Overview: Termination Under Egyptian Law
Employee termination in Egypt is governed by Labor Law 14/2025 (Articles 119–140) and is among the most strictly regulated aspects of employment. Employers who dismiss employees without following the correct process face significant financial and legal exposure.
Valid Grounds for Dismissal (Art. 127)
An employer may dismiss an employee without notice pay or compensation only for specific serious reasons:
- False identity or forged documents provided during hiring
- Causing intentional material damage to company property
- Repeated intoxication during work hours after prior warning
- Assault on the employer, manager, or colleagues during work
- Unauthorized disclosure of company trade secrets
- Absence without valid cause for 7 consecutive days, or 20 non-consecutive days in one year, after proper written warning
- Final criminal conviction for a felony or crime of dishonesty
Notice Periods
| Employee Service Length | Minimum Notice Period |
|---|---|
| All indefinite contracts | 3 months |
| 10 years or more | 2 months |
The employment contract may specify a longer notice period. If the employer terminates without giving proper notice, they must pay the employee a sum equal to the notice period salary (payment in lieu of notice).
End-of-Service Gratuity
Employees with at least 1 year of continuous service are entitled to an end-of-service gratuity upon termination (except for dismissal for serious cause under Art. 127). The gratuity is calculated based on last salary and total years of service.
Wrongful Dismissal Compensation
If a court finds that an employee was dismissed without valid cause or without proper process, the employer must pay:
- Minimum 2 months' gross salary per year of service
- Notice period payment (if not already paid)
- All outstanding annual leave balance (monetised)
- Any unpaid wages or benefits
Disciplinary Process Requirements
Before dismissing an employee for performance or conduct reasons, Egyptian law requires:
- A formal written investigation is conducted
- The employee is given the opportunity to respond in writing
- A disciplinary committee hears the case
- A formal written decision is issued
Skipping any of these steps can render the dismissal unlawful, regardless of the underlying merits of the case.
Practical Recommendations
Given the complexity and employee-protective nature of Egyptian termination law, Staffona strongly recommends consulting an HR specialist before initiating any termination process. Our compliance advisory service covers termination management end-to-end — from investigation through to final clearance documentation.