Legalizing Remote Work Across Borders: Egypt’s Labor Law No. 14 of 2025 and the Legal Status of Cross-Border Employment

Introduction

In recent years, the global labor market has undergone a profound transformation, driven by technological advancements and the widespread adoption of remote work. The COVID-19 pandemic further accelerated this shift, compelling governments to reassess traditional labor frameworks and adapt to the realities of a digitally connected workforce.

In response to these developments, Egypt enacted Labor Law No. 14 of 2025 (“New Labor Law”), which, for the first time, formally recognizes remote work and other non-traditional employment formats as legitimate and regulated forms of employment. This legislative milestone addresses a long-standing gap in Egyptian labor law, addressing the relationship between remote workers and the Egyptian entities. However, this publication will focus on cross-border employment, where Egyptian workers provide services to foreign entities having their place of business and/or headquarters outside Egypt (“Foreign Entities”), as addressed in detail below.

Under the previous Labor Law No. 12 of 2003, remote work was neither defined nor acknowledged, resulting in legal ambiguity and practical challenges. This lack of regulation often left both Egyptian workers and Foreign Entities without a clear understanding of their respective responsibilities, rights, or legal protections. The New Labor Law offers a timely and necessary opportunity to structure and legitimize remote work relationships, specifically those involving cross-border service provision.

Remote Work Defined Under Egyptian Law

The New Labor Law introduces a new category of employment titled “Modern Work Formats”, which defines remote work as work performed in a location different from the traditional workplace of the establishment, executed through technological means.

The overarching definition of modern work formats encompasses any work performed in a non-traditional manner, regardless of the form or method of execution, provided it is carried out for the benefit of the employer and under their management or supervision, in exchange for remuneration.

This legal recognition is a significant development, as it integrates remote work into Egypt’s formal labor framework and provides a legal foundation for structuring employment relationships that transcend national borders. It also reflects Egypt’s alignment with global labor trends and its commitment to modernizing its employment regulations.

Legislative Enhancements Supporting Remote Work

The New Labor Law ensures that Egyptian workers engaged in modern work formats, including remote work, are entitled to the same legal protections and benefits as those in traditional employment. This includes equal access to minimum wage guarantees, vocational training, skill development programs, and collective bargaining rights. Such provisions reinforce the principle of parity and inclusivity within the labor framework, ensuring that remote workers are not disadvantaged due to the nature of their work arrangement.

Additionally, the New Labor Law introduces flexibility by allowing remote workers, through mutual agreement, to engage with multiple Foreign Entities or pursue self-employment alongside their primary role. This flexibility empowers workers to diversify their professional engagements while maintaining confidentiality and professional integrity.

Finally, to ensure transparency and enforceability, the New Labor Law mandates that remote work relationships be clearly defined through written contracts, whether in paper or electronic form. It also permits workers and Foreign Entities to substantiate their employment relationships through various legal means.

Challenges and Areas for Legal Development

1-Absence of Detailed Implementation Mechanisms:

The law currently lacks specific provisions on how remote work arrangements should be structured, monitored, and enforced. However, the New Labor Law entrusts the competent minister, in consultation with labor unions and employer organizations, with the responsibility of issuing executive decisions to regulate remote work formats. These decisions will include model contracts, guidelines for workplace policies, and mechanisms for securing rights and obligations. This regulatory roadmap is expected to be finalized within six months of the New Labor Law’s enactment, providing a comprehensive framework for operationalizing remote work in Egypt.

2- Strategic Implications for Legal Practice and Employment Policy

The formal recognition of remote work under the New Labor Law presents a range of strategic opportunities:

• For Egyptian Workers: The law provides a legal basis for engaging in remote work, including with Foreign Entities, thereby expanding access to global employment opportunities.
• For Foreign Entities: The law offers a framework for engaging Egyptian talent in a compliant manner, reducing legal uncertainty and fostering cross-border collaboration.

Conclusion

Egypt’s Labor Law No. 14 of 2025 represents a forward-looking legislative reform that embraces the realities of the digital labor market. By formally recognizing remote work, the law provides a legal foundation for structuring employment relationships that extend beyond national borders.

While the law’s current provisions are foundational, the forthcoming executive regulations will be critical in shaping the practical implementation of remote work in Egypt.