitted following the lapse of at least one (1) month from the date the collective negotiations have started without any agreement between the parties.

The parties to the dispute must submit any requested documents, whether by the Unit or the other party.

3. Conciliation Outcome

The results of conciliation may be either:

• settlement, whereby, an agreement on the disputed matter is reached, which may be published in the Official Gazette at the request of either or both parties; or
• no settlement, which will also be documented in an agreement, after which the parties may refer the unresolved matters to the Centre for Arbitration and Mediation for resolution.

3. Employee Selection Decree

1. Overview

The Workforce Reduction Decree sets out the rules governing employee selection in cases of partial closure or workforce downsizing due to economic, technical, or organisational reasons stated under the Labour Law.

In the absence of a collective agreement determining objective selection criteria, employers are required to engage in consultations with the competent trade union, if any, for a minimum of seven (7) working days after issuing the establishment’s decision and before its implementation.

2. Key Selection Criteria

When selecting employees, employers must apply transparent, objective, and non-discriminatory principles, balancing business needs with employees’ social and family circumstances.

Additionally, key selection criteria include giving priority to employees, taking into account:

• employees who are the most senior by date of appointment;
• employees with the required technical skills and performance;
• employees with health conditions, and family responsibilities, and
• employees who are supporting dependents with disabilities or special needs.

3. Employer’s Obligations

Employers must, as part of the workforce reduction process:

• notify the competent administrative authority of the redundancies and criteria applied; and
• comply with employees’ notice period and statutory termination entitlements, including accrued leave balances and remuneration provided under the Labour Law, which is equivalent to one (1) month’s wage for each of the first five (5) years of service, and one and a half month’s wage for each subsequent year.

4. Skill Measurement and License Decree

1. Overview

The Ministry of Labour issued the Skill Measurement and License Decree, establishing a national framework for issuing both a certificate measuring skill levels and a permit licensing the practice of professions and crafts across Egypt. Said decree sets out the procedures for skill assessment, issuing permits, and workplace compliance, with implications for both individuals and employers.

2. Certificate and License Requirements

In general, individuals practicing the listed professions, trades, or crafts included under the decree must submit a request to obtain a skill measurement certificate and, subsequently, a practice license issued by the competent Labour Directorate, subject to defined tests, fees, and timelines (“License”). The Skill Measurement and License Decree provides for few partial or full exceptions that may apply.

Skill levels are classified across five (5) grades, ranging from assistant employee to specialised technician or trainer.

3. Implications for Employers and Compliance Obligations

Employers are subject to enhanced workplace compliance obligations, including:

• inspection powers allowing authorities to verify employees’ licenses and skill certificates;
• a three (3) year grace period is provided to regularise the status of unlicensed employees, while existing employment relationships predating the law are exempt.
• the decree also enables electronic testing and licensing, enabling creation of centralised electronic units to accelerate processing and enforcement.

It is worth noting that employers may engage employees without obtaining the License, provided that their status is reconciled with the applicable legal requirements and the License is obtained within a period not exceeding three (3) years from the date of issuance of the Skill Measurement and License Decree.

In all cases, employees who have been employed by the employer for a period exceeding one year prior to the issuance of the Labour Law shall be exempt from the requirement to obtain such License.

The contributors to this article are Alia Monieb, Partner - Head of Employment; Rawan Roshdy, Managing Associate; Hana Abouelmagd and Seifeldin Hamad, Junior Associates.