Background checks are typically unrestricted, allowing prospective employers to acquire experience certificates directly from applicants’ former employers.

Employers should cross-reference recruitment documents with the employee’s CV to ensure accuracy. For previously employed staff, it’s essential to verify deregistration from the social insurance authority.

Employers have the authority to mandate medical examinations for positions involving heightened safety concerns, such as working with machinery or engines. Additionally, they can conduct drug or alcohol tests before or during employment.

The probation period cannot exceed three months from the start of employment, irrespective of the contract signing date. This duration is fixed and cannot be prolonged. Throughout this probationary period, either party has the right to terminate the employment without incurring any liability or compensation.

The employer must register the employee within the initial three months of their employment, not afterward. Registration involves submitting the employee’s file to the relevant authority, including all recruitment documents and a signed copy of their employment contract (Form 1), signed by both the employee and the employer.

The Labor Law stipulates that working hours are limited to eight hours per day, with a one-hour break, and 48 hours per week.

In the private sector, it’s typical for employees to work five days a week, typically from Sunday to Thursday. Working hours may be extended to nine hours per day, with a one-hour break included. The specific working hours are determined by the employment contract and the terms and conditions of work.

All types of employees have the right to receive overtime pay, which is computed at an increased hourly rate.

When work is conducted on non-working days, the compensation is set at twice the daily wage, and the employer is obligated to grant the employee an additional day off during the subsequent week. This arrangement must be mutually agreed upon before the work is performed on non-working days.

There is no compulsory requirement to provide annual bonuses; however, bonuses may be allocated based on key performance indicators (KPIs). Employees of joint-stock companies, limited liability companies, or foreign branches may receive a portion of distributable profits, ranging from 10% to the total annual salaries of all employees. However, companies with capital under EGP 250,000 are exempt from profit sharing, and the management has the discretion to determine the profit-sharing amount.

If a company opts for end-of-year bonuses, it must establish a KPI assessment process in collaboration with staff at the onset of the year.

Furthermore, employees are entitled to an annual increment of no less than 7% of the basic social insurance salary.

The notice period for termination is as follows:

• 2 months for employees with a service period of up to 10 years.
• 3 months for employees with a service period exceeding 10 years.

Employers have the option to provide payment in lieu of notice if they choose to terminate the contract immediately. Additionally, employees with remaining holidays may receive the cash equivalent for those days.

An employer is permitted to terminate an employment contract only under specific circumstances as outlined in Article 69 of the Labor Law:

• Submission of forged documents
• Failure to adhere to safety instructions despite prior warnings
• Absence from work for more than 20 non-consecutive days or 10 consecutive days within a year, following formal complaint documentation filed with the labor office
• Disclosure of confidential employer information
• Engaging in direct competition with the employer within the same trade or business
• Being under the influence of intoxicants during working hours
• Assaulting others in the workplace
• Demonstrating professional incompetence

If termination is not justified by the reasons listed above, such as termination due to misconduct, unsatisfactory performance, or redundancy, it can only proceed with approval from the Labor Office committee. Additionally, specific procedures must be followed to prevent potential legal action against the company by the employee through the labor office.

Post-termination non-compete and non-solicitation clauses are contractual provisions aimed at safeguarding employers’ proprietary trade assets and information. These restrictive covenants remain in effect for a duration of three years following the termination of the employment contract. During this period, the former employee is not entitled to compensation from the employer while being subject to these post-employment restrictions.

If an employee is dismissed without valid grounds, they are entitled to compensation. This compensation should amount to at least two months’ full wages for each year of service. For fixed-term contracts, the salary for the remaining contract period must be paid out. The dismissal must be reported to the Labor Bureau, and the employer must obtain authenticated documentation from the labor office.

Employees who reach the age of 60 become eligible for severance pay, also known as pension monthly pay, from the Social Insurance Authority (Social Insurance Law No. 148/2019).

For employees over 60 who continue working, they are entitled to severance pay after termination for every year worked after reaching age 60. The compensation is calculated based on the last salary paid and follows these rates:

• 50% of monthly salary for each year of service for the first five years
• 100% of monthly salary for each year after the initial five years

To apply these rates, authenticated regulation from the labor bureau is required.

Severance pay received while still employed after termination is subject to taxation. However, if received after employment cessation, it is not taxed and is treated as “end of service” according to labor bureau regulations.

A fixed-term contract ends upon its expiration date. If terminated before its completion, the employer must provide severance pay equivalent to the salary for the remaining duration of the contract. In cases where the employer decides not to renew the fixed-term contract, they must notify the employee at least three months before its expiration date.

Employers are required to furnish employees with payslips detailing their monthly salary, deductions, and any benefits received. Online payslips are also considered valid and acceptable.

Payroll reports must be retained in the records for a minimum of five years.

Employees who have completed a full year with their current employer are entitled to an annual leave of 21 days. For those who have worked continuously for ten years or more, or are over 50 years old, the annual leave entitlement is 30 days.

Workers employed for more than six months but less than a year receive annual leave on a pro-rata basis. However, no annual leave is granted until the completion of six months of employment.

Accumulation of annual leave is permitted, with a maximum carry-over period of three years. However, many employers restrict carry-over to mitigate financial liabilities.

As per the Labor Law, the holiday allowance should be 50% of the employee’s basic salary. This also applies to the Christmas allowance. Employers have the option to provide a higher percentage than mandated by law.

Each employee has the right to paid time off for official holidays, with a maximum of 14 days per year.

Employees can take a maximum of 180 days of sick leave per year, but it must be certified by a medical professional. During the first three months of sick leave, employees receive 75% of their monthly social insurance salary, which increases to 85% for the following three months.

It’s essential for employees to notify their manager when taking sick leave; otherwise, it may be considered unexcused absence. If the sick leave extends beyond three days, a medical report is required.

Once all sick leave is exhausted, a government medical committee assesses the employee’s ability to work. If an employee has been absent for more than 180 days in a year due to sickness, the employer reserves the right to terminate their service.

A female employee who has completed ten months of service with an employer is eligible for a maternity leave lasting four months, during which the employer provides full wages. This entitlement includes the period leading up to the delivery if the maternity leave begins before the due date. However, a female employee can only avail of this maternity leave benefit up to two times over her entire career.

Following childbirth, female employees are not permitted to work for a period of 45 days.

While some companies may offer unpaid leave options for maternity leave, such arrangements must align with the company’s established policies.

Female employees working in organizations with more than 50 employees have the right to take up to two years of unpaid childbearing leave per child.

Currently, there are no statutory requirements for paternity leave in Egypt.

Within the 24-month period following the date of delivery, a female employee has the entitlement to take a one-hour break from work daily to breastfeed her child.

Compassionate and bereavement leave are not explicitly outlined in the legislation. Nevertheless, employees have the option to utilize their accident or emergency leave for such situations.

Employees who have completed five consecutive years of service are eligible for fully paid leave for a duration of up to one month to undertake a pilgrimage or visit Jerusalem. This pilgrimage leave may be granted once throughout the entire tenure of employment.