GCC Laws
Egypt
Contracts

Contracts

Q. What types of employment contracts exist in Egypt?
Employment contracts in Egypt include fixed-term contracts, indefinite-term contracts, and temporary contracts for specific tasks. Each type has its own regulations regarding termination, renewal, and employee entitlements. Contracts must be in writing and include all essential terms. Verbal agreements are not legally sufficient.

Q. Is a written employment contract mandatory?
Yes, a written contract is required by Egyptian labour law. It must include the job title, responsibilities, salary, working hours, and duration. Both the employer and employee must sign the contract. The absence of a written contract can lead to disputes and legal complications.

Q. Can contracts be in a language other than Arabic?
While contracts may be bilingual, Arabic must be one of the languages used. In case of disputes, the Arabic version will prevail in court. This ensures clarity and legal compliance. Employers should provide translations if needed.

Q. What is the probation period under a contract?
The probation period cannot exceed three months. During this time, either party can terminate the contract without notice. However, the termination must not be for discriminatory or retaliatory reasons. Probation terms must be clearly stated in the contract.

Q. Are amendments to contracts allowed?
Yes, but amendments must be agreed upon by both parties and documented in writing. Changes may include salary adjustments, job roles, or working hours. Verbal modifications are not enforceable. Both parties should retain copies of the updated contract.

Q. What happens if an employer fails to provide a contract?
If no written contract is provided, the employee can still claim rights based on actual work performed. The employer may face penalties and legal action. Labour courts can interpret employment terms based on available evidence. It is in the employer’s best interest to provide a formal contract.

Q. Can fixed-term contracts be renewed?
Yes, fixed-term contracts can be renewed, but multiple renewals may convert the contract into an indefinite-term one. The law discourages misuse of fixed-term contracts to avoid employee entitlements. Each renewal should be properly documented.

Q. Are part-time and freelance contracts recognized?
Yes, part-time and freelance contracts are recognized if they comply with labor law provisions. These contracts must still outline essential terms. Freelancers are generally not entitled to the same benefits as full-time employees unless specified. Tax and social insurance obligations may vary.

Q. Can an employer enforce non-compete clauses?
Non-compete clauses are permitted but must be reasonable in scope, duration, and geography. They must protect legitimate business interests. Overly broad clauses may be struck down by courts. Legal advice is recommended when drafting such clauses.

Q. What should be included in an employment contract?
A contract should include the employee's name, job title, duties, salary, benefits, working hours, duration, and termination conditions. It should also cover probation, leave entitlements, and dispute resolution methods. Clear terms help prevent misunderstandings and disputes.

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