Egypt Employment Guide
Egypt Employment Guide
Egypt spans northeastern Africa and southwestern Asia, located at the strategic hub of the Mediterranean Sea and the Red Sea with important geopolitical status. It has ~110 million people, the most populous country in the Arab world. Its economic pillars include oil and gas, tourism, agriculture, textiles and construction, while IT and financial services have developed in recent years. Cairo, the capital, is the political, economic and cultural center. Egypt’s labor laws require written contracts for employment relations, with a general 48-hour workweek. Employers must guarantee minimum wages and basic working conditions. Dismissals need reasonable grounds and compliance with legal procedures, and the social insurance system provides certain protection for employees.
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Currency
Egyptian Pound (EGP)
Capital
Cairo
Official language
Arabic
Salary Cycle
Monthly
Our Employment Guide in Egypt
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Navigating Employment Termination in Egypt: A Comprehensive Guide
Terminating employment relationships in Egypt requires careful adherence to complex legal frameworks and country-specific regulations. The separation process must be handled collaboratively between employers and key stakeholders, often involving special considerations and mandatory procedures depending on the termination circumstances.
Legal Grounds for Employment Termination
Egyptian labor law does not recognize at-will employment for employees beyond their probation period. Employers must establish valid justification for any termination decision. The compliant termination pathways include:
- Voluntary resignation by the employee
- Mutual agreement between parties
- Employer-initiated termination based on:
- Probationary period assessment
- Objective business reasons
- Disciplinary dismissal
- Performance-related issues due to job incompatibility
- Contract expiration
Notice Period Requirements
Egypt mandates minimum notice periods that increase with employee tenure:
| Years of Service | Minimum Notice Period |
|---|---|
| Less than 10 years | 60 days |
| More than 10 years | 90 days |
Severance Pay Considerations
Egyptian law does not require statutory severance payments unless the termination is deemed unjustified. Employees continue receiving standard wages throughout the notice period.
Many multinational companies, including SailGlobal, implement protective severance accrual policies for Egyptian employment agreements. This proactive approach helps mitigate unexpected financial liabilities arising from termination scenarios. SailGlobal's global expertise in litigation risk management ensures that severance calculations align with both legal requirements and local best practices. Unused accruals are returned to clients when employees resign or aren't entitled to severance benefits.
Practical Case Examples
Consider a technology firm that needed to restructure its Cairo operations. By following proper termination protocols and providing adequate notice, the company avoided legal disputes while maintaining positive employer branding. Another case involved a manufacturing company that utilized SailGlobal's severance accrual system, which protected them from significant financial exposure when an unexpected termination situation arose.
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