14-05-2025
Egypt's new labor law regulates training, links education to the labor market.
Labor Law - file
CAIRO - 14 May 2025: Egypt's new Labor Law includes a comprehensive chapter regulating training, qualification, and employment, where it covers trainees, persons with disabilities, and apprenticeship workers.
It also establishes controls for the operating mechanisms of training centers and the licensing of trainers. The legislation also ensures that education is linked to the labor market through a Higher Council for Skills Development and an independent fund, within the framework of the state's plan to develop human resources and achieve occupational justice.
Article 15 of the law stipulates that the provisions of this chapter apply to all training centers subject to the provisions of the law, as well as to those seeking training, persons with disabilities and dwarfs, vulnerable groups, trainees, those seeking higher or continuing qualification, and apprenticeship workers.
Article 20 stipulates that the Training and Qualification Fund shall operate at the national level, in line with the needs of sectoral employer organizations established by law.
It shall be responsible for providing the following services:
1. Financing human resource skills development and vocational and technical training through the establishment and development of training centers, the preparation and implementation of training programs, and the necessary skill and competency guides.
2- Financing development projects that target human resource skills development, linking education and training outcomes to current and future labor market needs, and coordinating with sectoral skills councils.
3- Establishing the terms and conditions for regulating funding operations.
4- Monitoring and evaluating the implementation of all funded projects.
The Prime Minister shall issue a decision to form the Fund's Board of Directors, chaired by the relevant minister and including representatives of trade union and employer organizations, equally, and representatives of relevant ministries and authorities.
The decision shall also specify the Fund's other powers, its operating system, and the financial treatment of the Chairman and members of the Board of Directors, provided that they are derived from the Fund's own resources. The Fund's branches in the governorates, its bylaws, its resource collection system, and the accounting system to be followed.
The Fund's Board of Directors may use private law means to achieve its objectives and exercise its powers.
Article 21 specifies the fund's resources, including 0.25% of the minimum insurance wage for workers in establishments with 30 or more workers, with a minimum of EGP 10 and a maximum of EGP 30 per worker, borne by the establishment annually.
Resources also include accepted donations and returns on investment of the fund's funds. The fund will have an independent account and will be subject to oversight by the Central Auditing Organization.
