Contracts in Egypt

Overview by

Management of Human Resources



Recruitment Agencies
Recruitment agencies or head-hunters are private companies commissioned by employers.  They often have their own rules.  They require registration in their database first, before being able to submit candidacy.  They often have their own websites for classifieds and job announcements and can insist upon their own job interviews.
Recruitment Websites
Jobs in Egypt
Arabo Egypt: advertisement site
American Chamber of Commerce in Egypt

The Contract

Type of Contract
The work contracts are governed, in the order of importance, by the legal provisions, collective agreement and individual negotiation. The two types of contract frequently used are the limited duration contract and the open-ended contract. There is also the temporary work contract which is used with the purpose of giving the employee a well-specified assignment. There is no maximum duration. The occasional work contract exists in the case of a specific assignment and its duration cannot exceed 6 months. The seasonal work contract highly used in the tourism sector is concluded for a work which is required to be repeated every year at around the same fixed date. This type of contract cannot be renewed. Dismissal / layoff criteria are also very rigid compared to the employment conditions which are very flexible.
Breach of Contracts
  • Retirement
70 to 90% of active workers have access to retirement benefits.  It is possible (even compulsory) to retire at the age of 60, depending on the sectors:
- Pension is paid automatically on a monthly subscription booklet;
- The active worker saves through out the years a sum of his choosing, for his retirement, which is paid to him afterwards;
- The active worker opens an investment fund managed by a private company.  He could therefore possibly benefit from an additional percentage;
- From the age of 65 years, the State pays an additional EGP100.
  • Dismissals
The constraints of dismissal are very rigid unlike the conditions of hire which are extremely flexible.
  • Other Possible Methods
Expiration of the contract, resignation, collective dismissal...

Dispute Settlement


Conciliation Process

  • Legal Framework
Labor Law no 12 of 2003 governs all employment relationships.
  • Procedure
In the case of a dispute between employer and employee, the State Labor Office first tries to resolve the matter amicably.  If no agreement is concluded, the two parties can resort to an arbitration committee and file a complaint within 45 days or more.

Judicial Structures

  • Legal Framework
See the International Labor Organization.
  • Competent Legal Body
It is a committee made up of two judges, a representative of the Ministry of Labor and Immigration and two members of the Federation of Egyptian Unions.  The compensation determined by the committee cannot be less than two months salary.  However, matters normally take two to four years to be resolved.  In effect, these are complicated undertakings.

Social Partners

Social Dialogue and Involvement of Social Partners
There are 23 trade unions (labor unions) which are represented by the ETUF (Egyptian Trade Union Federation).
Unionization Rate
Union membership is around 20%.
Egyptian Trade Union Federation
Regulation Bodies
Ministry of Labor (in Arabic)

Any Comments About This Content? Report It to Us.

Read more See less

No content has been posted to this folder yet.
Be the first to feature your expertise related to Contracts in Egypt!

  • Post any content you may have that features your expertise, such as a text article with business tips, presentation, market report, etc
  • By sharing your knowledge you gain more visibility for your profile not only on but across the web

Post your content now by simply clicking on the button below.

Check these folders already populated with content posted by other users:

Click here to find out more about key benefits and instructions for contributing to the site.


Post any content you may have that features your expertise and offers valuable information to the international trade community.

The more informative content you post the more visible your will be, as your valuable content will link directly to your profile.

Check these sample pages for illustration: