Unfair Dismissal under the New Egyptian Labour Law

The new Labour Law focuses on improving the working environment and strengthening the protection of employees’ rights. It regulates working hours, increases leave entitlements, provides stronger protection against unfair dismissal, and enhances occupational health and safety standards. The law aims to achieve a fair balance between the rights of employees and employers.

Importance of the New Labor Law for Employees

The law constitutes a comprehensive and modern framework governing employment relationships for more than 30 million workers in the private sector. It seeks to balance the rights of both parties by introducing annual contracts, ensuring protections for women (including four months of maternity leave), prohibiting dual employment, and establishing precise regulations for resignation and disciplinary measures.

Abolition of “Form No. 6”

The new law abolishes “Form No. 6,” which was previously misused against employees.

Form No. 6 is an official form submitted to the Social Insurance Authority in the private sector to evidence the termination of employment. Employers were required to submit it within one week of the employee leaving service (whether by resignation, dismissal, or expiry of contract).

Under the new amendments: Any pre-signed Form No. 6 at the commencement of employment is legally null and void, The form is not accepted by the Social Insurance Authority unless certified by the Labor Office or the competent directorate, ensuring the employee’s genuine consent, and The law restricts its use as a tool of abuse and requires that termination of employment be legally documented.

Furthermore, dismissal in most cases may only take place pursuant to a judgment issued by the competent labour court.

Legal Support Provided by Law Firms, Law firms provide comprehensive legal support to dismissed employees, including legal consultations, amicable settlement negotiations with employers, and preparation of pleadings to initiate unfair dismissal claims before labour courts. Services include claims for outstanding entitlements (wages, leave), end-of-service benefits, and compensation for both material and moral damages.

Definition of Unfair Dismissal under the New Law

Unfair dismissal is defined as the termination of an employment contract by the employer without a legitimate justification or in violation of legal procedures, such as failure to conduct an investigation or provide prior notice.

The law abolishes Form No. 6, restricts unilateral dismissal, and designates the labor court as the sole competent authority. Compensation shall not be less than two months’ salary for each year of service.

Forms of Unfair Dismissal without Any Justification

1. Discriminatory Dismissal: Termination based on gender, race, religion, age, disability, or pregnancy.
2. Retaliatory Dismissal: Termination due to filing a complaint, refusing unlawful acts, or claiming legal rights (such as wage increases or leave entitlements).
3. Dismissal without Cause or Notice: Termination without documented misconduct, without legal notice, or forcing the employee to sign a resignation (Form No. 6).
4. Dismissal Due to Pregnancy: Termination of a female employee due to pregnancy, childbirth, or maternity leave constitutes prohibited gender discrimination. Any such dismissal is null and void.

Fundamental Difference between Lawful and Unfair Dismissal

First: Lawful Dismissal

Termination by the employer for a legitimate reason in accordance with the procedures set out under Egyptian Labor Law No. 12 of 2003.

In terms of reason:

The reason must be genuine and lawful, such as:

1. Serious misconduct.
2. Absence without justification.
3. Disclosure of confidential information.
4. Assault against the employer or colleagues.
5. Proven incompetence after warning.

In terms of procedures:

The employer must:

• Conduct an investigation
• Issue warnings or progressive disciplinary measures where required
• Refer the matter to the competent labor court to obtain a dismissal judgment

Second: Unfair Dismissal

Termination without a legitimate reason or without following legal procedures.

In terms of reason:

1. False or non-existent.
2. Unlawful.
3. Based on personal motives (e.g., retaliation or personal conflict).

In terms of procedures:

• No investigation.
• No warning.
• No court judgment.

Legal consequences:

If unfair dismissal is established, the employee is entitled to:

1. Compensation.
2. Outstanding financial entitlements.
3. Reinstatement in certain cases.

Serious Misconduct Justifying Lawful Dismissal

Includes:

1- Impersonation or submission of forged documents

2- Causing serious damage to the employer (reported within 24 hours)

3- Breach of safety instructions despite written warnings

4- Unjustified absence: More than 20 intermittent days per year or 10 consecutive days

5- Disclosure of business secrets

6- Competing with the employer

7- Being under the influence of alcohol or drugs at work

8- Assault during work

9- Violating strike regulations

Acts Not Amounting to Serious Misconduct

Examples: (Minor work errors – Occasional delay – Non-serious negligence – Ordinary workplace disputes – Lack of efficiency without warning or training – Absence for legitimate reasons (e.g., illness) – Claiming unpaid wages or entitlements)

Sanctions in such cases typically include (warnings, salary deductions, or disciplinary measures—not dismissal).

Full Financial Entitlements in Case of Unfair Dismissal (2025 Law)

1. Compensation (minimum two months’ salary per year of service).
2. Salary up to the dismissal date.
3. Payment for unused leave balance.
4. Notice period compensation.
5. Any due incentives or commissions.
6. Certificate of experience.
7. End-of-service gratuity.

Exceptional Cases Where Reinstatement May Be Ordered

1- Dismissal Due to Trade Union Activity

Where it is established that the employee was dismissed due to: (Membership in a labor union – Engagement in legitimate trade union activities).

2- Dismissal Based on Discrimination

Where the dismissal is based on unlawful discrimination, including: (Gender – Religion – Opinion – Trade union affiliation).

3- Dismissal in Clear Violation of the Law

Where it is proven that the employer: (Dismissed the employee without following the legally prescribed procedures – Failed to refer the matter to the competent labor court in cases where such referral is required).

4- Dismissal During Legally Protected Leave

Such as dismissal during: (Sick leave – Maternity leave – Any other leave protected by law).

5- Dismissal Due to Filing a Complaint or Claiming Rights

Where it is established that the employee was dismissed because they: (Filed a complaint against the employer – Claimed their legal rights).

Fundamental Changes under the 2025 Law and Abolished Practices

Key Reforms Introduced by the 2025 Law: (Regulation of modern forms of work – Establishment of specialized labor courts – Wage protection mechanisms – Combating workplace harassment and bullying – Enhanced protection for female employees – Regulation of working hours).

Practices Abolished by the New Law

• Abolition of “Form No. 6”; termination must be based on clear and legally documented intent.
• Prohibition of termination solely based on a pre-signed form.
• Requirement of proper legal procedures, such as: (A genuine resignation by the employee – A judicial ruling of dismissal – A duly documented agreement between the parties).
• Resignation is not valid unless executed before a competent authority.
• Abolition of jurisdiction of ordinary courts in most labor disputes, replaced by specialized labor courts for expedited adjudication.

Proof of Unfair Dismissal

Methods of Proof: (Employment contract – Dismissal decision or evidence of termination – Witness testimony – Administrative documents – Proof of absence of a legitimate reason for dismissal – Labour Office report – Correspondence (e.g., WhatsApp messages or emails).

Burden of Proof

Employer’s Burden:The employer must prove that the dismissal was lawful, i.e., based on one of the serious faults stipulated under Article 69, and that proper legal procedures were followed (investigation, warning, written notice).

Employee’s Burden: The employee must prove: (The existence of an employment relationship (written or oral) – The occurrence of dismissal – That no serious misconduct was committed, or that legal procedures were not followed).

Practical Steps to File an Unfair Dismissal Claim

First: Submit an Initial Complaint to the Labour Office to document the dismissal.

Second: Prepare and Gather Evidence, including: (Employment contract – Dismissal letter – Payroll records – Leave balance – Witnesses).

Third: Determine Jurisdiction: Claims are now filed before the competent specialized labour court based on the workplace or the employer’s headquarters.

Fourth: Draft the Statement of Claim, including: (Employee and employer details – Date of employment and dismissal – Grounds for alleging unfair dismissal).

Fifth: File the Claim Officially: (Submit the claim and supporting documents – Pay the applicable legal fees – Obtain the case number and first hearing date).

While it is legally permissible to file such claims without a lawyer in simple cases, legal representation is strongly recommended in cases involving significant financial claims, complex evidence, or appellate and enforcement procedures.

Enforcement in Case of Non-Payment of Compensation

If the employer refuses to comply with the judgment: (Obtain an official copy of the judgment – Initiate enforcement proceedings before the competent court – Pursue enforcement measures, including attachment of the employer’s assets, where necessary).

Special Case: Dismissal During Pregnancy

Dismissal during pregnancy is generally considered unfair unless justified by serious misconduct. Accordingly: The employer may not dismiss a female employee during pregnancy or maternity leave.

The employee is entitled to full financial rights, including: (Compensation for unfair dismissal – Salary for days worked – Payment for unused annual leave – Any due incentives or commissions), These entitlements are calculated up to the date of dismissal or until the conclusion of legal proceedings.

Scope of Protection: Temporary and Remote Work

The law applies to all employees, including: (Permanent employees – Fixed-term employees – Part-time employees – Remote workers).

All fundamental rights—such as compensation, wages, leave entitlements, and protection against unfair dismissal—apply equally.

The only distinction is that fixed-term contracts normally expire upon completion of their term or project; however, termination prior to expiry without a legitimate reason constitutes unfair dismissal.