I. Introduction
In February 2025, the Labour Committee and the Constitutional and Legislative Affairs Committees convened to review and discuss the draft labour law, which is expected to be issued soon as a full replacement for the current 2003 Labour Law (the “Draft”).
This version reflects the proposed revisions that have emerged from extensive parliamentary discussions and social dialogue over the past couple of months.
This alert provides a concise summary of the key revisions introduced in the latest version of the Draft. A separate commentary will be prepared to provide a more detailed analysis of the key provisions. It also highlights the significant changes made in the last three versions, which were previously addressed in our earlier alerts. For your reference, please find the relevant links below:
II. Key Changes to the Latest Version
A. Leaves
B. Definition of Salary
The Draft amends the definition of salary to include all payments received by an employee, removing the prior restriction that such payments must come specifically from their employer.
C. Working Hours, Rest Periods, and Schedule Amendments
Employers intending to amend their internal work regulations regarding employees’ working hours, weekly rest days, or rest periods must notify the competent administrative authority at least seven (7) days prior to implementing such change.
D. Resignation Timeline and Approval Process
The Draft reinstates the timeline for approving or rejecting the employee’s resignation to ten (10) days instead of five (5). If no action is taken within this period, the resignation is deemed to be automatically approved. Same rules for resignations remain unchanged from previous drafts.
E. Competencies of the Social, Health and Cultural Services Fund
The Draft removes provision supporting the costs of organising labour union elections and activities from the competencies of the Social, Health, and Cultural Services Fund.
III. New Provisions
A. Training and Rehabilitation Fund
The Draft stipulates that all pending disputes regarding the payment of the one perecnt (1%) contribution to the Training and Rehabilitation Fund, currently under review in Egyptian courts and have not been decided by a final judgment, shall be dismissed unless the concerned establishment opts to continue the dispute. Additionally, the Draft clarifies that such dismissal does not entitle establishments to reclaim any previously paid amounts to the Fund.
B. Equal Pay for Men and Women
The Draft mandates that employers ensure equal pay for male and female employees performing work of equal value. This requirement applies to all forms of compensation, including salaries, in-kind benefits, bonuses, and incentives.
C. Child Labour
The Draft requires employers with one or more employed children to provide separate housing accommodations for them, distinct from those provided to adult employees. Additionally, children are prohibited from staying overnight in the workplace.
D. Electronic Record-Keeping
The Draft explicitly allows employers to maintain records in either hard copy or electronic format.
E. Informal Sector Employee
The Draft introduces the classification of informal sector employees, who will be subject to the same provisions as irregular employees. These employees are defined as individuals engaged in work, whether inside or outside an establishment, in an informal or unregistered manner.
F. Joint Liability of the Legal Person
The Draft explicitly stipulates that the legal person shall be jointly liable for the payment of any imposed financial penalties and compensation.
If you have any questions, please do not hesitate to contact our team members, Alia Monieb, Partner, Head of Employment, and Nada Khaled, Senior Associate.
