Egypt’s new labour law, which came into effect on September 1, marks “a turning point in the philosophy of labor management,” Labor Minister Mohamed Gobran told Al-Ahram Hebdo in an exclusive interview.
The legislation is designed to shield workers from unfair dismissal while easing constraints on employers and creating a more investment-friendly environment.
According to the minister, the law’s most significant innovation lies in balancing the rights and obligations of both parties. Labour disputes must now be resolved within three months by specialized courts, ending the lengthy legal battles that previously plagued the system. In cases of dismissal, only the judiciary can validate termination, ensuring due process.
The reform also addresses market changes by formally recognising remote work and platform-based jobs, such as delivery services. A nationwide campaign titled “Your Safety Matters to Us” has been launched to formalise and protect these workers, granting them access to social and health insurance.
For employers, the law offers greater flexibility through diversified contract types and a reduction in training contributions from 1% to 0.25% of base salaries. Criminal penalties for certain administrative violations have been scrapped, replaced with more flexible inspection mechanisms. “Investors seek clarity and fairness, and that is what we are providing,” Gobran stressed.
The legislation places special emphasis on women’s rights, extending maternity leave, abolishing discriminatory provisions, and lifting restrictions on night work. Persons with disabilities and informal workers are also included under expanded protections and integration measures.
To address concerns voiced by some unions and employers, the ministry is holding nationwide seminars to explain the law. “Much of the anxiety stems from rumors rather than the text itself,” Gobran noted.
The minister also underlined the role of Egypt’s diaspora, whose remittances remain a vital source of foreign currency. Labour attachés abroad have been tasked with seeking out new markets in Europe and the Middle East to secure contracts and improve protections for expatriates.
“This law is simple, clear and enforceable. It opens the way to lasting stability in Egypt’s labour market,” Gobran concluded.
MK/ac/lb/as/APA