Labor Law No. 185 of 2025: A Paradigm Shift in Egyptian Labor Legislation

The Egyptian House of Representatives has enacted the new Labor Law No. 185 of 2025, marking a significant legislative shift in labor regulation. This law aims to strike a balance between the rights of workers and employers and to enhance the working environment in alignment with international standards. Below is a detailed overview of the most prominent amendments and changes introduced by this law:

1. Regulation of Leave and Employee Rights

• Public Holidays and Official Occasions: Employees are entitled to paid leave on official public holidays as designated by the competent minister. In cases where the employer requires employees to work on such days, the employee is entitled to double pay (i.e., twice the regular wage) for that day or may request an alternative day off.
• Annual Leave: Annual leave entitlements are as follows:
  • 15 days for the first six months of employment.
  • 21 days after completing one full year of service.
  • 30 days for employees with over ten years of continuous service.
  • 45 days for people with disabilities and those over 50.

2. Strengthening Job Security

• Conversion of Fixed-Term Contracts to Permanent: The law mandates the conversion of fixed-term employment contracts into indefinite-term contracts after four years of continuous employment, thereby enhancing job stability.
• Prohibition of Arbitrary Dismissal: The law abolishes “Form 6” previously used for unfair termination and prohibits arbitrary dismissal. It also establishes a fund to support the employment of informal labor.

3. Protection of Workers’ Rights

• Abolition of Form 6: “Form 6,” which had been used as a tool for unilateral and arbitrary termination, has been formally abolished.
• Prohibition of Unfair Dismissal: Arbitrary dismissal is now explicitly prohibited, and support mechanisms, including a fund for irregular workers, have been introduced.
• Employee Rights in Case of Employer Bankruptcy: Workers’ claims are classified as “privileged debts” and must be settled prior to court expenses in bankruptcy proceedings.

4. Regulation of Working Hours and Special Leave

• Weekly Working Hours: Working hours have been standardized to align with international benchmarks to ensure adequate time for rest and social well-being.
• Special Leave for Persons with Disabilities: Employees with disabilities are entitled to extended annual leave of 45 days, and the law ensures non-discrimination in granting leave or within the workplace environment.

5. Combating Discrimination and Promoting Equal Opportunities

• Prohibition of Discrimination: Any act, behavior, or measure that leads to discrimination in employment terms, conditions, rights, or duties on the basis of religion, belief, gender, origin, race, color, language, disability, social status, political or union affiliation, geographic location, or any other ground that undermines equality and equal opportunity, is strictly prohibited.
• Protection of Women’s Rights: Employers are required to reduce the daily working hours of pregnant women by at least one hour from the sixth month of pregnancy. Maternity leave of four months is granted to women who have completed at least six months of service.

6. Resolution of Labor Disputes

• Labor Dispute Resolution Committees: The law stipulates the formation of tripartite committees to resolve labor disputes amicably within 21 days.
• Specialized Labor Courts: Dedicated labor courts have been established to expedite adjudication of labor-related cases, ensuring swift and fair justice.

7. Simplifying Contract Termination Procedures

• Termination Procedures: Either party may terminate the employment contract provided prior notice is given. Employees are entitled to terminate the contract to pursue alternative employment that better suits their skills and experience, provided the employer is notified in advance.

8. Support for Vocational Training and Development

• Skills Development: The new law underscores the importance of professional skill enhancement for workers in both public and private sectors.
• Training Facilitation: The law offers streamlined procedures for obtaining licenses for conducting training activities and provides financial relief to employers who commit to training their workforce.

9. Incentivizing Foreign Labor

• Regulation of Foreign Employment: The law balances the need to attract foreign expertise with the imperative of safeguarding local employment opportunities.
• Protection of Migrant Workers’ Rights: The legislation ensures respect for the rights of migrant workers in line with international standards.

Conclusion

The new Egyptian Labor Law No. 185 of 2025 constitutes a significant step forward in improving the national labor landscape. It ensures a fair balance between the interests of employers and employees and protects the economic and social rights of various groups, most notably informal workers, women, and persons with disabilities. The law reflects the state’s commitment to enhancing working conditions, boosting productivity, and adapting to global labor market developments. Its effective and equitable implementation will be the true test of its success and a key driver in fostering a more stable, just, and inclusive labor environment.