Overview

With the launch of Egypt’s new labour law no. 14 of 2025 (the “Labour Law”), effective as of 1 September 2025, the Ministry of Labour has moved swiftly to provide clarity and establish a framework for compliance.

On 14 September 2025, it issued decree no. 187 of 2025 ( the “Decree”) effective from the same date, standardising resignation and settlement procedures. This step is designed to streamline processes, prevent disputes, and reinforce employee rights.

In addition, the Ministry of Labour has released two (2) official templates: one (1) for employee resignation and one (1) for amicable/mutual termination agreements.

Key Provisions

• Competent Authority: Resignations and withdrawals must be submitted by the employee, or their authorised representative to the Labour Office at the competent Labour Directorate, or the directly to the Directorate (the “Competent Authority”) corresponding to the location of the employer’s headquarters or branch.
• Validation Requirement: A resignation is not valid unless approved and stamped by the Competent Authority. Employees may also request an official copy of the resignation stamped with the State’s seal. Accordingly, the Decree confirms that obtaining the State’s seal is optional.
• Employer Approval: An employee’s service may not be terminated without an approval decision issued by the employer, or upon the lapse of ten (10) days from the date of submission. During this period, the employee is required to continue working.
• Exclusions from Resignation Rules: The Decree clarifies that resignation requirements do not apply where the parties mutually agree to terminate the employment relationship, whether under a limited-term or unlimited-term agreement. In such cases, a termination agreement must be executed confirming that the employee has received all financial entitlements.
• Ministry Templates: The Ministry of Labour has issued two (2) official templates: (i) employee resignation; and (ii) amicable/mutual termination agreement. It remains unclear whether use of these templates is mandatory. However, given their basic nature, we anticipate that they will be required for submission purposes.

(i) Resignations Template
Key provisions include:

• Employee’s job title.
• Type of employment agreement.
• Reason of resignation.
• Last working day.
• Date of employer’s approval.
• If submitted by an authorised representative, details of the power of attorney must also be included

(ii) Termination Agreement Template
Key provisions include:

• Employee request: A written request from the employee must precede the agreement, confirming that the termination is at the employee’s free will.
• Employer acknowledgement: Confirmation by the employer that all employee entitlements will be settled prior to execution (including salary through the last working day, accrued annual leave, and any other benefits).
• Financial release: The employee provides a financial release in favor of the employer.
• Experience letter: At the employee’s request, the employer is obliged to issue an experience letter.

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