Across the Middle East, labour legislation is undergoing a quiet transformation. Economic diversification, demographic shifts, and global competition are prompting governments to rethink how they regulate work, manage talent, and protect workers’ rights. Among the most active reformers are Egypt and the United Arab Emirates—two nations modernizing their labour laws in pursuit of distinct national goals.
This article examines the recent legislative changes in Egypt and the UAE, not as opposing models, but as parallel responses to evolving economic imperatives. Each country is reshaping its workforce strategy to reflect its own priorities, challenges, and vision for the future.
Reform as a Response to Economic Vision
In both countries, labour law reform is deeply tied to economic vision and development agendas.. Egypt’s updates to its labour law No. 14 of 2025, are framed within the broader context of Egypt Vision 2030, a national development agenda aiming to stabilize the economy, reduce unemployment, and shift more workers into the formal economy. The state views legal reform as a lever for social cohesion and economic regularization.
The UAE Federal Decree-Law No. 33 of 2021, by contrast, operates from a position of relative wealth and global integration. Labour reforms here align with its ambition to become a hub for innovation, entrepreneurship, and high-skilled talent. The goal isn’t just to manage the workforce, but to attract the best of it. This requires flexibility, mobility, and clear, transparent legal structures. In both cases, labour law becomes more than regulation, it becomes a strategy.
Employment Contracts and Flexibility
Egypt, under the new Egyptian Labour Law No. 14 of 2025 retains the default model of indefinite-term contracts.. An employment contract is considered indefinite unless the parties agree in writing on a fixed term. The law also outlines special cases where an employment contract is deemed indefinite, including where the contract is unwritten, where no duration is specified, or where a fixed-term contract continues to be performed by both parties after its expiry without a renewed written agreement.
The new Egyptian Labour Law also recognizes new forms of employment, covering work performed in non-traditional ways, under the supervision of the employer, and in return for any form of remuneration. This includes arrangements such as remote work, part-time work, and flexible hours.
Employers now have greater freedom in structuring contracts, while still being held to stronger accountability in matters like termination and benefits. The shift reflects a desire to reduce informal arrangements and make employment terms more transparent.
In the UAE, with the introduction of Federal Decree-Law No. 33 of 2021, employment contracts must be structured as fixed-term agreements. However, the law grants parties the flexibility to determine the duration of the contract by mutual agreement, with the option to renew or extend it for a similar or shorter term.
With respect to different work types and arrangements, the Egyptian and UAE Labour Laws recognize diverse work arrangements, such as remote work, part-time employment, and flexible work. The UAE introduced these models under its 2021 legislation, whereas Egypt has only recently aligned with this approach through its newly enacted law.
Both countries embrace the same legal instrument but wield it for different purposes. In Egypt, it’s about control and stability, while in the UAE it’s about adaptability and competitiveness.
Worker Rights and Protections
Worker protection is a cornerstone of both laws, but the approach and emphasis diverge subtly.
The New Egyptian Labour Law explicitly prohibits harassment, bullying, and workplace violence. Employers are legally obligated to maintain a respectful and safe environment and adopt preventive measures. The UAE Labour Law includes parallel provisions, supported by enforcement mechanisms through the Ministry of Human Resources and Emiratisation (MOHRE).
Women and the Workforce
Gender equity is a shared priority, but the legislative tone differs. Egypt’s 2025 labour law introduces several notable improvements aimed at supporting working women, including extended maternity leave, formal recognition of parental leave, strengthened protections against dismissal during pregnancy or maternity leave, and the right to request flexible working arrangements during pregnancy and postpartum. The law also limits night shifts and overtime for pregnant employees without their consent. While these reforms represent meaningful progress, they are largely framed within a context that prioritizes social stability and the protection of traditional family structures, signalling a careful, incremental shift toward gender inclusion.
In contrast, the UAE’s model takes a more assertive and reform-driven approach. It expands the scope of shared parental leave, mandates equal pay for equal work across genders, and reinforces strict prohibitions on gender-based discrimination in all aspects of employment — including recruitment, promotions, training, and termination. The UAE also introduces corporate compliance mechanisms to monitor gender equality targets in the private sector, positioning gender inclusion as integral to its vision of a modern, globally competitive workforce.
While both countries demonstrate a commitment to improving gender equity in the workplace, Egypt’s reforms reflect a cautious, socially grounded progression, whereas the UAE’s legal changes convey a bold, policy-driven push toward full gender parity in line with international labour standards.
The Informal Economy vs. Global Talent
Here the divergence becomes more pronounced. Egypt’s labour market is dominated by informality. Nearly two-thirds of its workforce operates outside formal contracts, social insurance, or legal protection. The new labour law attempts to draw these workers into the formal sector by clarifying employment definitions, introducing different types of employment, simplifying contract requirements, and encouraging employer registration through incentives and enforcement.
The UAE faces a different reality. With one of the most formalized labour systems in the region, its focus is on attracting global talent, freelancers, remote workers, and tech specialists. Recent reforms introduced new visa categories, remote work permits, and flexible part-time options, all designed to make the UAE more appealing to digital nomads and knowledge workers.
Both countries are expanding the reach of their labour laws, but while Egypt looks inward to include the excluded, the UAE looks outward to welcome the exceptional.
Enforcement and Practical Realties
Of course, legal reforms do not end with legislation. Implementation is the true test, and both countries face different hurdles. In Egypt, enforcement under the old labour law was uneven. Many workers were unaware of their rights, and labour inspection bodies were often understaffed. The new labour law aims to change this reality, as it introduces specialised labour courts to establish clear, faster, and more consistent dispute resolution procedures. The new labour law also introduces alternative dispute resolution mechanisms to settle disputes between employers and employees without the need for litigation.
Given The UAE labour law has been in force longer, its enforcement is structurally stronger, supported by digital infrastructure, labour courts, and the Ministry of Human Resources’ complaint system, which offers mediation between parties. However, critiques persist, especially regarding the treatment of low-income, migrant labourers, where enforcement can be selective and outcomes vary depending on employer influence.
So while the letter of the law may be strong, the lived experience still depends on the capacity and will to enforce it.
Conclusion: Reform in Motion
Labour reform in Egypt and the UAE is not just a legal exercise. It is a negotiation between tradition and transformation, between economic necessity and human dignity.
Egypt’s new labour law reflects a country focused on structure and inclusion, attempting to bring a diverse and complex workforce under one legal umbrella. The UAE’s approach is more market-facing, aimed at flexibility, fairness, and competitiveness on a global scale.
Different motivations, different trajectories, but a shared recognition: that the future of work in the region must be more just, more transparent, and more adaptive. These reforms, while still maturing, mark a step in that direction.