Article 139 of Labor Law No. 14 of 2025 allows only eight disciplinary penalties, from a written warning up to dismissal. They must be set out in the establishment's regulations and preceded by an investigation, and a deduction may not exceed five days' wage for a single violation.
Step by step
- 1
The eight penalties
A written warning, a deduction from basic wage, deferring the annual raise for up to three months, withholding up to half of it, deferring promotion for up to a year, cutting basic wage by up to one raise, demotion to the grade directly below without a pay cut, and dismissal.
- 2
Investigation first
Inform the worker in writing of the charge and hear his defense in a record kept in his file, starting within 7 days of discovering the violation and lasting no more than three months, extendable by three more if new facts or documents emerge. It may be oral for a warning or a deduction of up to one day's wage, under Article 141.
- 3
Deduction limits
A deduction may not exceed five days' wage for one violation, and no more than five days' wage may be deducted for penalties in a month, under Article 143.
- 4
Time limits and rules
One penalty per violation under Article 140, none imposed more than 30 days after the investigation ends under Article 138, and a heavier penalty is allowed for a repeat within a year under Article 144.
- 5
Who imposes penalties
Dismissal is for the labor court alone, other penalties are for the employer or his delegate, and the establishment's manager may impose a warning or a deduction of up to three days, under Article 148.
- 6
Register of financial penalties
Article 153 requires a register of financial penalties and a separate account for the proceeds, spent on the establishment's workers for social, cultural and sports purposes.
Deducting pay without an investigation or a reasoned decision is the most common disciplinary mistake, and breaching Articles 140 to 145 carries a fine of EGP 1,000 to 20,000 under Article 294.
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