OUTLINE
Employment contracts and policies in Egypt
Contract terms in Egypt
Fixed-term contracts in Egypt
Contract extensions in Egypt
Working hours in Egypt
Remote work in Egypt
Tailored employment contracts in 100+ countries
Employment contracts in Egypt
An employment contract is a crucial document that lays out the key terms and conditions of an employment relationship. This ensures both parties understand their rights and obligations. Every country in the world has its own rules and regulations concerning employment contracts — and employers need to know about them. In Egypt, for example, employment contracts must be written in Arabic and must be drawn up in three copies. One should be held by the employer, one given to the employee, and one sent to the local social security office.
In this section, we’ll cover everything employers need to know about employment contracts in Egypt, including the core terms that must be included as well as additional clauses you can choose to add. We’ll discuss the limitations that apply to fixed-term contracts and how these can be renewed and extended. And we’ll also talk about certain key employment conditions such as working hours and remote work.
Employment contracts and policies in Egypt
Verbal employment contracts are technically permissible and legally binding in Egypt. However, it is advisable to use written contracts for clarity. Written contracts are especially essential for contracts that include specific work arrangements like fixed-term contracts, part-time agreements, and remote work agreements.
Written employment contracts in Egypt
Written employment contracts in Egypt must be concluded in the local language, which is Arabic. It’s possible to provide a bilingual version with English or another language included to aid employee understanding. Employers must retain a copy of each contract for their records, give one to the employee, and submit a copy to the relevant social security authority.
Probationary periods in Egypt
Probationary periods allow both employers and employees to confirm suitability for a role before fully committing. They are permissible in Egypt for up to a maximum of three months. During the probationary period, either party may end the contract without giving a justification and with minimal notice.
Probationary periods in Egypt may not be extended.
Employment policies and work regulations in Egypt
Employers in Egypt are required to establish internal regulations that cover things like work schedules, disciplinary procedures, grievance processes, and policies related to drug and alcohol abuse. They must also draw up a comprehensive health and safety policy to help keep employees safe at work.
Third-party approval in Egypt
Unlike in some other countries, there is no specific requirement to obtain approval for employment contracts from a third party in Egypt. However, employers must send a copy of each employee’s contract to the local social security office. They must also provide labour authorities with a copy of their work regulations and inform them of any subsequent modifications.
Contract terms in Egypt
In general, employers in Egypt are free to negotiate the terms and conditions of their employment agreements directly with employees. However, they do need to ensure that their contracts meet the requirements of Egyptian labour law. Read on for more about the terms to include in your Egyptian employment contract.
Mandatory contract terms in Egypt
Egyptian labour law mandates that employment contracts should be in writing, signed by both parties and include the essential details of the employment relationship. For example, a contract should include:
- The name and address of both parties.
- The job title and description of duties.
- Details about remuneration and benefits.
- Information on maximum working hours.
- A termination clause.
Other possible employment contract terms in Egypt
It’s also possible to include additional terms in your Egyptian employment contracts based on your unique circumstances as an employer. For example, you may include non-compete clauses for senior employees. Employers in Egypt can also choose to include terms that are more generous than those mandated by Egyptian labour laws in order to attract and retain talent. For example, they may seek to improve their offering as an employer by providing employees with additional annual leave or other benefits, even if these are not a legal requirement.
Fixed-term contracts in Egypt
Fixed-term contracts are contracts that have a set end date. They can be useful for employers who need to hire workers for a limited period or for the completion of a specific project. However, there are certain limitations on the use of fixed-term contracts in Egypt, which employers should be aware of.
Egypt’s law on fixed-term contracts
According to Egyptian law, the maximum duration for a fixed-term contract is five years. In practice, fixed-term contracts are usually concluded for one year and can be renewed every year. Fixed-term contracts may be converted to indefinite contracts if both parties agree.
Contracts for particular work in Egypt
Employers in Egypt can also conclude contracts for particular projects or achievements. These do not have a specific end date but simply end on completion of the task in question.
Contract extensions in Egypt
Employers can choose to renew their employees’ fixed-term contracts in Egypt if their services are still required. Ending a fixed-term contract before its term requires payment of severance equivalent to the salary on the remaining duration of the contract. If both parties continue to perform their obligations after the expiry of the contract, it may be considered implicitly renewed for an indefinite term.
Working hours in Egypt
The standard working hours in Egypt are eight hours a day, 40 hours per week. The working week is Sunday through Thursday, though some businesses operate six days a week, including Saturday.
Maximum working hours in Egypt
According to labour laws, working hours in Egypt are limited to 48 hours per week, not including breaks. This limit is designed to protect employees from excessive and unhealthy work schedules. The daily limit is eight hours.
Overtime in Egypt
Any work above the 48-hour weekly maximum is considered overtime in Egypt. It should be compensated at the following rates:
- 135% of normal wages for general overtime.
- 170% of normal wages for night work.
- 200% of normal wages for work on holidays.
Daily working hours including overtime are capped at 10 hours in Egypt, and employees should only be asked to work overtime when it is necessary to meet a temporary increase in demand.
Breaks and rest periods in Egypt
All employees in Egypt are entitled to a one-hour break each workday, which should start no more than five hours into their shift. Breaks are not counted towards working hours in Egypt. Employees also have the right to one full day of rest every week. In general, Fridays are considered the standard rest day in Egypt.
Working hours in Egypt for minors
Egypt also has special limitations on working hours for minors. Specifically, employees aged less than 18 years old in Egypt may not work more than six hours per day.
Working hours in Egypt during Ramadan
During the holy month of Ramadan, many organisations in Egypt put special working hours in place. For example, the Central Bank of Egypt mandates that working hours for employees in all financial institutions in Egypt should be from 9am to 2pm throughout Ramadan. The same applies to public-sector employees.
Remote work in Egypt
Around the world, the use of remote workers has become increasingly popular over the past decade, especially in the years since 2020. For this reason, many countries have put in place specific laws to clarify the rights and responsibilities of remote workers and their employees.
There is currently no specific law governing remote work in Egypt, though it is possible that one may be introduced soon. In the meantime, existing labour laws apply to all employment relationships, including remote ones. In the absence of specific laws, written employment contracts are particularly important. It’s a good idea to document agreed-upon terms, including the employee’s schedule, communication methods, data security protocols, and performance evaluation methods.
Best practices for remote work in Egypt
Although there are currently no specific legal requirements for employers of remote workers in Egypt, there are still certain best practices that employers should adopt. For example, employers of remote workers should:
- Implement robust data security measures: This might include encryption, access controls, and employee training.
- Provide company devices: This is not required by law but could help remote employees to do their jobs effectively. It could also be a benefit from a data security perspective.
- Consider the wellbeing of remote employees: This might include ensuring employees have access to ergonomic work equipment and encouraging them to disconnect outside of working hours.
- Establish communication protocols: Effective communication is a major success factor for remote working relationships. Establishing clear communication channels and investing in collaboration tools could be key to success.
- Develop effective performance evaluation methods: Evaluating employee performance is more difficult when those employees work remotely. Establishing methods such as regular manager check-ins, goal setting, and open communication can help improve productivity and satisfaction.
Tailored employment contracts in 100+ countries
Like all countries, Egypt has its own rules and regulations when it comes to employment contracts — and non-compliance could land your company in hot water.
Thankfully, our team is experienced in drawing up tailored, compliant contracts in Egypt (and more than 100 countries worldwide). That means that, when you work with us, you won’t need to waste time worrying about whether you’ve got it right. Instead, you can focus on what matters: your business.
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