Probation periods in Egypt: three months at most, and only once

Executive summary

• "The probation period shall be set in the employment contract for a period not exceeding three months" (article 90 of Labour Law 14 of 2025, our translation), and the work regulation may not provide for a longer period (article 21 of Minister of Labour Decree 162 of 2026).
• A worker may not be appointed on probation more than once with the same employer (article 90). The text makes no exception for a renewal, a re-hire or a move to another job.
• Article 90 sets no rule on ending the contract during probation, and the articles of the chapter on the end of the employment relationship (154 to 175) do not mention probation. Article 93 assumes the contract may end during it "for one of the reasons set out in this law".
• Articles 156 and 161 make no exception for probation from the three months' written notice for an indefinite contract, and no agreement may waive that notice or shorten it (article 161). In the absence of an express provision, our reading is that ending during probation follows the rules for the type of contract; the point is open to another reading.
• Breach of articles 90 and 93 carries, under the second paragraph of article 288, the penalty in its first paragraph: a fine of EGP 500 to EGP 5,000, multiplied by the number of workers concerned and doubled for a repeat offence.
• The social insurance texts we read make no exception for a worker on probation, who must be reported within two weeks of joining (article 19 of the executive regulations of Law 148 of 2019).

The particulars and copies of the contract are covered in Employment contracts in Egypt; the difference between the two types of contract is covered in Fixed-term and indefinite employment contracts in Egypt. On ending the contract, this piece covers only what concerns probation; the rest is in our bulletin on ending the employment relationship.

The maximum, and where it must be stated

Labour Law 14 of 2025 applies from 1 September 2025, the first day of the month following ninety days from its publication on 3 May 2025 (article 13 of the issuing articles). The rule reads:

"The probation period shall be set in the employment contract for a period not exceeding three months. A worker may not be appointed on probation more than once with one employer" (article 90, our translation).

Article 21 of Minister of Labour Decree 162 of 2026 on the general rules for the work regulation (published in Al-Waqa'i Al-Misriya on 13 August 2026 and in force from the day after publication) repeats the rule and adds two points: the period is set in the contract "if there is one", and "the regulation may not contain a longer period" (our translation). The work regulation is prepared by every employer of ten or more workers (article 2 of the decree).

Probation is therefore optional, and its place is the contract. Where there is no written contract, the contract is indefinite from its conclusion (article 88), and each party may prove the relationship and the rights arising from it by every means of proof (article 89). In our view, an employer should not rely on a probation period that is not written into the contract.

"Any condition or agreement that contravenes the provisions of this law, even if made before it came into force, is void if it reduces the rights it grants the worker" (article 6, our translation). Read together, articles 6 and 90 mean that any period beyond three months has no effect. Breach of article 90 is punished, under the second paragraph of article 288, with the penalty set in its first paragraph: a fine of not less than EGP 500 and not more than EGP 5,000, multiplied by the number of workers concerned and doubled for a repeat offence.

The once-only rule

The restriction is tied to the employer, not to the job or the contract. Article 90 makes no exception for the renewal of a fixed-term contract, the re-hiring of a worker who has already been on probation with the same employer, or a transfer or promotion to another job.

Article 90 does not deal with extending the period once it has started. It can be read in two ways: an extension within the three months continues the same probation; or it is a second appointment on probation, which the second sentence forbids. In our view, the full period should be set in the contract at signature and not extended.

Ending the contract during probation

Article 90 says nothing about ending the contract. Articles 154 to 175, the chapter on the end of the individual employment relationship, do not mention probation, and neither do the ten cases of ending that article 60 of Decree 162 lists by way of example ("including"). Probation is mentioned in the context of ending in article 93, which requires the employer to transport the worker from the place where the contract was made to the place of work:

"It is also bound to return the worker to that place within three days of the date the employment contract ends for one of the reasons set out in this law, even if this is during the probation period, unless the worker refuses in writing to return within that period" (article 93, our translation).

Breach of article 93 also falls under the second paragraph of article 288. By contrast with article 90, the law makes express provision for apprenticeship: "the employer may end the apprenticeship agreement if it is established that the apprentice is unsuitable", with at least three days' notice before ending it (article 30, our translation).

No express provision in the articles we read settles the point, and we cite no court ruling on it under the new law. Our reading of these texts together is that ending the contract during probation follows the rules for its type. For an indefinite contract, either party may end it "provided that it notifies the other party in writing three months before termination" (article 156); it may be ended only "for a legitimate and sufficient reason" (article 157); and "no agreement may waive the notice requirement or shorten its period" (article 161). If the employer ends it without notice or before the notice period expires, it pays the worker's wage for the notice period or the remainder of it (article 164). If the employer ends it for an unlawful reason, the worker is entitled to compensation of at least two months' wage for each year of service; the unlawful reasons include sex, marital status, family responsibilities and pregnancy (article 165). The rules for ending a fixed-term contract are in Fixed-term and indefinite employment contracts.

Whether failing probation meets the test of article 157 can be read in two ways. On the first reading, probation by its nature allows the contract to be ended for unsuitability: the purpose of the period that article 90 allows is to establish whether the worker is suitable, so unsuitability shown during it on objective grounds is a legitimate and sufficient reason. On the second, the law provides for ending for unsuitability only in apprenticeship, and article 93 refers to "the reasons set out in this law", so failing probation is weighed against article 157 like any other reason. The first reading may be taken further, to hold that the nature of probation also dispenses with the notice period; but on either reading we found nothing in the articles we read that exempts an ending during probation from written notice or from the wage for the notice period.

In our view, as a precaution while the point remains unsettled, an employer should treat an ending during probation like any other ending: a written reason drawn from a documented assessment, three months' written notice or the wage for the notice period, and a decision taken before the period ends. An employer of ten or more workers may base this on the performance assessment that the regulation must organise "according to objective, fair and measurable criteria", with the worker notified of the result and able to challenge it (articles 30 and 31 of Decree 162). We do not recommend a contract clause allowing the contract to be ended during probation without notice: on our reading it is exposed to being void, because article 161 does not allow an agreement to waive notice, and article 6 voids a condition that reduces the rights the law grants the worker.

Where the reason is misconduct by the worker, dismissal is a penalty for the labour court to impose, and "in all cases, a worker may not be dismissed unless they have committed a serious fault" (article 148, our translation); see Work regulation and disciplinary penalties.

Social insurance during probation

The social insurance texts we read draw no distinction between a worker on probation and any other worker. The Social Insurance and Pensions Law 148 of 2019, as corrected, covers "private-sector workers subject to the Labour Law, provided that the employment relationship between the insured person and the employer is regular", aged eighteen or over (article 2, first category, item 3, our translation). The executive regulations (Prime Minister's Decree 2437 of 2021) treat the relationship as regular "if the work the worker performs falls by its nature within the employer's activity, or lasts at least six months" (article 3, item 4(b), our translation). The two conditions are alternatives, so on our reading a short probation does not take the worker outside social insurance where the work falls by its nature within the business's activity.

The employer submits the worker's data, wage and contributions within two weeks of "any worker joining it" (article 19 of the regulations), not from the end of probation. Contributions are not due for the month in which service starts unless it is a full month, and are due in full for the month in which it ends (article 70). When service ends, form 6 is due within a week (article 20); see Social insurance forms 1, 2 and 6.

What this requires

• State the probation period in the written contract, in full, at no more than three months, with no extension once it has started.
• Do not provide for a second probation on renewal, on re-hiring a former worker, or on a transfer or promotion with the same employer.
• For employers of ten or more workers: a work regulation with no period longer than three months, and a performance assessment on objective criteria, with the worker notified of the result and able to challenge it.
• Before the period ends: decide whether to continue or end the contract; as a precaution, for an indefinite contract, end it only with a written reason from a documented assessment and three months' written notice or the wage for the notice period, and remove any clause allowing it without notice.
• Return a worker who was brought from the place of contracting to that place within three days of the contract ending, unless the worker refuses in writing.
• Form 1 within two weeks of the worker joining, even on probation, and form 6 within a week of service ending.

The firm's Social Insurance & Labour Department reviews probation clauses in employment contracts and work regulations against the Labour Law and its decrees, and follows the steps for ending a contract and the related social insurance notices, as part of its social insurance and labour compliance services.

Mahmoud Nassef, Founder Partner
Chartered Accountant, Ministry of Finance, Egypt

Member, Egyptian Society of Accountants & Auditors
Member, Egyptian Tax Society
Member, Egyptian Society for Public Finance and Taxation

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Disclaimer: This bulletin is prepared for general information on the legislation in force at the date of its publication. It does not constitute a professional opinion or tax or legal advice on any particular matter, and it should not be relied upon in place of advice based on an examination of the circumstances of each case. Nassef & Partners International accepts no responsibility for any action taken, or refrained from, in reliance on its contents. The positions stated remain subject to subsequent legislation and decisions.