I. Introduction

ADSERO was able to obtain the latest draft of the labour law, which is currently being presented and reviewed by the Prime Minister. This latest version includes the suggested revisions that have been concluded following several discussions during the social dialogue within the Parliament over the past months. The issuance of the new labour law will mark a significant step for Egypt, addressing current challenges in the labour system and improving the balance between employees’ rights and employers’ needs, while aligning it with international best practices.

As the draft moves closer to potential issuance, we note that it is crucial for employers to understand the key provisions of the draft labour law and how these changes may impact day-to-day business operations and workplace practices. Throughout this client alert, we will provide an overview of the key changes in the latest version of the draft.

II. Overview

This alert provides a concise overview of the key revisions introduced in the draft of the new labour law, which is set to fully replace the current labour law no. 12 of 2003 (the “Draft Law”). It also highlights the significant changes made in the last two versions, which were previously addressed in our earlier alerts. For your reference, please find the relevant links below:

• Brief on the Approved Updated Draft of the New Labour Law – 2023.
• Brief on the Proposed Draft for the New Labor Law – 2022.

III. Key Changes to the Latest Version

A. Maternity Leave:

1. No Service Period Required for Entitlement: The Draft Law has removed the minimum period requirements. Previously,  a female employee needed to complete ten (10) months of service with any employer to benefit from maternity leave.
2. Extension of Maternity Leave Duration: One of the most notable changes is the extension of the maternity leave period from three (3) months to four (4) months. This extension aims to ensure equality between public and private sector female employees by aligning their maternity leave entitlements.
3. Limit on the Number of Times of Maternity Leave: In previous versions it was increased to three (3) times throughout their years of service. The current version of the Draft Law has returned it to twice during their years of service; we note that there is a conflict with the Child Law, which entitles female employees to benefit from maternity leave three (3) times during their service.

B. Child Care Leave:

Limit on the Number of Times of Childcare Leave: The duration of childcare leave has been reduced to two (2) times instead of three (3) in response to the request of the National Council for Women and in alignment with the revised maternity leave entitlement. We also note the conflict with the Child Law that entitles female employees to benefit from the child care leave three (3) times during their service.

C. New Resignation Timelines:

1. Timelimit for Approval: Employers must approve or reject an employee’s resignation within five (5) days of submission (instead of ten (10) days in the previous versions of the draft). Otherwise, the resignation is deemed to be automatically approved.
2. Withdrawal of Resignation: A resigning employee or their authorised agent may withdraw, in writing, the resignation within the 5-day approval period (instead of the current 7-day window). Such withdrawal must also be approved by the competent labour office.

D. Employee’s File:

The Draft Law has added a new document to be kept in the file, which proves that the employee is socially insured before the National Organisation for Social Insurance (i.e., either Form No. 1 social insurance or an extract of a social insurance print evidencing the same). The Draft Law stipulates that this file can now be maintained in hard copies or electronically.

E. Disabled Employee's Annual Leave:

Under the Draft Law, disabled employees are entitled to forty-five (45) days of annual leave. This entitlement exceeds the standard annual leave period for other employees, which is only twenty-one (21) days, reflecting recognition of the specific needs of disabled individuals.

IV. New Provisions in the Latest Version

A. Combating Workplace Harassment:

In response to the International Labour Organisation’s (ILO) comments, a new provision has been incorporated into the Draft Law to address workplace harassment, including a clear definition of sexual harassment. The new provisions require employers to ensure a safe and non-hostile work environment free from harassment and violence. Employers are also obligated to implement measures to prevent harassment and promote workplace safety.

Furthermore, the Minister of Labour will issue a decree outlining all forms of harassment and violence in the workplace, methods of prevention, and templates for codes of sound professional conduct.

It is worth noting that the definition of harassment introduced in the Draft Law differs from that in the Egyptian Penal Code. The Draft Law adopts a broader definition of sexual harassment, encompassing any physical, verbal, or non-verbal behaviour of a sexual or gender-based nature that undermines dignity, without specifying the context or methods involved.

In contrast, the definition in the Egyptian Penal Code is more specific, detailing actions, methods (such as signals, words, and electronic communication), locations (including public and private spaces), and the intent to seek a sexual benefit. This makes the Penal Code’s definition more situational and concrete.

B. Child Labour:

Under the draft, a new article was added stipulating that children must not be employed in jobs, professions, or industries that:

1. jeopardise their physical or psychological safety; or
2. threaten their morals or well-being.

This provision was added to align with the worst forms of child labour as defined in the ILO Convention No. 182 of 1999, given that Egypt is a member of that convention.

C. New Work Patterns:

A new chapter under the Draft Law has been added to define and regulate Non-Traditional Work patterns, providing flexibility in employment arrangements. Non-Traditional Work is now defined as “any type of work performed in a manner outside the conventional setup, regardless of the method or form of implementation. It is undertaken for the benefit of an employer, under their management or supervision, in return for a wage of any kind”.

The Draft Law has listed examples of what is considered Non-Traditional Work:

1. remote working, which is work performed in a location other than the workplace and implemented through technological means in locations approved by the employer;
2. work via digital platforms;
3. part-time work;
4. flexible work, which involves working the same number of hours as a full-time employee but performed at non-continuous times agreed upon by the parties;
5. work sharing, which is a single job performed by multiple individuals who share responsibilities, working hours, and wages as agreed; and
6. any additional innovative work arrangements identified and regulated through a decree to be issued by the Minister of Labour.

The employment relationship under new work patterns must be clearly defined and formalised in a written employment contract, either in paper or electronic form. Under the Draft Law, employees are now permitted to work for multiple employers, provided this arrangement is mutually agreed upon. However, employees are strictly prohibited from disclosing any confidential information related to their employers and are not allowed to engage in independent work or operate their businesses.

This new chapter highlights an acknowledgement of shifting work dynamics and aims to accommodate and support diverse employment formats.