Egypt: New Labor Law Forthcoming

Effective September 1, 2025, a new law will introduce the following changes regarding foreign worker employment: 

• Waiver of reciprocal condition. The reciprocal condition requirement (i.e., the rule prohibiting Egyptian employers from hiring foreign nationals from countries which do not allow the hiring of Egyptian nationals) may be waived at the discretion of the Ministry of Labour.    
• Foreign worker quotas. The Minister will set the foreign employment quota and outline any exceptions in the executive regulations, expected in October 2025. The specific terms of the quota have not yet been disclosed, with further clarification anticipated in the October announcement. The current quota requires employers to hire nine Egyptian workers for every one foreign worker.  
• Mandatory testing. Employers will be allowed to conduct communicable disease and drug tests on foreign workers. Currently, they cannot request such tests. Refusal to undergo such testing will be treated as an admission of drug use and may result in referral to the Labor Court.  
• New notification requirement. A new rule will require employers to notify the Ministry of Labor if a foreign worker is absent for 15 consecutive business days without a valid reason. This obligation is not currently in place.    
• Non-traditional employment. The new law will formally recognize non-traditional work arrangements such as remote work, part-time work, flexible work, and job sharing. Currently, these work arrangements are not formally addressed in the current law. These arrangements will be governed by written contracts, either physical or electronic.  
• Multiple employers and self-employment. The new law will also permit employment with multiple employers and self-employment alongside other work, as long as confidentiality is maintained, and terms are clearly defined. The employment relationship may be proven by any means of proof by the employee.  
• Employment contracts. Under the new laws, employment contracts will be subject to the following new rules: 
  • Mandatory start date. Employment contracts will be required to explicitly include a start date. This is currently not required.  
  • Language requirement. Employment contracts will be required to be written in Arabic (as is currently the case), but it will also be possible to provide contracts in the foreign employee’s native language if they do not understand Arabic (which is not currently possible). In case of any dispute, the Arabic version will take precedence.    
  • Additional copy. In addition to ensuring the employer, employee, and the Social Insurance Office each have a copy of the employment contract (as is the current requirement), employers will also be required to send a copy to the Labour Office.  

Further clarifications of the above rules are expected in the upcoming executive regulations, which are expected to be published in October 2025.    

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].