Contract type first, then the multiplier

By Equipo Saplic Published on 12/08/2026 Updated on 12/08/2026

Two months or one, depending on which you had.

In this guide
  1. One: which contract type?
  2. Two: the multiplier
  3. Three: the notice
  4. Four: the procedure, if collective
  5. Five: your leave balance
  6. The contract copy
  7. If you resigned
  8. If something is wrong

Under Law 14 of 2025 the compensation depends on the contract type and the reason, so establish those before doing arithmetic.

One: which contract type?

  • Indefinite — the presumption, unless justified otherwise
  • Fixed-term — requires justification

Two: the multiplier

  • Indefinite terminated for illegitimate reason: not less than two months' wage per year of service, Article 165
  • Fixed-term terminated before expiry: one month's salary per year of service
  • Non-disciplinary termination such as redundancy or closure: two months' wages per year, with prior written notice

Three: the notice

Three months for indefinite contracts, regardless of service length — or compensation in lieu.

And check whether you received the Article 162 job-search entitlement: one day per week or eight hours weekly during the notice period.

Four: the procedure, if collective

Union consultation, committee application and approval must all be completed before individual termination notices issue.

If yours came first, the sequence was wrong.

Five: your leave balance

15 days in the first year, 21 from the second, 30 at ten years of service or age 50.

Plus any compensatory days recorded in your employment file.

The contract copy

You should have one of the four copies. It records your wage and start date, which are the two inputs to every calculation above.

If you resigned

You have ten days from the employer's acceptance to withdraw it, in writing and certified.

And if you resigned because the employer failed a fundamental obligation, the new law gives you that right explicitly, which is a different situation from an ordinary resignation.

If something is wrong

The labour courts now include enforcement offices and judges who can issue urgent orders. Fines for employer violations run EGP 5,000 to 20,000, doubling for repeat offences.

Frequently asked questions

What determines my compensation?
Contract type and the reason. Indefinite terminated illegitimately gives not less than two months’ wage per year; fixed-term terminated early gives one month per year.
What if my termination was for redundancy?
Non-disciplinary termination such as redundancy or closure requires prior written notice and two months’ wages per year of service.
Should I have received job-search time?
Yes, if the employer gave the notice. Article 162 provides one day per week or eight hours weekly during the notice period.
What if my notice came before the committee decided?
The sequence was wrong. Union consultation, committee application and approval must all complete before individual notices issue.
Can I withdraw my resignation?
Yes, within ten days of the employer’s acceptance, in writing and certified by the competent authority.

Sources

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