Key Legal Differences Between Labour Law No. 12 of 2003 and Labour Law No. 14 of 2025

Labour Law No. 14 of 2025 (the New Labour Law) introduces a comprehensive overhaul of the private-sector labour framework, which was previously governed by Labour Law No. 12 of 2003 (the Old Labour Law). The new legislation updates the conceptual framework of employment, expands employee protections, modernises regulatory tools, and formalises several practices that were previously loosely governed. It introduces clearer definitions, new compliance obligations, alternative forms of employment, and stricter rules on termination and dispute resolution. By comparing the new provisions with the old law, the major areas of legal change become clear and traceable.

Scope of Application and Definitions

One of the early shifts appears in the determination of who falls under the New Labour Law. Under Article 4 of the Old Labour Law, several categories (including family members supported by the employer) were excluded. In contrast, the New Labour Law defines its application more broadly in Article 1 by adopting a general rule that governs all private-sector employment relationships unless expressly exempted by the law.

The definitional pillars of the law are also modernised. Article 1 now provides structured definitions of basic wage, variable wage, and other remuneration components. Article 1 of the New Labour Law additionally introduces legal definitions for harassment, bullying, and forced labour (concepts that were not expressly regulated under the Old Labour Law). Articles 4 and 5 collectively prohibit discrimination in job advertisement, hiring, employment conditions, promotion, training and contractual rights, reinforcing the shift towards a rights-based approach in the workplace.

Wages and Annual Increments

Under the New Labour Law, annual increments and wage obligations were changed. Whereas the Old Labour Law linked annual increments to the basic wage at a rate of not less than 7%. Conversely, Article 12 of the New Labour Law sets a mandatory annual increment of at least 3% of the insurable wage; it shall be due one (1) year after appointment or the due date of the previous increment.

Article 108 permits payment by bank transfer; the same article prohibits withholding any part of the wage of an employee without a valid legal basis. Article 115 confirms that the employer is released from wage obligations once the transfer is completed. The New Labour Law also introduces an explicit equal-pay obligation through Article 53, providing a statutory requirement for equal remuneration for work of equal value regardless of gender.

Labour Funding Contributions

With respect to training-fund contributions, Article 21 of the New Labour Law restructures employer funding obligations, whereas the training fund now receives 0.25% of the minimum insurable wage per worker annually from establishments with 30 or more employees, with a minimum contribution of ten (10) Egyptian Pounds and a maximum of thirty (30) Egyptian Pounds, whereas the former law required. Whereas the resources of the fund under the Old Labour Law included 1% of net profits from establishments with over ten employees covered by the law.

With regards to the Social, Health and Cultural Services Fund, Article 273 of the New Labour Law increases employer contributions compared to Article 223 of the Old Labour Law. Whereas establishments with 20 employees or more contribute an amount ranging from eight (8) to sixteen (16) EGP per worker, and if the employers provide services or benefits provided by the fund, they may deduct either the value of the services or 70% of the total annual amount due to the fund – whichever is lower.

Leave Entitlements and Family Protections

Protections for workers with family responsibilities have expanded significantly. Under the Old Labour Law, Article 91 granted 90 days of maternity leave with a ten-month service requirement and a two-time lifetime cap. Article 54 of the New Labour Law increases maternity leave to four months, covering the periods preceding and following delivery, subject to the submission of a medical certificate specifying the expected date of delivery. It removes the service requirement and raises the lifetime entitlement to three periods. It also introduces daily reduced hours for pregnant workers by at least one hour from the sixth month and prohibits overtime during pregnancy and for six months post-delivery.

Childcare leave has also been modernised in establishments employing 50 employees or more, whereas Article 94 of the Old Labour Law allowed two childcare leaves without conditions, Article 57 of the New Labour Law requires one year of service, adds a two-year gap between the first and second leave, and increases the total entitlement to three leaves. Posting regarding female work regulations was also amended, whereas Article 59 of the new labour law requires posting even when a single female worker is employed, whereas the Old Labour Law in Article 95 required at least five female workers.

Annual leave was also revised, while the Old Labour Law in Article 47 granted 21 days after one year of service and 30 days after ten years or at age fifty, Article 124 of the New Labour Law reduces entitlement in the first year to 15 days, restores 21 days from the second year, and maintains the 30-day entitlement. It also adds a 45-day entitlement for workers with disabilities and workers with dwarfism.

Article 128 increases casual leave from six to seven days and adds an emergency paternity leave of one (1) day linked to childbirth, eligible for three times over the service of the employee. Article 126 introduces a new form of paid study leave, a category that did not exist in the Old Labour Law.

Article 131 restructures the sick-leave system for industrial workers with a tiered format consisting of three (3) months with wage, six (6) months at 85% of the wage and three (3) months at 75% of the wage and permits deduction of amounts paid by the social insurance authority.

Article 132 introduces a leave entitlement in cases where a worker is exposed to a family member suffering from a contagious disease, executed by the competent medical authority for an appropriate period not exceeding three months.

Foreign Worker Regulation

The Old Labour Law contained minimal regulation of foreign workers. The New Labour Law fills this gap. Whereas Article 72 requires employers to notify authorities when a foreign employee is absent for fifteen consecutive days without legal justification. Article 74 obliges employers to repatriate foreign workers at the expense of the employer upon termination, unless the contract provides otherwise. These provisions add oversight and clarify responsibilities that were previously undefined.

Irregular Workers and Social Protection

The New Labour Law introduces a major shift in regulating irregular workers. Article 78 establishes the Emergency Aid and Social and Health Services Fund for Irregular Workers.

Article 82 introduces a tiered financing structure. Funding sources include a minimum percentage of 1% percent and a maximum percentage of 3% of the actual wages for irregular workers in construction and building. If actual wages cannot be determined, wages are estimated at a maximum of 20% of the value of general contracting works and a maximum of 45% of the value of service and processing operations. Other categories of irregular workers pay a monthly registration subscription at a minimum of 20 and a maximum of 200 Egyptian pounds. The Old Labour Law did not include any comparable structure.

Employment Contracts and Required Formalities

Contractual regulation is significantly modernised. Article 87 recognises indefinite and fixed-term contracts and allows renewal by mutual consent. Article 88 identifies three situations in which a contract converts to an indefinite term: (1) when the contract is unwritten, (2) when no duration is stated, or (3) if it was initially for a fixed term but both parties continued its execution after expiry without a written agreement. Article 32 of the Old Labour Law required three copies of employment contracts; Article 89 of the New Labour Law requires four copies and mandates submission of a copy to each the Social Insurance Office and the Administrative Authority and to the Employer and the Employee.

Article 89 also acknowledges bilingual contracts for foreign workers while confirming that the Arabic version prevails in case of any discrepancies. Evidence rules have also been updated so that both parties (not only the employee) may prove the employment relationship by all legal means when no written contract can be found.

New Forms of Work:

The New Labour Law formally recognises several alternative working models in Article 96, including remote work, flexible work arrangements, part-time work and job-sharing.

Working Hours

The New Labour Law updates working-time limits. Article 121 increases the maximum workplace time (including overtime) to twelve hours daily, compared to ten hours under Article 85 of the Old Labour Law.

Suspension, Termination, and Presumed Resignation

Suspension rules are thoroughly restructured. Article 145 allows the employer to suspend a worker from work temporarily, for a period not exceeding sixty days, with full pay, but only under a written decision and in 3 expressly stated cases, as follows:

1. when the worker is referred to investigation for a violation committed within the workplace, and the suspension is necessary for the integrity of the investigation.
2. when the worker is accused of committing a felony or a misdemeanor involving dishonour, breach of trust, or public morality, or any other misdemeanor committed inside the workplace.
3. when the employer submits a request to the competent labour court for the dismissal of the worker from service. Article 147 allows employers to seek judicial approval for extending suspension with half pay, provided the request is made at least ten (10) days before the suspension period expires.

Article 154 grants workers on definite-term contracts renewed beyond five years, a gratuity of one month of wage per year of service if the employer terminates the contract. Article 156 extends the minimum notice period for indefinite-term contracts to three months.

Termination regulations are modernised. Whereas Article 166 of the New Labour Law introduces a new system for presumed resignation based on prolonged absence without a legitimate reason for more than twenty non-consecutive days in a year or more than ten consecutive days, subject to documented warnings.

Article 167 amends the resignation process, whereas a written resignation by an employee must be signed by the employee or their authorized legal person and ratified by the competent administrative authority. The resignation takes effect only after the employer issues a written acceptance. If no decision is made within ten days, the resignation is automatically accepted. The employee or their authorized legal person may withdraw the resignation within ten days of being notified of the acceptance of the employer, provided the withdrawal is in writing and ratified by the administrative authority, in which case the resignation is nullified.

Safe Work Environment and Anti-Harassment Duties

The New Labour Law introduces new obligations on workplace safety and dignity. Article 254 requires employers to ensure a work environment free of harassment, bullying and violence, adopting complaint and resolution procedures based on ministerial templates. This is a major update, as such obligations were not expressly articulated under the Old Labour Law.

Managerial Liability and Entity Responsibility

A new liability framework is introduced under Article 298. Managers who are aware of violations and fail to prevent them may face personal liability. The legal entity itself remains jointly liable for fines and compensation. This dual-responsibility model strengthens accountability compared with the Old Labour Law, which did not impose explicit personal liability on managerial staff.