Introduction

Following the issuance of the new labour law no. 14 of 2025 (the “Labour Law”), the Ministry of Labour has issued several implementing decrees. While additional decrees are still anticipated, the three (3) most recent are outlined below:

• decree no. 259 of 2025, establishing the rules, procedures, and deadlines for fulfilling employees’ rights (the “Employees’ Rights Decree”);
• decree no. 260 of 2025, determining the competent administrative authority (the “Competent Authority Decree”); and
• decree no. 264 of 2025, regulating entities engaged in training programs and the development of their levels (the “Training and Development Decree”).

Key Provisions

1. Employees’ Rights Decree

The Employees’ Rights Decree applies to employees’ salaries and entitlements in cases of company closure, liquidation, full or partial shutdown, or activity reduction.

This decree adopts to the same definition of “Salary” as set out in the Labour Law and introduces a comprehensive definition of “Entitlements”. Entitlements include all amounts due to an employee, such as salaries, leave allowances, severance, early retirement compensation, amicable settlement amounts, and any other indemnities or bonuses arising under any of the following:

• the Labour Law;
• individual or collective employment contracts;
• internal policies or mutual agreements between the employer and employee; and
• final judicial rulings.

The Employee’s Rights Decree confirms the preferential priority of employees’ salaries and entitlements over all company assets, requiring that they must be paid ahead of legal expenses, government dues, and other statutory priorities. It also treats social insurance contributions as part of employees’ entitlements, payable to the National Organization for Social Insurance.

The Employee’s Rights Decree sets out the procedures applicable in cases of dissolution of an establishment, liquidation, full or partial closure, or reduction of activity. Such measures must be implemented pursuant to a court judgment or a decision issued by the competent authority, which must specify a deadline for the settlement of employees’ rights not exceeding one (1) year from the date of issuance. Additionally, the employer, their delegate, the liquidator, or the bankruptcy trustee shall be subjected to the following obligations:

• Submission and payment of salaries and entitlements: Within a maximum of thirty (30) days from the date of issuance of the judgment decree, a complete list of all employee salaries and entitlements must be submitted. Payments shall be made in full if funds are sufficient; where funds are insufficient, available amounts must be paid, and the remaining entitlements scheduled for payment within the same thirty (30) day period. The support of a representative from the Labour Directorate may be requested to determine the method of calculating entitlements and the payment process.
• Monthly reporting: A monthly report must be submitted to the competent employment directorate, detailing the steps taken to settle employee salaries and entitlements within the prescribed timeframe.

Failure to comply with any of the above obligations shall render the relevant actions null and void. In such cases, the competent Labour Directorate shall notify the employer and grant a maximum grace period of fifteen (15) days to rectify the procedures. If the employer fails to comply within this period, the matter shall be referred to the competent Labour Court for further action.

2. Competent Authority Decree

The Labour Law defines “competent administrative authorities” as “the ministry responsible for labour affairs, along with its directorates and subordinate departments throughout the Republic.”

Accordingly, the Competent Authority Decree specifies the competent administrative authorities responsible for implementing various provisions under the Labour Law, mainly the roles of thirty-six (36) specific functions. It clarifies the roles of the labour directorates and all their affiliated entities, including, employment offices, the department responsible for issuing work permits for foreigners, the Central Administration for Irregular Workforce Affairs, the General Administration for the Settlement of Collective Labour Disputes, occupational health and safety offices, labour relations offices, and labour inspection offices.

Finally, the Competent Authority Decree provides an exception for certain specified functions, allowing the service applicant to obtain these services from any labour directorate, irrespective of the usual restrictions on territorial jurisdiction.

3. Training and Development Decree

Previously, under Labour Law No. 12 for 2003, the training of employees was regulated by the following laws and decrees:

1. Law No. 160 of 2022, establishing the Egyptian Authority for Quality Assurance and Accreditation in Technical, Technological, and Vocational Education and Training (Etqaan);
2. Ministerial Decree No. 80 of 2023, regulating the practice of vocational training operations and the development of their levels;
3. Ministerial Decree No. 150 of 2003, governing the conditions, rules, and procedures for granting licences to practice vocational training operation; and
4. Ministerial Decree No. 151 of 2003, setting out the rules and procedures for granting licenses to practice vocational training operations.

(Hereinafter collectively referred to as the “Decrees”).

The Training and Development Decree provides a comprehensive regulatory framework governing training activities in Egypt.

It specifies the mandatory particulars to be included in the training certificate issued to trainees, including the name of the training centre, the trainer’s name, the centre’s licence number, the trainee’s name and national ID number, the title of the training programme, the date of issuance of the certificate, and the level attained by the trainee.

Additionally, the Training and Development Decree introduces enhanced inspection powers and imposes new electronic reporting obligations on training providers. It further facilitates compliance by clarifying renewal procedures, defining approval timelines for training plans, providing exemptions for entities training their own employees, and formally recognising of virtual training activities.

Finally, while the Training and Development Decree does not expressly replace the previously issued Decrees, it provides that any conflicting provision contained in any prior decree shall be considered repealed.

Conclusion

The newly published ministerial decrees are an ongoing further step towards strengthening the regulatory framework under the new Labour Law, particularly with regard to training activities, administrative competence, as well as the protection of employee rights.

By introducing clearer procedures for the fulfilment of employee rights, identifying the competent administrative authority, and establishing a structured framework for training activities, licensing requirements, reporting, and enforcement mechanisms, the Ministry of Labour has increased compliance expectations for both training providers and employers.

The contributors to this article are Rawan Roshdy, Managing Associate; and Junior Associates Hoda Khira, Khaled Omar, and Seifeldin Hamad.