Arbitrary Dismissal & Severance in Egypt: The New 2025 Labour Law
By HAQQ Research · · 8 min read · mena
Egypt's new Labour Law No. 14 of 2025: arbitrary-dismissal compensation (2 months/year, Art. 165), 3-month notice (Art. 156), and the new resignation-ratification rules.
Egypt has no Gulf-style end-of-service gratuity; end-of-service runs mainly through the social-insurance/pension system (Law 148/2019). The new 2025 Labour Law sets arbitrary-dismissal compensation for indefinite contracts at no less than two months' wages per year of service (Art. 165), with a three-month notice period (Art. 156). Resignations must now be ratified by the Labour Office, with a 10-day employer acknowledgment and a 10-day withdrawal window; pre-signed resignations are invalid.
FAQ
How much is compensation for arbitrary dismissal in Egypt?
For an indefinite-term contract, no less than two months' wages for each year of service (Article 165 of Law No. 14 of 2025), plus payment in lieu of notice. For a fixed-term contract, one month's wage per year (Article 154).
Is there an end-of-service gratuity in Egypt?
Not in the Gulf style. End-of-service runs through the social-insurance system (a pension, or a lump-sum compensation where the contribution threshold is not met, under Law 148/2019), plus arbitrary-dismissal compensation where applicable.
What is the notice period in Egypt under the 2025 law?
Three months for either party, regardless of length of service, under Article 156 of Law No. 14 of 2025.
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