Many organisations in Egypt use external providers to meet part of their workforce needs: to staff a new site quickly, cover a seasonal peak, run a time-bound project or fill administrative roles while permanent hiring takes place. Done well, outsourcing gives flexibility without losing control of quality. Done carelessly, it can leave both the client and the provider exposed. This guide sets out the main business models, the regulatory points that are already clear under Egypt’s Labor Law No. 14 of 2025, and the questions to settle in writing before an arrangement starts.
Three arrangements that are often confused
“Outsourcing” is used loosely in the market, but the legal and practical consequences differ depending on what is actually being bought:
| Arrangement | What the client receives | Who typically directs the work |
|---|---|---|
| Recruitment and placement | Candidates who become the client’s own employees | The client, as employer |
| Service outsourcing | A defined service or result (for example facility support or a reception service) | The provider, against agreed service levels |
| Personnel supply | People made available to work at the client’s operation | Depends on the contract — this is where most ambiguity arises |
Because the regulatory treatment follows the substance of the arrangement rather than its label, the contract should describe accurately who employs the people, who supervises them and what the client is paying for.
What the new law says about placement
Labor Law No. 14 of 2025, in force since 1 September 2025, regulates employment placement (إلحاق العمالة) in Articles 40 to 43. As reported by the parliamentary news service Parlmany, the main points are:
- Placement of Egyptians for work in Egypt or abroad may be carried out by the competent ministry, by public bodies and companies for their own staff, or by licensed private employment agencies established as companies.
- Private agencies need a licence from the competent minister in addition to company-law requirements, with minimum capital of EGP 250,000 for domestic placement (EGP 500,000 where placement abroad is included), Egyptian majority ownership, and a guarantee of at least EGP 1 million.
- Licences run for one year and are renewable.
- Agencies may not charge workers for placement, except that private agencies may take up to 1% of the placed worker’s wage for the first year as administrative expenses. Any other charge to the worker is prohibited; fees are otherwise paid by the employer.
For clients, the practical takeaway is straightforward: if a provider is recruiting people who will become your employees, check that it holds the appropriate licence and that candidates are not being charged fees.
Points that still require legal confirmation
The detailed treatment of personnel-supply and contractor arrangements — including how responsibilities are shared between a client and a provider for wages, social insurance and working conditions — depends on the wording of the law, its implementing regulations and ministerial decisions. We have not summarised those provisions here because they should be read in the official text and applied to the specific structure with qualified legal advice. Organisations should not assume that rules from other countries, or from the previous law, apply unchanged.
Business considerations when outsourcing
Beyond legal structure, successful outsourcing depends on operational clarity:
- Scope and volumes: define roles, numbers, locations, shift patterns and the expected duration, including how changes are requested.
- Quality standards: agree selection criteria, onboarding steps, site rules and how performance is measured.
- Supervision and reporting: state who gives day-to-day instructions, how attendance is recorded and what reports the client receives.
- Health and safety: allocate responsibility for induction, protective equipment and incident reporting on the client’s premises.
- Continuity: set out replacement times when someone is absent or leaves, and the handover process at the end of the contract.
- Data and confidentiality: agree how personal data about workers is handled and what confidentiality obligations apply.
Questions to put to a prospective provider
- Which legal model do you propose for this requirement, and who will be the employer of record?
- Which licences or registrations do you hold that are relevant to this service?
- How do you register personnel with the National Organization for Social Insurance and evidence that contributions are paid?
- How are working hours, overtime and leave tracked and reported to us?
- What are your replacement times and escalation contacts?
- How do you handle health and safety induction for our sites?
Using technology to keep control
Outsourced and distributed teams are easier to manage when attendance and scheduling are visible to both parties. Mobile attendance and shift-scheduling tools give clients and providers a shared record of who worked where and when, which reduces disputes and supports accurate invoicing. HEXACOM supports workforce technology such as mobile attendance and Workeen AI scheduling alongside its employee outsourcing services.
Bottom line
Outsourcing can give organisations in Egypt valuable flexibility, provided the arrangement is structured deliberately and documented clearly. Start from what you actually need — people you will employ, a defined service, or additional capacity — and choose the model that fits, with legal advice on the provisions that apply. For broader context on the new framework, see our Employment & Compliance Resource Center.
