Egypt’s Labor Law No. 14 of 2025 introduced important updates to the employment relationship. Among the most significant changes are the formal rules governing the employee notice period — a legally required timeframe for terminating employment that affects HR operations, payroll, and legal exposure. This guide explains the updated notice period rules, how they apply to both indefinite and fixed-term contracts, and what employers must do to remain compliant.
Law No. 14/2025 clarifies notice durations, strengthens written-notice formalities, and protects employees from abrupt dismissals while preserving employer flexibility. Key points: written notice required, minimum notice scales by service years (2–3 months), fixed-term contracts expire by term or require notice/compensation if ended early, and full salary must be paid during notice. Employers should document every step to avoid labor court disputes.- Reduces litigation risk by enforcing written notice and compensation rules.
- Protects employees from sudden termination, improving workforce stability.
- Requires HR processes to be updated for documentation, pay, and exit checklists.
- What Is a Notice Period?
- The New Legal Framework Under Law 14 of 2025
- Notice Period in Fixed-Term Contracts
- Employer Obligations During the Notice Period
- Employee Rights and Duties
- Waiver or Reduction of Notice Period
- Compensation in Lieu of Notice
- Practical Recommendations for Employers
- Common Mistakes to Avoid
- Dispute Resolution and Penalties
- Conclusion
1. What Is a Notice Period?
A notice period is a legal interval that must pass between the decision to end an employment relationship and the final termination date. It exists to protect both parties: employees gain time to search for new work and secure entitlements; employers gain time to manage handovers, recruit replacements, and finalize projects.
Under Article 122 of Law No. 14/2025, termination requires written notice within the legally prescribed timeframe. The legislation frames notice periods as essential safeguards against arbitrary dismissals and ambiguous separations.
2. The New Legal Framework Under Law 14 of 2025
The 2025 law aims to balance employee protection with business flexibility. Article 123 sets clear minimum notice durations for indefinite-term contracts: two months for employees with less than ten years’ service and three months for those with ten years or more. Notices must be written and delivered either in person or by registered mail. Employers should treat this step as a formal legal action, not an administrative formality.
These rules are designed to give predictability to both sides. Employers retain the ability to manage headcount but must do so transparently and with fair notice, reducing exposure to labor disputes.
3. Notice Period in Fixed-Term Contracts
Fixed-term contracts expire naturally at the agreed date. Article 124 states that early termination before the expiry date requires either mutual written notice or compensation equal to wages due through the remainder of the contract. This provision prevents one-sided early termination and ensures employees are not left without pay when a contract ends prematurely.
Practically, employers must calculate potential liabilities when considering early termination of fixed-term agreements and document any mutual agreements in writing to avoid disputes.
4. Employer Obligations During the Notice Period
Employers must continue to pay full salary and benefits during the notice period and maintain standard working conditions. Forcing employees to take unpaid leave or otherwise depriving them of normal employment benefits contravenes the law. Under Article 125, if an employer prevents an employee from working during notice, the employer must pay the full salary for the notice period.
Additionally, Article 129 requires employers to issue a service certificate on request. This certificate must accurately state the employee’s duration of service and job nature and is an important document for future employability.
5. Employee Rights and Duties
Employees are expected to continue performing their duties professionally, assist with handovers, and avoid actions that could harm the company. These duties preserve the integrity of the employer’s operations during the transition. Non-compliance may justify disciplinary measures or affect entitlement calculations—but employers should apply any sanctions carefully and document reasons to avoid frivolous disputes.
Employees also have the right to compensation if the employer fails to honor notice requirements or prevents them from working during the notice period.
6. Waiver or Reduction of Notice Period
Article 126 allows both parties to mutually agree in writing to waive or shorten the notice period. The key requirement is genuine, voluntary consent. The law prohibits any arrangement that deprives employees of compensation in lieu of notice if the agreement is not genuinely voluntary—for example, if coercion or undue pressure occurred.
Employers should therefore document the circumstances of any waiver and retain signed records as evidence of the employee’s consent.
7. Compensation in Lieu of Notice
If notice is not provided, the terminating party must compensate the other with wages equal to the notice period. For instance, if an employer dismisses an employee without the required two-month notice, the employer owes two months’ gross salary as compensation. This rule applies reciprocally to employees who resign without proper notice.
Employers should verify payroll calculations and ensure any compensation is processed promptly to reduce the risk of additional claims.
8. Practical Recommendations for Employers
Implement these steps to ensure compliance:
- Update employment contracts to reflect Law No. 14/2025 notice rules.
- Train HR and managers on lawful termination procedures and documentation.
- Use written, dated notices only — avoid verbal or informal communications.
- Keep termination files: notices, receipts, pay records, and exit clearances.
- Create an exit checklist to confirm fulfillment of legal obligations and issue the service certificate promptly.
These measures will reduce litigation risk and support a fair, transparent separation process.
9. Common Mistakes to Avoid
Employers commonly err by terminating without written notice, failing to pay salary during notice, forcing employees to use annual leave, ignoring the service certificate obligation, or misclassifying contract types to avoid notice liabilities. Each mistake can lead to labor court claims and administrative fines.
10. Dispute Resolution and Penalties
Labor Courts have jurisdiction over notice period disputes per Article 214. Consequences for breaches may include compensation orders, administrative sanctions, and in repeated cases, reputational consequences or restrictions affecting business operations. Clear documentation and early resolution attempts reduce the chance of escalated litigation.
Conclusion
Law No. 14 of 2025 modernizes Egypt’s labor framework by clarifying notice period requirements and introducing safeguards that balance employee protection with employer flexibility. For HR teams and business leaders, the law is a prompt to review internal policies, update employment documentation, and strengthen termination procedures.
When notice is handled transparently—through written communication, timely compensation when required, and proper documentation—companies comply with the law and reinforce a culture of fairness that benefits retention, reputation, and long-term stability.
Need tailored advice? Our employment law specialists provide contract reviews, termination audits, and HR training to ensure your company meets the requirements of Law No. 14/2025.
Introduction
The new Egyptian Labor Law No. 14 of 2025 introduced several important modifications concerning the employment relationship, one of the most crucial being the employee notice period. This period represents the legally required time frame that either the employer or the employee must provide before ending an employment contract. For business owners and HR professionals, understanding these new notice period rules is essential to ensure compliance, avoid legal disputes, and maintain fair employment practices.
This article explains in practical terms how the 2025 law redefined notice periods in Egypt, its implications for both fixed-term and indefinite contracts, and how employers should adjust their internal policies accordingly.
1. What Is a Notice Period?
A notice period is a legally required duration that must elapse between the decision to terminate an employment contract and the actual end date of employment. It serves as a buffer period, allowing both the employee and the employer to prepare for transition — whether it is to replace staff, complete pending work, or settle outstanding obligations.
Under Article (122) of Labor Law 14/2025, either party may terminate the employment contract provided they give written notice within the legally defined time frame.
2. The New Legal Framework Under Law 14 of 2025
The 2025 labor law aims to create greater stability in employment relationships and protect workers from arbitrary dismissal, while also giving employers the flexibility to manage their workforce efficiently.
According to Article (123):
- For indefinite-term contracts, either the employer or the employee may terminate the contract by written notice.
- The minimum notice period is:
- Two months for employees who have served less than 10 years with the employer.
- Three months for employees who have served 10 years or more.
The law emphasizes that notice must be in writing, delivered either in person or by registered mail, and must clearly indicate the reason for termination.
3. Notice Period in Fixed-Term Contracts
In the case of fixed-term contracts, the rule is slightly different.
Under Article (124), fixed-term contracts automatically expire at the end of their agreed term. However, if either party terminates the contract before the agreed end date, they must either:
- Provide written notice (if termination is mutually agreed or justified), or
- Compensate the other party with an amount equal to the wages that would have been earned during the remaining contract period.
This ensures fairness and protects employees from sudden contract termination.
4. Employer Obligations During the Notice Period
Employers must adhere to the following obligations during the notice period:
- The employee continues to receive full salary and benefits during the notice period.
- The employee is entitled to normal working conditions and cannot be forced to take unpaid leave unless agreed upon.
- If the employer prevents the employee from working during the notice period, they must pay compensation equal to the salary for the entire notice period (Article 125).
Additionally, the employer must provide a service certificate upon request, detailing the duration and nature of the work performed, as stated in Article (129).
5. Employee Rights and Duties
Employees also have responsibilities during the notice period.
They are required to:
- Continue performing their duties diligently.
- Help facilitate a smooth transition or handover process.
- Refrain from actions that could harm the company’s interests.
Failure to comply with these duties could justify disciplinary action or loss of entitlements.
6. Waiver or Reduction of Notice Period
Under Article (126), both parties may agree in writing to shorten or waive the notice period. However, the law strictly prohibits any agreement that completely deprives the employee of compensation due in lieu of notice unless the employee voluntarily resigns without external pressure.
This ensures the employee’s consent is genuine and that no exploitation occurs.
7. Compensation in Lieu of Notice
If either party fails to provide the required notice, compensation must be paid equal to the employee’s wage for the entire notice period.
For instance, if an employer terminates an employee with immediate effect without giving a two-month notice, the employer must compensate the employee with two months of gross pay.
This compensation rule applies equally to employees who leave without proper notice.
8. Practical Recommendations for Employers
To comply with the new law, HR departments should:
- Review and update employment contracts to reflect the new notice period durations.
- Train managers and HR personnel on legal termination procedures.
- Maintain clear termination documentation, including notice letters and acknowledgment receipts.
- Avoid informal verbal notices — only written, dated notices are legally recognized.
- Implement an exit process checklist to ensure all legal obligations are met before termination.
These measures not only protect the organization from labor disputes but also preserve its professional reputation.
9. Common Mistakes Employers Should Avoid
- Terminating employees without written notice.
- Failing to pay salary during the notice period.
- Forcing employees to use annual leave during the notice period.
- Ignoring the obligation to issue a service certificate.
- Misclassifying a fixed-term contract as indefinite to avoid notice obligations.
Each of these errors can expose the employer to labor court penalties and compensation claims.
10. Dispute Resolution and Penalties
Disputes arising from notice period violations fall under the jurisdiction of Labor Courts as per Article (214) of the law.
Employers found guilty of breaching notice period rules may face:
- Compensation orders.
- Administrative penalties.
- Potential blacklisting in cases of repeated violations.
To prevent litigation, employers are encouraged to maintain transparent communication and proper documentation throughout the employment cycle.
Conclusion
The notice period provisions under Labor Law No. 14 of 2025 reflect Egypt’s efforts to balance labor protection and business flexibility. For employers and HR professionals, compliance with these updated rules is not merely a legal requirement — it’s a cornerstone of fair and responsible management.
By ensuring that every termination is handled with clear communication, proper notice, and fair compensation, companies can protect themselves from legal risks while fostering a culture of trust and professionalism in the workplace
