Employment contracts Egypt

What should an employment contract in Egypt include?

The following elements should be contained in every employment contract made in adherence to Egyptian labour laws:

• Personal information about both parties, including names, addresses, and contact information.
• A detailed job description, including the scope of rights and responsibilities.
• Payschedule, salaries, benefits, and other contributions.
• Work schedule, days, and hours of work.
• Non-disclosure and confidentiality policies to protect the employer’s interests.
• Termination policies, notice periods, and severance pay, if applicable. 

It’s essential to note that both parties must read, understand, and accept the terms of the employment before signing the contract.

What types of employment contracts exist in Egypt?

In Egypt, there are a few categories of employment contracts, as follows:

1. Employee contracts

Employee contracts can be divided into two categories:

• Indefinite employment contracts: Under this type of agreement, the employment is effective until terminated by one of the parties. Indefinite or permanent employment contracts should define conditions such as wages, working hours, leaves, and other important terms. Such contracts can be terminated by following the notice period defined within the agreement.
• Fixed-term employment contracts: Fixed-term contracts are contractual agreements that remain valid for a predetermined period. As the duration of this contract is restricted, the company has the option to extend it or terminate it completely after the expiration. Besides the duration, fixed-term agreements also define wages, working hours, and other essential employment conditions.

2. Contracts for particular works

Contracts for particular works are used for the purpose of specific projects and assignments and stay effective until the completion of this work. These agreements can’t be terminated prior to the accomplishment of work and can be renewed if work operations continue after completion.

3. On-call employment contracts

On-call or casual employment agreements are commonly used to define arrangements where the employee is not guaranteed a fixed number of working hours. These contracts are typically used in sectors such as healthcare, hospitality, and other areas with fluctuating demands that require flexible scheduling.

How to hire employees in Egypt?

In Egypt, employers are obligated to provide employees with at least the statutory minimum salary and other benefits to which they are entitled. Before hiring an employee from the country, the company must be registered as a legal entity with the relevant authorities.

Company registration is required for administrative purposes, such as applying for a tax identification number and opening local business bank accounts in accordance with the relevant legislation and employment laws.

To avoid legal issues and navigate complex legal systems, companies are advised to collaborate with global companies offering recruitment services and solutions, such as Native Teams. With our Employer of Record solutions, you can get paperwork related to global payroll, taxation, and HR administration handled while fully complying with Egypt’s comprehensive labour regulations.