Egypt: What's New in the New Labor Law?

CAIRO - 17 March 2026: Egypt's Parliament has introduced a transformative New Labor Law aimed at safeguarding workers' rights and establishing a fair, safe, and modern working environment. The legislation places a heavy emphasis on preventing exploitation, promoting inclusivity, and aligning vocational training with the demands of the 2026 global market.

 

 

The new law sets a rigorous legal framework to protect employees from all forms of abuse:

 

 

- Protection Against Violence: Strict prohibitions against forced labor, physical or verbal violence, and any form of harassment or bullying in the workplace.

 

- Anti-Discrimination: It is now illegal to discriminate based on religion, gender, ethnicity, disability, or political affiliation. Special protections and incentives are maintained for women, children, and persons with disabilities to ensure their effective integration into the workforce.

 

- Legal Protections: Any private agreement that reduces a worker’s legal rights is considered null and void, ensuring that the law remains the ultimate protector of the employee.

 

 

To ensure financial stability for the workforce, the law introduces several key measures:

 

 

- Annual Bonus: A mandatory periodic annual bonus of at least 3% of the social insurance salary.

 

-  Litigation Support: All labor-related disputes are now exempt from court fees and judicial expenses to ease the burden on workers seeking justice.

 

- Succession Rights: Workers' contracts remain protected even if a company changes ownership, merges, or is liquidated, with new owners sharing liability for existing employee dues.

 

 

A major pillar of the new legislation is the establishment of the Supreme Council for Human Resources Development. Headquartered in Cairo, the Council will:

 

 

- Coordinate between the government and labor unions to link education with actual market needs.

 

- Focus on advanced training and upskilling to keep pace with technological changes.

 

- Prioritize vocational training for vulnerable groups and persons with disabilities to ensure "Decent Work" for all.

 

 

The new labor law went through a lengthy drafting phase that began in 2014 and culminated in its passage in 2025, reflecting what appears to have been a period marked by caution.

 

 

On the one hand, there was an effort to move forward through careful steps involving limited amendments aimed at calming the various parties awaiting legal reform in line with their expectations, while also aligning with International Labor Organization (ILO) standards and relevant domestic legislation. On the other hand, the authorities also sought to adopt measures intended to “control” society.

 

 

The provisions of the new law reflect the complex context in which the articles relating to new forms of work, social dialogue, women’s employment, wage systems, employment contracts, and strikes were drafted, in addition to the imposition of mandatory drug testing. This took place in light of the three considerations mentioned above, which may at times be contradictory.

 

 

In mid-April, the Egyptian House of Representatives passed the new labor law after a full 10 years of work on drafting it, during which it went through multiple versions and successive periods in which debate over it was frozen.

 

 

The bill’s long trajectory began in 2014, and its drafting took around three years before it was issued by the government in 2017. It was then referred to the House of Representatives, where it was examined by the Manpower Committee and forwarded to the plenary session for a vote in the same year, before discussion of the bill was suspended at the plenary level.